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HomeMy WebLinkAboutOrdinance 23494-12-2018Ordinance No. 23494-12-2018 AN ORDINANCE INCREASING APPROPRIATIONS IN THE WATER AND SEWER COMMERCIAL PAPER FUND, FROM AVAILABLE FUNDS IN THE AMOUNT OF $5,318,974.00, FOR THE PURPOSE OF CROWLEY RELIEF INTERCEPTOR M-325 FOR VILLAGE CREEK BASIN; 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 2018-2019 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 $5,318,974.00, from available funds, to provide Crowley Relief Interceptor M- 325 for Village Creek Basin. SECTION 2. That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance 23392-09-2018 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4 This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: Douglas W Black Senior Assistant City Attorney Adopted & Effective: December 4, 2018 CITY SECRETARY � Mary J. ys r • • P� .. C • City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 12/4/201$ -Ordinance ,No. 23494 12-2018-A Resaly On.` No.: 5005-1 2.201$ ' DATE: Tuesday, December 4, 2018 REFERENCE NO.: **C-28949 LOG NAME: 60CROWLEYSSP2-SJLOU IS SUBJECT: Authorize Execution of Amendment No. 2 in the Amount of $226,610.00 to City Secretary Contract No. 48102 an Engineering Agreement with Teague Nall and Perkins, Inc., for a Revised Contract Amount of $1,513,479.00, Authorize Execution of a Contract with S.J. Louis Construction of Texas, Ltd., in the Amount of $4,518,099.30 for Crowley Relief Interceptor M-325 for Village Creek Basin, Part 2 , Provide for Project Costs for a Total Project Total in the Amount of $7,413,648.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICT 6) 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 Crowley Relief Interceptor M-325 for Village Creek Basin, Part 2 Project; 2. Adopt the attached Appropriation Ordinance increasing appropriations in the Water & Sewer Commercial Paper Fund in amount of $5,318,974.00; 3. Authorize the execution of a contract with S. J. Louis Construction of Texas, Ltd, in the amount of $4,518,099.30 for Crowley Relief Interceptor M-325 for Village Creek Basin, Part 2 (City Project No. 100276); and 4. Authorize the execution of Amendment No. 2 in the amount of $226,610.00 to City Secretary Contract No. 48102 for inspection services on Crowley Relief Interceptor M-325 for Village Creek Basin. (City Project No. 100276) DISCUSSION: This Mayor and Council Communication provides for the construction of the Crowley Relief Interceptor M- 325 for Village Creek Basin, Part 2, a segment of a three part project that will provide additional capacity to convey anticipated flows from proposed development within the Upper Village Creek and Clear Fork Drainage Basins. On August 9, 2016, (M&C C-27864), the City authorized an engineering agreement in the amount of $1,274,494.00 with Teague Nall & Perkins, Inc., for Crowley Relief Interceptor M-325 for Village Creek Basin. To expedite design and construction the project was divided into Parts 1, 2 and 3. The agreement was subsequently revised by Amendment No. 1 in the amount of $12,375.00 administratively authorized July 12, 2018. Amendment No. 2 will allow Teague Nall & Perkins, Inc., to provide inspection services during Logname: 60CR0WLEYSSP2-SJL0UIS Page 1 of 4 construction of all three parts of the project. Staff considers the proposed fee to be fair and reasonable for the scope of services proposed. Construction of the project was advertised for bid on August 30, 2018 and September 6, 2018 in the Fort Worth Star -Telegram. On September 27, 2018 the following bids were received: BIDDER S. J. Louis Construction of Texas, Ltd OUNT TIME OF COMPLETION $4,518,099.301360 Calendar Days William J. Schultz dba Circle C. Construction, $4,840,092.00 Co. Mountain Cascade of Texas Jackson Construction, Ltd Thalle Construction Company Venus Construction Company BAR Constructors, Inc. _ $5,028,073.00 $5,086,120.00 $5,190,859.82 $5,747,584.80 $7,010,988.00 In addition to the contract cost, $318,360.00 is required for Project Management, inspection and material testing and $255,905.00 is provided for project contingency. In accordance with the terms of the Agreement between the Cities of Crowley and Fort Worth, Crowley will reimburse Fort Worth for its share of the total project cost upon completion of the entire project. This project is anticipated to be included in a future revenue bond issue for the Water and Sewer Fund. Available ash 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 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 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. Construction for Part 2, is anticipated to commence in December, 2018 and be completed by December, 2019. This project is part of the Water Department's Sanitary Sewer Overflow Initiative Program. This project will have no impact on the Water Department's Operating Budget when complete. Logname: 60CR0WLEYSSP2-SJL0UIS Page 2 of 4 M/WBE OFFICE: S. J. Louis Construction of Texas, Ltd, is in compliance with the City's BDE Ordinance by committing to 25 percent MBE participation on this project. The City's MBE goal on this project is 25 percent. The project is located in COUNCIL DISTRICT 6 and within the City of Crowley. 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 Water & Sewer Commercial Paper Fund for the Crowley Relief Interceptor M-325 for Village Creek Basin, Part 2 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 $105,422,532.00 for future capital projects. Funding for the Crowley Relief Interceptor M-325 for Village Creek Basin, Part 2 project is as depicted below: UND Existing Additional Project Total* Appropriations Appropriations Sewer Capital Fund - Legacy 59607 ,$2,094,494.00 $0.00 $2,094,494.00 F ter & Sewer Commercial $0.00 $5,318,974.00 $5,318,974.00 Paper Fund 56016 Project Total * Numbers rounded for presentation. FUND IDENTIFIERS (FIDs): TO 1$2,094,494.00 $5,318,974.00 +$7,413,468.00 Fund Department ccoun Project Program ctivity Budget Reference # mount ID ID Year I (Chartfieldd FROM Fund Department ccoun Project Program ctivity Budget Reference # mount ID ID I Year I (Chartfield 2) CERTIFICATIONS: Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: Jay Chapa (5804) Chris Harder (5020) Rakesh Chaubey (6051) Logname: 60CR0WLEYSSP2-SJL0UIS Page 3 of 4