HomeMy WebLinkAboutResolution 6054-02-2025A Resolution
NO. 6054-02-2025
STATEMENT EXPRESSING
OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE VILLAGE
CREEK WATER RECLAMTION FACILITY PRIMARY CLARIFIER
REPLACEMENT PHASE I
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
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 $4,700,000.00 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 Iater 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 11TH day of February 2025.
ATTEST:
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By:
Jannette S. Goodall, City Secretary
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VILLAGE CREEK WATER
RECLAMATION FACILITY
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 02111/25 M&C FILE NUMBER: M&C 25-0105
LOG NAME: 60VCWRF PRIMARY CLARIFIERS RPR-CAROLLO
SUBJECT
(CD 5) Authorize Execution of a Professional Services Agreement with Carollo Engineers, Inc. in the Amount of $3,977,400.00 for Resident
Project Representation Services for the Village Creek Water Reclamation Facility Primary Clarifiers Improvements, 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 2025-2029 Capital Improvement Program
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of a Professional Services Agreement with Carollo Engineers, Inc. in the amount of $3,977,400.00 for Resident Project
Representation Services 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 1 project; and
3. Adopt the attached appropriation ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing
appropriations in the Village Creek Primary Clarifier Replacements Phase 1 project (City Project No. 103295) in the amount of
$3,977,400.00 and decreasing appropriations in the W&S Commercial Paper project (City Project No. UCMLPR) by the same amount.
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-foot diameter clarifiers and 6 large
160-ft diameter clarifiers, located in the southeast corner of the plant.
On October 15, 2024, Mayor and Council Communication (M&C) 24-0855, the City Council authorized a contract with Eagle Contracting, LLC in
the amount of $98,319,734.00 for the Village Creek Water Reclamation Facility Primary Clarifiers Improvements project consisting of the
replacement of the 12 small clarifiers, which were constructed in 1956, 1963, and 1971 and have outlived their useful lives.
This M&C will allow Carollo Engineers, Inc. to provide resident project representation services during construction of the project. Staff considers
the proposed fee to be fair and reasonable.
This project will have no impact on the Water Department's 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 (FY), 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 RPR-CAROLLO
Capital
Fund
Project
Name
FY2025 GIP
Appropriations
Authority
Budget Change
(Increase/Decrease)
Revised
FY2025
Name
Budget
56023 —
103295 —
W&S
VC
Commercial
Primary
$30,676,608.36
This M&C
$3,977,400.00
$34,654,008.36
Paper Fund
Clarifies
REPLPH1
Funding is budgeted in the Commercial Paper project within the W&S Commercial Paper Fund, for the purpose of funding the Village Creek
Primary Clarifiers Replacement Phase 1 project.
Funding for the Village Creek Primary Clarifiers Replacement Phase I project is depicted below:
Fund
Existing
Appropriations
Additional
propriationsil
11Project 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
Serles 2024B
Fund 56023 —
Commercial
Commercial
$30.676,608.36
$3,977,400.00
$34,654,008.36
Paper
Fund 56018 --
WS Capital
Project 2020
$1,839,596.94
$0.00
$1,839.596.94
Fund 57003 —
Sewer Impact
$11,068.124.00
$0.00
$11,068,124.00
Fee
Project Total
$106,243,234.30
1 $3,977,400.00
$110,220,634.30
*Numbers rounded for presentation.
Business Equity: The Business Equity Division placed a 7.41 percent business equity goal on this solicitation/contract. Carollo Engineers, Inc., will
be exceeding the goal at 7.66 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.
FISCAL INFORMATION 1 CERTIFICATION:
The Director of Finance certifies that funds are currently available in the UCMLPR 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 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 City Manager's Office--W. William Johnson 5806
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Farida Goderya 8214