HomeMy WebLinkAboutOrdinance 23572-02-2019Ordinance No, 23572-02-2019
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
WATER AND SEWER COMMERCIAL PAPER FUND, FROM AVAILABLE FUNDS IN THE
AMOUNT OF $4,165,783.00, FOR THE PURPOSE OF FUNDING UPPER CLEAR FORK
DRAINAGE BASIN PARALLEL INTERCEPTOR IMPROVEMENTS AT VARIOUS
LOCATIONS WITHIN THE UPPER CLEAR FORK DRAINAGE BASIN PROJECT;
PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE
CUSMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH; AND PROVIDING AN EFFECSTIVE 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 estimated receipts and appropriations in the Water
and Sewer Commercial Paper Fund in the amount of $4,165,783.00, from available funds, for the Upper Clear
Fork Drainage Basin Parallel Interceptor Improvements at various locations within the Upper Clear Fork
Drainage Basin 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said prior ordinances and appropriations are hereby expressly repealed.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:
Douglas Blac
Sr Assistant City Attorney
ADOPTED AND EFFECTIVE: February 12, 2019
CITY SECRETARY "
Mary J. Alyseir
60UCFN272BCVAR-PMCONST
City of Fort Worth, Texas
Mayor and Council Communication
DATE: Tuesday, February 12, 2019 REFERENCE NO.: **C-29038
LOG NAME: 60UCFM272272BCVA-PMCONST
SUBJECT:
Authorize Execution of a Contract with PM Construction & Rehab, LLC, in the Amount of $3,637,206.04 for
Upper Clear Fork Drainage Basin Parallel Interceptor Improvements at Various Locations within the Upper
Clear Fork Drainage Basin, Provide for Project Costs for a Total Project Cost in the Amount of
$4,165,783.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of
Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICT 9)
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 Upper Clear Fork Drainage Basin parallel interceptor improvements at various
locations within the Upper Clear Fork Drainage Basin Project;
2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the
Water & Sewer Commercial Paper Fund in the amount of $4,165,783.00; and
3. Authorize the execution of a contract with PM Construction & Rehab, LLC, in the amount of
$3,637,206.04 for Upper Clear Fork Drainage Basin parallel interceptor improvements at various
locations within the Upper Clear Fork Drainage Basin (City Project No. CO2448).
DISCUSSION:
This Mayor and Council Communication provides for the rehabilitation (via trenchless cured -in -place -pipe
method) of the City's Sanitary Sewer, Main System at eight severely deteriorated locations within the
Upper Clear Fork Drainage Basin.
Construction of the project was advertised for bid on October 26, 2018 and November 1, 2018 in the Fort
Worth Star -Telegram. On December 6, 2018 the following bids were received:
BIDDER (AMOUNT TIME OF
;(COMPLETION
PM Construction & Rehab, $3,637,206.04
LLC
[Ark Contracting Services, LLC $3,663,585.50,
Granite ConstructionCompany',F$4,153,221.25
365 Calendar Days
In addition to the contract cost, $346,716.00 is required for Project Management, inspection and material
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testing and $181,860.00 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 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 is anticipated to commence in March, 2019 and be completed by March, 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: PM Construction & Rehab, LLC, is in compliance with the City's BDE Ordinance by
committing to two percent MBE participation and documenting good faith effort. PM Construction &
Rehab, LLC, 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 five percent.
The project is located in COUNCIL DISTRICT 9.
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 Upper Clear Fork Drainage Basin parallel interceptor improvements at various locations within the
Upper Clear Fork Drainage Basin 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 $87,424,762.00 for future capital projects. Funding for the
Upper Clear Fork Drainage Basin parallel interceptor improvements at various locations within the Upper
Clear Fork Drainage Basin project is as depicted below:
Existing Additional
FUND Appropriations Appropriations [Project Total*
rater & Sewer Capital Projects $230,000.00 $0.00 $230,000.00
nd 56002
(Sewer Capital Fund - Legacy ) $718,702.00) $0.00') $718,702.00(
59607
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(Water & Sewer Commercial $0.00 $4,165,783.00 $4,165,783.00
Paper Fund 56016
i
Project Total $948,702.00 $4,165,783.00$5,114,485.00
* Numbers rounded for presentation.
FUND IDENTIFIERS (FIDs):
TO
Fund
Department
ccoun
Project
Program
I
ctivity
Budget
Reference #
moun
ID
ID
Year
Chartfield 2
Fund Department ccoun Project
ID ID
CERTIFICATIONS:
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
Budget
Year
Jay Chapa (5804)
Chris Harder (5020)
Liam Conlon (6824)
Reference # �Amou
Chartfield 2)
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