HomeMy WebLinkAboutResolution 4526-09-2015 A Resolution
NO. 4526-09-2015
STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE
EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE CONSTRUCTION OF
THE SIXTH BELT PRESS AND ASSOCIATED EQUIPEMENT AT THE VILLAGE CREEK
WATER RECLAMATION FACILITY SOLIDS DEWATERING PROCESSING AND DISPOSAL
PROGRAM PROJECT
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 Construction of the Sixth Belt Press and Associated Equipment
Modifications at the Village Creek Water Reclamation Facility Solids Dewatering Processing and
Disposal Program project as shown on the attached map (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:
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 $2,600,000.00 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 29th day of September, 2015. " ''
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Mary -448 er, ity Secretary PIZ
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VILLAGE CREEK WASTEWATER TREATMENT PLANT
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COUNCIL ACTION: Approved As Corrected on 9/2912015 - Resolution DATE: Tuesday, September 2S. 2O15 REFERENCE NO.: C_27503
LOG NAME: 8DVCWRFRENOAC012
SUBJECT:
Authorize Execution of Change Order No. 12 to City Secretary No. 30908 with Randa Environmental, Inc.,
for the Installation of Sixth Belt Press and Associated Equipment Modifications at the Village Creek Water
Reclamation Facility Solids Devvobahng Processing and [)iopoam| Pn}gnonn. Increasing the Contract inthe
Amount of$2.423.&57.80and $1O.00O.00 for Staff Costs for a Revised Total Program Cost of
$88.878'807.1O and Adopt Reimbursement Resolution (COUNCIL DISTRICT 5\
RECOMMENDATION:
|tia recommended that the City Council:
1. Authorize the execution of Change Order No. 12 to City Secretary Contract No. 30908 with Renda
Environmental, Inc., for the installation of sixth belt press and associated equipment modifications at the
Village Creek Water Reclamation Facility Solids Dewatering Processing and Disposal Pro Increasing
the Contract cost by $2,423,957.00 for revised Total Program Cost of$69,754,31 {k09.'870.067;16;
and
2. Adopt the attached resolution expressing its official intent to reimburse expenditures with proceeds of
future debt for the Installation of Sixth Belt Press and Associated Equipment Modifications at the Village
Creek Water Reclamation Facility Solids Dewatering Processing and Disposal Program.
DISCUSSION:
On April 8. 2010, /K8&C C-24163\. the City Council authorized the third five-year renewal of the Solids
Oevvatehng Processing and Disposal Program and Gas Turbine Operations and Maintenance Contract
with Randa Environmental, Inc. (RENDA), for on estimated five year cost of$45,411,304.00. The contract
includes the dewatering, processing and disposal of approximately 110 dry tons per day of bio-solids for
the City of Fort Worth and its wholesale customer cities and the operation and maintenance of two 5.2
megawatt gas turbine generators at Village Creek Water Reclamation Facility (VCWRF).
On May 5, 2015 (M&C C-27287) the City Council authorized an amendment and settled claims to the
Solids Dewatering Processing and Disposal Program and Gas Turbine Operations and Maintenance
Contract with RENDA related to operational changes related to increased chemical ooeto. increased
landfill gas cost and other modifications to the contract. This proposed Change Order No. 12addresses
the need for additional equipment for the VCWRF Solids Dewatering expansion of the Processing and
Disposal Program. The existing facility hoVo88 and operates five belt presses, chemical feed systems and
o conveyor belt system. The existing system is inadequate to dewater and process the volume of solids
needed to meet the City's need. Aoixth belt p[eeo, modifications tothe existing chemical system and
conveyor belt system is included in this contract.
I.oguamc: 60\/CVvTUTQBND/\ CL)]2 Page l of
OPERATING FUNDS
Time Period Settlement& Revised Annual Annual Costs Annual Costs PE45 Operating
Other Costs Bio-solids Cost Turbine Landfill Gas Cost
System & Landfill (includes Tier 11)
12-Nov to $ 4,676,199.16 $ 0.00 0.00 $ 0.00[$ 4,676,199.16
Nov 14
[1—4-r1b ec-K
2,931,486.00 (2) 0.00 $ 0.00[$ 3,906,486.00
Mai --Fs-'
[1 5-��'to $ 150,000.00 (3) [$ 4,391,509.00 $ 312,018.00 $ 762,000.00 5,615,527.00
ep
48,704,887.00 $8,161,
Note /1\ Cost for an additional $825.000.00 for the temporary Ferric Chloride Feed System and
$15O.00O.00 for landfill tipping fees; Note (2) Cost includes $246.20/dryton for land applied bio-solids and
$56.80/wxe ton for bio-solids delivered to Itasca Landfill; and Note (3) Cost for landfill tipping fees (other
than Southeast LandfiU\.
