HomeMy WebLinkAboutOrdinance 22212-05-2016 ORDINANCE NO. 22212-05-2016
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE WATER & SEWER BOND 2015A FUND IN THE
AMOUNT OF $5,000.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF
FUNDING DESIGN OF THE REPLACEMENT, REMOVAL AND/OR
MODIFICATION OF THE PRIMARY AREA SWITCHGEAR; PROVIDING FOR
A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF
PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT
HEREWITH;AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2015-2016 in the
Budget of the City Manager,there shall also be increased estimated receipts and appropriations in the Water
& Sewer Bond 2015A Fund in the amount of$5,000.00, from available funds, for the propose of funding
Design of the Replacement,Removal and/or Modification of the Primary Area Switchgear.
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or
void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way
impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining
provisions shall be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance No. 21873-09-2015 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance are in
direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions
of said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY:
maw,
Douglas W.Black, 4ry J.Kayser,
Sr.Assistant City Attorney City Secretary
ADOPTED AND EFFECTIVE:May 17,2016
Ordinance No.22212-05-2016
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Village Creek Water Reclamation Facility (VCWRF) °""T"URL'ED
THIS DATA IS TO BE USED FOR A GRAPHICAL REPRESEHTATIDH 0111't
THE ACCURACY IS HOT TO BE TAKEN,USED AS DATA PRODUCED Fug'.
Switchgear Improvements -Ph.1 Primary Area Etl GPNEERIHG PURPOSES OR BY AREGISTERED PRPFESGD]IIAL VJI
WAT SUftVE'fOR THE TRTNE CCURAGYOF.i1D'DATF H F)t1SIBLiI:
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 5/17/2016 - Ordinance No. 22212-05-2016 & Resolution
No. 4629-05-2016
DATE: Tuesday, May 17, 2016 REFERENCE NO.: **C-27720
LOG NAME: 60VCWRF SWITCHGEAR IMPROVEMENTS - PH1 PRIMARY AREA
SUBJECT:
Authorize Execution of an Engineering Agreement with Gupta and Associates, Inc., in the Amount of
$517,782.00 for Design of the Replacement, Removal and/or Modification of the Primary Area Switchgear
at the Village Creek Water Reclamation Facility, Adopt Reimbursement Resolution and Adopt
Appropriation Ordinance (COUNCIL DISTRICT 5)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize execution of an Engineering Agreement with Gupta and Associates, Inc., in the amount of
$517,782.00, for design of the replacement, removal and/or modification of the primary area switchgear at
the Village Creek Water Reclamation Facility; and
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of
future debt for the Replacement, Removal and/or Modification of Primary Area Switchgear at Village
Creek Water Reclamation Facility Project and adopt the attached appropriation ordinance increasing the
estimated receipts and appropriations in the Water& Sewer Bond 2015A Fund in the amount of
$5,000.00.
DISCUSSION:
The City of Fort Worth owns and operates the Village Creek Water Reclamation Facility (VCWRF). The
VCWRF was started in the 1950's as a five million gallons per day (MGD) plant, currently permitted for an
annual average flow rate of 166 MGD and a two hour peak flow of 369 MGD. The VCWRF has a complex
electrical system with a medium voltage dual feed system, with sub-stations for each process or facility
including single or dual transformers and two 5 MW turbine generators. Most of the electrical equipment
has been in service for over 40 years and has reached the end of its useful life. Much of it is obsolete,
difficult to maintain or obtain spare parts for and showing signs of corrosion. In addition some of electrical
equipment is undersized for the current plant load and may not be safe to operate or maintain.
On September 24, 2013 (Mayor and Council Communication (M&C) C-26477), the City Council awarded
the execution of an Engineering Agreement with National Field Services to conduct a power study, which
included an electrical equipment evaluation, short circuit study, protective device coordination study, arc
flash analysis, field labeling of arc flash hazards and SKM Model development and training. That study
identified several electrical areas needing attention, including the need to replace some equipment.
Because of the size of the project and financial limitations, these improvements will be designed and
implemented in a number of phases organized in terms of critical needs and process areas. Phase 1 has
been identified to be the primary area switchgear electrical system, which is also the oldest and in most
need of improvements. It is anticipated that this project will not increase the operating budget for the
Logname: 60VCWRF SWITCHGEAR IMPROVEMENTS - PHI PRIMARY AREA Page 1 of 4
VCWRF and this Engineering Agreement will determine if there will be any long-term future operating
budget impact.
