The URL can be used to link to this page

Home My WebLink AboutResolution 5443-08-2021 A Resolution NO. 5443-08-2021 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE 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 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 $1,815,000.00 for the purpose of paying the aggregate costs of the Project. Section 2. All costs to be reimbursed pursuant hereto will be capital expenditures. No obligations will be issued by the City in furtherance of this Statement after a date which is later than 18 months after the later of (1) the date the expenditures are paid or (2) the date on which the property, with respect to which such expenditures were made, is placed in service. Section 3. The foregoing notwithstanding, no obligation will be issued pursuant to this Statement more than three years after the date any expenditure which is to be reimbursed is paid. Adopted this 17" day of August 2021. ATTEST: By: ?2 Ronald P. Gonzales, Acting City Secretary ,:`* 1 0LU . 1 • • ' ' • RECLAMATIONuj VILLAGE CREEK WATER uj or xg ail M—kl moll iw k rye Ir� �+► 1R R „ . •. iM � ��IiififiMliilE'� li�ilil��l��' � po x m w�i� il�? i!! iNItwr 1-1�9iliii�C,�i � ,y�i��$''Ir'�,��'.��► ��M � '��k��;�'�l�`��,M► Imp Moll aiiiii�►1 �`��i��ifti��il?�1�� .��r�� MOM MU-1 IS ally -00410 Mli�ili 0 Milne N40, 3a1M mom M-1 Mom IM )am n City of Fort Worth, Texas Mayor and Council Communication DATE: 08/17/21 M&C FILE NUMBER: M&C 21-0585 LOG NAME: 60VCWRF DIGESTER MIXING-FLARE-DOME IMPROVEMENTS All-HAZENS SUBJECT (CD 5)Authorize Execution of Amendment No. 1 with Hazen and Sawyer, Inc.in the Amount of$1,336,736.00 for Additional Engineering Services Associated with the Evaluation and Design of Improvements to the Digesters at the Village Creek Water Reclamation Facility Project,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 the execution of Amendment No. 1 in the amount of$1,336,736.00 to City Secretary Contract No.54683 an Engineering Agreement with Hazen and Sawyer, Inc.for the design of additional improvements to the digesters at the Village Creek Water Reclamation Facility project for a revised contract amount of$2,256,886.00; 2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the evaluation and design of the Improvements to the Digesters at the Village Creek Water Reclamation Facility;and 3. Adopt the attached appropriation ordinance adjusting estimated receipts and appropriations in the Water and Sewer Commercial Paper Fund in the amount of$1,396,796.00,by increasing appropriations in the Evaluation and Design of Improvements to the Digesters at the Village Creek Water Reclamation Facility(City Project No. 102652)and decreasing appropriations in the Unspecified project(City Project No.UNSPEC)by the same amount. DISCUSSION: On September 22,2020,Mayor and Council Communication(M&C 20-0701),the City Council authorized 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.The evaluation phase of the project identified additional improvements that would address equipment that has reached the end of its useful life and that would allow the City of Fort Worth(City)to improve the quality of biogas for beneficial reuse. Amendment No. 1 will allow Hazen and Sawyer to design additional improvements identified during the evaluation phase of the project.The additional improvements include new pressure relief systems at each digester,new scrubbers to remove hydrogen sulfide from biogas produced at the digesters, rehabilitation of the existing biogas compressors,replacement of the turbine gas compressors,replacement of the biogas dryers, and upgrades to the electrical systems that support the compressors,dryers,and the digesters that will receive new pumped mixing systems. In addition to the amendment amount,$60,000.00 is requested for additional project management. This project is anticipated to be included in a future revenue bond issue for the Water and 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 of the City to reimburse itself from tax-exempt bond proceeds. Funding for the Digester Mixing,Flare,and Dome Improvements project,are as depicted below. 7� Existing Additional Fund Appropriations Appropriations Project Total W&S Commercial $1,020,150.00 $0.00$1,020,150.00 Paper Fund-56019 W&S Commercial $0.00 $1,396,796.00$1,396,796.00 Paper Fund-56020 Project Total $1,020,150.00 $1,396,796.00$2,416,946.00 Business Equity-Hazen and Sawyer, PC agrees to maintain its initial SBE commitment of 32 percent that it made on the original agreement and extend and maintain that same SBE commitment of 32 percent to this first amendment.Therefore Hazen and Sawyer,PC remains in compliance with the City's BDE Ordinance and attests to its commitment by its signature on the Acceptance of Previous SBE Commitment form executed by an authorized representative of its company. The project is located in COUNCIL DISTRICT 5. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that funds are currently available in the Unspecified-All Funds project within the W&S Commercial Paper Fund and 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 recommendations and execution of the amendment to the engineering agreement.Prior to any 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