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Home My WebLink AboutOrdinance 22601-02-2017 ORDINANCE NO. 22601-02-2017 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE WATER AND SEWER DPN FUND IN THE AMOUNT OF $952,435.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF FUNDING THE CAYLOR GROUND STORAGE TANK REHABILITATION AND REPAINT PROJECT AND PROJECT MANAGEMENT COSTS ASSOCIATED WITH THE EXECUTION OF THE CONTRACT; 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 2016-2017 in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Water and Sewer DPN Fund in the amount of $952,435.00, from available funds, for the purpose of funding the Caylor Ground Storage Tank Rehabilitation and Repaint Project and project management costs associated with the execution of the contract. 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. 22394-09-2016 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: i Douglas W. Black, ary J. a r, Sr. Assistant City Attorney City Secre ADOPTED AND EFFECTIVE: February 14, 2017 Ordinance No.22601-02-2017 Page 1 of 1 Caylor Ground Storage Tank (GST) Site r . r i CLAY\w r .' awe M U 1 Z Y J M i rt err,- �r� ,.. a'w^Qp y, 0 7 _ _ _ as r. i. L ,= .M 1M'e 77 Y"W'.V.0V W. C r BE M - .. EIkia dl . i - I.er, p}C 7 _ Existing Caylor GST O) v r a �e � 4'YeaN 0 0 z:. Proposed a. Second GST w '�� A _Lr,v � iA X �� 4 l � i `C 1, 1 11 • . p ., Legend All Water Lines Lt ♦ Fire Hydrant Tank Site S60 640 „ #t a � k City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 2/14/2017 - Ordinance No. 22601-02-2017 4 Resolution No. 4743-02-2017 DATE: Tuesday, February 14, 2017 REFERENCE NO.: **C-28109 LOG NAME: 60CAYLOR GST REHAB AND REPAINT SUBJECT: Authorize Execution of a Contract with Utility Service Co., Inc., in the Amount of$852,435.00 for the Caylor Ground Storage Tank Rehabilitation and Repaint Project, Provide for Project Management, Staff Time and Contingencies for a Total Project Amount of$952,435.00, Adopt Reimbursement Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICT 7) RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached resolution expressing official Intent to Reimburse expenditures with proceeds of future debt for the entire Caylor Ground Storage Tank Rehabilitation and Repaint Project; and 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer Direct Purchase Note Fund in the amount of$952,435.00; and 3. Authorize the execution of a contract with Utility Service Co., Inc., in the amount of$852,435.00 for the Caylor Ground Storage Tank Rehabilitation and Repaint Project. DISCUSSION: The Caylor Five Million Gallon ground storage tank was built in 1988 and is located at 1300 North Caylor Road. The tank provides potable water storage for customers in North Fort Worth. After 19 years of service, the existing coating system is in need of replacement in order to protect the structural steel tank from corrosion. In December 2015, a Request for Qualifications was issued for several Water Department Projects including the potable water Storage Tank Rehabilitation Project. In January 2016, a total of six proposals were received from engineering consultants for the tank rehabilitation project. A staff selection committee recommended Dunham Engineering, Inc., for the Caylor Ground Storage Tank Repaint and Rehabilitation Project. The project was advertised on November 10, 2016 and November 17, 2016, in the Fort Worth Star- Telegram. On December 15, 2016, the following bids were received: Logname: 60CAYLOR GST REHAB AND REPAINT Pagel of 3 BIDDER _ BID AMOUNT CONTRACT Utility Service Co., Inc. �$ 852,435.00 150 calendar days IN.G. Painting, L.P. �$ 871,200.00 IA&M Construction Utilities, Inc. J$ 875,300.00 Maguire Ir --�- ---�----��_Fs 894,450.00 ~ lJ R Stelzer Company 924,750.00 L.C. United Painting Co., Inc. $1,106,715.00 TMI Coatings, Inc. $1,275,500.00 Classic Protective Coatings, Inc. ��l$1,296,400.00 Central Tank Coating. $1,497,000.00 In addition to the contract cost, $50,000.00 is required for staff project management and $50,000.00 is provided for project contingencies. 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 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. 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 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 project will have no impact on the Water Department's operating budget. The total cost for this project is estimated to be $1,127.435.00. Construction is anticipated to commence in March 2017. With contract time of 150 Calendar days, the Logname: 60CAYLOR GST REHAB AND REPAINT Page 2 of 3 construction is estimated to be completed by the end of August 2017. MANBE Office - Utility Service Co., Inc., is in compliance with the City's BDE Ordinance by committing to seven percent MBE participation. The City's MBE goal on this project is six percent. The project is located within the City Limits COUNCIL DISTICT 7, Mapsco 234131. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that upon approva[ of the above recommendations and adoption of the attached appropriation ordinance funds will be available in the Water/Sewer DPN Fund for the Como GST Rehabilitation and Repainting project, as depicted in the table below. Fund Existing Additional Project Appropriations lAppropriations; Total*_ Water/Sewer Bond 2016 Fund $175,000.00 $0.00 $175,000.001 56005 !-Numbers rounded for presentation purposes. Water & Sewer {� $0.00 $952,435.00 $952,435.00 DPN Fund 56011 Project Total 1 $175,000.001 $952,435.001$1,127,435.00 FUND IDENTIFIERS (FIDs): TO Fund Department ccoun Project Program ctivity Budget Reference # moun ID ID Year Chartfield 2 FROM Fund Departmentccoun Project Program ctivity Budget Reference # moun ID 1A ID Year Chartfield 2 CERTIFICATIONS: Submitted for City Manager's Office by: Jay Chapa (5804) Originating Department Head: John Carman (8246) Additional Information Contact: Seiavash Mir (8404) Logname: 60CAYLOR GST REHAB AND REPAINT Page 3 of 3