HomeMy WebLinkAboutResolution 5674-12-2022 A Resolution
NO. 5674-12-2022
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE DIGESTER
IMPROVEMENT
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 Digester 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 $30,000,000.00 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 131h day of December 2022.
ATTEST: ��F FOR�`�
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By:Jannette S.Goodall(Dec 15,2022 14:54 CST) * ?Z
Jannette S. Goodall, City Secretary •.*
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 12/13/22 M&C FILE NUMBER: M&C 22-1046
LOG NAME: 60VCWRF DIGESTER MIXING-FLARE-DOME IMPROVP1-EAGLE&HAZENS
SUBJECT
(CD 5)Authorize Execution of a Contract with Eagle Contracting, LLC. in the Amount of$39,773,000.00 for the Village Creek Water Reclamation
Facility Digester Improvements Project,Authorize Execution of Amendment No.2 in the Amount of$1,047,260.00 to an Engineering Agreement
with Hazen and Sawyer, Inc.for the Village Creek Water Reclamation Facility Digester Improvements Project,Provide for Total Project Costs in the
Amount of$44,180,804.00,Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt
Appropriation Ordinances to Effect a Portion of Water's Contribution to the Fiscal Years 2023-2027 Capital Improvement Program
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of a contract with Eagle Contracting, LLC. in the amount of$39,773,000.00 for the Village Creek Water Reclamation
Facility Digester Improvements project(City Project No. 102652);
2. Authorize execution of Amendment No.2 in the amount of$1,047,260.00 to an engineering agreement with Hazen and Sawyer, Inc.for
construction assistance services for the Village Creek Water Reclamation Facility Digester Improvements project(City Project No. 102652)
for a revised contract amount of$3,304,146.00;
3. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for Village Creek Water
Reclamation Facility Digester Improvements project;
4. Adopt the attached appropriation ordinance adjusting appropriations in the W&S Commercial Paper Fund by increasing appropriations in
the Village Creek Water Reclamation Facility Digester Improvements project(City Project No. 102652)in the amount of$25,000,000.00 and
decreasing appropriations in the W&S Commercial Paper project(City Project No. UCMLPR) by the same amount to effect a portion of
Water's Contribution to the Fiscal Years 2023-2027 Capital Improvement Program;and
5. Adopt the attached appropriation ordinance increasing receipts and appropriations in the Water/Sewer Gas Lease Cap Proj Fund in the
amount of$16,763,858.00, from available funds, for the purpose of funding Village Creek Water Reclamation Facility Digester
Improvements project(City Project No. 102652).
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C)is to authorize execution of a contract with Eagle Contracting, LLC. in the amount
of$39,773,000.00 for the Base Bid plus Alternates 1 and 2 for the Village Creek Water Reclamation Facility (VCWRF) Digester
Improvements project (City Project No. 102652) and execution of Amendment No. 2 to City Secretary Contract No. 54683 in the amount of
$1,047,260.00, an engineering agreement with Hazen and Sawyer, Inc., for construction support services for VCWRF's Digester
Improvements project(City Project No. 102652)for a revised contract amount of$3,304,146.00.
On September 22, 2020, M&C 20-0701,the City Council authorized an engineering agreement with Hazen and Sawyer, Inc., (City Secretary
Contract No.54683), in the amount of$920,150.00 for the evaluation and design of improvements to the digester mixing systems, digester gas
flares, and digester domes at the VCWRF. The agreement was subsequently revised by Amendment No. 1 in the amount of$1,336,736.00,
authorized on August 17,2021, by M&C 21-0585, to design improvements to the digester gas treatment and conveyance, refurbishment of the
turbine gas compressors and upgrades to supporting electrical systems. As part of Amendment No. 2, Hazen and Sawyer, Inc. will provide
additional design services to break out a bid package for Phase 1 of construction and to provide construction assistance services that consist of
technical assistance, site visits, and coordination among the four projects that will allow digester gas to be utilized as a supplemental fuel source
for the new biosolids dryer at the VCWRF Biosolids Management and Beneficial Reuse Facility.
