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Home My WebLink AboutOrdinance 23859-09-2019 Ordinance No.23859-09-2019 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE WATER AND SEWER COMMERCIAL PAPER FUND, FROM AVAILABLE FUNDS IN THE AMOUNT OF$8,903,938.00, FOR THE PURPOSE OF FUNDING THE CHURCHILL ROAD WATER AND SANITARY SEWER 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$8,903,938.00, from available funds, for the Churchill Road Water and Sanitary Sewer 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: Douglas lack M 9 rrql J. Sr Assistant City Attorney City Secretary FORT.. ADOPTED AND EFFECTIVE: September 24, 2019 r TEXAS PL Elf lip.do dw lit i4 �1— ti AW -Awl ru Ab IL, IF do E *} r ' .0 ■Fie- ibh� - - �' �`�lyh go ►�T"` s ,_ :+ ' is as � , R4 --dL— FI AbDT FOWL WORTH •- - _ im F-jj City of Fort Worth,Texas Mayor and Council Communication DATE: 09/24/19 M&C FILE NUMBER: M&C 19-0197 LOG NAME: 60CHURCHILLROAD-FLOWLINE SUBJECT Authorize Execution of a Contract with Flow-Line Construction, Inc.,in the Amount of$8,136,955.00 for Churchill Road Water and Sanitary Sewer Improvements,Provide for Project Costs and Contingencies for a Project Total in the Amount of$8,903,938.00,Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance(COUNCIL DISTRICT 2 AND WITHIN THE CITY OF RIVER OAKS) 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 Churchill Road Water and Sanitary Sewer Improvements;and 2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the Water&Sewer Commercial Paper Fund in the amount of$8,903,938.00 for Churchill Road Water and Sanitary Sewer Improvements;and 3. Authorize the execution of a contract with Flow-Line Construction,Inc.,in the amount of$8,136,955.00 for Churchill Road Water and Sanitary Sewer Improvements(City Project No. 100888). DISCUSSION: This Mayor and Council Communication provides for the construction of a Churchill Road Water and Sanitary Sewer Improvements from White Settlement Road to River Oaks Boulevard.The project provides for the replacement of the existing 12-inch water main in the roadway with a 24- inch water main along with the replacement of deteriorated sanitary sewer mains. The project was advertised for bid on May 30,2019 and June 6,2019 in the Fort Worth Star-Telegram.On August 15,2019 the following bids were received: BIDDER AMOUNT TIME OF COMPLETION Flow-LineConstruction,Inc. $8,136,955.00 720 Calendar Days Woody Contractors,Inc. $8,339,970.00 Jackson Construction, Ltd. $9,020,020.00 Thalle Construction Co.,Inc. $11,078,275.00 In addition to the contract cost,$588,102.00(Water:$452,091.00;Sewer:$136,011.00)is required for Project Management,inspection and material testing and$178,881.00(Water:$130,455.00;Sewer:$48,426.00)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 November,2019 and be completed by November,2021.This project will have no impact on the Water Department's Operating Budget when complete.The sewer component of the project is part of the Water Departments Sanitary Sewer Overflow Initiative Program. M/ BE OFFICE:Flow-Line Construction, Inc.,is in compliance with the City's BDE Ordinance by committing to four percent MBE participation and documenting good faith effort.Flow-Line Construction,Inc.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 six percent. The project is located in COUNCIL DISTRICT 2 AND WITHIN THE CITY OF RIVER OAKS. 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 Churchill Road Water and Sanitary Sewer Improvements 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$113,280,068.00 for future capital projects.Funding for the Churchill Road Water and Sanitary Sewer Improvements project is as depicted below: Existing Additional FUND l Project Total* Appropriations Appropriations _ Water&Sewer Bond $653,804.00 $0.00 $653,804.00 2017A-Fund 56011 W&S Commercial 1$0.00 $8,903,938.00 1$8,903,938.0011 Paper-Fund 56017 Project Total 1$653,804,00 $8,903,938.00 $9,557,742.00 *Numbers rounded for presentation purposes. Submitted for City_Managers Office by: Dana Burghdoff 8018 Originating Business Unit Head: Chris Harder 5020 Additional Information Contact: Lawrence Hamilton 2626