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Home My WebLink AboutOrdinance 23972-12-2019 Ordinance No.23972-12-2019 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE WATER AND SEWER COMMERCIAL PAPER FUND IN THE AMOUNT OF$5,983,328.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF FUNDING THE SYCAMORE CREEK INTERCEPTOR IMPROVEMENTS, PHASE 2A 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 2019-2020 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$5,983,328.00, from available funds, for the purpose of funding the Sycamore Creek Interceptor Improvements, Phase 2A 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 23835-09-2019 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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. R FORM AND LEGALITY: Douglas Black I` ry J. K Sr Assistant City Attorney City Secretary •:� ADOPTED AND EFFECTIVE: December 3, 2019 .TEXPS MAYOR AND COUNCIL COMMUNICATION MAP 60SC RE E KRI P2A-SJ L LAN N _ J Sycamore creek Vilest Fork,Trinity River r Ip 'r ua EX116B - Lu I B MAR AVE 4 4" fr iL _ SOMA L'kNCA TER AVE RA VE _ % - r ` ui ' ` x SYCAM E-CREZ. E}C J~ f 990OLF COURSE l , �C E HATTIE.STD'.. 0 1 i FrfF-1- TFFE � ,E LEUDA 'J r L - E,VIC�CERY.BLVD 41 } O C IID c FORTWORTH - r. e SYCAMORE PARK City of Fort Worth, Texas Mayor and Council Communication DATE: 12/03/19 M&C FILE NUMBER: M&C 19-0358 LOG NAME: 60SCREEKROP2A-SJLLAN SUBJECT Authorize Execution of Amendment No.5 in the Amount of$96,100.00 to an Engineering Agreement with Lockwood,Andrews&Newnam, Inc.,for Sycamore Creek Interceptor Improvements,Phase 2A,for a Revised Contract Amount of$1,936,424.00,Authorize Execution of a Contract with S.J. Louis Construction of Texas, Ltd.,in the Amount of$5,362,348.85 for Sycamore Creek Interceptor Improvements, Phase 2A, Provide for Project Costs for a Project Total in the Amount of$5,983,328.00,Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance(COUNCIL DISTRICT 8) 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 Sycamore Creek Interceptor Improvements, Phase 2A; 2. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the Water&Sewer Commercial Paper Fund in the amount of$5,983,328.00 for Sycamore Creek Interceptor Improvements, Phase 2A; 3. Authorize the execution of Amendment No.5 in the amount of$96,100.00 to City Secretary Contract No.45280,an Engineering Agreement with Lockwood,Andrews&Newnam, Inc.,for inspection assistance during construction for Sycamore Creek Interceptor Improvements, Phase 2A(City Project No.CO2200);and 4. Authorize the execution of a contract with S.J.Louis Construction of Texas,Ltd.,in the amount of$5,362,348.85 for Sycamore Creek Interceptor Improvements, Phase 2A(City Project No. CO2200). DISCUSSION: On November 19,2013(M&C C-26567),the City Council authorized an engineering agreement in the amount of$575,828.00 with Lockwood, Andrews&Newnam,Inc.,for Sycamore Creek Interceptor Improvements, Phase 2A.In order to expedite design and construction,the agreement was divided into Phases 1,2A,26 and 3.The agreement was subsequently revised by the following amendments:Amendment No. 1 in the amount of$168,311.00 authorized September 9,2014(M&C C-26964),Amendment No.2 in the amount of$839,715.00 authorized August 23, 2016(M&C C-27884),Amendment No.3 in the amount of$215,030.00 authorized June 5,2018(M&C C-28712)and Amendment No.4 in the amount of$41,440.00 administratively authorized October 10,2019, Amendment No.5 will provide compensation for inspection assistance during construction of Phases 2A and 213.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 August 22,2019 and August 29,2019 in the Fort Worth Star-Telegram.On October 3,2019 the following bids were received: Bidder Amount Time of Completion 5.J.Louis Construction of Texas, $5td- ,362,348.85 3 YS Calendar Mountain Cascade of Texas, LLC $6,569,199.00 Thalle Construction Company F$6,0678,292.85 In addition to the contract cost, $364,009.00 is required for Project Management, inspection and material testing and$160,870.00 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 1.56%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. 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$39,010,913.00 for future capital projects. Funding for the Sycamore Creek Interceptor Improvements,Phase 2A project is as depicted below: Fund Existing Additional Project Total* Appropriations Appropriations Water and Sewer Commercial Paper $3,670,725.00 $0.00 E$3,670,725.00 Fund 56016 Sewer Capital Legacy $1,859,579.00 $0.00$1,859,579.00 -Fund 59607 W&S Commercial $0.00 $5,983,328.00$5,983,328.00 Paper-Fund 56017 Project Total $5,530,304.00 $5,983,328.00$11,513,632.00 *Numbers rounded for presentation Construction for Phase 2A is anticipated to commence in January,2020 and be completed by January,2021.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/ BE OFFICE:S.J. Louis Construction of Texas,Ltd.,is in compliance with the City's BDE Ordinance by committing to seven percent MBE participation on this project.The City's MBE goal on this project is seven percent. Lockwood,Andrews&Newnam, Inc.MWBE:A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Department and approved by the OBD,in accordance with the MWBE or BDE Ordinance, because the purchase of goods or services is from sources where subcontracting or supplier opportunities are negligible. The project is located in COUNCIL DISTRICT 8. 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(WAS Commercial Paper)to provide construction services for the future growth in the Sycamore Creek Interceptor Improvements,Phase 2A Project.Prior to any expenditure being incurred,the Water Department has the responsibility to validate the availability of funds. Submitted for City Manager's Office by: Dana Burghdoff 8018 Originating Business Unit Head: Chris Harder 5020 Additional Information Contact: Liam Conlon 6824