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Home My WebLink AboutResolution 4982-09-2018 A Resolution NO. 4982-09-2018 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE VILLAGE CREEK WATER RECLAMATION GRIT REMOVAL FACILITY 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 Village Creek Water Reclamation Grit Removal Facility 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 $1,150,000.00 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 expenditure which is to be reimbursed is paid. Adopted this 18th day of Sep ber, 2018. T ��OR.... ATTEST: X S Mary Kayser, City re ary v ORT WORT N X s x 3 Village Creek Water Reclamation Facility (VCWRF) 7J T `" .. .. 3 iS Jul &N Mw tel: 9 � 'I' ,. ,•;i� � a it 4i •I r—. E - ;�;� 10 - 1 NKH ow i =its .i I.>! fi +► i�:'' iii! � ,. � � ° �� • -'1? . .i F . T40100 44, J� ------------ 00 e OP #Y'�A ; IL Feet 0300 600 FORTWORTH COPYRIGHT CIN OFFORTVJORH Village Creek Water Reclamation Facility (VCWRF) °"°❑T"DRIZEDREPR°°DDT'°NISAVIOLATIONOFAPPLIDABLE LAS1;5 THIS DATA ISTO BE USED FOR A GRAPHICAL REPRESENTATION ONLY THE ACCURACY IS NOT TO BETAKEN i UEDAS DATA.PRODUCED FOR Grit Removal Process ENGINEERING PURPOSES ORBYAREGISTEP.EDPROFESSIONALIJ,UD SURVEYOR.THE OF ASSUMES NO RESPOtISIBILITY WA FOR EACCURACY OF SAIDDATA City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 9/18/2018 - Resolution No. 4982-09-2018 and Ordinance No. 23402-09-2018 DATE: Tuesday, September 18, 2018 REFERENCE NO.: C-28857 LOG NAME: 60VCWRF GRIT REMOVAL-AMEND 01 SOUTH INFLUENT LS SUBJECT: Authorize Execution of Amendment No. 1 to City Secretary Contract No. 49049 with CDM Smith, Inc., in the Amount of$885,755.00 for the Process Evaluation and Engineering Design of the Grit Removal Process for the Influent Flows at the Village Creek Water Reclamation Facility and Provide for Additional Project Costs for a Revised Contract Amount in the amount of$1,035,755.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt 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 Debt for the Grit Removal Facility Project; 2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the Water and Sewer Commercial Paper Fund in the amount of$1,035,755.00 and reduce unallocated funds by the same amount; and 3. Authorize execution of Amendment No. 1 to City Secretary Contract No. 49049 with CDM Smith, Inc., in the amount of$885,755.00 for the process evaluation and engineering design of Grit Removal Facility for the Influent Flows at the Village Creek Water Reclamation Facility (CPN 100075). DISCUSSION: The City of Fort Worth owns and operates the Village Creek Water Reclamation Facility (VCWRF), a 166 million gallons per day (MGD) plant, comprised of primary, secondary and tertiary treatment, chlorine disinfection and de-chlorination. The 2-hour peak flow is rated at 369 MGD. The VCWRF produces anaerobically digested biosolids, which is further processed at the Biosolids Dewatering and Processing Facility, located two miles north of VCWRF main plant. On May 2, 2017, (M&C C-28213) the City Council authorized an engineering agreement with CDM Smith, Inc., (CSC No. 49049) to evaluate and design the grit removal process at the VCWRF. As part of this contract, a hydraulic evaluation was performed to determine the optimum wastewater flow conveyance configuration for the overall plant (west and south) inflows. Based on this evaluation, the recommendation is to construct a low head lift station and force main to direct the Village Creek Basin (south) flow to the existing headworks and screening facility, where it will be combined and consolidated with the West Fork Basin (west) flow, upstream of the proposed grit removal facility. This Amendment No. 1 includes the additional scope and fee to complete the detailed design, including Logname: 60VCWRF GRIT REMOVAL-AMEND 01 SOUTH INFLUENT LS Page 1 of 3 plans and specifications, for this new South Influent Lift Station and associated force main. CDM Smith, Inc., is proposing to perform the necessary design engineering work for the VCWRF South Influent Lift Station for a fee not to exceed $885,755.00. In addition to the contract amount, $150,000.00 is required for project management and associated Water Department staff time. These additional Engineering Services are anticipated to commence in November 2018, with a contract time of 12 months, it is estimated to be complete by December 2019. The construction of this South Influent Lift Station is anticipated to start in April 2020, with an estimated construction time of 18 months. The total amount for the Grit Removal Facility project is anticipated to be $30M. This project will have no impact on the Water Department's annual operating budget when completed. 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. 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 Statements, 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 other 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. M/WBE OFFICE - CDM Smith, Inc., is in compliance with the City's BDE Ordinance by committing to an additional 12 percent SBE participation on this Amendment No. 1. This project serves the entire City and is located in COUNCIL DISTRICT 5. 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 the Water and Sewer Commercial Paper Fund for the VCWRF Grit Removal Facility Project. The Water and Sewer Commercial Paper Fund includes authority of the $150,000,000.00 for the purpose of providing interim funding for Water and Sewer Capital Projects. After this transfer, the balance will be $115,045,010.00. Funding for the VCWRF Grit Removal Facility Project is depicted below: FUND Existing Additional Projectiations I3 Appropriations ApproprTotal* 2017A Water 8 I , Logname: 60VCWRF GRIT REMOVAL-AMEND 01 SOUTH INFLUENT LS Page 2 of 3 ISewer Bond Fund I 56011 $1,870,965� $0.00 $1,870,965.00 Water & Sewer _v A �.._ lCommercial Paper $0.00 $1,035,755.00 $1,035,755.00 Fund 56016 project Total $1,870,965.001 $1,035,755.00 $2,906,720.00 _ _ * Numbers rounded for presentation purposes. FUND IDENTIFIERS (FIDs): TO _ _ Fund Department ccoun Project Program ctivity Budget Reference # �Amoun ID ( ID Year (Chartfield 2 FROM Fund Department ccoun Project Program ct� Year�Bud _ Reference # moun ID ID _ (Chartfield 2) CERTIFICATIONS: Submitted for City Manager's Office by: Jay Chapa (5804) Originating Department Head: Chris Harder (5020) Additional Information Contact: Farida Goderya (8214) Logname: 60VCWRF GRIT REMOVAL-AMEND 01 SOUTH INFLUENT LS Page 3 of 3