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HomeMy WebLinkAboutOrdinance 23532-01-2019Ordinance No. 23532-01-2019 AN ORDINANCE DECREASING UNALLOCATED APPROPRIATIONS IN THE WATER AND SEWER COMMERCIAL PAPER COMMERCIAL PAPER FUND IN THE AMOUNT OF $3,775,087.00 AND INCREASING APPROPRIATIONS BY THE SAME AMOUNT IN THE CROWLEY SS RELIEF LINE PROJECT IN THE SAME FUND FOR THE PURPOSE OF FUNDING THE 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 decreased unallocated appropriations in the amount of $3,775,087.00 and increased appropriations by the same amount in the Crowley SS Relief Line Project in the Water and Sewer Commercial Paper Fund, to provide funding for the Crowley SS Relief Line 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: �1� ouglas W. Black Sr. Assistant City Attorney ADOPTED AND EFFECTIVE: January 15, 2019 CITY SECRETA Y`f % ary J. K r - • • B. • City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 1/15/201.9 .- Olydinance.N9= 23532-01-201�,8ce�z. No. $032-01-2019 DATE: Tuesday, January 15, 2019 LOG NAME: 60CROWLEYSSP3-CIRCLEC REFERENCE NO.: C-28995 SUBJECT: Authorize Execution of a Contract with William J. Schultz, Inc., d/b/a Circle C Construction Company, in the Amount of $3,420,821.00 for Crowley Relief Interceptor M-325 for Village Creek Basin, Part 3, Provide for Project Costs for a Total Project Total in the Amount of $11,188,555.00, 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 3 Project; 2. Adopt the attached Appropriation Ordinance decreasing unallocated appropriations in the amount of $3,775,087.00 and increasing appropriations by the same amount in the Crowley SS Relief Line Project in the Water and Sewer Commercial Paper Fund; and 3. Authorize the execution of a contract with William J. Schultz, Inc. d/b/a Circle C Construction Company, in the amount of $3,420,821.00 for Crowley Relief Interceptor M-325 for Village Creek Basin, Part 3 (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 3, 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. The project was advertised for bid on October 18, 2018 and October 25, 2018 in the Fort Worth Star - Telegram. On November 15, 2018 the following bids were received: BIDDER William J. Schultz dba Circle C Construction Company AMOUNT {$31420,821.00 365 Calendar Days TIME OF COMPETION Logname: 60CROWLEYSSP3-CIRCLEC Page I of 3 Mountain Cascade Holding Company, Inc. J. Louis Construction of Texas, Ltd. ackson Construction, Ltd $3,661,090.00 $3,706,569.00 3,847,100.00 In addition to the contract cost, $251,641.00 is required for project management, inspection and material testing and $102,625.00 is provided for project contingency. In accordance with the terms of the amendment 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 3, is anticipated to commence in February, 2019 and be completed by February, 2020. 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. M/WBE Office — William J. Schultz, Inc., d/b/a Circle C Construction Company, is in compliance with the City's BDE Ordinance by committing to 0.00 percent MBE participation and documenting good faith effort. William J. Schultz, Inc., d/b/a Circle C Construction Company identified several subcontracting and supplier opportunities. However, the firms contacted in the areas identified did not respond or did not submit the lowest bids. The City's MBE goal on this project is 6 percent. The project is located in COUNCIL DISTRICT 6 and within Tarrant County and the City of Crowley. FISCAL INFORMATION / CERTIFICATION: Logname: 60CROWLEYSSP3-CIRCLEC Page 2 of 3 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 3 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 $91,590,545.00 for future capital projects. Funding for the Crowley Relief Interceptor M-325 for Village Creek Basin, project is as depicted below: FUND Sewer Capital Fund - Legacy 59607 [Water & Sewer Commercial Paper Fund 56016 [Project Total * Numbers rounded for presentation. FUND IDENTIFIERS (FIDs): Fundi Department ID FROM Existing Additional Fproject Total* Appropriations Appropriations $2,094,494.00 $0.00 $2,094,494.00 $5,318,974.00 $3,775,087.00 ( $9,094,061.00 $71413,468.00 njProject JProg ID $3,775,087.00 5$11,188,555.00 ity Budget Reference # me Year (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: 60CROWLEYSSP3-CIRCLEC Page 3 of 3 Fund Department ccoun Project Program ctivityj Budget Reference # Amoun ID ID i Year (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: 60CROWLEYSSP3-CIRCLEC Page 3 of 3