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HomeMy WebLinkAboutResolution 5476-09-2021 A Resolution NO. 5476-09-2021 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE VILLAGE CREEK PRIMARY CLARIFIER REPLACEMENT PHASE 1 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 Primary Clarifier Replacement Phase 1 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 $2,320,000.00 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 28th day of September 2021. FORTS'` ATTEST: _ U� By: �XA Ronald P. Gonzales, Acting City Secretary A A 0OITA { VILLAGE CREEK WATER t RECLAMATION Lim eft _ me i�A1 ,�{� ,� �•a _., 'Flw R ' MI � = VMS- ar Ilk Ir OR q Opt UP VA Uff Fail Its' aP imp ail ils 3 r glow ka - i M liii �iB �l;I fit* & ! ail uills' II7 �€ wr; "!43gm � fit; rlr ; 95 - , FORT WORTH a. 1 1 x i 7fli� •Fl4Li1 mil/ r•i7i �r tt; :�:. �tY Ih�, �p'� �"�;*'��` +� P /. r�r EM'�•i /! M7r 114+w .+r .w .... ,tie. 1 1 City of Fort Worth, Texas Mayor and Council Communication DATE: 09/28/21 M&C FILE NUMBER: M&C 21-0767 LOG NAME: 60VCWRFPCLARIFIERPI PD-CDM SUBJECT (CD 5)Authorize Execution of an Engineering Agreement with CDM Smith, Inc.,for$1,433,000.00 for the Primary Clarifier Process Evaluation and Preliminary Design-Phase 1 Project,Village Creek Water Reclamation Facility,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 CDM Smith, Inc., in the amount of$1,433,000.00 for process evaluation and engineering design of primary clarifiers process at the Village Creek Water Reclamation Facility Primary Clarifiers Replacement Phase 1 project; 2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future debt for Village Creek Water Reclamation Facility Primary Clarifiers Replacement-Phase 1 project(CPN 103295);and 3. Adopt the attached appropriation ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing appropriations in the amount of$1,623,300.00 in the Village Creek Water Reclamation Facility Primary Clarifiers Replacement Phase 1 project(City Project No. 103295)and decreasing appropriations in the Unspecified project(City Project No. UNSPEC)by the same amount. DISCUSSION: Village Creek Water Reclamation Facility(VCWRF)currently has 18 primary clarifiers,consisting of 12 small 80-foot diameter clarifiers and six large 160-ft diameter clarifiers,located in the southeast corner of the plant.The 12 small primary clarifiers which were constructed in 1956, 1963, and 1971,have outlived their useful lives and are in need of replacement.This project provides for process evaluation and preliminary design for the improvement and replacement of the 12 small primary clarifiers. The proposed scope of services consists of process evaluation,technical memos, preliminary design,cost estimates, and assessment of additional/improvement infrastructure necessary for the replacement of primary clarifiers 1-12. CDM Smith, Inc.proposes to perform the necessary work for a fee not to exceed$1,433,000.00. In addition to the contract amount,$190,300.00 is required for project management and material testing. 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 Village Creek Water Reclamation Facility Primary Clarifiers Replacement project,are as depicted below: Existing Additional FUNDING Project Total Appropriations; Appropriations rPa &S C�56 $1,623,300.00per Project Total ; $0.0 $1,623,300.00j$1,623,300.00 Business Equity-CDM Smith, Inc.is in compliance with the City's Business Equity Ordinance by committing to a 10 percent Business Equity participation on this project.The City's Business Equity goal on this project is 10 percent. The VCWRF serves ALL COUNCIL DISTRICTS and is physically located in COUNCIL DISTRICT 5. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that funds are currently available in the UNSPEC 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 Primary Clarifier REPL PH1 project to support the approval of the above recommendation and execution of the 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: Farida Goderya 8214 Expedited