HomeMy WebLinkAboutOrdinance 22983-11-2017Ordinance No. 22983-11-2017
AN ORDINANCE INCREASING THE APPROPRIATIONS IN THE AMOUNT OF
$600,000.00 IN THE WATER AND SEWER DPN FUND, FROM AVAILABLE FUNDS, FOR
THE M-199 C-R SANITARY SEWER MAIN PARALLEL INTERCEPTOR PROJECT,
PROJECT MANAGEMENT, UTILITY COORDINATION, REAL PROPERTYACQUISITION,
AND MATERIAL TESTING; 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 $600,000.00 in the
Water and Sewer DPN Fund, from available funds, for the M-199 C-R Sanitary Sewer Main Parallel Interceptor
Project, project management, utility coordination, real property acquisition, and material testing.
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 competentjurisdiction, such decision, opinion orjudgment 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said prior ordinances and appropriations are hereby expressly repealed.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:
Douglas W Black
Sr. Assistant City Attorney
ADOPTED AND EFFECTIVE: November 7, 2017
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CITY SECRETARY
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L. _
Mary J. Kayse
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: Tuesday, November 7, 2017 REFERENCE NO.: **C-28461
LOG NAME: 6060M199CRPIWFB - RJN
SUBJECT:
Authorize Execution of Engineering Agreement with RJN Group, Inc., in the Amount of $525,000.00 for M-
199 C-R Sanitary Sewer Main Parallel Interceptor, Provide for Staff Costs, Property Acquisition and Utility
Coordination for a Total Project Amount of $600,000.00, Adopt Resolution Expressing Official Intent to
Reimburse Expenditures and Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL
DISTRICT 7)
RECOMMENDATION:
1. Adopt the attached resolution expressing official Intent to reimburse expenditures with proceeds of
future debt for the M-199 C-R Sanitary Sewer Main Parallel Interceptor Project;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Water and Sewer DPN Fund in the amount of $600,000.00; and
3. Authorize execution an Engineering Agreement with RJN Group, Inc., in the amount of $525,000.00 for
the M-199 C-R Sanitary Sewer Main Parallel Interceptor Project (City Project No.100836).
DISCUSSION:
This Mayor and Council Communication (M&C) is to authorize the preparation of plans and specifications
for the installation of M-199 C-R Sanitary Sewer Main Parallel Interceptor Project. Sanitary Sewer Main
199 C-R services the West Fork Basin. As part of the City's Wastewater System Master Plan, the need for
a 30-inch parallel relief line to M-199 C-R was identified.
RJN Group, Inc. proposes to provide the necessary design services for a fee of $525,000.00. Staff
considers the proposed fee to be fair and reasonable for the scope of services proposed.
In addition to the contract amount, $75,000.00 is required for project management, utility coordination, real
property acquisition and material testing.
Engineering for the M-199 C-R Sanitary Sewer Main Parallel Interceptor is one component of the overall
project that includes project management, easement acquisition, utility coordination, material testing,
inspection, construction and contingencies. The overail project budget is $4,600,000.00. Design is
expected to start in December 2017 and be completed by June 2019. Construction is anticipated to
commence in November 2019 and be completed by October 2021. This project is part of the Water
Department's Sanitary Sewer Overflow Initiative Program.
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
Logname: 6060M199CRPIWFB - RJN Page 1 of 3
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 2017-2021 Five Year Capital Improvement
Plan on January 24, 2017, Mayor and Council Communication (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 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 project will have no impact on the Water Department operating budget.
M/WBE OFFICE - RJN Group, Inc., is in compliance with City's BDE Ordinance by committing to 31
percent SBE participation. The City's SBE goal on this project is 16 percent.
The project is located in COUNCI� DISTRICT 7 and Westworth Village.
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 the M-199 C-R
Sanitary Sewer Main Paraliel Interceptor 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 $86,370,529.00. Funding for this project is depicted in the table below.
�___ _�—_---___.—.-
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�Fund
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�Water & Sewer DPN
;Fund 56014
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Project Total
Existing
Appropriations
$0.00
*Numbers rounded for presentation purposes.
FUND IDENTIFIERS (FIDs�:
und Department ccoun Project
ID ID
Logname: 6060M199CRPIWFB - RJN
Additional � Project
Appropriations # Total*
i
---- _ ---__.. - ---- __ - _ --
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$600,000.00� $600,000.00
�
$600,000.00; $600,000.00
Budget Reference #
Year (Chartfield 2'
mou
Page 2 of 3
CERTIFICATIONS:
Submitted for City Mana�er's Office b�
Originatinq Department Head:
Additional Information Contact:
Jay Chapa (5804)
Kara Shuror (8819)
Walter Norwood (5026)
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