HomeMy WebLinkAboutResolution 5276-09-2020 A Resolution
NO. 5276-09-2020
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE VILLAGE
CREEK WATER RECLAMATION FACILITY PHASE II ELECTRICAL
IMPROVEMENT
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 Phase II Electrical Improvements (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 $12,500,000.00 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.
1
Adopted this 22°d day of September202O. F FOR)-
.........,
ATTEST:
By:'tot Ronald P.Goi SeP24,202010:11CDT) 1 IZ
Mary J. Kayser, City Secretary
.............
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City of Fort Worth,Texas
Mayor and Council Communication
DATE: 09/22/20 M&C FILE NUMBER: M&C 20-0699
LOG NAME: 60VCWRF PH ELECTRICAL—GUPTA AND WINSTONELEC
SUBJECT
(CD 5)Authorize Execution of Amendment No. 1 in the Amount of$235,325.00 to an Engineering Agreement with Gupta and Associates,Inc.for
Village Creek Water Reclamation Facility Phase II Electrical Improvements,Authorize Execution of a Contract with Winston Electric Inc.dba
ACME Electric in the Amount of$8,647,846.00 for Village Creek Water Reclamation Facility Phase II Electrical Improvements,Provide for Project
Costs for a Project Total Amount of$9,780,894.00,Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of
Future Debt,and Adopt Appropriation Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of Amendment No. 1 to City Secretary Contract No.52516,an engineering agreement with Gupta and Associates,
Inc.,in the amount of$235,325.00 for construction support services for the Village Creek Water Reclamation Facility Phase II Electrical
Improvements project for a revised contract amount of$977,102.00;
2. Authorize execution of a contract with Winston Electric Inc.dba ACME Electric in the amount of$8,647,846.00 for the Village Creek
Reclamation Facility Phase II Electrical Improvements;
3. Adopt the attached Resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Village Creek
Reclamation Facility Phase II Electrical Improvements;and
4. Adopt the attached Appropriation Ordinance adjusting appropriations in the Water and Sewer Commercial Paper fund by increasing
appropriations in the amount of$9,545,569.00 for the Village Creek Reclamation Facility Phase II Electrical Improvements project(City
Project No.CO2648)and decreasing appropriations in the UnSDecifed Project(City Project No.UNSPEC)by the same amount.
DISCUSSION:
The City of Fort Worth owns and operates the Village Creek Water Reclamation Facility(VCWRF),a 166 million gallons per day(MGD)plant,
comprised of primary,secondary and tertiary treatment,anaerobic digestion,chlorine disinfection and de-chlorination.
The VCWRF was originally constructed in the 1950's 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 over many years as the plant has expanded,with some
equipment close to 40 years in age.
On June 25,2019(M&C C-29185),the City Council authorized an engineering agreement with Gupta and Associates, Inc.(City Secretary
Contract No.52516),in the amount of$741,777.00,for the design of Phase II Electrical Improvements at VCWRF.
As part of Amendment No.1,the engineer will perform basic construction support services including shop drawings and submittals reviews,
change order review,record drawings and update plant operational preparation.
Construction of the project was advertised for bid on June 18 and 25,2020 in the Fort Worth Star Telegram.On July 30,2020 the following bids
were received:
Bidder Base Bid+Alternates Contract Time
Al and A2
Clark Electric,Inc.` $6,448,267.00
Winston Electric Inc.dba $g,647,846.00 655 Calendar
ACME Electric** Days
Facility Solutions Group, Inc. $9,200,600.00
`Clark Electric,Inc.was determined to be non-responsive to the contract documents due to failure to comply with the contract specifications.
*`Staff recommends award of contract to Winston Electric, Inc.dba ACME Electric.
In addition to the contract cost,$446,202.00 is required for project management and inspection and$216,196.00 is provided for project
contingency.
This project will have no impact on the Water Department operating budget when complete.
Funding for VCWRF Phase 11 Electrical Improvements is depicted below:
Fund Existing Additional Project Total'
Appropriations Appropriations
Water&Sewer
Bonds 2016-Fund $612,800.00 $0.00 $612,800.00
56005
W&S Capital Project $11,475,000.00 $0.00 $11,475,000.00
2018-Fund 56014
WS Capital Project $941,777.00 $0.00 $941,777.00
2019-Fund 56016
W&S Commercial $0.00 $9,545,569.00 $9,545,569.00
Paper-Fund 56019
Project Total $13,029,577.00 $9,545,569.00$22,575,146.00
'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 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&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.
M/ BE OFFICE:Winston Electric Inc.dba ACME Electrical Contractors is in compliance with the City's BDE Ordinance by committing to five
percent MBE participation on this project.The City's MBE goal on this project is five percent.
M/ BE OFFICE:Gupta&Associates,Inc.is in compliance with the City's BDE Ordinance by committing to 21 percent SBE participation on this
amendment.The City's SBE goal on this Amendment No. 1 is 20 percent.Additionally,Gupta&Associates, Inc.is a certified M/V1BE firm.
The project is located in COUNCIL DISTRICT 5 and serves all COUNCIL DISTRICTS.
F10k;AL.ImPORMATION/CERTIFICATION:
The Director of Finance certifies upon approval of the above recommendations and adoption of the attached appropriation ordinance,funds will
be available in the W&S Commercial Paper fund for the VCWRF Phase II Electrical Improvements project.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