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HomeMy WebLinkAboutResolution 6013-10-2024A Resolution NO.6013-10-2024 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE VILLAGE CREEK PRIMARY CLARIFIER 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 Primary Clarifier 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 $36,800,000.00 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 151h day of October 2024. ATTEST: By: Jannette S. Goodall, City Secretary , am ��--_ ./\, :2 \.-� .}« a■a.\f . ):\ yff�■ /y\\ yy■■■ a .. �t CK)r of Fort Worth, Texas Mayor and Council Communication DATE: 10/15/24 M&C FILE NUMBER' M&C 24-0855 LOG NAME: 60VCWRF PRIMARY CLARIFIERS CONSTRUCTION -EAGLE SUBJECT (CD 5) Authorize Execution of a Contract with Eagle Contracting, LLC in the Amount of $98,319,734.00 for Village Creek Water Reclamation Facility Primary Clarifiers Improvements, Provide for Project Costs for a Project Total in the Amount of $100,131,763.00, 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 2025-2029 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 $98,319,734.00 for the Village Creek Water Reclamation Facility Primary Clarifiers Improvements; 2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Village Creek Primary Clarifiers Replacements Phase i project; 3. Adopt the attached appropriation ordinance adjusting estimated receipts and appropriations in the Water and Sewer Commercial Paper Fund by increasing estimated receipts and appropriations in Village Creek Primary Clarifier Replacements Phase 1 project (City Project No. 103295) in the amount of $30,676,608.36 and decreasing estimated receipts and appropriations in the W&S Commercial Paper project (City Project No. UCMLPR) by the same amount; 4. Adopt attached appropriation ordinance adjusting estimated receipts and appropriations in the WS Capital Project 2020 Fund by increasing. estimated receipts and appropriations in the Village Creek Clarifier Replacements Phase 1 project (City Project No. 103295) in the amount of $1,839,596.94 and decreasing estimated receipts and appropriations in the Unspecified AEI -Funds project (City Project No. UNSPEC) by the same amount; and 5. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Sewer Impact Fee Fund in the amount of $11,068,124.00, from available impact fees within WaterlWasteWater Wholesale Impact Fees and WaterlWasteWater Retail Impact Fees projects (City Project Nos. B20004 and B20005) for the purpose of funding the Village Creek Primary Clarifier Replacements Phase 1 project (City Project No. 103295), to effect a portion of Water's contribution to the Fiscal Years 2025-2029 Capital Improvement Program. DISCUSSION: The Village Creek Water Reclamation Facility (VCWRF), a 166 million gallons per day (MGD) plant, comprised of primary, secondary and tertiary treatment, chlorine disinfection and de -chlorination. The VCWRF produces anaerobically digested biosolids, which is processed at the Biosolids Dewatering and Processing Facility. The VCWRF currently has 18 primary clarifiers, consisting of 12 small 80-ft diameter clarifiers and 6 large 160-ft diameter clarifiers, located in the southeast corner of the plant. This project provides for the replacement of the 12 small primary clarifiers, which were constructed in 1956, 1963, and 1971 and have outlived their useful lives. Construction of the project was advertised for bids on June 27, 2024 and July 04, 2024 in the Fort Worth Star -Telegram. On August 22, 2024 the following bids were received: Bi der Alternative No. Alternative Contract ,me 1 No 2 Eagle Contracting LLC $98,319,734.00 No Sid 1187 Calends Days Thalle Construction Co.,1nc. 1,100,000.00105 In addition to the contract cost, $1,123,791.00 is required for project management and inspection and $688,238.00 is provided for project contingency. On August 27, 2024, Mayor and Council Communication (M&C) 24-0710, the city council approved the appropriation for the Water and Sewer System Revenue Bonds Series 2024B. The amount of $56,547,433.70 will be available to fund this contract. This project will have no impact on the Water Department operating budget when complete. Available cash within the Water and Sewer portfolio and the City's portfolio along with the appropriation authority 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 from tax-exempt bond proceeds. 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 action in the M&C will appropriate funds in support of the Water's portion of the City of Fort Worth's Fiscal Years 2025-2029 Capital Improvement Program. Funding for VCWRF Primary Clarifier Replacements Phase 1 project is depicted below: 60VCWRF PRIMARY CLARIFIERS CONSTRUCTION -EAGLE Revised Capital Fund Project Name FY2025 CIP Authority Budget Change FY2025 Name Appropriations (increase/Decrease) Budget 103295 — VC 56023 — W&S Pnmary Commercial Clarifies $0.00 This M&C $30,676,608.36 $30,1576,608.36 Paper Fund REPLPHI 103295 — VC 56018 — WS Primary Capital Project Clarifies $0.00 This M&C $1,839,596.94 $1,839,596.94 2020 Fund REPLPHI Sewer 103295— VC Primary ee L Clarifies $0.00 This M&C $11,068,124.00 $11,068,124.00 REPLPHI Funding is budgeted in the Commercial Paper project within the W&S Commercial Paper Fund, Funding is available in the Unspecified All -Funds project within the WS Capital Project 2020 Fund and in the WaterANasteWater Wholesale Impact Fees and Water/WasteWater Retail Impact Fees projects within the Sewer Impact Fee Fund for the purpose of funding the Village Creek Primary Clarifiers Replacement Phase I project. Funding for the Village Creek Primary Clarifiers Replacement Phase I project is depicted below: Fund ��AppropriationsIlAppropriationsi� Existing Additional Project Total* Fund 56020 - Water &Sewer $1,623,300.00 $0.00 $1,623,300.00 Revenue Bonds Series 2022 Fund 56022 - W&S Rev Bonds $4,035,605.00 $0,00 $4,035,605.00 Series 2024 Fund 56024 — W&S Rev Bonds $57,000,000.00 $0.00 $57,000,000.00 Series202413 Fund 56023 -- W&S Commercial $0.00 $30,676.608.36 $30,676,608.36 Paper Fund 56018 — WS Capital Project $0.00 $1,839,596.94 $1,839,596.94 2020 Fund 57003— Sewer Impact Fee $0.00 $11,068,124.00 $11,068,124.00 Project Total 11 $62,658,905.00 $43,584,329.30 $106,243,234.3011 "Numbers rounded for presentation. Business Equity: The Business Equity Division placed a 10.48 percent business equity goal on this solicitation/contract. Eagle Contracting LLC, will be exceeding the goal at 14.80 percent, meeting the City's Business Equity Ordinance. Any changes in subcontractors will be reviewed by the Business Equity Division. The project is located in COUNCIL DISTRICT 5, VCWRF serves ALL COUNCIL DISTRICTS. i1$CAL_INFORMATION 1 CERTIFICATION: The Director of Finance certifies that funds are currently available in the Commercial Paper project within the W&S Commercial Paper Fund, in the Unspecified —All Funds project within the WS Capital Project 2020 Fund, and in the WAA W Wholesale Impact Fees and WIW Retail Impact Fees projects within the Sewer Impact Fee Fund and upon approval of the above recommendations and adoption of the attached appropriation prdinances, funds will be available in the W&S Commercial Paper Fund, the WS Capital Project 2020 Fund, and the Sewer Impact Fee Fund for tale VC Primary Clarifier REPL PHI project to support the above recommendations and execution of the construction contract. Prior to any expenditure being incurred, the Water Department has the responsibility to validate the availability of funds. Submitted for Cily Managers Office b • Fernando Costa 6122 Originating Business Unit Head: Chris Harder 5020 Additional Information Contact: Farida Goderya 8214