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Home My WebLink AboutOrdinance 23423-09-2018 Ordinance No.23423-09-2018 AN ORDINANCE INCREASING APPROPRIATIONS IN THE WATER AND SEWER COMMERCIAL PAPER FUND, FROM AVAILABLE FUNDS IN THE AMOUNT OF $1,500,000.00, FOR THE 2017 SANITARY SEWER EMERGENCY RESPONSE CONTRACT; 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 Water and Sewer Commercial Paper Fund in the amount of$1,500,000.00, from available funds, for the 2017 Sanitary Sewer Emergency Response Contract. 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 Douglas W Black Mary . Kayser Sr. Assistant City Attorney ADOPTED AND EFFECTIVE: September 25, 2018 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 9/25/2018 - Resolution No. 4986-09-2018 and Ordinance No. 23423-09-2018 DATE: Tuesday, September 25, 2018 REFERENCE NO.: **C-28869 LOG NAME: 60SSEMERCONR2-CIRCLEC SUBJECT: Authorize Execution of the Second and Final Renewal of City Secretary Contract No. 49088 with William J. Schultz, Inc. d/b/a Circle C Construction Company in the Amount of$1,250,000.00 for 2017 Sanitary Sewer Emergency Response, 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 Debt for the Sanitary Sewer Emergency Response Contract Project; 2. Adopt the attached Appropriation Ordinance increasing appropriations in the Water and Sewer Commercial Paper Fund in the amount of$1,500,000.00 and reducing the remaining authority under the Commercial Paper Program by the same amount; and 3. Authorize the Second and Final Renewal of City Secretary Contract No. 49088 with William J. Schultz, Inc. d/b/a Circle C Construction Company in the amount of$1,250,000.00 for the 2017 Sanitary Sewer Emergency Response Contract (City Project No. 100775). DISCUSSION: On May 2, 2017, Mayor and Council Communication (M&C C-28212) the City Council authorized the City Manager to execute a contract in the amount of$1,250,000.00, with the option of two renewals, with William J. Schultz, Inc. d/b/a Circle C Construction Company for 2017 Sanitary Sewer Emergency Response Contract. On February 20, 2018, Mayor and Council Communication (M&C C-28590) the City Council authorized the City Manager to execute the first of two optional contract renewals in the amount of$1,250,000.00, with William J. Schultz, Inc. d/b/a Circle C Construction Company for the 2017 Sanitary Sewer Emergency Response Contract. The City and the Contractor desire to exercise the second and final renewal of the contract in the amount of$1,250,000.00 and with the same terms and conditions. This renewal increases the total project amount to $3,750,000.00 The work to be performed under this contract consists of replacing and/or relocating large diameter sanitary sewer mains and other pertinent construction required in response to emergency sanitary sewer incidents. Logname: 60SSEMERCONR2-CIRCLEC Page I of 3 In addition to the contract amount, $250,000.00 is required for design, survey, project management, material testing and inspection. This project will have no impact on the Water Department's operating budget when completed. Construction is expected to start October 2018 and be completed by October 2019 or when the contract amount is exhausted. 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 FY2018-2022 Five-Year Capital Improvement Plan on September 26, 2017. 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 Statements, 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 other 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 is located in 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 current capital budget, as appropriated, of the Water and Sewer Commercial Paper Fund. The Water and Sewer Commercial Paper Fund includes the authority of the $150,000,000.00 for the purpose of providing interim funding for Water and Sewer Capital Projects. After this transfer, the balance will be $111,228,591.00. Appropriations for Sanitary Sewer Emergency Response: Existing Additional j FUND Project Total* '. (Appropriations Appropriations Water & . Sewer Commercial' $0.00 $1,500,000.001$1,500,000.00 Paper Fund' 56016 Water & Sewer Capital 13,000,000.00 $0.00 ,$3,000,000.00 Projects Logname: 60SSEMERCONR2-CIRCLEC Page 2 of 3 Fund — 56002 C Project $3,000,000.00 $1,500,000.00 $4,500,000.00 Total _-..__......_..._....................................... .... " Numbers rounded for presentation purposes. FUND IDENTIFIERS (FIDs): TO Fund Department ccoun Project Program ctivity Budget Reference # moun ID ID Year Chartfield 2 FROM Fund Department ccoun Project Program ctivity Budget Reference # -moun ID ID Year Chartfield 2 CERTIFICATIONS: Submitted for City Manager's Office by: Jay Chapa (5804) Originating Department Head: Chris Harder (5020) Additional Information Contact: J. Chris Underwood (2629) Logname: 60SSEMERCONR2-CIRCLEC Page 3 of 3