HomeMy WebLinkAboutResolution 5738-05-2023A Resolution
NO. 5738.05-2023
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE VILLAGE
CREEK WATER RECLAMANTION FACILITY PRIMARY CLARIFIERS
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 Water Reclamation Facility
Primary Clarifiers 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 $4,900,000.00 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 23`d day of May 2023.
ATTEST:
By. — — -
Jannette S. Goodall, City Secretary
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 05/23/23 M&C FILE NUMBER: M&C 23-0408
LOG NAME: 60VCWRFPCLARIFIERFD-CDM
SUBJECT
(CD 5 / Future CD 5) Authorize Execution of Amendment No.1 in the Amount of $3,712,425.00 to an Engineering Agreement with CDM Smith,
Inc., for the Final Design of the Village Creek Water Reclamation Facility Primary Clarifiers Replacement Phase 1 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 2023-2027 Capital Improvement Program
RECOMMENDATION:
It is recommended that the City Council:
Authorize execution of Amendment No. 1 in the amount of $3,712,425.00 to City Secretary Contract No. 56501, an Engineering Agreement
with CDM Smith, Inc., for the final design of the Village Creek Water Reclamation Facility Primary Clarifier Replacement Phase 1 project for
a revised contract amount of $5,145,425.00;
Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Village Creek Water
Reclamation Facility Primary Clarifiers Replacement Phase 1 project; and
Adopt the attached appropriation ordinance adjusting appropriations in the W&S Commercial Paper Fund by increasing appropriations in
the Village Creek Water Reclamation Facility Primary Clarifiers Replacement Phase 1 project (City Project No.103295) in the amount of
$4,035,605.00 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.
DISCUSSION:
Village Creek Water Reclamation Facility (VCWRF) currently has 18 primary clarifiers, consisting of 12 small 80-foot diameter clarifiers and 6
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.
On September 28, 2021, Mayor and Council Communication (M&C 21-0767) the City Council authorized an engineering agreement with CDM
Smith, Inc., (City Secretary Contract No. 56501) in the amount of $1,433,000.00 for process evaluation, technical memos, preliminary design, cost
estimates, and assessment of additional/improvement infrastructure necessary for the replacement of Primary Clarifiers 1-12.
Amendment No. 1 includes the additional scope and fee to complete the final design, including plans and specifications for the replacement of the
12 small 80-foot Primary Clarifiers and necessary improvements along with additions to the infrastructure.
CDM Smith, Inc., is proposing to perform the necessary engineering design work for the VCWRF Primary Clarifier Replacement for a fee not to
exceed $3,712,425.00. Staff considers this fee to be fair and reasonable.
In addition to the contract amount, $323,180.00 is required for project management and material testing.
This project will have no impact on the Water Department's operating budget when complete.
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 of the City to reimburse itself from tax-exempt bond proceeds.
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:
60VCWRFPCLARIFIERP1 FD-CDM
Capital
Revised
Fund
][�Na
oject (FY2023
me
CIP
Appropriations;
Authority;Name
,(Increase/Decrease)]
Budget Change
FY2023
i
Budget
56022 - I103295
Commercial'Primary $0.00 This MCI $4,035,605.00$4,035,605.
Clarifies I
Paper REPLPH1
Funding will be budgeted in the W&S Commercial Paper project within the W&S Commercial Paper Fund for the purpose of funding the Village
Creek Water Reclamation Facility Primary Clarifiers Replacement Phase 1 project after the sale of Water and Sewer bonds is completed..
Funding for the Village Creek Water Reclamation Facility Primary Clarifiers Replacement Phase 1 project:
Fund
Existing !
iProject
Appropriations
Additional
Appropriations
Total*
Fund 56022 -
W&S Commercial
Paper -
I
$0.00.
$4,035,605.00'
$4,035,605.00'
I
W&S Rev Bonds
Series 2022- Fund
56020
$1,623,300.00;
$0.00
$1,623,300.00
Project Total
$1,623,3
$4,035,605.00,$5,658,905.00;
*Numbers rounded for presentation purposes.
Business Equity: CDM Smith, Inc., agrees to maintain its initial M/ BE commitment of 10 percent that it made on the original agreement and
extend and maintain that same M/ BE commitment of 10 percent to this first amendment. Therefore CDM Smith, 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.
The VCWRF serves ALL COUNCIL DISTRICTS and is physically located in COUNCIL DISTRICT 5 and FUTURE COUNCIL DISTRICT 5.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that funds will be available after the sale of Water and Sewer bonds is completed in the UCMLPR 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
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-W. Dana Burghdoff 8018
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Farida Goderya 8214