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Home My WebLink AboutResolution 5272-09-2020 A Resolution NO. 5272-09-2020 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE VILLAGE CREEK WATER RECLAMATION FACILITY GRIT FACILITY & SOUTH INFLUENT PUMP STATION AND THICKENING PROCESS IMPROVEMENTS PROJECTS 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 Grit Facility & South Influent Pump Station and Thickening Process Improvements Projects (the "Projects") prior to the issuance of obligations by the City in connection with the financing of the Projects 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 Projects; 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 $1,650,000.00 for the purpose of paying the aggregate costs of the Projects. Section 2. All costs to be reimbursed pursuant hereto will be capital expenditures. No obligations will be issued by the City in furtherance of this Statement after a date which is later than 18 months after the later of(1) the date the expenditures are paid or (2) the date on which the property, with respect to which such expenditures were made, is placed in service. Section 3. The foregoing notwithstanding, no obligation will be issued pursuant to this Statement more than three years after the date any expenditure which is to be reimbursed is paid. Adopted this 15t1 day of September 2020. ATTEST: 4 pF14, FD y Mary J. Kayser, City Secretary VILLAGE CREEK TE RECLAMATION y, 1 gem MWEI OEM Me r:s y �'�► ' ` ,► . :, is Via * milk - 0XA ,r U. AIR W ., 1DOW ff ON. ' ► 1fA - , r w iiNINO oil � + �r VIA mail I III i3fiRm"INIT, Rig c�!l Ire l l f l j by l � s ilallil a' if�� lit -,Nw !' � ""`¢sir Vol# •s *Now, Row rim ft bit M �� . . !M5 �N�'•! '�� '�.aye'�1 +Ilr�`�'�IKtMI �,� < �:. ��r�''`��!'�� JtAW rA •'ram � .y� '�'A4+��i1�!`t�l41�'!�`!1! �Il�'��air,c ,� � ''�,'4��`' �� P � +• llll ll� f Si l '$! l�li ii �- `` ,,,, �. 1' '' 11 '. r 'A*W% i FORT • • •• x ;54 u$1tirwe4$�Q � ,•1 �r•• xA� �0 •lei. .•. �� ,�,� �� ;�� .� rs ilrllle 'fmr-W �®In erw:a�u ;erlwl€ 1l.e,w rea .. ,. ,.•. �S�y� �,G�;� �,,y ,� Rf/)C�! /+t il4 felF� „�sr �v •�"„� sxs i:r y �-}��.�:�'� - �.ydG�e �' 1 1 City of Fort Worth,Texas Mayor and Council Communication DATE: 09/15/20 M&C FILE NUMBER: M&C 20-0673 LOG NAME: 60VCWRF GRIT AND THICKENING RPR-FNI SUBJECT (CD 5)Authorize Execution of a Professional Services Agreement with Freese and Nichols, Inc.,in the Amount of$1,117,000.00,for Resident Engineering and Construction Inspection Services for the Village Creek Water Reclamation Facility Grit Facility&South Influent Pump Station and the Thickening Process Improvements Projects Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt,and Adopt Appropriation Ordinances RECOMMENDATION: It is recommended that the City Council: 1. Authorize execution of a professional services agreement with Freese and Nichols,Inc.,in the amount of$1,117,000.00 for resident engineering and construction inspection services for two projects:Village Creek Water Reclamation Facility Grit Facility&South Influent Pump Station in the amount of$550,172.00 and Village Creek Water Reclamation FacilityThickening Process Improvements in the amount of$566,828.00; 2. Adopt the attached Resolution Expressing Official Intent to reimburse expenditures with proceeds from future debt for the Village Creek Water Reclamation Facility and Thickening Process Improvements projects; 3. Adopt the attached Appropriation Ordinance adjusting appropriations in the Water&Sewer Commercial Paper fund by increasing appropriations in the Village Creek Water Reclamation Facility Grit Facility&South Influent Pump Station project(City Project No. 100075)in the amount of$620,172.00 and decreasing appropriations in the Unspecified project by the same amount;and 4. Adopt the attached Appropriation Ordinance adjusting appropriations in the Water&Sewer Commercial Paper Fund by increasing appropriations in the Village Creek Water Reclamation Facility Thickening Process Improvements project(City Project No.CO2647)in the amount of$636,828.00 and decreasing appropriations in the Unspecified project(City Project No. UNSPEC)by the same amount. DISCUSSION: The Village Creek Water Reclamation Facility(VCWRF)is a 166 million gallons per day(MGD)plant,comprised of primary,secondary and tertiary treatment,chlorine disinfection and de-chlorination.The VCWRF produces anaerobically digested biosolids,processed at the Biosolids Dewatering and Processing Facility. On May 19,2020 Mayor and Council Communication(M&C)20-0346,the City Council authorized a construction contract with Crescent Constructors, Inc. (City Secretary No.