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HomeMy WebLinkAboutOrdinance 23214-05-2018 Ordinance No. 23214-05-2018 AN ORDINANCE REDUCING UNALLOCATED RECEIPTS AND APPROPRIATIONS IN THE AMOUNT OF $2,002,340.00 IN THE WATER AND SEWER COMMERCIAL PAPER FUND, FOR THE MAXIMO ASSET MANAGEMENT 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 reduced unallocated receipts and appropriations in the amount of $2,002,340.00 in the Water and Sewer Commercial Paper Fund, for the Maximo Asset Management 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: ;ar�y TY SECRETARY .B. Strori J. y Assistant City rney ADOPTED AND EFFECTIVE: May 15, 2018 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 5/15/2018 -Ordinance No. 23214-05-2018 & Resolution No. 4934-05-2018 DATE: Tuesday, May 15, 2018 REFERENCE NO.: **C-28683 LOG NAME: 60MAXIMO AMEND 1 SUBJECT: Authorize Contract Amendment No. 1 with Brio Services, LLC in the Amount of$826,140.00 to provide Additional Program Design Services and Software Configuration Program Management for the Upgrade of the Water Department's Work Order and Asset Management System and Authorize Contract Amendment No. 1 with Total Resource Management, Inc. in the Amount of$1,176,200.00 to Provide Additional Software Interface Development, Technical Services and Hosting Services, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached resolution expressing Official Intent to Reimburse expenditures with proceeds of future enterprise fund debt for the Maximo Asset Management Project; 2. Adopt the attached appropriation ordinance reducing unallocated receipts and appropriations in the Water and Sewer Commercial Paper Fund in the amount of$2,002,340, for the Maximo Asset Management Project; 3. Authorize the execution of an amendment to the contract with Brio Services, LLC, (City Secretary Contract No. 46815) in the amount of$826,140.00 for an amount not to exceed of$2,429,243.00 to provide program and software configuration program management for additional services related to the upgrade of the Maximo work order and asset management system; and 4. Authorize the execution of an amendment to the contract with Total Resource Management, Inc., (City Secretary Contract No. 46814) in the amount of$1,176,200.00 for an amount not to exceed $2,352,400.00 to provide additional software interface development, technical services and two years of hosting services to support the Maximo software. DISCUSSION: On June 16, 2015, Mayor and Council Communication (M&C C-27349), authorized contracts with Brio Services, LLC (Brio) and Total Resource Management, Inc. (TRM) to support the Water and Wastewater Asset Management Program through the enterprise-wide implementation of Maximo. Maximo was initially deployed within the Field Operations Division in 2005, as a part of the implementation of the Water Information Technology Program, authorized by the City Council in August 2003. Since that time, Field Operations has used Maximo to plan, schedule and assign work, manage warehouse stock and issue parts. At that time, Maximo was also integrated with the City's Fire Records Management System (Firehouse) and the Department' s PeopleSoft Customer Relationship Management System (CRM), both of which generate work orders for Field Operations. The agreements authorized by M&C C-27349 allowed for the expansion of the Maximo system to water and wastewater plant operations, as well as meter services and a re-implementation of the upgraded Logname: 60MAXIMO AMEND I Page I of 4 system in Field Operations. The systems and services provided support of the Water Department's overall asset management program, implemented the recommendations from the Water Information Technology Master Plan (2010), and responded to the recommendations derived from the Public-Private Partnership process (2013). Amendment No. 1 to the Brio Services, LLC and Total Resource Management, Inc. agreements will provide the following additional services to allow the Water Department to take advantage of new opportunities to further improve functionality, transparency and efficiency: • Configure integrated materials requisition tools to improve business process for warehouse materials management and specialized services; • Coordinate with the MyH20 Project to automate and streamline associated processes; • Develop functional specifications and manage development of Maximo to the PeopleSoft financial system for procurement activities, SCADA historians to enable automatic creation of certain work orders, and Accela to improve the customer experience and improve transparency for developer projects; • Provide necessary updates to the PeopleSoft CRM, Customer Information System, and Firehouse to accommodate new integration points; • Configure and enhance asset life cycle management and maintenance practices; • Extend the TRM hosting of Maximo for 24 months, which includes system performance and optimization services, system architecture services and upgrade specific analysis, diagnostic and testing services; • Rebuild the training and development environments to accommodate GeoWorx special services and database sync capabilities; and •Add associated software and integration services for GeoWorx CONTRACT TERMS - The upgrade will begin immediately upon execution of the contracts and is anticipated to be complete within 24 months. The contracts may be renewed upon mutual, written consent of the parties for up to three additional one-year periods for ongoing consulting or hosting services without additional City Council authorization as long as funds have been appropriated. 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 Callable Commercial Paper Program (CP) 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 2018-2022 Five Year Capital Improvement Plan on December 12, 2017, Mayor and Council Communication (M&C G-19187). 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 -A waiver of the goals for MBE/SBE subcontracting requirements was requested by the Water Department and approved by the M/WBE Office, in accordance with the BDE Ordinance, because the MWBE Waiver is solicited based on the sole source information provided to the MWBE Office by the Logname: 60MAXIM0 AMEND 1 Page 2 of 4 managing department's project manager. This project will have no impact on the Water Department' s operating budget and this project serves ALL COUNCIL DISTRICTS. 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 Commercial Paper Fund for the Maximo Asset Management Project. The Water and Sewer Commercial Paper 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 $137,587,630.00 for future capital projects. Funding for the Maximo Asset Management Project is depicted in the table below. Fund Existing Additional _ Project F I Appropriations Appropriations Total* Water & Sewer Commercial $0.00 $2,002,340.00 $2,002,340.00 Paper Fund 156016 Water Capital Projects $1,846,641.00 $0.00 $1,846,641.00 Close Fund 59605 Sewer Capital Projects ? $994,346.00 $0.00 $994,346.00 Close Fund 59608 Project $2,840,987.00 $2,002,340.00 $4,843,327.001 Total *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: Logname: 60MAXIMO AMEND 1 Page 3 of 4 Jay Chapa (5804) Originating_Department Head: Chris Harder (5020) Additional Information Contact: David Holt (2515) Logname: 60MAXIMO AMEND 1 Page 4 of 4