HomeMy WebLinkAboutResolution 5245-06-2020 A Resolution
NO. 5245-06-2020
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR VILLAGE CREEK
WATER RECLAMANTION FACILITY BIOSOLIDS MANAGEMENT & REUSE
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
Facility Biosolids Management & Reuse 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, THAT:
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 $930,000.00 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 23rd day of June 2020. Irv" wK,r
ATTEST:
By:
---------------------
Mary J. Kayser, City Secretary
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City of Fort Worth,Texas
Mayor and Council Communication
DATE: 06/23/20 M&C FILE NUMBER: M&C 20-0463
LOG NAME: 60VCWRF MASTER PLAN UPDATE AMEND 3
SUBJECT
Authorize the Execution of Amendment No.3 in the Amount of$539,620.00 to an Engineering Agreement with CH2M Hill Engineers, Inc.,for the
Village Creek Biosolids Management and Beneficial Reuse Facility Project Owner On-site Representation,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:
1. Authorize the execution of Amendment No.3 to City Secretary Contract No.50018,an Engineering Agreement with CH2M Hill Engineers,
Inc.in the Amount of$539,620.00,for a revised contract amount of$1,145,199.00,for the Village Creek Biosolids Management and
Beneficial Reuse Facility Project Owner On-site Representation (City Project No. 101961);
2. 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
3. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the Water and Sewer Bond 2020A Fund,
from available funds, in the amount of$715,000.00 for the Village Creek Biosolids Management and Beneficial Reuse Facility Project.
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.Amendment No. 1, in the amount of
$77,296.00,was administratively authorized on September 4,2018,for additional wastewater solids process modeling work,long-term growth
projections and additional alternatives analysis,as well as the preparation of an engineering feasibility report submitted to the Texas Water
Development Board (TWDB)as part of a Clean Water State Revolving Fund (CWSRF) Loan application.Amendment No.2, in the amount of
$245,461.00,was approved on February 12,2019 (M&C C-29039)to develop the Request for Qualifications(RFQ)and Request for Proposals
(RFP)as part of the procurement process for a design-build-operate contract for biosolids management project and responding to requests for
information(RFIs)during the procurement process,for providing technical analysis and recommendations during the evaluation of vendor
submittals and during the negotiation of the agreement.
On December 10,2019(M&C 19-0381),the City Council authorized Design-Build-Operate-Maintain Services with Synagro of Texas-CDR, Inc.,
for the Village Creek Water Reclamation Facility Biosolids Management and Beneficial Reuse Project including the Design-Build cost of
$58,001,558.00 for the construction of the new dryer facility.With construction to start in the near future,the City will require the use of
this engineering firm to provide inspection,construction materials and testing,equipment testing and construction administration. CH2M Hill
Engineers,Inc.,will provide these services as part of Amendment No.3 for a fee not to exceed$539,620.00.
In addition to the contract amount,$50,000.00 is required for contingency allowance and$125,380.00 is required for project management and
associated Water Department staff time.
Funding for the Village Creek Water Reclamation Facility Biosolids Management&Reuse project is as depicted in the table below:
Fund 7�Existing Additional Project Total*
Appropriations Appropriations
WS Capital Project $245,461.00 $0.00 $245,461.00
2019 Fund 56016
WS Capital Project
2020 Fund 56018 �F$60,000,000.00 $0.00 $60,000,000.00
W&S Commercial j$0.00 $715,000.00 $715,000.00
Paper Fund 56017
Project Total $60,245,461.00 $715,000.00 $60,960,461.00
*Numbers rounded for presentation purposes.
This project will have no impact on the Water Department's annual operating budget when completed.
This project is included in a pending revenue bond issue for the Water&Sewer Fund.The Water and Sewer System has a Council-authorized
system to allow it to initiate capital projects that will ultimately be bond funded, using available cash within the Water and Sewer portfolio and the
City's portfolio, along with the authority under the Callable Commercial Paper Program(CP)to provide interim financing for this project until the
debt is issued.To the extent resources other than the Water and Sewer portfolio are used to provide interim financing,the Water&Sewer Fund will
be charged interest that is equivalent to the overall rate of return being earned by the City portfolio(currently approximately 2.3 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 approved the Water Department's Fiscal Year 2020-2024 Five-Year Capital Improvement Plan on September 17,2019.This City
Council approved plan includes this specific project,with funding identified through the CP program to be reimbursed with future revenue bonds.
Debt must be issued within approximately three years of an expense being incurred in order to provide reimbursement. If that does not occur,costs
are no longer reimbursable by issuing tax-exempt debt,and the funding source must be made whole through budgetary methods.Adoption of a
reimbursement resolution does not obligate the City to sell bonds but preserves the ability to reimburse the City from tax-exempt bond proceeds.
In this case, because the bonds that will provide the ultimate funding have already been authorized and sold(with a total interest cost(TIC)of
1.89%)but the closing has not yet occurred,what had been the Water&Sewer Commercial Paper Fund (56017)has already been renamed to
reflect the bond sale.
M/WBE OFFICE: CH2M Hill Engineers, Inc., is in compliance with the City's BDE Ordinance by committing to eight percent SBE participation on
amendment No.3 on this project.The City's SBE goal on Amendment No.3 on this project is eight percent.
This Project serves the entire City and is located in COUNCIL DISTRICT 5.
A Form 1295 is not required because: This contract will be with a publicly-traded business entity or a wholly-owned subsidiary of a publicly-traded
business entity:CH2M Hill Engineers,Inc.
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 Bond 2020A Fund for the engineering services for the future growth at the Village Creek Water
Reclamation Facility Biosolids Management&Reuse project. Prior to any expenditure being incurred,the Water Department has the responsibility
to validate the availability of funds.
Submitted for City Manager's Office by: Dana Burghdoff 8018
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact. David Townsend 8430