(CS No.)54099),and Engineering Amendment No.4 to CS No.49049 with CDM Smith,Inc.,for the VCWRF grit removal project.On June 23,2020(M&C 20-0464),the City Council authorized a construction contract with Eagle Contracting,LP (CS No.54148),and Amendment No. 1 to CS No.49500 with Freese&Nichols,Inc.for the VCWRF sludge thickening improvements project. As both of these large contracts are starting construction at approximately the same time,with a third construction project(South Influent Lift Station)to follow at the treatment plant,it was decided to combine the resident engineering Ad construction inspection of these projects into one contract for overall inspection control and project efficiencies.A Request for Qualification(RFQ)for the three construction projects was requested from interested engineering firms in April 2020,and Freese&Nichols, Inc.("FNI")was selected. As part of this contract, FNI will perform construction inspection services,by providing a part time Resident Engineer(RE)and full time Resident Project Representative(RPR)for two of the three construction projects as the third project has not been advertised for bid.The agreement is expected to be amended in the future to include the third project. In addition to the contract cost,$140,000.00(City Project No. 100075:$70,000.00;City Project No.CO2647:$70,000.00)is required for project management and inspection by City staff. Funding for the VCWRF Grit Facility&South Influent Pump Station and VCWRF Thickening Process Improvements projects are depicted respectively below: Existing Additional Fund Appropriations Appropriations Project Total* Water&Sewer Bond $1,870,965.00 $0.00 $1,870,965.00 2017A Fund 56011 WS Capital Project $11035,755.00 $0.00 $1,035,755.00 2019 Fund 56016 Water&Sewer Bond $27 552,151.00 $0.00$27,552,151.00 2020A-Fund 56017 W&S Commercial $0.00 $620,172.00 $620,172.00 Paper-Fund 56019 Project Total $30,458,871.00 $620,172.00$31,079,043.00 Fund Existing Additional Project Total* _ Appropriations JAppropriations Water&Sewer Bond $315,113.00 $0.00 $315,113.00 2015A-Fund 56007 IL_ Water&Sewer Bond $2 109,500.00 $0.00 $2,109,500.00 2017A-Fund 56011 _ W&S Commercial $19,146,407.00 $636,828.00$19,783,235.00 Paper-Fund 56019 Project Total $21,571,020.00 $636,828.00$22,207,848.00 *Numbers rounded for presentation purposes. This project is anticipated to be included in a future revenue bond issue for the Water&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 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&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.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. MWBE OFFICE: Freese and Nichols, Inc.,is in compliance with the City's BDE Ordinance by committing to 13 percent SBE participation on this project.The City's goal on this project is 13 percent. The projects are located in COUNCIL DISTRICT 5 and serves ALL COUNCIL DISTRICTS. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies upon approval of the above recommendations and adoption of the attached appropriation ordinances,funds will be available in the W&S Commercial Paper fund for the VCWRF VCWRF Grit Fac&S Influent PS and the VCWRF Thickener Process Improv projects to support the execution of the professional services contract.Prior to an expenditure being incurred,the Water Department has the responsibility of verifying the availability of funds. Submitted for City Manager's Office by: Dana Burghdoff 8018 Originating Business Unit Head: Chris Harder 5020 Additional Information Contact: Farida Goderya 8214