CAPITAL FUNDS
Encumbrances
FUND Existing dditional Revised and Remaining
Appropriations Appropriations �FApvnpropnations Expenditures Balance
SewerCapital 0.0 114,750.00 $ 111,920.62 $ 2,829.38
Project Fund F$
2017 Water
and Sewer
Revenue
Capital
Project Fund
JProject Total J$ 114,750.00 2 433,957.00
ADDITIONAL CAPITAL FOR NEW EQUIPMENT
This project ioantioipatedtobaino|udadinafutureravenuabondioauafortheVVmterandGavvar
Fund. /\vGi|ob|e cash within the Water and Sewer portfolio and the City's portfolio along with the
appropriation authority authorized under the Direct Purchase Note Program will be used to provide interim
financing for this project unti| dabtioieoued. To the extent resources other than the Water and Sewer
[ngunzoe: 60\/ClTRFAENl}AC012 Page 2of4
portfolio are used to provide interim financing, the Water and Sewer Fund will be charged interest that is
equivalent to the overall rate of return being earned by the City portfolio (currently approximately one-
percent annually). Should the City's portfolio not support the liquidity needed to provide an interim short-
term financing source, another funding source will be required, which could mean issuance of securities
under the Direct Purchase Note Program or earlier issuance of Water and Sewer revenue bonds than is
currently planned. 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.
In accordance with the provisions of the Financial Management Policy Statements, Staff anticipates
presenting revenue-supported debt issuances to the City Council for consideration within the next three
years. The Financial Management Services Department is currently working with all departments to
ensure that multi-year capital improvement plans are in place. Newly developed and already existing
plans, such as the Water Department's current multi-year capital improvement plan, will be presented to
City Council for review and adoption. If the City Council-adopted plan does not include issuance of debt
for this specific project, the project will be funded by other financing sources. If the Council-adopted plan
calls for debt issuance, that debt must be issued within approximately three years to provide
reimbursement for these expenses. If that does not occur, the costs will no longer be reimbursable by
issuing tax-exempt debt and the funding source will have to be made whole through other budgetary
methods. Adoption of this resolution does not obligate the City to sell bonds, but preserves the ability to
reimburse the City from tax-exempt bond proceeds.
Construction is anticipated to commence in October 2015, with a contract time of 150 calendar days, the
construction is estimated to be complete by the end of May 2016. The operation and maintenance costs of
these assets will be paid for under the existing contract with Renda Environmental, Inc.
This project is listed as a Capital Improvement in the City's Draft Odor Control Plan submitted to the
Texas Commission on Environmental Quality (TCEQ). In addition to the change order cost, the amount of
$10,000.00 is required for staff support and inspection by the Water Department.
MW/BE OFFICE -A waiver of the goal for the MBE/SBE subcontracting requirements was requested by
the Department and approved by the M/WBE Office, in accordance with the M/WBE Ordinance, because
the purchase of goods or services from source(s) where subcontracting or supplier opportunities are
negligible.
This project is located in COUNCIL DISTRICT 5.
FISCAL INFORMATION /CERTIFICATION:
The Financial Management Services Director certifies that funds are available as directed by M&C G-
18375 in the 2017 Water and Sewer Revenue Bonds Capital Project Fund for transfer from unspecified
funding to the Installation of a Sixth Belt Press and Associated Equipment Modifications at Village Creek
Water Reclamation Facility Solids Dewatering Processing and Disposal Program, as depicted in the
following table:
Available Projected
[Fund Appropriation Expenditures [Balance
mount _
2017 Water and
Sewer Revenue Bonds $43,855,541.02 $2,433,957.00 $41,421,584.02
Capital Project
Fund
After appropriation of the $2,433,957.00 to the project, $41,421,584.02 in available revenue will remain in
Logname: 60VCVv'U RENDA C012 Page 3 of 4
the 2017 Water and Sewer Revenue Bonds Capital Project Fund.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
P266 541200 705300230980 $2,423,957.00
P266 511010 705300230980 $10,000.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (6122)
Originating Department Head: John Carman (8246)
Additional Information Contact: Seiavash Mir (8404)
Logname: 60VCWR-F RENDA C012 Page 4 of 4