HomeMy WebLinkAboutOrdinance 24254-06-2020 Ordinance No. 24254-06-2020
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE
WATER AND SEWER BOND 2020A FUND (56017) IN THE AMOUNT OF $135,060.00,
FROM AVAILABLE FUNDS, FOR THE PURPOSE OF FUNDING THE VILLAGE CREEK
DRAINAGE BASIN MAIN 325 PARALLEL RELIEF SEWER, PART 2 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 Bond 2020A Fund(56017)in the amount of$135,060.00,from available funds,for the purpose of
funding the Village Creek Drainage Basin Main 325 Parallel Relief Sewer, Part 2 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said prior ordinances and appropriations are hereby expressly repealed.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.
APPROVED AS TO FORM AND LEGALITY:
Denis C. McElroy Mary J. Kayser
Assistant City Attorney City Secretary
ADOPTED AND EFFECTIVE: June 16, 2020 -k Of- FQR�
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MRIMM am!
City of Fort Worth,Texas
Mayor and Council Communication
DATE: 06/16/20 M&C FILE NUMBER: M&C 20-0414
LOG NAME: 60VCDBM325P2C01-MCKEEUC
SUBJECT
Authorize the Execution of Change Order No. 1 in the Amount of$135,060.00 and the Addition of 45 Calendar Days to a Contract with McKee
Utility Contractors,Inc.for the Village Creek Drainage Basin Main 325 Parallel Relief Sewer,Part 2 Project,for a Revised Contract Cost of
$13,323,507.00,Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation
Ordinance(COUNCIL DISTRICTS 6 and 8)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of Change Order No. 1 in the amount of$135,060.00 and the addition of 45 additional calendar days to City
Secretary Contract No.52970 with McKee Utility Contractors, Inc.for the Village Creek Drainage Basin Main 325 Parallel Relief Sewer,Part
2 project for a revised contract cost of$13,323,507.00;
2. Adopt the attached Resolution Expressing Official Intent to Reimburse Expenditures with proceeds of Future Debt for the Village Creek
Drainage Basin Main 325 Parallel Relief Sewer, Part 2 project;and
3. Adopt the attached appropriation ordinance increasing appropriations in the Water and Sewer Bond 2020A Fund in the amount of
$135,060.00,from available funds,to fund the Village Creek Drainage Basin Main 325 Parallel Relief Sewer, Part 2 project(City Project No.
C01333).
DISCUSSION:
On September 24,2019,Mayor and Council(M&C 19-0204)authorized a contract with McKee Utility Contractors, Inc.,in the amount of
$13,188,447.00(City Secretary Contract No.52970)for the Village Creek Drainage Basin Main 325 Parallel Relief Sewer, Part 2 project.
Change Order No. 1 will provide for the installation of a segment of the project sewer main under a gas well and pad site by boring instead of
open-cut in order to avoid disrupting truck traffic flow into the facility.
On September 24,2019,Mayor and Council(M&C 19-0204)authorized a contract with McKee Utility Contractors,Inc.,in the amount of
$13,188,447.00(City Secretary Contract No.52970)for the Village Creek Drainage Basin Main 325 Parallel Relief Sewer, Part 2 project.
Change Order No. 1 will provide for the installation of a segment of the project sewer main under a gas well and pad site by boring instead of
open-cut in order to avoid disrupting truck traffic flow into the facility.
This project is included in a pending revenue bond issue for the Water&Sewer Fund.The Water and Sewer System has a Council-authorized
system to allow it to initiate capital projects that will ultimately be bond funded,using available cash within the Water and Sewer portfolio and the
City's portfolio,along with the authority under the Callable Commercial Paper Program(CP)to provide interim financing for this project until the
debt is issued.To the extent resources other than the Water and Sewer portfolio are used to provide interim financing,the Water&Sewer Fund will
be charged interest that is equivalent to the overall rate of return being earned by the City portfolio(currently approximately 2.3 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 approved the Water Department's Fiscal Year 2020-2024 Five Year Capital Improvement Plan on September 17,2019.This City
Council approved plan includes this specific project,with funding identified through the CP program to be reimbursed with future revenue bonds.
Debt must be issued within approximately three years of an expense being incurred in order to provide reimbursement.If that does not occur,costs
are no longer be reimbursable by issuing tax-exempt debt,and the funding source must be made whole through budgetary methods.Adoption of a
reimbursement resolution does not obligate the City to sell bonds but preserves the ability to reimburse the City from tax-exempt bond proceeds.
In this case,because the bonds that will provide the ultimate funding have already been authorized and sold(with a total interest cost(TIC)of
1.89%)but the closing has not yet occurred,what had been the Water&Sewer Commercial Paper Fund(56017)has already been renamed to
reflect the bond sale.
Funding for the Village Creek Drainage Basin Main 325 Parallel Relief Sewer, Part 2 project is as depicted in the table below:
Fund Existing Additional Project Total*
Appropriations Appropriations
Water&Sewer Bond $2 275,012.00 $0.00 $2,275,012.00
2017A-Fund 56011
W&S Capital Project $1,431,441.00 $0.00 $1,431,441.00
2018-Fund 56014
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Clean Water SRF $60,835.00 $0.00 $60,835.00
Fund 59602
Sewer Capital $197,500.00 $0.00 $197,500.00
Legacy-Fund 59607
Water&Sewer
Commercial Paper $14,314,152.00 $135,060.00$14,449,212.00
Fund 56017
Project Total $18,278,940.00 $13:5 060.00$18,414,000.00
*Numbers rounded for presentation purposes.
MWWBE OFFICE: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 DISTRICTS 6 and 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 and Sewer Bond 2020A Fund for the Village Creek Drainage Basin Main 325 Parallel Relief Sewer,Part 2 to fund
this change order.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: John Kasavich 8480