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said prior ordinances and appropriations are hereby expressly repealed.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
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THE ACCURACY IS NOT TO BETAKEN/USED AS DATA PRODUCED FOR
Switchgear Improvements-Ph. ENGINEERING PURPOSES OR BYAREGSTERED PROFESSIONAL LAND
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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