HomeMy WebLinkAboutOrdinance 23834-09-2019 Ordinance No.23834-09-2019
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
WATER AND SEWER COMMERCIAL PAPER FUND, FROM AVAILABLE FUNDS IN THE
AMOUNT OF$1,273,329.00, FOR THE PURPOSE OF FUNDING THE 3MGD PUMP AND
HYDROPNEUMATIC TANK AT EAGLE MOUNTAIN WATER TREATMENT PLANT;
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 $1,273,329.00, from available funds, for the 3MGD
Pump and Hydropneumatic Tank at Eagle Mountain Water Treatment Plant.
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said prior ordinances and appropriations are hereby expressly repealed.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.
A P S TO FORM AND LEGALITY:
Douglas Black ary J.Sr Assistant City Attorney City Secra
y
ADOPTED AND EFFECTIVE: September 17, 2019
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City of Fort Worth,Texas
Mayor and Council Communication
DATE: 09/17/19 M&C FILE NUMBER: M&C 19-0166
LOG NAME: 603MGDPHT-ARCHERWC
SUBJECT
Authorize Execution of Amendment No.6 in the Amount of$88,642.00 to City Secretary Contract No.48498 an Engineering Agreement with
Freese and Nichols,Inc.,for Inspection Services for the Pump and Hydropneumatic Tank at Eagle Mountain Water Treatment Plant Project,for a
Revised Contract Amount of$774,131.00;Authorize Execution of a Contract with Archer Western Construction, LLC, in the Amount of
$1,023,700.00 for Construction of a 3 Million Gallons per Day Pump and Hydropneumatic Tank at Eagle Mountain Water Treatment Plant,Provide
for Project Costs for a Project Total in the Amount of$7,470,788.00,Adopt Resolution Expressing Official Intent to Reimburse Expenditures with
Proceeds of Future Debt and Adopt Appropriation Ordinance(COUNCIL DISTRICT 7)
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 3 Million Gallon
per Day(MGD)pump and hydropneumatic tank at Eagle Mountain Water Treatment Plant project;and
2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the Water& Sewer Commercial Paper
Fund in the amount of$1,273,329.00 for 3MGD pump and hydropneumatic Tank at Eagle Mountain Water Treatment Plant project;and
3. Authorize the execution of Amendment No.6 in the amount of$88,642.00 to City Secretary Contract No.48498,an Engineering
Agreement with Freese and Nichols,Inc.,for inspection services for the 3MGD pump and hydropneumatic Tank at Eagle Mountain Water
Treatment Plant project;and
4. Authorize the execution of a contract with Archer Western Construction,LLC,in the amount of$1,023,700.00 for construction of a 3MGD
pump and hydropneumatic tank at Eagle Mountain Water Treatment Plant(City Project No. 100277).
DISCUSSION:
This Mayor and Council Communication provides for the construction of the 3 Million Gallons per Day pump and hydropneumatic tank at Eagle
Mountain Water Treatment Plant project.The proposed pump and tank will provide for increased capacity and delivery reliability to existing and
future customers in the vicinity of the Eagle Mountain Water Treatment Plant.
On December 13,2016,(M&C C-28046),the City authorized an engineering agreement in the amount of$386,311.00 with Freese and Nichols,
Inc.for the installation of a 24-inch water line,hydro-pneumatic tank and pressure regulating station in order to create a high pressure zone to
provide water service for developments located along the upper elevation ridge lines located north of the Eagle Mountain Water Treatment Plant.
The agreement was subsequently revised by Amendment No. 1 in the amount of$6,963.00 administratively authorized February 28,2017,
Amendment No.2 in the amount of$34,592.00 authorized by M&C C-28316 on August 1,2017,Amendment No.3 in the amount of$43,182.00
administratively authorized October 25,2017,Amendment No.4 in the amount of$165,429.00 authorized May 15,2018 by M&C C-28684 and
Amendment No.5 in the amount of$49,012.00 administratively authorized January 24,2019.
Development activity now requires that the pumping and storage capacity be further increased to this newly created high pressure zone within the
water system. This Mayor and Council Communication provides for the installation of a 3MGD rated pump and motor,along with piping,valves
electrical and a second hydropneumatic tank at the Eagle Mountain Water Treatment Plant.
Amendment No.6 will allow Freese and Nichols, Inc.,("FNI")to provide inspection services during construction 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 May 30,2019 and June 6,2019 in the Fort Worth Star-Telegram.On July 11,2019 the
following bids were received:
BIDDER AMOUNT TIME OF
COMPLETION
Archer Western Construction, $1,023,000.00 395 Calendar Days
LLC
Felix Construction Company $1,225,740.00
Gracon Construction Inc. $1,290,000.00
In addition to the contract cost,$109,802.00 is required for Project Management,inspection and material testing and$51,185.00 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 2019-2023 Five Year Capital Improvement Plan on September 18,2018.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 October,2019 and be completed by October,2020.This project will have no impact on the Water
Department's Operating Budget when complete.
M/ BE OFFICE: Archer Western Construction,LLC,is in compliance with the City's BDE Ordinance by committing to six percent MBE
participation on this project.The City's MBE goal on this project is five percent.
FNI: A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Department and approved by the MWBE Office in
accordance with the MWBE Ordinance,because the MWBE Waiver is based on the sole source information provided to the MWBE Office by the
managing department's project manager.
The project is located in COUNCIL DISTRICT 7.
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 3MGD pump and hydropneumatic tank at Eagle Mountain Water Treatment
Plant 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$122,184,006.00 for future capital projects. Funding for the 3MGD
pump and hydropneumatic tank at Eagle Mountain Water Treatment Plant project is as depicted below:
FUND Existing Additional Project Total*
Appropriations Appropriations
W&S Community
Facilities Agmt-Fund $868,323.00 $0.00 $868,323.00
56008
Water&Sewer Bond $5,329,136.00 $0.00 $5,329,136.00
2017A-Fund 56011
W&S Commercial $0.00 $1,273,329.00 $1,273,329.00
Paper-Fund 56017
Project Total $6,197,459.00 $1,273,329.00 $7,470,788.00
*Numbers rounded for presentation purposes.
Submitted for City Manager's Office by: Dana Burghdoff 8018
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Dena Johnson 7866