HomeMy WebLinkAboutResolution 4975-09-2018 A Resolution
NO. 4975-09-2018
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE 5
MILLION GALLON LIQUID BIOSOLIDS CONCRETE STORAGE TANK
PROJECT
WHEREAS, the City of Fort Worth, Texas (the "City") is a home-rule
municipality and political subdivision of the State of Texas; and
WHEREAS, the City expects to pay expenditures in connection with the design,
planning, acquisition and construction for the 5 Million Gallon Liquid Biosolids
Concrete Storage Tank Project (the "Project") prior to the issuance of obligations by
the City in connection with the financing of the Project from available funds; and
WHEREAS, the City finds, considers, and declares that the
reimbursement of the City for the payment of such expenditures will be
appropriate and consistent with the lawful objectives of the City and,
as such, chooses to declare its intention, in accordance with the
provisions of Section 1.150-2 of the Treasury Regulations, to reimburse
itself for such payments at such time as it issues obligations to finance
the Project;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
Section 1. The City reasonably expects debt, as one or more series of
obligations, may be issued or incurred by the City with an aggregate maximum
principal amount not to exceed $7,800,000.00 for the purpose of paying the
aggregate costs of the Project.
Section 2. All costs to be reimbursed pursuant hereto will be capital
expenditures. No obligations will be issued by the City in furtherance of this
Statement after a date which is later than 18 months after the later of (1) the
date the expenditures are paid or (2) the date on which the property, with
respect to which such expenditures were made, is placed in service.
Section 3. The foregoing notwithstanding, no obligation will be issued
pursuant to this Statement more than three years after the date any
FoRTWORTH
Resolution No.4975-09-2018
expenditure which is to be reimbursed is paid.
Adopted this 11th day of September, 2018.
ATTEST: �QF FOR�,�
f V: :O
By:
Mary J. Kayser, CVy Secretary
CAS
FoRTWUTH
MAYOR AND COUNCIL COMMUNICATION MAP
06VCWRF 5MG LIQUIDE BIO SOILD STORAGE TANK
a'
« r
m
TRAMMEL`DAVIS RD)
:c
5MG liquid BioSolid Storage Tank Site ► ` � ''
K Z
"
Uj
IF
slim
.
�Y y� Y
"4 '� � � � � .mow 1 �a •N
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 9/11/2018 - Ordinance No. 23372-09-2018 & Resolution
No. 4975-09-2018
DATE: Tuesday, September 11, 2018 REFERENCE NO.: **C-28842
LOG NAME: 60VCWRF 5 MG LIQUID BIOSOILD STORAGE TANK
SUBJECT:
Authorize Execution of Amendment No. 2, in the amount of$361,720.00, to City Secretary Contract No.
47702 an Engineering Agreement with MWH Americas, Inc., n/k/a Stantec Consulting Services, Inc., for
Construction Services, Authorize Execution of a Construction Contract with Crescent Constructors, Inc., in
the Amount of$6,437,000.00 Each for the Construction of the 5 Million Gallon Liquid Biosolid Concrete
Storage Tank Project at the Village Creek Water Reclamation Facility, Adopt Resolution Expressing Official
Intent to Reimburse Expenditures with Proceeds of Future Debt, Provide for Project Management and Staff
Costs and Adopt Appropriation Ordinance (COUNCIL DISTRICT 5)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached Resolution expressing Official Intent to Reimburse Expenditures with Proceeds
of Future Enterprise Fund Debt for the construction of the 5 Million Gallon (MG) Liquid Biosolid-
Concrete Storage Tank Project;
2. Adopt the attached Appropriation Ordinance increasing appropriations in the Commercial Paper
Fund in amount of$7,352,720.00 for construction of the 5 MG Liquid Biosolid Concrete Storage
Tank Project;
3. Authorize execution of a construction contract with Crescent Constructors, Inc., in the amount of
$6,437,000.00 for construction of the 5 MG Liquid Biosolids Concrete Storage Tank Project at
Village Creek Water Reclamation Facility (City Project No. CO2669) and provide for additional staff
costs and contingencies;
4. Authorize execution of Amendment No. 2 to City Secretary Contract No. 47702, in the amount of
$361,720.00, an Engineering Services Agreement with MWH Americas, Inc., n/k/a Stantec
Consulting Services, Inc., for construction management services for the 5 MG Liquid Biosolids
Concrete Storage Tank Project at Village Creek Water Reclamation Facility (City Project No.
CO2669).
DISCUSSION:
The Village Creek Water Reclamation Facility (VCWRF) processes approximately 900,000 gallons of
anaerobically digested sludge daily at the Sludge Only Landfill (SOL). The sludge is pumped from the
VCWRF to the SOL and into two storage tanks which provide approximately 1.3 million gallons of storage
capacity. The liquid sludge is pumped from the tanks to six belt presses where water is removed and
Logname: 60VCWRF 5 MG LIQUID BIOSOILD STORAGE TANK Page I of 4
Class AB biosolids are created. The biosolids are loaded onto trucks at the SOL and transported to
Noticed Land Application Sites in seven counties around North Texas and then beneficially land-applied.
In October 2014, the Texas Commission on Environmental Quality (TECQ) amended the existing
regulations governing the land application of biosolids. TCEQ also implemented new criteria for long term
storage of biosolids at land application sites. TCEQ prohibits the land application of biosolids during wet
weather events.
