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HomeMy WebLinkAboutOrdinance 22806-08-2017Ordinance No. 22806-08-2017 AN ORDINANCE INCREASING APPROPRIATIONS IN THE AMOUNT OF $225,840.00 IN THE WATER AND SEWER DPN FUND, FROM AVAILABLE FUNDS, FOR REPAIR AND REPAINTING OF THE ONE MILLION GALLON CALMONT ELEVATED STORAGE TANK; 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 appropriations in the amount of $225,840.00 in the Water and Sewer DPN Fund, from available funds, for the repair and repainting of the one million gallon Calmont elevated storage tank. 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 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: CITY SECRETAR� / Douglas W Black Ma J. a r Sr. Assistant City Attorney ADOPTED AND EFFECTIVE: Auqust 1, 2017 City of Fort Worth, Texas Mayor and Council Communication DATE: Tuesday, August 1, 2017 LOG NAME: 60REPAINTING OF 1 MG CALMONT EST REFERENCE NO.: **C-28304 SUBJECT: Authorize Execution of an Engineering Agreement with Kleinfelder, Inc., in the Amount of $150,840.00 for Engineering Services for the Repair and Repainting of the One Million Gallon Calmont Elevated Storage Tank, Adopt Approriation Ordinance and Reimbursement Resolution (COUNCIL DISTRICT 3) 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 repainting of the Repair and Repainting of the one million gallon Calmont Elevated Storage Tank; 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water and Sewer DPN Fund in the amount of $225,840.00; and 3. Authorize execution of an Engineering Agreement with Kleinfelder, Inc., in Amount of $150,840.00, for Engineering Services Required for Repair and Repainting of one million gallon Calmont Elevated Storage Tank. DISCUSSION: The Calmont Elevated Tank, located at 6600 Calmont Avenue, was built in 1948 and last repainted in 1999. The existing coating system has reached the end of its useful life and needs to be removed and replaced. In February 2017, a Request for Qualifications (RFQ) was issued for several Water Department Projects including the Potable Water Storage Tank Rehabilitation Project. In March 2017 a total of six proposals were received from engineering consultants for the tank rehabilitation project. A Staff selection committee recommended Kleinfelder, Inc., for the Repair and Repainting of the one million gallon Calmont Elevated Storage Tank Repaint and Rehabilitation Project. 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 Logname: 60REPAINTING OF 1 MG CALMONT EST Page 1 of 3 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 Mayor and Council Communication (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. The Engineering Agreement being approved is only a portion of the project that includes project management, inspection, contingencies and construction cost with an overall budget for this project of $1,225,840.00. Engineering services is anticipated to commence in August 2017 and be complete by January 2018, with construction starting in March 2018 to be complete by June 2018. In addition to the Engineering Agreement funding, $75,000.00 is needed for inspection, project management and project contingencies. This project will have no impact on the Water Department's operating budget when complete. M/WBE OFFICE — Kleinfelder, Inc., is in compliance with the City's BDE Ordinance by committing to nine percent SBE participation. The City's goal on this project is nine percent. This project is located in COUNCIL DISTRICT 3. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendation and adoption of the attached appropriation ordinance, funds will be available in the Water/Sewer DPN funds for the Repainting of the one million gallon Calmont Elevated Storage Tank project as depicted below: FUND Water/Sewer DPN Fund 56011 Project Total Existing Appropriations $0.00 $0.00 * Numbers rounded for presentation purposes. Additional Project Appropriations Total* $225,840.00 � $225,840.00 $225,840.00 �225,840.00 Logname: 60REPAINTING OF 1 MG CALMONT EST Page 2 of 3 und Department ccoun Project Pro ID ID Department ccoun Project ID ID CERTIFICATIONS: Submitted for Citv Manaqer's Office by: Originating Department Head: Additional Information Contact: ram ctivity Budget Reference # moun Year (Chartfield 2) ram ctivity Budget Reference # moun Year (Chartfield 2) Logname: 60REPAINTING OF 1 MG CALMONT EST Jay Chapa (5804) Kara Shuror (8819) Seiavash Mir (8404) Page 3 of 3