The project was advertised for bid on September 29 and October 6,2022, in the Fort Worth Star-Telegram.On November 10,2022,the following
bids were received:
Base Bid + Base Bid+ I Base Bid+ IIIBase Bid+ Contract
Bidder Total Base Bid; Alternates 1 &1,Alternates 1 2 Alternates 1 2
Alternate 1 2 j &3 j 3&4 Time
Eagle 11,065
Contracting,!$36,925,000.001$38,850,000.00$39,773,000.00 $39,919,000.00 $40,358,000.001Calendar
LLC 'Days
Thalle
Construction 1$54,744,300.00 55,589,300.00$52,146,430.00 $ $55,599,300.00 $55,715,OOO.00i j
ompany, I !
*Staff recommends award of contract for Base Bid+Alternates 1&2,which consists of base bid, additional digester improvements(Alternate 1),
and electrical transformers switchgear improvements(Alternate 2).
In addition to the contract cost, $625,414.00 is required for project management and inspection, and $318,184.00 is provided for project
contingency.
This project will have no impact on the Water Department's operating budget when complete.
It is the practice of the Water Department to appropriate its 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 amend the City of
Fort Worth's Fiscal Year 2023-2027 Capital Improvement Program as follows:
60VCWRF DIGESTER MIXING-FLARE-DOME IMPROVP1-EAGLE&HAZENS
ital fNaect FY2023 CIP Budget Change Revised
Authority; FY2023
[FuCapndName me Appropriationsl (Increase/Decrease)) Budget
1 102652-
W&S
Commercial Digester $0.00EISM&C
$25,000,000.00 $25,000,000.00;
Paper Improvements
Pap )
53004- E102652-
Water/Sewer Iase er $0.00IThis M&C� $16,763,858.00 $16,763,858.00,
Cas Pro ectements
p j
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 the 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.
Funds are currently available in the Water/Sewer Gas Lease Cap Project Fund for the purpose of funding the VCWRF's Digester Improvements
project.
Funding for the Digester Improvements project is depicted below.-
Existing Additional
FUND Project Total*
Appropriations' Appropriations
W&S Rev Bonds
Series 2021 - $1,020,150.00 $0.00 $1,020,150.00
Fund 56019
W&S Rev Bonds
Series 2022- $1,396,796.00 $0.00 $1,396,796.M
Fund 56020
W&S Commercial
Paper-Fund $0.00 $25,000,000.00 $25,000,000.00'
56021
Water/Sewer Gas
Lease Cap Proj— $0.00 $16,763,858.00$16,763,858.00I
Fund 53004
Project Total $2,416,946.00 $41,763,858.00$44,180,804.0q
*Numbers rounded for presentation purposes.
Waiver of Building Permit Fee-In accordance with the City Code of Ordinances, Part II, Chapter 7-1 Fort Worth Building Administrative Code,
Section 109.2.1, Exception 2;"Work by non-City personnel on property under the control of the City of Fort Worth shall be exempt from the permit
fees only if the work is for action under a contract that will be or has been approved by City Council with notes in the contract packages stating the
fee is waived."
Business Equity—EAGLE-A waiver of the goal for Business Equity subcontracting requirements was requested,and approved by the DVIN, in
accordance with the applicable Ordinance, because the purchase of goods or services is from sources where subcontracting or supplier
opportunities are negligible.
Business Equity—Hazen Sawyer-Hazen and Sawyer, Inc.agrees to maintain its initial M/WBE commitment of 33 percent that it made on the
original agreement and extend and maintain that same M/WBE commitment of 33 percent to all prior amendments up to and inclusive of this
Amendment No.2.Therefore Hazen and Sawyer, Inc.remains in compliance with the City's MM/BE Ordinance and attests to its commitment by its
signature on the Acceptance of Previous MM/BE Commitment form executed by an authorized representative of its company.
The project is located in COUNCIL DISTRICT 5.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that funds are currently available in the W&S Commercial Paper project within the W&S Commercial Paper Fund
and in the Unspecified-All Funds project within the Water/Sewer Gas Lease Cap Proj Fund and upon approval of the above recommendations and
adoption of the attached appropriation ordinances,funds will be available in the W&S Commercial Paper Fund and the Water/Sewer Gas Lease
Cap Proj Fund for the Digester Improvements project to support the approval of the above recommendations and execution of the contract and
amendment to the agreement. 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: Suzanne Abbe 8209
Expedited