HomeMy WebLinkAboutResolution 5621-09-2022 A Resolution
NO. 5621-09-2022
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE ROLLING
HILLS WATER TREATMENT PLANT CHLORINE SCRUBBER SYSTEM
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 Rolling Hills Water Treatment Plant Chlorine
Scrubber System 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
$650,000.00 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 27"' day of September2022.
ATTEST: ®F
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By: Jannette S.Goodall(Sep 30,202214:25 CDT)
Jannette S. Goodall, City Secretary .
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MAYOR AND COUNCIL COMMUNICATION MAP
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 09/27/22 M&C FILE NUMBER: M&C 22-0741
LOG NAME: 60RHWTP SCRUBBERA1 —CAROLLO
SUBJECT
(CD 8)Authorize Execution of Amendment No. 1 to an Engineering Agreement with Carollo Engineers, Inc.,in the Amount of$450,000.00 for
Additional Services to the Rolling Hills Water Treatment Plant Chlorine Scrubber System Project,Adopt Resolution Expressing Official Intent to
Reimburse Expenditures with Proceeds of Future Debt,and Adopt Appropriation Ordinance to Effect a Portion of Water's Contribution to the
Fiscal Years 2022-2026 Capital Improvement Program
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of Amendment No. 1 to City Secretary No.56059 an engineering agreement with Carollo Engineers, Inc. in the Amount
of$450,000.00 for additional services to the Rolling Hills Water Treatment Plant Chlorine Scrubber System project for a revised contract
amount of$605,200.00;
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Rolling Hills Water
Treatment Plant Chlorine Scrubber Systems project;and
3. Adopt the attached appropriation ordinance adjusting appropriations in the Water&Sewer Commercial Paper Fund by increasing
appropriations in the Rolling Hills Water Treatment Plant Chlorine Scrubber System Project(City Project No. 103127)in the amount of
$530,000.00 and decreasing appropriations in the W&S Commercial Paper project(City Project No. UCMLPR)by the same amount,to
effect a port of Water's contribution to the Fiscal Years 2022-2026 Capital Improvement Program.
DISCUSSION:
On June 8,2021,Mayor and Council Communication(M&C)21-0374,authorized an engineering agreement with Carollo Engineers, Inc.(City
Secretary Contract No.56059),in the amount of$155,200.00,for an evaluation and to determine whether to replace or upgrade the existing
chlorine scrubber system.
The proposed Amendment will provide plans,specifications,and contract documents for the replacement of existing chlorine scrubber system.
Carollo Engineers, Inc., proposes to perform the additional services not to exceed fee of$450,000.00.Staff considers the fee to be fair and
reasonable for the scope of services proposed. In addition to the amendment amount,$80,000.00 is required for project management and
material testing.
This project will have no impact on the Water Department operating budget when complete.
It is the practice of the Water Department to appropriate its Capital Improvement Program(CIP)plan throughout the fiscal year, instead of within
the annual budget ordinance,as projects commence,additional funding needs are identified,and to comply with bond covenants.The actions in
the M&C will appropriate funds in support of the Water's portion of the City of Fort Worth's Fiscal Years 2022-2026 Capital Improvement Program,
as follows:
60RHWTP SCRUBBERA1 —CAROLLO
Budget Revised
Capital Fund FY2022 CIP Change
i
Name Project Name Appropriations Authority FY2022
(Increase/
Decrease) Budget
103127—RH
56021 —W&S Chlorine
Commercial Scrubber $0.00 This M&C $530,000.00 $530,000.00
Paper Fund System
Project
Funding for the RHWTP Chlorine Scrubber System Evaluation is depicted below:
Fund Existing Additional Appropriations Project Total*
i Appropriations
W&S Rev 11 ��
Bonds
Series $190,000.00 $0.00 $190,000.00
2022—
Fund 56020
Commercial $0.00 $530,000.00 $530,000.00
Paper—
Fund 56021
Project $190,000.00 $530,000.00 $720,000.00
Total
*Numbers rounded for presentation purposes.
This project is anticipated to be included in a future revenue bond issue for the Water&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 to reimburse itself from tax-exempt bond proceeds.
Business Equity: Carollo Engineers, Inc.agrees to maintain its initial M/WBE commitment of seven percent that it made on the original agreement
and extend and maintain that same M/WBE commitment of seven percent to this first amendment.Therefore Carollo Engineers, Inc. remains in
compliance with the City's Business Equity Ordinance and attests to its commitment by its signature on the Acceptance of Previous M/WBE
Commitment form executed by an authorized representative of its company.
This project is located in COUNCIL DISTRICT 8 and serves all COUNCIL DISTRICTS.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that funds are currently available in the UCMLPR W&S Commercial Paper 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 RH Chlorine Scrubber System project to support the approval of the above recommendations and execution
of the contract. Prior to any expenditure being incurred,the Water Department has the responsibility to validate 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