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HomeMy WebLinkAboutResolution 5477-09-2021 A Resolution NO. 5477-09-2021 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE VILLAGE CREEK PHASE 3 ELECTRIC SWITCHGEAR 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 Village Creek Phase 3 Electric Switchgear 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 $1,790,000.00 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 281h day of September 2021. OR &F ... O. ATTEST: By: Ronald P. Gonzales, Acting City Secretary �XP`5 A 0A • r RECLAMATION r e is ��i TAW 'Prw r MA pw rrt i' ipM'S - fags to ;s ik E "M 1�a 71tl 55 FIX !r '1 FORTWORTH 1 . _ 1 �fOOMel City of Fort Worth, Texas Mayor and Council Communication DATE: 09/28/21 M&C FILE NUMBER: M&C 21-0768 LOG NAME: 60VCWRFPIIIELECTRICAL-GUPTA SUBJECT (CD 5)Authorize Execution of an Engineering Agreement with Gupta and Associates, Inc.in the amount of$1,198,900.00 for the Design of Phase III Electrical Improvements at the 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 Gupta and Associates, Inc., in the amount of$1,198,900.00 for the Design of Phase III Electrical Improvements 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 Phase III Electrical Improvements(City Project No. 103323); and 3. Adopt the attached appropriation ordinance adjusting appropriations in the Water and sewer Commercial Paper Fund by increasing appropriations in the amount of$1,375,650.00 in the Village Creek Water Reclamation Facility Phase III Electrical Improvements project (City Project No. 103323)and decreasing appropriations in the Unspecified project(City Project No. UNSPEC)by the same amount. DISCUSSION: The Village Creek Water Reclamation Facility(VCWRF) has a critical and complex electrical system.On September 24,2013, Mayor and Council Communication(M&C)C-26477,the City Council awarded the execution of an engineering agreement to conduct a power study,which included an electrical equipment evaluation, short circuit study,protective device coordination study,arc flash analysis,and field labeling of arc flash hazards.That study also identified several areas of the plant needing investment to rehabilitate and/or replace aging electrical infrastructure.These improvements have been designed and implemented in a number of phases.The VCWRF Primary Area Switchgear Improvements(Phase I Electrical Improvements)were completed in December 2020.The VCWRF Phase II Electrical and Switchgear Improvements Project is currently in construction.This Phase III is a continuation of electrical upgrades needed at VCWRF and will include electrical,controls,and switchgear improvements in the following areas: Return Sludge Pump Stations 3,5,and 8(RS3, RS5,and RS8); Final Effluent Pump Station 1 &3(FE1 and FE3)areas; Backwash Area;and Sulphur Dioxide(SO2)area. Gupta and Associates, Inc., proposes to perform the necessary work for a fee not to exceed$1,198,900.00. In addition to the contract amount, $176,750.00 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 Phase III Electrical Improvements project,are as depicted below: Existing Additional Funding Appropriations Appropriations Project Total W&S Commercial $0.00, $1,375,650.00,$1,375,650.00 Paper Fund 56020 Project Total $0.00 $1,375,650.00 71 $1,375,650.00, Business Equity: Gupta and Associates 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. This project serves the entire City 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 PH3 Electric Switchgear Imp project to support the approval of the above recommendations 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 8480 Expedited