M&C Review


COUNCIL ACTION:  Approved on 9/11/2018 - Ordinance No. 23372-09-2018 & Resolution No. 4975-09-2018

DATE: 9/11/2018 REFERENCE NO.: **C-28842 LOG NAME: 60VCWRF 5 MG LIQUID BIOSOILD STORAGE TANK
CODE: C TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:  

Authorize Execution of Amendment No. 2, in the amount of $361,720.00, to City Secretary Contract No. 47702 an Engineering Agreement with MWH Americas, Inc., n/k/a Stantec Consulting Services, Inc., for Construction Services, Authorize Execution of a Construction Contract with Crescent Constructors, Inc., in the Amount of $6,437,000.00 Each for the Construction of the 5 Million Gallon Liquid Biosolid Concrete Storage Tank Project at the Village Creek Water Reclamation Facility, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt, Provide for Project Management and Staff Costs and Adopt Appropriation Ordinance (COUNCIL DISTRICT 5)


RECOMMENDATION:

It is recommended that the City Council:

  1. Adopt the attached Resolution expressing Official Intent to Reimburse Expenditures with Proceeds of Future Enterprise Fund Debt for the construction of the 5 Million Gallon (MG) Liquid Biosolid Concrete Storage Tank Project;

  2. Adopt the attached Appropriation Ordinance increasing appropriations in the Commercial Paper Fund in amount of $7,352,720.00 for construction of the 5 MG Liquid Biosolid Concrete Storage Tank Project;

  3. Authorize execution of a construction contract with Crescent Constructors, Inc., in the amount of $6,437,000.00 for construction of the 5 MG Liquid Biosolids Concrete Storage Tank Project at Village Creek Water Reclamation Facility (City Project No. C02669) and provide for additional staff costs and contingencies;

  4. Authorize execution of Amendment No. 2 to City Secretary Contract No. 47702, in the amount of $361,720.00, an Engineering Services Agreement with MWH Americas, Inc., n/k/a Stantec Consulting Services, Inc., for construction management services for the 5 MG Liquid Biosolids Concrete Storage Tank Project at Village Creek Water Reclamation Facility (City Project No. C02669).



 
DISCUSSION:

The Village Creek Water Reclamation Facility (VCWRF) processes approximately 900,000 gallons of anaerobically digested sludge daily at the Sludge Only Landfill (SOL).  The sludge is pumped from the VCWRF to the SOL and into two storage tanks which provide approximately 1.3 million gallons of storage capacity.  The liquid sludge is pumped from the tanks to six belt presses where water is removed and Class AB biosolids are created.  The biosolids are loaded onto trucks at the SOL and transported to Noticed Land Application Sites in seven counties around North Texas and then beneficially land-applied.

In October 2014, the Texas Commission on Environmental Quality (TECQ) amended the existing regulations governing the land application of biosolids.  TCEQ also implemented new criteria for long term storage of biosolids at land application sites.  TCEQ prohibits the land application of biosolids during wet weather events.

Several approaches to meet the new regulations have been considered, such as developing approved storage pads on TCEQ Noticed Land Application Sites. However, it was determined that the most reasonable solution was the construction of a storage tank at the SOL to contain the anaerobically digested liquid sludge until conditions are again suitable for land application. One 5 million gallon (MG) tank is needed to provide approximately 6 days of storage. The tank can also be used for emergency storage of liquid sludge in the event of power or equipment failure at the dewatering facility.

On March 29, 2016 (M&C C-27656), the City Council authorized an Engineering Agreement with MWH Americas, Inc., n/k/a Stantec Consulting Services, Inc., (City Secretary Contract No. 47702) for preparation of plans and specifications for construction of a 5 million gallon liquid biosolids storage tank.

On October 10, 2017 (M&C C-28425), Amendment No. 1 to City Secretary Contract No. 47702 was authorized in the amount of $228,803.00 to assess the sludge pipeline condition and to design the electrical and instrumentation component of the Ferric Chloride feed system.

As part of this Amendment No. 2, the Engineer will perform construction phase services, including review and response to contractor requests for information (RFIs), review of contractor shop drawings and O&M manuals and periodic visits to the construction site to observe construction work and progress.

This Project was Advertised on May 17, 2018 and May 24, 2018, in the Fort Worth Star-Telegram.  On June 21, 2018. the following bids were received.

BIDDERBID AMOUNT         CONTRACT
Crescent Constructors, Inc.$6,437,000.00540 Calendar Days
Eagle Construction, L.P.$6,754,000.00
Gracon Construction, Inc.$6,754,125.00
Archer Western, Construction, LLC$6,911,125.00
Felix Construction Company $7,224,405.00

In addition to the contract cost $260,000.00 required for staff project management, inspection and $294,000.00 for project change order and contingency for a total Construction Cost of $6,697,000.00.

This project is anticipated to be included in a future revenue bond issue for the Water and 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. To the extent resources other than the Water and Sewer 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 CP 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.

The City Council adopted the Water Department's Fiscal Year 2018-2022 Five Year Capital Improvement Plan on September 26, 2017. This City Council adopted plan includes this specific project, with funding identified through the CP program to be reimbursed with future revenue bonds. In accordance with the provisions of the Financial Management Policy Statement, Staff anticipates presenting revenue-supported debt issuances to the City Council for consideration within the next three years. This 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 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 November 2018, with a contract time of 540 calendar days. The construction is estimated to be completed by end June 2020.

M/WBE OFFICE:  Crescent  Constructors, Inc., is in compliance with the City's DBE Ordinance by committing to nine percent MBE participation and documenting good faith effort. Crescent Constructors, Inc. identified several subcontracting and supplier opportunities. However, the firms contacted in the areas identified did not respond or did not submit the lowest bids. The City's MBE goal on this project is 25 percent.

M/WBE OFFICE:  Stantec Engineering Services, Inc. is in compliance with the City's BDE Ordinance by committing to 17 percent SBE participation on this Amendment No. 2.  The City's goal on this Amendment is 17 percent.

This project will have no impact on the Water Department's annual operating budget when completed.

This project is located in COUNCIL DISTRICT 5, but this facility serves all of the Fort Worth area.

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in Water & Sewer Commercial Paper Fund for the VCWRF Liquid Biosolids Concrete Storage Project. The Water and Sewer Commercial Paper Fund includes authority of $150,000,000 for the purpose of providing interim funding for Water and Sewer Capital Project. After this transfer, the balance will be $126,760,765.00 for future capital projects. Funding for the VCWRF Liquid Biosolids Concrete Storage Project, funding is as depicted below:

FUND

Existing Appropriations

Additional Appropriations

Project Total*
Water & Sewer 2016 Bond Fund 56005             $2,510,000.00

$0.00

$2,510,000.00
Water & Sewer Commercial Paper Fund 56016


$0.00

$7,352,720.00$7,352,720.00
Project Total$2,510,000.00$7,352,720.00

$9,862,720.00

*Rounded for presentation purposes.

TO
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

FROM
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

Submitted for City Manager's Office by:
Jay Chapa (5804)
Originating Department Head:
Chris Harder (5020)
Additional Information Contact:
Seiavash Mir (8404)

 
 
ATTACHMENTS
  60VCWRF 5 MG LIQUID BIOSOILD STORAGE TANK _AO18.docx
  60VCWRF 5MG LIQUID BIOSOILDS TANK REIMB RESOLUTION.docx
  Crescent Constructor Form 1295.pdf
  LOCATION MAP.pdf
  Stantec Consultant 1295.pdf