HomeMy WebLinkAboutResolution 5278-09-2020 A Resolution
NO. 5278-09-2020
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR VILLAGE CREEK
WATER RECLAMATION FACILITY DIGESTER IMPROVEMENTS
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 Digester Improvements 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 $1,300,000.00 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 22nd day of September 2020.
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City of Fort Worth,Texas
Mayor and Council Communication
DATE: 09/22/20 M&C FILE NUMBER: M&C 20-0701
LOG NAME: 60VCWRF DIGESTER MIXING-FLARE-DOME IMPROVEMENTS—HAZENS
SUBJECT
(CD 5)Authorize Execution of an Engineering Agreement with Hazen and Sawyer, Inc.in the Amount of$920,150.00 for the Evaluation and
Design of Improvements to the Digesters at the Village Creek Water Reclamation Facility, Provide for Additional Project Costs for a Total of
$1,020,150.00,Adopt a 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 execution of an Engineering Agreement with Hazen and Sawyer, Inc.in the amount of$920,150.00 for the evaluation and design of
improvements to the digesters at the Village Creek Water Reclamation Facility;
2. Adopt the attached Resolution expressing official intent to reimburse expenditures with proceeds of future debt for Village Creek Water
Reclamation Facility Mixing, Flare,and Dome Improvements Project;and
3. Adopt the attached Appropriation Ordinance adjusting receipts and appropriations in the Water and Sewer Commercial Paper Fund by
decreasing appropriations in the Unspecified project(City Project No. UNSPEC)in the amount of$1,020,150.00 and increasing
appropriations in the Village Creek Water Reclamation Facility Digester Improvements project by the same amount(City Project No.
102652).
DISCUSSION:
Biosolids produced at Village Creek Water Reclamation Facility(VCWRF)are thickened and anaerobically digested prior to being pumped to the
City's Biosolids Management and Beneficial Reuse Facility.Anaerobic digestion is used by VCWRF to meet regulatory requirements for sludge
stabilization.This project will address evaluations and necessary improvements identified by plant staff and recommended in previous studies.
Hazen and Sawyer, Inc.will provide the following services on the project:Evaluation of mixing technologies for eight digesters that will minimize
solids settling and improve digester gas product;options for expanding digester gas flare capacity;condition assessment of the digester domes,
seals,and brick facades;compliance with occupational and electric safety codes and design for identified improvements.Evaluation of the cause
of Digester 2 heat loss;possible reduction of hydrogen sulfide concentrations in digester gas and replacement of the existing digester gas dryers
for future projects. Design for the replacement of deteriorated foam insulation and corroded gas draw off piping on all of the digesters; installation
of digester mixing systems and modifications/repairs to digester dome covers,expansion of digester gas flare system,and digester area safety
improvements.
In addition to the contract amount,$100,000.00 is required for project management.
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.
Appropriations for Digester Mixing, Flare,and Dome Improvements project,are as depicted below:
Existing Additional
Fund Project Total*
Appropriations Appropriations
W&S Commercial 1 $0.00 $1,020,150.00 $1,020 150.00
Paper Fund 56019
IlProjectTotal il $0.001 $1,020,150.00$1,020,150.00��
*Numbers rounded for presentation.
M/WBE OFFICE: Hazen and Sawyer, Inc.is in compliance with the City's BDE Ordinance by committing to 32 percent SBE participation on this
project.The City's SBE goal on this project is 10 percent.
The project is located in COUNCIL DISTRICT 5.
FISCAL INFORMATION/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 Digester Improvements project to support the approval of the above recommendation
and execution of the engineering agreement.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: Suzanne Abbe 8209