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HomeMy WebLinkAboutOrdinance 23073-01-2018 Ordinance No. 23073-01-2018 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE AMOUNT OF $11,200,000.00 IN THE WATER AND SEWER COMMERCIAL PAPER FUND, FROM AVAILABLE FUNDS, FOR THE VILLAGE CREEK WATER RECLAMATION FACILITY PRIMARY AREA SWITCHGEAR IMPROVEMENTS; 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 estimated receipts and appropriations in the amount of $11,200,000.00 in the Water and Sewer Commercial Paper Fund, from available funds, for the Village Creek Water Reclamation Facility primary area switchgear improvements. 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 4&47—� Douglas W Black Wary J. K r Sr. Assistant City Attorney ADOPTED AND EFFECTIVE: January 9, 2018 2� f , w !^ N 3 Village Creek Water Reclamation Facility (VCWRF) f m- _ 3 Nlr��lr1 � - - H r■■r�L � _- 0� ■u 1 y va .., Primary Area ■.. �- , arr 1 a* cru, Lj l �I - ,r B ' I _ T r Switchgear Improvement Locations ` " ■ - "Al � by�. • �- Y 1 �� I=I� `� � i w IT,1 ` Feet • tl ' I,;1� P Switchgear Improvement Location MIMI-0 300 600 � I .. L, w FORT WORT Creek ` p/� `, ,w,oC COPYR.T2015CITYOFFORTWORTH Village Creek.rater Reclamation Facility (Yf, RF) NAUTHORRED REPRODUCTION ISAVIOLATION OFAPPUCABLE LAMS V THISDATA IS TO BE USED FOR A GRAPHICAL REPRESENTATION ONLY. 1 Primary Area THE ACCURACY IS NOT TO BETAKEN/USED AS DATA PRODUCED FOR Switchgear Improvements-Ph. ENGINEERING PURPOSES OR BYAREGSTERED PROFESSIONAL LAND WATER SURVEYOR THE FOA THE SURVEYOR OF SAID DATA.RESPONSIBILITY City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: ,Approved on 1/9/2018 - Ordinance No. 23073-01-2018 &Resolution No. 4894-01-2018 DATE: Tuesday, January 9, 2018 REFERENCE NO.: C-28536 LOG NAME: 60VCWRF PRIMARY AREA SWITCHGEAR IMP - CONSTRUCTION SUBJECT: Authorize Execution of a Contract with Texsun Electrical Contractors, Inc., in the Amount of $10,765,692.31 for the Village Creek Water Reclamation Facility Primary Area Switchgear Improvements, Provide for Project Costs and Contingencies for a Total Construction Cost in the Amount of $11,200,000.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICT 5) 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 Village Creek Water Reclamation Facility Primary Area Switchgear Improvements Project; 2. Adopt the attached appropriation ordinance increasing estimated appropriations in the Water and Sewer CP Fund in the amount of$11,200,000.00 and reducing the overall CP appropriation authority; and 3. Authorize execution of a contract with Texsun Electrical Contractors, Inc., in the Amount of $10,765,692.31 for the Village Creek Water Reclamation Facility Primary Area Switchgear Improvements. DISCUSSION: This construction contract will replace and/or rehabilitate critical electrical infrastructure that is corroded, obsolete, difficult to maintain, or unsafe to operate at the primary effluent pump stations, primary sludge pump stations, the bar screen buildings, and the generator distribution station. On May 17, 2016 (M&C C- 27720), the City Council awarded an Engineering Agreement with Gupta and Associates, Inc., for the Design of the Replacement, Removal and/or Modification of the Primary Area Switchgear at the Village Creek Water Reclamation Facility (VCWRF)which was amended one time providing additional funding for surveying, geotechnical investigation, and structural and electrical design. The project was advertised for bid on September 21, 2017 and September 28, 2017 in the Fort Worth Star-Telegram. On November 09, 2017 the following bids were received: Bidder 113ase Bid Contract Time Texsun Electrical $10,765 692.31 548 Calendar Contractors Days ACME Electric $11,227,382.31 Company Logname: 60VCWRF PRIMARY AREA SWITCHGEAR IMP- CONSTRUCTION Page 1 of 3 Facility Solutions $11,435,192.31 Group In addition to the contract cost, the amount of$300,000.00 is required for project contingencies and $134,307.69 is provided for inspection, testing, project management and Staff time. Construction is anticipated to commence in February 2018, with a contract time of 548 calendar days, the project is estimated to be complete by Fall 2019. This project will have no impact on the Water Department's operating budget when complete. 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 Commercial Paper (CP) 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 CP 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 CP 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. M/WBE OFFICE: Texsun Electrical Contractors, Inc., is in compliance with City's BDE Ordinance by committing to seven percent MBE participation. The City's MBE goal on this project is seven percent. The project is located in COUNCIL DISTRICT 5. 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 and Sewer CP Fund for this project. The Water and Sewer CP Fund includes authority of$150,000,000.00 for the purpose of providing interim funding for Water and Sewer Capital Projects. After this transfer, the balance will be $114,825,529.00. Funding for this project is depicted in the table below: Existing Future Fund Appropriations[AppropriationsFroject Total* 1 ____ 2016 Water and Sewer $612,800.00 $0.00 $612,800.00 Bond Fund 56005 t Water/Sewer F F__ Logname: 60VCWRF PRIMARY AREA SWITCHGEAR IMP - CONSTRUCTION Page 2 of 3 ICP Fund $275,000.00 x$11,200,000.00 $11,475,000.00; ,56014 =Project 'Total $887,800.00 $11,200,000.00 1$12,087,800.00; *Numbers rounded for presentation purposes. FUND IDENTIFIERS (FIDs): TO Fund Department ccoun Project JProgram ctivity Budget Reference # moun ID ID Year Chartfield 2 FROM Fund Department ccoun Project JProgram ctivity Budget Reference # moun 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: Farida Goderya (8214) Logname: 60VCWRF PRIMARY AREA SWITCHGEAR IMP - CONSTRUCTION Page 3 of 3