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HomeMy WebLinkAboutOrdinance 22986-11-2017 Ordinance No. 22986-11-2017 AN ORDINANCE INCREASING THE APPROPRIATIONS IN THE AMOUNT OF $750,000.00 IN THE WATER AND SEWER DPN FUND, FROM AVAILABLE FUNDS, FOR THE NORTH HOLLY WATER TREATMENT PLANT SEDIMENTATION BASIN SLUDGE SYSTEM REPLACEMENT PROJECT; 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 2017-2018 in the Budget of the City Manager, there shall also be increased appropriations in the amount of$750,000.00 in the Water and Sewer DPN Fund, from available funds, for the North Holly Water Treatment Plant Sedimentation Basin Sludge System Replacement project. 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 22928-09-2017 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 SECRETARY Douglas W Black Mary J. K yr Sr. Assistant City Attorney ADOPTED AND EFFECTIVE: November 7, 2017 MAYOR AND COUNCIL COMMUNICATION MAP 60NHWTPSBSRSR-APAI Iii ► § ,�F -- I W 5TH ST „ ,w STH ST lit vv 1111 Z 2 c Sr--- k 4 -1 { rte,77 4 Lu A Ir4 -'tet $m TEXASk, RON dbAmm— STI - l}3 ' s ly- SEDIMENTATION ����� � J-: :�` = i ,+ BASIN 4 i HOLLY LL no N W.1 3TH ST* _ W LAN' CASTE AVE � a Ilk 1I dl ; Iwo FORTWORTH �- t WELPASO ST k City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 11/7/2017 - Ordinance No. 22986-11-2017 & Resolution No, 4859-11-2017 DATE: Tuesday, November 7, 2017 REFERENCE NO.: ""C-28464 LOG NAME: 60NHWTPSBSRSR-APAI SUBJECT: Authorize Execution of an Engineering Agreement with Alan Plummer Associates, Inc., in the Amount of $688,037.00, for the North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement, Provide for Additional Project Costs, Adopt Reimbursement Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICT 9) 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 North Holly Water Treatment Plant Sedimentation Basin Sludge System Replacement Project; 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water/Sewer DPN Fund in the amount of$750,000.00; and 3. Authorize the execution of an Engineering Agreement with Alan Plummer Associates, Inc., in the amount of$688,037.00 for North Holly Water Treatment Plant Sedimentation Basin Sludge System Replacement (City Project No. 02328). DISCUSSION: The North Holly Water Treatment Plant currently has an approximately 80-90 MGD treatment capacity. This plant was started in 1914 and has been modified and expanded ever since. Only a few facilities built before 1940 are still in use and many of these have been modified to reflect more current processes and technologies. The current Sedimentation Basins 5, 6 and 7 were originally completed in 1950. These units had limited sludge removal capability and were annually taken out of service for cleaning. In 1991, during a chemical feed improvements project, a vacuum sludge removal system (Trac-Vac) was installed to remove sludge off the bottom of the sedimentation basins on a continuous basis. However, this system could not keep up with increasing sludge production. In 2000, a major upgrade of the sedimentation basins occurred with installation of turbine floccuators and tube settlers to increase sludge removal capability and improve water quality. The existing vacuum sludge removal system was replaced with an improved Trac-Vac. This system has proven to be only marginally effective in keeping up with the increasing sludge production and eventually the system became overwhelmed and stopped working. Staff has determined that a practical solution to the problem would be to install circular clarifiers in the existing sedimentation basins for sludge removal. This type of clarifier has been in use at the South Holly Logname: 60NHWTPSBSRSR- APAI Page I of 3 Water Treatment Plant and the Rolling Hills Water Treatment Plant with minimal problems since both plants were first built. The proposed project includes modifications to the flocculation zones to reduced sediment buildup, modifications to the sedimentation basins to remove the existing sludge collection equipment and installation of new circular sludge collection system with associated piping, valves, electrical and instrumentation. In addition, an evaluation of hydraulics will be conducted to determine the need for additional sludge pumping. Alan Plummer and Associates, Inc. proposes to provide the necessary design services for a fee of $688,037.00. Staff considers the proposed fee to be fair and reasonable for the scope of services proposed. In addition to the contract amount, $61,963.00 is required for project management. 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 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 2017-2021 Five-Year Capital Improvement Plan on January 24, 2017 (M&C G-18927). 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. Design Engineering for the North Holly Water Treatment Plant Sedimentation Basin Sludge System Replacement is one component of the overall project that includes project management, material testing, inspection, construction, and contingencies. The overall project budget is $3,750,000.00. Design is expected to be completed by November 2018. Construction is anticipated to commence in March 2019 with construction of all phases to be completed by March 2020. This project will have no impact on the Water Department's operating budget when complete. M/WBE OFFICE: Alan Plummer Associates, Inc., is in compliance with the City's DBE Ordinance by committing to 38 percent SBE participation. The City's SBE goal on this project is 20 percent. The project is located in COUNCIL DISTRICT 9, 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 the Water/Sewer DPN Fund for North Holly Logname: 60NHWTPSBSRSR- APAI Page 2 of 3 Water Treatment Plant Sedimentation Basin Sludge System Replacement Project. The Water & Sewer DPN Fund includes authority of$100,000,000.00 for the purpose of providing interim funding for Water and Sewer Capital Projects. After this transfer, the balance will be $86,970,529.00. Appropriations are as depicted in the table below: Fund Existing ,Additional Project Appropriations Appropriations Total* i Water and Sewer 1$0.00 ;$750,000.00 $750,000.00 DPN Fund - 56014 i Project Total J$0.00 !$750,000.00 1$750,000.00 *Numbers rounded for presentation purposes. FUND IDENTIFIERS (FIDs): TO Fund Department ccoun Project Program ctivityl Budget Reference # moun ID ID Year (Chartfield 2) FROM _ Fund Department ccoun Project Program ctivity Budget Reference # Amount ID ID Year� (Chartfield 2) CERTIFICATIONS: Submitted for City Manager's Office by: Jay Chapa (5804) Originating Department Head: Kara Shuror (8819) Additional Information Contact: Dena Johnson (7866) Logname: 60NHWTPSBSRSR- APAI Page 3 of 3