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HomeMy WebLinkAboutOrdinance 23721-06-2019 Ordinance No.23721-06-2019 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE WATER AND SEWER COMMERCIAL PAPER FUND, FROM AVAILABLE FUNDS IN THE AMOUNT OF $941,777.00, FOR THE PURPOSE OF FUNDING THE VCWRF PHASE If ELECTRICAL IMPROVEMENTS 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 estimated receipts and appropriations in the Water and Sewer Commercial Paper Fund in the amount of $941,777.00, from available funds, for the VCWRF Phase II Electrical Improvements 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: D'dWg—I Black Mary J. Kays Sr Assistant City Attorney City Secretary ADOPTED AND EFFECTIVE: June 25, 2019 O� .............�' �XAS A E � W_ 4N •(A Village Creek Water Reclamation Facility (VCWRF) ' m 3 ' SD2 " 3 ' 3 L jj t S! ' '"' `- • •` CZ Area fi r ���7lIlTI JL RS7 A �� k , I 1� t RS2 - SW2 Le mom Ago 40 p _ , s C12 Area - Chlorine Area RS1 - Return Sludge Pump Station 1 - . RS2 - Return Sludge Pump Station 2 ' + �; RS7 - Return Sludge Pump Station 7 } k SW2 - Service Water Pump Station 2 r Feet n; .�.. ' SD2 - Storm Drain Pump Station 2 0 300 600 Se FORT WORTH Village Creek Water Reclamation Facility (VCWRF) COPYRIGHT:DIS CITY OF FORT WORTH UNAUTHORIZED REPRODUCTION IS A VIOLATION OF APPLICABLE LAW. THIS pATA IS TO BE USED FOR AGRAPHICAL REPRESENTATION ONLY FOR Phase 2 Electrical Improvements NGINEEHEACC RACY IRPOSESTTO BE TAKEN GISTEREED AS D ROTA PSSIONADAN ENGINEERING PURPOSES OR BY A REGISTERED PROFESSIONAL LAND WAZ• SURVEYOR THECRYOFFORTWORTHASSUMESNORESPONSIBILITY FOR THE ACCURACY OF SAID DATA 77� !f" City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 6/25/2019 - Ordinance No. 23721-06-2019 & Resolution No. 5114-06-2019 DATE: Tuesday, June 25, 2019 REFERENCE NO.: C-29185 LOG NAME: 60VCWRF PHASE II ELECTRICAL IMPROVEMENTS SUBJECT: Authorize Execution of an Engineering Agreement with Gupta and Associates, Inc. in the Amount of $741,777.00 for the Design of the Phase II Electrical Improvements at the Village Creek Water Reclamation Facility, Adopt Reimbursement Resolution and Adopt Appropriation Ordinance (COUNCIL DISTRICT 5) 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 Village Creek Water Reclamation Facility (VCWRF) Phase I I Electrical Improvements (CO2648); and 2. Adopt the Attached Appropriation Ordinance increasing estimated receipts and appropriations in the Water and Sewer Commercial Paper Fund in the Amount of$941,777.00; and 3. Authorize execution of an Engineering Agreement with Gupta and Associates, Inc., in the amount of $741,777.00, for the Design of Phase II Electrical Improvements at the Village Creek Water Reclamation Facility (City Project No. CO2648). DISCUSSION: The City of Fort Worth owns and operates the Village Creek Water Reclamation Facility (VCWRF). The VCWRF was originally constructed in the 1950s as a 5 million gallon per day (MGD) plant and expanded in incremental steps over time to its present rating of 166 MGD. Electrical equipment and components have been installed as the plant has expanded, with some equipment nearing 40 years in age. On September 24, 2013 (M&C C-26477), the City Council authorized an engineering agreement with National Field Services to conduct a power study. The scope of work included an electrical infrastructure condition assessment that identified various electrical equipment and components recommended for replacement and upgrade. On May 17, 2016 (M&C C-27720), the City Council authorized an engineering agreement with Gupta and Associates, Inc., for the VCWRF Phase I Electrical Improvements, which consisted of electrical improvements to the primary treatment area. On January 9, 2018 (M&C C-28536), the City Council awarded a construction contract with Texsun Electrical Contractors, Inc. for the Phase 1, and is currently under construction. This VCWRF Phase II Electrical Improvements will include replacement and upgrade of electrical equipment and infrastructure within the following areas: Return Sludge Pump Stations 1, 2, and 7; Service Water Pump Station 2; Storm Drain Pump Station 2; and Chlorine Area. As part of this work, Gupta and Associates, Inc. will develop plans and specifications and provide bidding assistance for the above Logname: 60VCWRF PHASE II ELECTRICAL IMPROVEMENTS Page I of 3 identified fee. The City Staff considers this fee to be fair and reasonable for the scope of services proposed. In addition to the contract amount, $200,000.00 is required for project management and associated staff time for the Water Department. This project is included in Water Department capital improvement plan, with construction anticipated to start in FY 20, and an expected construction duration of 18 months. It is anticipated that this project will not increase the operating budget for the VCWRF. 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. M/WBE OFFICE - Gupta and Associates is in compliance with the City's BDE Ordinance by committing to 25 percent SBE participation on this project. The City's goal on this project is 21 percent. Additionally, Gupta and Associates is a certified M/WBE firm. This project serves the entire city and is located in COUNCIL DISTRICT 5, Mapsco 90J. 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 Water& Sewer Commercial Paper Fund for the Design of Phase II Electrical Improvements at the Village Creek Water Reclamation Facility Project. The Water and Sewer Commercial Paper Fund includes the 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 $24,567,697.00 for future Capital Projects. Funding for the Phase II Electrical Improvements at the Village Creek Water Reclamation Facility Project is as depicted below: FUND Existing Additional project Total* Appropriations Appropriations Water/Sewer Bond 2016 - $612,800.00 $0.00 $612,800.00 Fund 56005 W&S Capital Proj Logname: 60VCWRF PHASE II ELECTRICAL IMPROVEMENTS Page 2 of 3 2018 - Fund $11,475,000.00 $0.00 $11,475,000.00 56014 W&S Comercial Paper - Fund $0.00 $941,777.00 $941,777.00 56016 Project Total 1$12,087,800.001 $941,777.00 $13,029,577.00 *Amounts rounded for presentation purposes. FUND IDENTIFIERS (FIDs): TO _ Fund; Department ccoun Project Program ctivity Budget Reference # �mountl ID ID Year (Chartfield 2) FROM Fund Department ccoun Project Program ctivity Budget Reference # mount 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: Farida Goderya (8214) Logname: 60VCWRF PHASE II ELECTRICAL IMPROVEMENTS Page 3 of 3