HomeMy WebLinkAboutResolution 5907-02-2024A Resolution
NO. 5907-02-2024
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE VILLAGE CREEK
WATER RECLAMATION FACILITY BIOGAS STORAGE
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
Biogas Storage 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
$350,000.00 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 27TH day of February 2024.
ATTEST:
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Jannette S. Goodall, City Secretary
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MAYOR AND COUNCIL COMMUNICATION MAP
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City of Fort Worth,
Mayor and
DATE: 02/27/24
Texas
Council Communication
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M&C FILE NUMBER: M&C 24-0179
SUBJECT
(CD 5) Authorize Execution of an Engineering Agreement with Bartlett & West, Inc. in the Amount of $247,609.00 for Village Creek Water
Reclamation Facility Biogas Storage System Project, Provide for Project Costs for a Total Project Amount of $287,609.00, Adopt Resolution
Expressing Official Intent to Reimburse Expenditures and Proceeds of Future Debt and Adopt Appropriation Ordinance to Effect a Portion of
Water's Contribution to the Fiscal Years 2024-2028 Capital Improvement Program
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of an Engineering Agreement with Bartlett & West, Inc., in the amount of $247,609.00 for Village Creek Water
Reclamation Facility Biogas Storage System project;
2. Adopt the attached resolution expressing Official Intent to Reimburse expenditures with proceeds of future debt for Village Creek Water
Reclamation Facility Biogas Storage System project; and
3. Adopt the attached appropriation ordinance adjusting appropriations in the Water & Sewer Commercial Paper Fund by increasing
appropriations in the Village Creek Water Reclamation Facility Biogas Storage System project (City Project No. 104941) in the amount
of $287,609.00 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 2024-2028 Capital Improvement Program.
DISCUSSION:
This Mayor and Council Communication (M&C) is to authorize engineering services for the evaluation and design of a digester bio-gas storage
system (temporary or permanent). This project provides for investigation of bio-gas storage to maximize beneficial usage of the bio-gas and
minimize bio-gas waste. At the Village Creek Water Reclamation Facility (VCWRF), digester bio-gas is captured, routed to bio-gas compressors
and dryers, conveyed to a third party for treatment and purification, and then utilized through the EPA Renewable Fuel Standard Program. During
times when bio-gas cannot be conveyed, the bio-gas is "flared" (burned off) at the VCWRF. The goal of this project is to minimize biogas flaring at
VCWRF by incorporating biogas storage into the plant process which should result in additional revenues from the increased amount of biogas
that can be sold. Bartlett & West, Inc., proposes to provide the necessary services for a fee not to exceed $247,609.00. Staff considers the
proposed fee to be fair and reasonable for the scope of services proposed. In addition to the contract amount, $40,000.00 is required for material
testing.
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.
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 appropriate funds in
support of the Water Department's portion of the City of Fort Worth's Fiscal Years 2024-2028 Capital Improvement Program.
Funding is budgeted in the Commercial Paper project within the W&S Commercial Paper Fund.
Funding for the Village Creek Water Reclamation Facility Biogas Storage System project is depicted below:
60VCWRFBIOGSS-B&W
Budget
Capital Fund
Project
FY2024 CIP
Authority
Change
Revised
Name
Name
Appropriations
(Increase/
Budget
Budget
Decrease)
56022 —
W&S Commercial
Paper
104941
—
VCWRF
Biogas
$0.00
This M&C
$287,609.00
$287,609.00
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Funding for the Village Creek Water Reclamation Facility Biogas Storage System project is depicted below:
Fund
Existing
Appropriations
Additional
Appropriations
Project
Total*
&SCommercial
rper— Fund 56022
.$287,609.00
_
$287,609.00
Project Total
$0.00
$287,609.00
$287,609.00
*Numbers rounded for presentation purposes.
Business Equity: Bartlett and West, Inc., is in compliance with City's Business Equity Ordinance by committing to five percent Business Equity
participation. The City's Business Equity goal on this project is five percent.
The project is located in COUNCIL DISTRICT 5.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that funds are currently available in the 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 VCWRF Biogas Storage project to support the above recommendations and execution of the contract. Prior to an
expenditure being incurred, the Water Department has the responsibility of verifying the availability of funds.
Submitted for City Manager's Office W. Fernando Costa 6122
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Pradip Chakraborti 4925