Several approaches to meet the new regulations have been considered, such as developing approved
storage pads on TCEQ Noticed Land Application Sites. However, it was determined that the most
reasonable solution was the construction of a storage tank at the SOL to contain the anaerobically
digested liquid sludge until conditions are again suitable for land application. One 5 million gallon (MG)
tank is needed to provide approximately 6 days of storage. The tank can also be used for emergency
storage of liquid sludge in the event of power or equipment failure at the dewatering facility.
On March 29, 2016 (M&C C-27656), the City Council authorized an Engineering Agreement with MWH
Americas, Inc., n/k/a Stantec Consulting Services, Inc., (City Secretary Contract No. 47702) for
preparation of plans and specifications for construction of a 5 million gallon liquid biosolids storage tank.
On October 10, 2017 (M&C C-28425), Amendment No. 1 to City Secretary Contract No. 47702 was
authorized in the amount of$228,803.00 to assess the sludge pipeline condition and to design the
electrical and instrumentation component of the Ferric Chloride feed system.
As part of this Amendment No. 2, the Engineer will perform construction phase services, including review
and response to contractor requests for information (RFIs), review of contractor shop drawings and O&M
manuals and periodic visits to the construction site to observe construction work and progress.
This Project was Advertised on May 17, 2018 and May 24, 2018, in the Fort Worth Star-Telegram. On
June 21, 2018. the following bids were received.
BIDDER BID AMOUNT CONTRACT
Crescent Constructors, Inc. $6,437,000.00 __[540 Calendar Days
Eagle Construction, L.P. $6,754,000.00
}Gracon Construction, Inc. $6,754,125.00
Archer Western, Construction, LLC $6,911,125.00
Felix Construction Company $7,224,405.00
In addition to the contract cost $260,000.00 required for staff project management, inspection and
$294,000.00 for project change order and contingency for a total Construction Cost of$6,697,000.00.
This project is anticipated to be included in a future revenue bond issue for the Water and Sewer Fund.
Available cash within the Water and Sewer portfolio and the City's portfolio along with the appropriation
authority authorized under the Callable Commercial Paper Program (CP) will be used to provide interim
financing for this project until debt is issued. To the extent resources other than the Water and Sewer
portfolio are used to provide interim financing, the Water and Sewer Fund will be charged interest that is
equivalent to the overall rate of return being earned by the City portfolio (currently approximately one-
percent annually). Should the City's portfolio not support the liquidity needed to provide an interim short-
term financing source, another funding source will be required, which could mean issuance of securities
under the CP Program or earlier issuance of Water and Sewer revenue bonds than is currently planned.
Logname: 60VCWRF 5 MG LIQUID BIOSOILD STORAGE TANK Page 2 of 4
Once debt associated with this project is sold, bond proceeds will be used to reimburse the Water and
Sewer portfolio and the City's portfolio in accordance with the attached Reimbursement Resolution.
The City Council adopted the Water Department's Fiscal Year 2018-2022 Five Year Capital Improvement
Plan on September 26, 2017. This City Council adopted plan includes this specific project, with funding
identified through the CP program to be reimbursed with future revenue bonds. In accordance with the
provisions of the Financial Management Policy Statement, Staff anticipates presenting revenue-supported
debt issuances to the City Council for consideration within the next three years. This debt must be issued
within approximately three years to provide reimbursement for these expenses. If that does not occur, the
costs will no longer be reimbursable by issuing tax-exempt debt and the funding source will have to be
made whole through budgetary methods. Adoption of this resolution does not obligate the City to sell
bonds, but preserves the ability to reimburse the City from tax-exempt bond proceeds.
Construction is anticipated to commence in November 2018, with a contract time of 540 calendar days.
The construction is estimated to be completed by end June 2020.
M/WBE OFFICE: Crescent Constructors, Inc., is in compliance with the City's DBE Ordinance by
committing to nine percent MBE participation and documenting good faith effort. Crescent Constructors,
Inc. identified several subcontracting and supplier opportunities. However, the firms contacted in the areas
identified did not respond or did not submit the lowest bids. The City's MBE goal on this project is 25
percent.
M/WBE OFFICE: Stantec Engineering Services, Inc. is in compliance with the City's BDE Ordinance by
committing to 17 percent SBE participation on this Amendment No. 2. The City's goal on this Amendment
is 17 percent.
This project will have no impact on the Water Department's annual operating budget when completed.
This project is located in COUNCIL DISTRICT 5, but this facility serves all of the Fort Worth area.
FISCAL INFORMATION /CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption of the
attached appropriation ordinance, funds will be available in Water& Sewer Commercial Paper Fund for
the VCWRF Liquid Biosolids Concrete Storage Project. The Water and Sewer Commercial Paper Fund
includes authority of$150,000,000 for the purpose of providing interim funding for Water and Sewer
Capital Project. After this transfer, the balance will be $126,760,765.00 for future capital projects. Funding
for the VCWRF Liquid Biosolids Concrete Storage Project, funding is as depicted below:
FUND Existing Additional Project Total*
Appropriations Appropriations
Water &
Sewer 2016 $2,510,000.00 $0.00 $2,510,000.00
Bond Fund
56005
Water &
Sewer
Commercial $0.00 $7352,720.00 $7,352,720.00
Paper Fund
56016
Project Total $2,510,000.00($7,352,720.00 $9,862,720.00
Logname: 60VCWRF 5 MG LIQUID BIOSOILD STORAGE TANK Page 3 of 4
*Rounded for presentation purposes.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year Chartfield 2
FROM
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Chris Harder (5020)
Additional Information Contact: Seiavash Mir (8404)
Logname: 60VCWRF 5 MG LIQUID BIOSOILD STORAGE TANK Page 4 of 4