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Home My WebLink AboutOrdinance 23215-05-2018 Ordinance No. 23215-05-2018 AN ORDINANCE REDUCING UNALLOCATED RECEIPTS AND APPROPRIATIONS IN THE AMOUNT OF $3,585,000.00 IN THE WATER AND SEWER COMMERCIAL PAPER FUND, FOR THE SANITARY SEWER MAIN M-245 PARALLEL RELIEF PIPELINE 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 $3,585,000.00 in the Water and Sewer Commercial Paper Fund, for the Sanitary Sewer Main M-245 Parallel Relief Pipeline 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 r Douglas W Black a J. Ka ser Sr.Assistant City Attorney ADOPTED AND EFFECTIVE: May 15. 2018 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 5/15/2018 - Ordinance No. 23215-05-2018 & Resolution No. 4935-05-2018 DATE: i uesaay, May 15, 2018 REFERENCE NO.: **C-28685 LOG NAME: 60SSM245RPR-RJN SUBJECT: Authorize Execution of an Engineering Agreement with RJN Group, Inc., in the Amount of$1,290,000.00 for Sanitary Sewer Main M-245 Parallel Relief Pipeline, Provide for Staff Costs, Property Acquisition and Utility Coordination for a Total Amount of$3,585,000.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICTS 4 and 8) 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 Sanitary Sewer Main M-245 Parallel Relief Pipeline Project; 2. Adopt the attached Appropriation Ordinance reducing unallocated receipts and appropriations in the Water and Sewer Commercial Paper Fund in the amount of$3,585,000.00, for the Sanitary Sewer Main M-245 Parallel Relief Pipeline Project; and 3. Authorize execution of an Engineering Agreement with RJN Group Inc., in the amount of $1,290,000.00 for the Sanitary Sewer Main M-245 Parallel Relief Pipeline Project. (City Project No. 100997) DISCUSSION: This Mayor and Council Communication is to authorize the preparation of plans and specifications for a parallel 60-inch relief sanitary sewer main to the existing 72-inch, M-245 West Fork Interceptor to address system capacity issues in the West Fork Basin. The Fort Worth Wastewater Master Plan recommends the construction of a parallel relief line to connect two downtown deep tunnel sewers with two West Fork trunk sewers near 1 st Street, north of Gateway Park. The existing M-245 is located along Ham Branch Creek and along the original channel of the West Fork of the Trinity River. The proposed scope of services includes design for a 13,600 foot, 60-inch sanitary sewer main; design for an additional 6,000 feet for the replacement and rehabilitation of various segments immediately upstream and downstream of the existing M-245 that are severely deteriorated and/or require rerouting to eliminate conflict with Trinity Railway Express railroad track expansion project building encroachment; design for connection to the proposed 60-inch relief main and the existing M-245; manhole inspection; geotechnical investigation; environmental permitting; easement preparation; subsurface utility engineering; coordination with various agencies and assistance during construction. RJN Group, Inc., proposes to provide all the necessary design services for the Sanitary Sewer Main M- Logname: 60SSM245RPR-RJN Page 1 of 3 245 Parallel Relief Pipeline for a fee of$1,290,000.00. Staff considers the proposed fee to be fair and reasonable for the scope of services proposed. In addition to the contract amount, $2,295,000.00 is required for project management, utility coordination and real property acquisition. Engineering for the Sanitary Sewer Main M-245 Parallel Relief Pipeline project is one component of the overall project that includes project management, real property/easement acquisition, utility coordination, material testing, inspection, construction and contingencies. The overall project budget is $19,000,000.00. Design is expected to start in June 2018 and be completed by June 2020. Construction is anticipated to commence in October 2020 and be completed by October 2022. 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 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. This project will have no impact on the Water Department's operating budget. M/WBE OFFICE— RJN Group, Inc., is in compliance with City's BDE Ordinance by committing to 26 percent SBE participation on this project. The City's SBE goal on this project is 10 percent. The project is located in COUNCIL DISTRICTS 4 AND 8. 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 Sanitary Sewer Main M-245 Parallel Relief Pipeline 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 $139.966,768.00 for future capital projects. Funding for the Sanitary Sewer Main M-245 Parallel Relief Pipeline Project is depicted in the table below. Logname: 60SSM245RPR-RJN Page 2 of 3 FUND Existing Additional Project Total" ,Appropriations Appropriations I W& S Commercial Paper $0.00 $3,585,000.00 $3,585,000.00 Fund (56016) [$3,585,000.00 Project Total [$0-00 $3,585,000.00 ^ * Numbers rounded for presentation purposes. FUND IDENTIFIERS (FIDsj: TO Fund Department ccoun Project Program ctivity Budget Reference # moun ID ID Year Chartfield 2 FROM Fund Department ccoun Project JProgram ctivity Budget Reference # mount ID ID Year Chartf'ield 2 CERTIFICATIONS: Submitted for City Manager's Office by: Jay Chapa (5804) Originating Department Head: Chris Harder (5020) Additional Information Contact: Liam Conlon (6824) Logname: 60SSM245RPR-RJN Page 3 of 3