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Home My WebLink AboutOrdinance 23573-02-2019Ordinance No. 23573-02-2019 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE WATER AND SEWER COMMERCIAL PAPER FUND, FROM AVAILABLE FUNDS IN THE AMOUNT OF $245,461.00, FOR THE PURPOSE OF FUNDING THE VILLAGE CREEK BIOSOLIDS MANAGEMENT AND BENEFICIAL REUSE FACILITY PROJECT; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUSMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECSTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1 That in addition to those amounts allocated to the various City departments for Fiscal Year 2018-2019 in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Water and Sewer Commercial Paper Fund in the amount of $245,461.00, from available funds, for the Village Creek Biosolids Management and Beneficial Reuse Facility Project. SECTION 2. That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion orjudgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance 23392-09-2018 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: Doug as Black Sr Assistant City Attorney ADOPTED AND EFFECTIVE: February 12, 2019 CITY SECRET/Y ary J. r 10/17/2017 �\ FoRTWORT11 60VCWRF MASTER PLAN UPDATE AMEND2 N WATER City of Fort worth, Texas Mayor and Council Communication 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 Water 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: Existing Additional Project FUND Appropriations Appropriations Total* Water &Sewer Commercial 461.00 Paper Fund 56016 $0.00 $245, $245,461.00 Project Total $245,461.00 $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 Year Chartfield 2 nd Department ccoun Project ID ID CERTIFICATIONS: Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: Budget Reference # moun Year (Chartfield 2) Jay Chapa (5804) Chris Harder (5020) David Townsend (8430) Logname: 60VCWRF MASTER PLAN UPDATE AMEND 2 Page 3 of 3