Gupta and Associates, Inc. (Gupta and Associates) has been selected as the consulting firm to develop
the design plans as well as prepare the construction documents for the various electrical equipment
improvements at the VCWRF. Gupta and Associates is proposing to do the necessary design and
prepare the construction contract documents for the primary area switchgear equipment for the above
identified fee. City staff considers this 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 Direct Purchase Note (DPN) program 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 DPN 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 2016 - 2020 Five-Year Capital Improvement
Plan on February 2, 2016 (M&C G-18662). This City Council-adopted plan includes this specific project,
with funding identified through the DPN program to be reimbursed with future revenue bonds. 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. 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 other financing 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.
Funding for the Replacement, Removal and/or Modification of Primary Area Switchgear at VCWRF Project
is depicted in the following table:
F Existing Additional Future
Description Appropriations Appropriations Appropriations Project Total*
(Engineering $517,782.00 _� $ 0.00 $ 300,000.00 $ 817,782.00
construction [ $ 0.00 0.00 $7,000,000.00 $7,000,000.00
T_ e_ _
Project Planning, Project
Management, Inspection,
Testing and
Contingencies $95,018.00 $5,000.00 __ $ 200,000.00 $ 300,018.00
Project Total F $612,800.00 $5,000.00 $7,500,000.00 $8,117,800.00
*Numbers rounded for presentation purposes.
Funding for the Replacement, Removal and/or Modification of Primary Area Switchgear at VCWRF Project
is depicted in the following table by fund:
F__.____--Fund Appropriations*
Water/Sewer DPN FUND 56005 $ 612,800.00
Logname: 60VCWRF SWITCHGEAR IMPROVEMENTS - PHI PRIMARY AREA Page 2 of 4
Water&Sewer_Bond 2015A 56007 1 $ 5,000.00
Future Revenue Bond $7,500,000.00
- _
�{ Project Total $8,117,800.00
* Numbers rounded for presentation.
Engineering services are anticipated to commence in May 2016. With a contract time of 12 months, it is
estimated to be completed by April 2017. The construction is anticipated to start in August 2017, with an
estimated construction time of 12 months.
M/WBE OFFICE - Gupta and Associates is in compliance with the City's BDE Ordinance by committing to
32 percent SBE participation on this project. The City' s goal on this project is 12 percent. Additionally,
Gupta and Associates is a certified M/WBE firm.
In addition to the contract amount, $64,218.00 is required for project contingency allowance and
$30,000.00 is required for project management and associated Staff time for the Water Department. An
additional $5,000.00 is required to clear negative balances for Staff salaries.
This project serves the entire city and is located in COUNCIL DISTRICT 5, Mapsco 90J.
FISCAL INFORMATION /CERTIFICATION:
The Director of Finance certifies that funding in the Water and Sewer DPN is already appropriated and
available in the project as directed by the Fiscal Year 2016 Water& Wastewater Capital Improvement
Plan and that, upon approval of the attached appropriation ordinance, funds are available as directed by
M&C G-18375 in the Water& Sewer Bond 2015A Fund for the transfer from unspecified funding to the
Replacement, Removal and/or Modification of Primary Area Switchgear at VCWRF Project as depicted in
the table below:
Existing Additional Future Project
FF lAppropriations JAppropriations JAppropriations I Total*
iNater/Sewer
DPN FUND
56005 $612,800.00 $ 0.00 $ 0.00 $ 612,800.00
1 atet & ^
Sewer Bond
2015A
156007 $ 0.00 $5,000.00 $ 0.00 $ 5,000.00
Future
Revenue
Bond $ 0.00 $ 0.00 $7,500,000.00 $7,500,000.00
p5r,iect
Total $612,800.00 $5,000.00 $7,500,000.00 $8,117,800.00
* Numbers rounded for presentation purposes.
FUND IDENTIFIERS (FIDs):
TO
Fund Department Account Project Program Activity Budget Reference # Amount
ID ID Year Chartfield 2
2)560071 0700430 4905430 CO2648 C03030 2016 $5,000.00
56007 0700430 5110101 CO2648 C03030 2016 $5,000.00
2)560051 0700430 5330500 CO2648 C03030 2016 517,782.00
2)560051 0700430 5110101 CO2648 C03030 2016 1 $95,018.00
Logname: 60VCVWRF SWITCHGEAR IMPROVEMENTS - PHI PRIMARY AREA Page 3 of 4
FROM
Fund Department ccoun Project Program ctivity Budget Reference # Amount
ID ID Year Chartfield 2
1 560051 0700430 15330500 1 CO2648 I I C03030 1 2016 1 $517,782.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: John Carman (8246)
Additional Information Contact: Farida Goderya (8214)
Logname: 60VCWRF SWITCHGEAR IMPROVEMENTS - PHI PRIMARY AREA Page 4 of 4