HomeMy WebLinkAboutResolution 5406-06-2021 A Resolution
NO. 5406-06-2021
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE 3RD BARREL
PARALLEL SANITARY SEWER TO THE ROLLING HILLS WATER TREATMENT
PLANT CHLORINE SCRUBBER SYSTEM
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 3 R D Barrel Parallel Sanitary Sewer to the Twin
90-inch Sewers Serving The Rolling Hills Water Treatment Plant Chlorine Scrubber System
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 $250,000.00 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 8"' day of June 2021.
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By:
Mary J. Kayser, City Secretary '`7`y
MAYOR AND COUNCIL COMMUNICATION MAP
60RHWTP SCRUBBER EVALUATION - CAROLLO
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SL 2021
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 06/08/21 M&C FILE NUMBER: M&C 21-0374
LOG NAME: 60RHWTPSC RUBBER EVALUATION—CAROLLO
SUBJECT
(CD 8)Authorize an Engineering Agreement with Carollo Engineers,Inc.,in the Amount of$155,200.00 for the Evaluation of the Rolling Hills Water
Treament Plant Chlorine Scrubber System Project, Provide for Additional Project Costs for a Project Total in the Amount of$190,000.00,Adopt
Attached Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt,and Adopt Attached Appropriation
Ordinance
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of an Engineering Agreement with Carollo Engineers, Inc.in the Amount of$155,200.00 for the RH Chlorine Scrubber
System project;
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the RH
Chlorine Scrubber System project;and
3. Adopt the attached appropriation ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing
appropriations in the amount of$190,000.00 in the RH Chlorine Scrubber System Project(CPN 103127)and decreasing appropriations in
the Unspecified project(City Project No.UNSPEC)by the same amount.
DISCUSSION:
The Fort Worth Water Department(FWWD)owns and operates five Water Treatment Plants(WTP).The Rolling Hills Water Treatment Plant
(RHWTP)is the largest FWWD plant,currently rated at 200 million gallons per day capacity.As part of this project,engineering analysis will be
performed as necessary to determine whether to replace or upgrade the existing chlorine scrubber system-which includes conceptual design and
cost estimating each alternative.Carollo Engineers, Inc.,proposes to perform the evaluation for the RHWTP Chlorine Scrubber System project for
a fee not to exceed$155,200.00.
Staff considers this proposed fee to be fair and reasonable for the scope of services proposed. In addition to the contract cost,$34,800.00 is
required for project management.This project will have no impact on the Water Department's operating budget when complete.
Funding for the RHWTP Chlorine Scrubber System Evaluation:
FUND Existing Additional ( Project
Appropriations Appropriations ( Total* J
W&S Commercial $0.00 $190,000.00$190,000.00
Paper Fund 56020 JJ �_11
Project Total $0.001 $190,000.00$190,000.00
*Numbers rounded for presentation purposes.
Business Equity:Carollo Engineers, Inc.is in compliance with the City's BDE Ordinance by committing to seven percent SBE participation on this
project.The City's SBE goal on this project is five percent.
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. 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. Under federal law,
debt must be issued within approximately three years in order for these expenses to be reimbursable. Adoption of the attached resolution does
not obligate the City to sell bonds,but preserves the ability to reimburse itself from tax-exempt bond proceeds.
This project is located in COUNCIL DISTRICT 8 and serves other COUNCIL DISTRICTS.
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 W&S Commercial Paper Fund for the RH Chlorine Scrubber System Prroject to support the execution of the engineering
contract, Prior to an expenditure being incurred,the Water Department has the responsibility of verifying the availability of funds.
Submitted for City Managers Office by: Dana Burghdoff 8018
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Farida Goderya 8214