HomeMy WebLinkAboutResolution 5114-06-2019 A Resolution
NO. 5114-06-2019
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE DESIGN
OF THE PHASE II ELECTRICAL IMPROVEMENTS AT THE VILLAGE CREEK
WATER RECLAMATION 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 Design Of The Phase II Electrical
Improvements At The Village Creek Water Reclamation 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 $1,040,000.00 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
ORT WORT
pursuant to this Statement more than three years after the date any
expenditure which is to be reimbursed is paid.
Adopted this 25th day of June 2019.
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Mary J. Kayser, Vi Seer tary A
ORT WORT
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FORT WORTH Village Creek Water Reclamation Facility (VCWRF) COPYRIGHT_'018CI YOFFORTWORTH
UNAUTHORIZED REPRODUCTION IS A VIOLATION OF APPLICABLE LAWS
THIS DATA ISTO BE USED FpR AGRAPHICAL REPRESENTATION ONLY.
ts TNE ACCURACY SNOT TO BE TAKEN lUSEDAS DATA PRODUCED FOR
Phase 2 Electrical Improvemen
ENGINEERING PURPOSES OR BY A REGISTERED PROFESSIONAL LAND
SURVEYOR THE CITY OF FORT WORTH ASSUMES NO RESPONSIBILITY
WATER FOR THE ACCU RACY OF SAID DATA.
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/25/2019 - Ordinance No. 23721-06-2019 8ti Resolution
No. 5114-06-2019
DATE: Tuesday, June 25, 2019 REFERENCE NO.: C-29185
LOG NAME: 60VCWRF PHASE II ELECTRICAL IMPROVEMENTS
SUBJECT:
Authorize Execution of an Engineering Agreement with Gupta and Associates, Inc. in the Amount of
$741,777.00 for the Design of the Phase II Electrical Improvements at the Village Creek Water
Reclamation Facility, Adopt Reimbursement Resolution 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 Water Reclamation Facility (VCWRF) Phase 11 Electrical
Improvements (CO2648); and
2. Adopt the Attached Appropriation Ordinance increasing estimated receipts and appropriations in the
Water and Sewer Commercial Paper Fund in the Amount of$941,777.00; and
3. Authorize execution of an Engineering Agreement with Gupta and Associates, Inc., in the amount of
$741,777.00, for the Design of Phase II Electrical Improvements at the Village Creek Water
Reclamation Facility (City Project No. CO2648).
DISCUSSION:
The City of Fort Worth owns and operates the Village Creek Water Reclamation Facility (VCWRF). The
VCWRF was originally constructed in the 1950s as a 5 million gallon per day (MGD) plant and expanded
in incremental steps over time to its present rating of 166 MGD. Electrical equipment and components
have been installed as the plant has expanded, with some equipment nearing 40 years in age.
On September 24, 2013 (M&C C-26477), the City Council authorized an engineering agreement with
National Field Services to conduct a power study. The scope of work included an electrical infrastructure
condition assessment that identified various electrical equipment and components recommended for
replacement and upgrade. On May 17, 2016 (M&C C-27720), the City Council authorized an engineering
agreement with Gupta and Associates, Inc., for the VCWRF Phase I Electrical Improvements, which
consisted of electrical improvements to the primary treatment area. On January 9, 2018 (M&C C-28536),
the City Council awarded a construction contract with Texsun Electrical Contractors, Inc. for the Phase 1,
and is currently under construction.
This VCWRF Phase II Electrical Improvements will include replacement and upgrade of electrical
equipment and infrastructure within the following areas: Return Sludge Pump Stations 1, 2, and 7; Service
Water Pump Station 2; Storm Drain Pump Station 2; and Chlorine Area. As part of this work, Gupta and
Associates, Inc. will develop plans and specifications and provide bidding assistance for the above
Logname: 60VCWRF PHASE II ELECTRICAL IMPROVEMENTS Page 1 of 3
identified fee. The City Staff considers this fee to be fair and reasonable for the scope of services
proposed.
In addition to the contract amount, $200,000.00 is required for project management and associated staff
time for the Water Department. This project is included in Water Department capital improvement plan,
with construction anticipated to start in FY 20, and an expected construction duration of 18 months. It is
anticipated that this project will not increase the operating budget for the VCWRF.
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 FY2018-2022 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 - Gupta and Associates is in compliance with the City's BDE Ordinance by committing to
25 percent SBE participation on this project. The City's goal on this project is 21 percent. Additionally,
Gupta and Associates is a certified M/WBE firm.
This project serves the entire city and is located in COUNCIL DISTRICT 5, Mapsco 90J.
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& Sewer Commercial Paper Fund
for the Design of Phase II Electrical Improvements at the Village Creek Water Reclamation Facility
Project. The Water and Sewer Commercial Paper Fund includes the 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 $24,567,697.00 for future Capital Projects. Funding for the Phase II Electrical Improvements at the
Village Creek Water Reclamation Facility Project is as depicted below:
FUND Existing Additional project Total*
Appropriations Appropriations
Water/Sewer
Bond 2016 - $612,800.00 $0.00 $612,800.00
Fund 56005
W&S Capital Proj
Logname: 60VCWRF PHASE II ELECTRICAL IMPROVEMENTS Page 2 of 3
2018 - Fund $11,475,000.00 $0.00 $11,475,000.00
56014
W&S Comercial
Paper - Fund $0.00 $941,777.00 $941,777.00
56016
Project Total 1$12,087,800.001 $941,777.00 1 $13,029,577.00
*Amounts rounded for presentation purposes.
FUND IDENTIFIERS (FIDs):
TO
Fund Department kccounj 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: Farida Goderya (8214)
Logname: 60VCWRF PHASE II ELECTRICAL IMPROVEMENTS Page 3 of 3