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Home My WebLink AboutResolution 6102-05-2025A Resolution NO. 6102-05-2025 STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE WESTSIDE WATER TREATMENT PLANT PLATE SETTLERS 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 Westside Water Treatment Plant Plate Settlers 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 $2,880,000.00 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 20th day of May 2025. ATTEST: By. .° Jannette S. Goodall, City Secretary ?�� o°° n �0 Y g� ano o ��,At� 0 0 City of Fort Worth, Texas Mayor and Council Communication DATE: 05/20/25 M&C FILE NUMBER: M&C 25-0462 LOG NAME: 60WSWTP-ARIA FILTRA SUBJECT (CD 3) Authorize Execution of a Contract with Aria Filtra, a Division of Trojan Technologies Corporation FKA Pall Technologies, the Sole Source Provider for Aria Microfiltration Membrane System for the Water Department in an Amount of $2,400,406.18 for the Westside Water Treatment Plant (Plate Settlers) Capacity Expansion Project from 18 to 24 Million Gallons Per Day; 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 ')r»r,_9r9q r`anitnl Imnrovements Program RECOMMENDATION: It is recommended that the City Council: Authorize execution of a Contract with Aria Filtra, a division of Trojan Technologies Corporation FKA Pall Technologies, the Sole Source Provider for Aria Microfiltration Membrane System for the Water Department in the amount of $2,400,406.18 for the Westside Water Treatment Plant (Plate Settlers) capacity expansion project from 18 to 24 Million Gallons per Day; Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Westside Water Treatment Plant (Plate Settlers) Capacity Expansion project; and Adopt the attached appropriation ordinance adjusting appropriations in the Water & Sewer Commercial Paper Fund by increasing appropriations in the Westside Water Treatment Plant (Plate Settlers) Capacity Expansion project (City Project No. 102052) in the amount of $2,400,407.00 and decreasing appropriations in the Water & Sewer Commercial Paper Project (City Project No. UCMLPR) by the same amrn int and to affect a portion of Water's Contribution to the Fiscal Years 2025-2029 Capital Improvement Program. DISCUSSION: The Westside Water Treatment Plant (WSWTP) began serving the community in April 2012 with an initial capacity of 12 million gallons per day (MGD). in 2015 the plant was expanded to a capacity of 15 MGD. In 2020 the plant was expanded to a capacity of 18 MGD. Now with continued growth and development in west Fort Worth, the Water Department desires to bring the plant's capacity up to 24 MGD with the procurement of additional filtration membranes and other improvements associated with the WSWTP Expansion project (City Project No. 102052). The Westside Plant was designed and permitted using Pall Technologies' microfiltration membrane system. Pall Technologies is now Aria Filtra, a division of Trojan Technologies Corporation. Equipment sizing, operating protocols, programming, and TCEQ approval is now with Aria Filtra. Under this contract, Ada Filtra will supply two Aria Filtra 14" Traverse Racks, four 14-inch Quad Rack Extensions, parts, and components for the Aria Microfiltration Membrane System to facilitate the 6 MGD increase. 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 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 (FY), 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 Mayor & Council Communication will amend the City of Fort Worth's Fiscal Years 2025-2029 Capital Improvement Program, as follows: Capital Fund Project FY2025 CIP Authority Budget Change Revised Name Name Appropriations (increase/Decrease) FY2025 Budget 102052 66026 - — W&S Commercial Westside WTP $0.00 This M&C $2,400,407.00 $2,400,407.00 Paper Plate Settlers Funding is budgeted in the UCMLPR Commercial Paper project within the Commercial Paper Fund for the purpose of funding the WSWTP (Plate Settlers) capacity expansion project. Funding for the WSWTP (Plate Settlers) capacity expansion project is depicted below: Fund Existing Additional �FrojectTotal Appropriations Appropriations Water Impact Fee — $6,268,829.00 $0.00 $6,268,829.00 Fund 56003 W&S Commercial aper— Fund $0.00$2,400,407.00 $2,400,407.00 56026 Total $6,268,829.00'l $2,400,407.00I$8,669,2 0 SOLE SOURCE STATEMENT: The Microfiltration Membrane System located at Westside Water Treatment Plant (WSWTP) is designed and manufactured only by Aria Filtra, a division of Trojan Technologies Corp. No other manufacturer or parts distributor can supply this equipment or its proprietary components. DVIN-BE: This project was approved for a waiver per the Chapter 252 exemption, as a sole source by the Legal Department. Therefore, the business equity goal requirement is not applicable. The project is located in COUNCIL DISTRICT 3. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that funds are available in the Commercial Paper project within the W&S Commercial Paper Fund, and upon the 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 Westside WTP Plate Settlers 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 to validate the availability of funds. Submitted for Citv Manager's Office by Oriainatina Business Unit Head: Additional Information Contact: Expedited Jesica McEachern 5804 Chris Harder 5020 James McDonald 4982 MAYOR AND COUNCIL COMMUNICATION MAP 60WSWTP-ARIA FI LTRA -- �• _� �F. �✓fit � -�'' L 1�: , . •y � YVA ty� D ~ WESTSIDEh'�. WTP IL OLD WEATHERFOT(5wg w.�` �' � •'�Rti ,ems ,! ,yn. 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