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Home My WebLink AboutResolution 5048-02-2019A Resolution NO. 5048-02-2019 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE VILLAGE CREEK BIOSOLIDS MANAGEMENT AND BENEFICIAL REUSE 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 Biosolids Management and Beneficial Reuse 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 $400,000.00 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. ORT WO TR�1 11M Resolution No. 5048-02-2019 Adopted this 12" day of February 2019. ATTEST: L -In Mary J. KayseY, City/ Secretary LTt,��.' ORT WDM kAl - --� rr.,a"r� �: 'any � a �w Biosolids Dewatering M&and Processing Facility 10/17/2017 FORT WORTH WATER 47 N LL Lh LA iv �-I c Village Creek Water Reclamation Facility 1 im VAN 1.. �0 , d .4 60VCWRF MASTER PLAN UPDATE AMEND2 J City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 2/1212019 - Ordinance No; 23573-02-2019 $ Resolut10n No. 5048-02-2019 DATE: Tuesday, February 12, 2019 REFERENCE NO.: **C-29039 LOG NAME: 60VCWRF MASTER PLAN UPDATE AMEND 2 SUBJECT: Authorize Execution of Amendment No. 2 to City Secretary Contract No. 50018, an Engineering Agreement with CH2M Hill Engineers, Inc., in the Amount of $245,461.00, for a Revised Contract Amount of $605,579.00, for the Village Creek Biosolids Management and Beneficial Reuse Facility Project Update, 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 Village Creek Biosolids Management and Beneficial Reuse Facility Project; and 2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the Water & Sewer Commercial Paper Fund in the amount of $245,461.00; and 3. Authorize the execution of Amendment No. 2 in the amount of $245,461.00 to City Secretary Contract No. 50018, an engineering agreement with CH2M Hill Engineers, Inc., for a revised contract amount of $605,579.00, for the Village Creek Biosolids Management and Beneficial Reuse Facility Project Update (City Project No. 101961). DISCUSSION: On November 14, 2017 (M&C C-28475), the City Council authorized an Engineering Agreement in the amount of $282,822.00 with CH2M Hill Engineers, Inc., for the Village Creek Biosolids Management and Beneficial Reuse Facility Project Update. The agreement was subsequently revised by Amendment No. 1, in the amount of $77,296.00, administratively authorized on September 4, 2018, which consisted of additional wastewater solids process modeling work, long-term growth projections and additional alternatives analysis, as well as the preparation of an engineering feasibility report, to be submitted to the Texas Neater Development Board as part of a Clean Water State Revolving Fund Loan application. Amendment No. 2 will consist of the work to develop both a request for qualifications (RFQ) and request for proposals (RFP) as part of a two-step procurement process for a design -build -operate contract for biosolids management for the Village Creek Water Reclamation Facility. The work also consists of responding to requests for information during the procurement process, for providing technical analysis and recommendations during the evaluation of vendor submittals and during the negotiation of the agreement. CH2M Hill Engineers, Inc., will provide these additional services for a not to exceed fee of $245,461.00. Staff considers the proposed fee to be fair and reasonable for the scope of services Logname: 60VCWRF MASTER PLAN UPDATE AMEND 2 Page 1 of 3 proposed. 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 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. The overall project budget for the Village Creek Biosolids Management and Beneficial Reuse Facility Project is $78,500,000.00. The procurement of a design -build -operate team is expected to be completed in July, 2019 with construction anticipated to be completed in the fall of 2022. MWBE OFFICE: A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Department and approved by the M/WBE office, in accordance with the M/WBE or BDE Ordinance, because the purchase of goods and services from sources(s) where subcontracting or supplier opportunities are negligible. This project is located in COUNCIL DISTRICT 5, but provides services to the all of the City of Fort Worth. This contract will be with a Publicly Traded Entity and a 1295 form is not required by law. 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 Village Creek Biosolids Management and Beneficial Reuse Facility Project. The Water and Sewer Commercial Paper Fund includes authority of $150,000,000.00 for the purpose of providing interim funding for Water and Sewer Capital Projects. After this transfer, the balance will be $80,722,327.00 for future capital projects. Funding for the Village Creek Biosolids Management and Beneficial Reuse Facility Project is as depicted below: FUND Existing Additional Project _ _Appropriations Appropriations Total* Water &Sewer Commercial �� Paper Fund 56016 , $0.00 F$245,461.00 45,461.00 Project Total$0.00 $245,461.00 1 $245,461.00 Logname: 60VCWRF MASTER PLAN UPDATE AMEND 2 Page 2 of 3 * Numbers rounded for presentation purposes. FUND IDENTIFIERS (FIDs): TO Fund Department ccoun Project Program ctivity Budget Reference # moun ID ID I Year Chartfield 2 and Department ccoun Project ID ID CERTIFICATIONS: Submitted for City Manager's OfficebX. Originating Department Head: Additional Information Contact: rami ctivityl Budget I Reference # Year (Chartfield 21, Jay Chapa (5804) Chris Harder (5020) David Townsend (8430) Logname: 60VCWRF MASTER PLAN UPDATE AMEND 2 Page 3 of 3