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Home My WebLink AboutOrdinance 23544-01-2019Ordinance No. 23544-01-2019 AN ORDINANCE INCREASING APPROPRIATIONS IN THE WATER AND SEWER COMMERCIAL PAPER FUND, FROM AVAILABLE FUNDS IN THE AMOUNT OF $3,428,082.00, FOR THE PURPOSE OF FUNDING THE WESTSIDE V PART 2, 16/24 - INCH WATER MAIN 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 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 $3,428,082.00, from available funds, for the Westside V Part 2, 16/24 -inch Water Main 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 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: OU96-> Douglas Black Sr Assistant City Attorney ADOPTED AND EFFECTIVE: January 29. 2019 CITY SECRET. RY- ry J. K4yfr FM r n C� O MAYOR AND COUNCIL COMMUNICATION MAP 60WSIDEVP2WMAIN-MOU NTAINC WHITE SETTLEMENT FCD z�' u. ,amu E BANKHEAD HWY FORTWORT I N no CIA 1 btD'WFATFiERFORI) RD uj � EYISTINta WATER MAIN �1 LSC ¢LL1 1 620 1 1 E 30 W 30 Ca EXISTING PUMP STATION & " = GROUND STORAGE TANK 4 USGA IbJSGSLuvl a `_.0 er Commur ity r _ .��rvc Esn Di' italG'IQki,� GeoE�e i.l��,l�i Geo ra hic9, hdF,->:Ad City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 1/29/201.9 - Ordinance No. 23544-01-201.9 & R�sQlutiOn. No. 5035-Q1-2019 DATE: Tuesday, January 29, 2019 LOG NAME: 60WSIDEVP2WMAIN-MOUNTAINC REFERENCE NO.: **C-29014 SUBJECT: Authorize Execution of a Contract with Mountain Cascade of Texas, LLC, in the Amount of $2,972,194.00 for Westside V Part 2, 16/24 -inch Water Main Project, Provide for Project Costs for a Project Total in the Amount of $5,177,292.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICT 3) 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 Westside V Part 2, 16/24 -inch Water Main Project; 2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the Water & Sewer Commercial Paper Fund in the amount of $3,428,082.00; and 3. Authorize the execution of a contract with Mountain Cascade of Texas, LLC, in the amount of $2,972,194.00 for the Westside V Part 2, 16/24 -inch Water Main Project, located in west Fort Worth and the City's Extra Territorial Jurisdiction (City Project No. 100378) DISCUSSION: Growth within west Fort Worth and its Extra Territorial Jurisdiction (ETJ) requires the installation of pump stations, water storage facilities and transmission mains in order to provide reliable water service to existing and proposed developments and as required for compliance with state regulatory requirements related to public water system design and operations. On November 17, 2015, the City Council approved the construction of a booster pump station to provide service to portions of the Walsh Ranch and Morningstar developments. This Mayor and Council Communication provides for the construction of a 16/24 -inch water transmission main to connect the pump station to a proposed elevated storage tank for improved levels of service. Construction of the project was advertised for bid on November 15, 2018 and November 22, 2018 in the Fort Worth Star -Telegram. On December 13, 2018 the following bids were received: BIDDER Mountain Cascade of Texas, LLC r 'AMOUNT TIME OF COMPLETION $2,972,194.00 365 Calendar Days Logname: 60WSIDEVP2WMAIN-M0UNTAINC Page I of 3 liackson Construction, Ltd _ 1$3,296,623.25 JCondie Construction Company _ $3,352,198.70 Venus Construction Company _ $3,398,593.60 -_.-.________.._.__. _..._T _ Ark Construction Services $3,672,721.00 In addition to the contract cost, $307,278.00 is required for Project Management, inspection and material testing and $148,610.00 is provided for project contingency. 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 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 is anticipated to commence in March, 2019 and be completed by March, 2020. This project will have no impact on the Water Department's Operating Budget when complete. M/WBE OFFICE: Mountain Cascade of Texas, LLC, is in compliance with the City's BDE Ordinance by committing to seven percent MBE participation on this project. The City's MBE goal on this project is five percent. The project is located in COUNCIL DISTRICT 3 and the City's Extra Territorial Jurisdiction. 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 Westside V Part 2, 16/24 -inch Water Main 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 $83,996,680.00 for future capital projects. Funding for the Westside V Part 2, 16/24 -inch Water Main project is as depicted below: Existing Additional — Logname: 60WSIDEVP2WMAIN-M0LNTAINC Page 2 of 3 IFUND JAppropriations Appropriations IProject Total- Water/Sewer Bond 2016 Fund - 56005 $256,110.00 $0.00 $256,110.00 `Water & Sewer Bond 2017A [$893,100.00 $0.00 $893,100.00 !Fund - 56011 W& S Capital Proj 2018 Fund - �56014 $600,000.00 $"0.00 $600,000.00 Water &Sewer Commercial $0.00 ($3,428,082.00 '$3,428,082.00 jPaper Fund 56016 Project Total $1,749,210.00 $3,428,082.00 $5,177,292.00 * Numbers rounded for presentation. FUND IDENTIFIERS (FIDS): TO Fund Department ccoun Project Program Activity Budget Reference # ID ID Year (Chartfield 2' and Department ccouniq Project IPrograrn ctivity Budget Reference # moun ID I ID I Year _Chartfield 2 CERTIFICATIONS: Submitted for City Manager's Office by: Jay Chapa (5804) Originating Department Head: Chris Harder (5020) Additional Information Contact: Rakesh Chaubey (6051) Logname: 60WSIDEVP2WNIAIN-MOL NTAINC Page 3 of 3