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.
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By:
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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