On November 14, 2017 (M&C C-28475), the City Council authorized an Engineering Agreement in the amount of $282,822.00 with CH2M Hill Engineers, Inc., for the Village Creek Biosolids Management and Beneficial Reuse Facility Project Update.
The agreement was subsequently revised by Amendment No. 1, in the amount of $77,296.00, administratively authorized on September 4, 2018, which consisted of additional wastewater solids process modeling work, long-term growth projections and additional alternatives analysis, as well as the preparation of an engineering feasibility report, to be submitted to the Texas Water Development Board as part of a Clean Water State Revolving Fund Loan application.
Amendment No. 2 will consist of the work to develop both a request for qualifications (RFQ) and request for proposals (RFP) as part of a two-step procurement process for a design-build-operate contract for biosolids management for the Village Creek Water Reclamation Facility. The work also consists of responding to requests for information during the procurement process, for providing technical analysis and recommendations during the evaluation of vendor submittals and during the negotiation of the agreement. CH2M Hill Engineers, Inc., will provide these additional services for a not to exceed fee of $245,461.00. Staff considers the proposed fee to be fair and reasonable for the scope of services proposed.
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. This contract will be with a Publicly Traded Entity and a 1295 form is not required by law.
The overall project budget for the Village Creek Biosolids Management and Beneficial Reuse Facility Project is $78,500,000.00. The procurement of a design-build-operate team is expected to be completed in July, 2019 with construction anticipated to be completed in the fall of 2022.
MWBE OFFICE: A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Department and approved by the M/WBE office, in accordance with the M/WBE or BDE Ordinance, because the purchase of goods and services from sources(s) where subcontracting or supplier opportunities are negligible.
This project is located in COUNCIL DISTRICT 5, but provides services to the all of the City of Fort Worth.