HomeMy WebLinkAboutResolution 5739-05-2023 (4)A Resolution
NO. 5739-05-2023
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE ADDITIONAL
VILLAGE CREEK DRYER FACILITY GASLINE
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 Additional Village Creek Dryer Facility
Gasline 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 $6,750,000.00 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 23rd day of May 2023.
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Jannette S. Goodall, City Secretary
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MAYOR AND COUNCIL COMMUNICATION MAP
60ADDITIONALGASBIOSOLIDS- RCONST&HALFF
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FARTWORTH
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 05/23/23 M&C FILE NUMBER: M&C 23-0410
LOG NAME: 60VCWRF ADDITIONAL GAS BIOSOLIDS — RCONST&HALFF
SUBJECT
(CD 5 / Future CD 5) Authorize Execution of a Contract with R Construction Civil, LLC in the Amount of $4,828,791.50 for the Village Creek Water
Reclamation Additional Gas Line for Biosolids Drying Facility Project, Authorize Execution of Amendment No. 1 in the Amount of $248,775.00 to
an Engineering Agreement with Halff Associates, Inc. for the Village Creek Water Reclamation Additional Gas Line for Biosolids Drying Facility
Project, Provide for Total Project Costs in the Amount of $5,619,233.00, 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:
1. Authorize execution of a contract with R Construction Civil, LLC in the amount of $4,828,791.50 for the Village Creek Water Reclamation
Additional Gas Line for Biosolids Drying Facility project (City Project No. 103011);
2. Authorize execution of Amendment No. 1 in the amount of $248,775.00 to an engineering agreement with Halff Associates, Inc. for
construction phase services for the Village Creek Water Reclamation Additional Gas Line for Biosolids Drying Facility project (City Project
No. 103011) for a revised contract amount of $565,455.00;
3. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Village Creek Water
Reclamation Additional Gas Line for Biosolids Drying Facility project; and
4. Adopt the attached appropriation ordinance adjusting appropriations in the W&S Commercial Paper Fund by increasing appropriations in
the Village Creek Water Reclamation Additional Gas Line for Biosolids Drying Facility project (City Project No. 103011) in the amount of
$5,619,233.00 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:
The purpose of this Mayor and Council Communication (M&C) is to authorize execution of a contract with R Construction Civil, LLC in the amount
of $4,828,791.50 for the Village Creek Water Reclamation (VCWRF) Additional Gas Line for Biosolids Drying Facility project (City Project No.
103011) and authorize execution of Amendment No. 1 to City Secretary Contract No. 56388, an engineering agreement with Halff Associates, Inc.,
in the amount of $248,775.00 for construction support services for the VCWRF Additional Gas Line for Biosolids Drying Facility project (City
Project No. 103011) for a revised contract amount of $565,455.00.
On August 24, 2021, M&C 20-0622, the City Council authorized an engineering agreement with Halff Associates, Inc., (City Secretary Contract No.
56388), in the amount of $316,680.00 for the design of a biogas pipeline. The biogas pipeline will convey digester gas from VCWRF to the
biosolids drying facility for use as a supplemental fuel source for the new biosolids dryer. Amendment No. 1, will provide compensation for
additional design on the project as well as construction phase services consisting of contractor submittal review, technical assistance, and site
visits.
The project was advertised for bid on January 12, 2022 and January 19, 2022, in the Fort Worth Star -Telegram. On April 13, 2023 the following
bids were received:
Bidder
Total Base
Bid
Base Bid +
Alternate A
r Contract
L Time i
R Construction Civil,
1
365 Calendar
$4,828,791.50
$4,810,791.50
LLC
Days
I Driver Pipeline
(Company, Inc. f$6,590,354.95;
$6,578,145.40�
*Staff recommends award of contract for the Base Bid.
In addition to the contract cost, $348,514.00 is required for project management, inspection, and materials testing, and $193,152.00 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 ADDITIONAL GAS BIOSOLIDS — RCONST&HALFF
Capital
!Project
Fund
Name
Name
FY2023 CIP
Appropriations
Authority''
Budget Change
(Increase/Decrease);
Revised
FY2023
Budget
1103011
56022 -
—ADD
VA
Co&mmercial
Dryer
$0.00
This M&CI
$5,619,233.001$5,619
233 00
Paper I
p
Facility
`I
ne
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.
Funding for the Additional Gas Line for Proposed Biosolids Facility project is depicted below:
Existing
Additional
Fund �
A ro nations I
pp p
Appropriations
Project Total*
W&S Rev Bonds
Series 2022 - Fund
$441,711.00il
$0.00
$441,711.00
56020
�W&S Commercial
Paper - Fund 56022 ;
$0.00
$5,619,233.00,$5,619,233.00
`
J
Project Total J
$441,711.00,
$5,619,233.00
$6,060,944.00
*Numbers rounded for presentation purposes.
Business Equity — R Construction Civil, LLC - R Construction Civil LLC is in compliance with the City's Business Equity Ordinance by committing
to 6 percent participation on this project. The City's goal on this project is 5 percent.
Business Equity — HalffAssociates, Inc. agrees to maintain its initial MM/BE commitment of 10 percent that it made on the original agreement
and extend and maintain that same M/WBE commitment of 10 percent to all prior amendments up to and inclusive of this Amendment No. 1.
Therefore Halff Associates, Inc. remains in compliance with the City's M/WBE Ordinance and attests to its commitment by its signature on the
Acceptance of Previous MA BE Commitment form executed by an authorized representative of its company
The project is 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 the Water and Sewer bonds in the 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 ADD VC Dryer Facility Gasline 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 b. Dana Burghdoff 8018
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Suanne Abbe 8209
Expedited