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HomeMy WebLinkAboutOrdinance 24434-09-2020 Ordinance No. 24434-09-2020 AN ORDINANCE ADJUSTING APPROPRIATIONS IN THE WATER AND SEWER COMMERCIAL PAPER FUND BY INCREASING APPROPRIATIONS IN THE VILLAGE CREEK WATER RECLAMATION FACILITY DIGESTER IMPROVEMENTS PROJECT IN THE AMOUNT OF $1,020,150.00, AND BY DECREASING APPROPRIATIONS IN THE UNSPECIFIED PROJECT BY THE SAME AMOUNT; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That in addition to those amounts allocated to the various City departments for Fiscal Year 2019-2020 in the Budget of the City Manager, there shall also be adjusted appropriations in the Water and Sewer Commercial Paper Fund by increasing appropriations in the Village Creek Water Reclamation Facility Digester Improvements project in the amount of$1,020,150.00 and by decreasing appropriations in the Unspecified project by the same amount. SECTION 2. That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance 23835-09-2019 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: °.ram far RosraCr7�. tia�cierr Mnk(Sep 29.20201T:57 CDT; 0 Ronald P.Gonzales(Sep 10,202008:44 CDT) Douglas W Black Mary J. Kayser Sr Assistant City Attorney City Secretary oF.FoRr ADOPTED AND EFFECTIVE: September 22, 2020 -11 C) �XqS. C+ :Cii I - 1 VCWRF Digester Area 1GRFFI�OAKS {3REEN OAKS - r AMP Lv EJU -t . 8/13/2020 FORT WORTH COPYRIGHT 2W0 CITYOF FORT WORTH 60VCWR MIXING-FLARE-DOME UNAl1THOR FEC RFPRODUCTION IS A VIOLATION OF APPLIf,ABLE LAWS ♦T 1HIS DATA IS TV USED FOR AGRAPHICAL REPRESENTATION ONLY. IMPROVEMENTS- DESIGN WATER THE ACCURACY IS NOT M BETAKEN?USFDAS DATA PRODUCED FOR ENC:INFFRINI;PURPOSES OR RY A R-lFTEREC PROFESSIONAL LAND SURVEYOR THE CITY OF FORT M)RTH ASSUMES NO P.ESPONSIH«RY O 110 260 560 FOR TNEACCURACYOF SAID DATA Feet 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* JI.Ap I Appropriations W&S Commercial $0.00 $1,020,150.00$1,020,150.00 Paper-Fund 56019 Project Total $0.001 $1,020,150.00]$1,020,150.001� *Numbers rounded for presentation. M/ BE 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