HomeMy WebLinkAboutResolution 5470-09-2021 A Resolution
NO. 5470-09-2021
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE VILLAGE
CREEK EMERGENCY FILTER MEDIA REPLACEMENT COSTS
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 Filter Media
Replacement Costs 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 $755,000.00 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 21 st day of September 2021.
ATTEST:
P
B F FOR,-,,
Ronald P. Gonzales o�
Acting City Secretary
T :X-
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 09/21/21 M&C FILE NUMBER: M&C 21-0727
LOG NAME: 60VCWRF EMERFMEDIAREPLACE FUNDING
SUBJECT
(CD 5)Adopt the Attached Appropriation Ordinance in the Amount of$581,100.00 for Project Costs for the Emergency Sewer Work and
Engineering Design for the Removal and Replacement of the Filter Media at the Village Creek Water Reclamation Facility,and Adopt the
Attached Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached appropriation ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund in the amount of
$581,100.00 by increasing appropriations in the Emergency Filter Media Replacement at the Village Creek Water Reclamation Facility
project(City Project No. 103617)and decreasing appropriations in the Unspecified project(City Project No. UNSPEC)by the same amount;
and
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Emergency Filter
Media Replacement at the Village Creek Water Reclamation Facility.
DISCUSSION:
Additional funding is necessary for the following emergency sewer work and engineering design that was conducted for the Filter Media
Replacement at the Village Creek Water Reclamation Facility(VCWRF).
The winter storm that occurred the week of February 15rh damaged solids handling equipment resulting in a solids process upset event at the
Village Creek Water Reclamation Facility.One treatment process that was significantly impacted was the traveling bridge effluent filters.During the
event, unusually high concentrations of solids from the final clarifiers flowed into the traveling bridge filters,rendering them inoperable.It was
determined that the best way to restore the operation of the traveling bridge effluent filters was to completely remove the existing media that was
inundated by solids with new media installed in the filter boxes.
To address the emergency situation, Eagle Contracting L.P.,was engaged to work on repairing the mains(City Secretary Contract No.55600)in
the amount of$561,100.00 and Carrolo Engineers, Inc.was engaged to provide the necessary design(City Secretary Contract No 56020)in the
amount of$20,000.00.
Construction is underway,however,due to supply scarcities created by COVID-19,the contractor has been unable to continuously procure
materials to complete the replacement of the media in the filter boxes.This Mayor and Council Communication (M&C)will appropriate the funds
for this emergency project until the work can be completed,the actual costs reconciled and the project closed out.
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 Emergency Filter Media Replacement at the VCWRF project,are as depicted below.
Fund Existing Additional Project Total
Appropriations Appropriations
W&S Commercial $0.00 $581,100.00 $581,100.00
Paper Fund-56020
Project Total $0.00 $581,100.00'$581,100.00
This action will have no effect on the Water Department's operating budget when complete.
The project is located in COUNCIL DISTRICT 5.
A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION I 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 VC Filter Median Replace Costs project to support the above recommendations. 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: Dena Johnson 7866