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HomeMy WebLinkAboutOrdinance 24281-06-2020 Ordinance No. 24281-06-2020 AN ORDINANCE ADJUSTING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE WATER AND SEWER COMMERCIAL PAPER FUND BY DECREASING APPROPRIATIONS IN THE UNSPEC PROJECT IN THE AMOUNT OF $11,064,526.00, AND INCREASING APPROPRIATIONS IN THE LAKE ARLINGTON LIFT STATION AND FORCE MAIN PROJECT BY THE SAME AMOUNT; 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 adjusted estimated receipts and appropriations in the Water & Sewer Commercial Paper fund by decreasing appropriations in the UNSPEC project in the amount of $11,064,526.00 and increasing appropriations in the Lake Arlington Lift Station and Force Main project by the same amount. 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: PAW— 0B k(Jul 2,202014:06 CDT; Douglas W Black Mary J. Kayser Sr Assistant City Attorney City Secretary p� v o i ADOPTED AND EFFECTIVE: June 23, 2020 TEXAS MAYOR AND COUNCIL COMMUNICATION MAP 60LALS-BARCANDFNI N �y 2 ALL F-- PAMEY AVE via W: ELIZABETH Ra Yg � � 3 ,w J t EASTLANO ST 7 {. r4f = GRAYSON sr i, Y, LAKE `-u Ul HARDEMAN Sr ARLINGTON r-3 f� WILBARGI~R ST i3F. WILBAR ER ST Fj f ui FORCE a FORT WORTH Lu MAIN r MARTIN ST1 r w x ARLINGTON CD # { o n _ SUN VALLEY DR 0 Lu ? .. ji FOREST HILL Ik I � LIFT STATION ~ M - r! FREEMAN DRY, Z KENNEbALE FORTWORTH ' I � - ' FORT WORTH City of Fort Worth, Texas Mayor and Council Communication DATE: 06/23/20 M&C FILE NUMBER: M&C 20-0460 LOG NAME: 60LALS-BARCANDFNI SUBJECT Authorize Execution of Amendment No.4 in the Amount of$392,668.00 to an Engineering Agreement with Freese and Nichols, Inc.for the Lake Arlington Lift Station and Force Main Project,Authorize Execution of a Contract with Bar Constructors, Inc. in the Amount of$10,077,693.00 for the Lake Arlington Force Main Project and Provide for Project Costs for a Project Total in the Amount of$20,371,235.00,Adopt a Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt,and Adopt Appropriation Ordinance(COUNCIL DISTRICT 5) RECOMMENDATION: It is recommended that the City Council: 1. Authorize execution of Amendment No.4 to City Secretary Contract No.50312,an Engineering Agreement with Freese and Nichols, Inc.in the amount of$392,668.00,for construction support services for the Lake Arlington Lift Station and Force Main project for a revised contract amount of$20,371,235.00(City Project No. 100995); 2. Authorize execution of a contract with Bar Constructors, Inc.,in the amount of$10,077,693.00,for the Lake Arlington Force Main project; 3. Adopt the attached Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds from Future Debt for Lake Arlington Lift Station and Force Main project;and 4. Adopt the attached Appropriation Ordinance adjusting appropriations in the Water&Sewer Commercial Paper(W&S Commercial Paper) Fund by decreasing appropriations in the UNSPEC project(City Project No. UNSPEC)in the amount of$11,064,526.00 and increasing appropriations in the Lake Arlington Lift Station and Force Main project by the same amount. DISCUSSION: On January 30,2018 Mayor and Council Communication (M&C C-28566)the City Council authorized the execution of an engineering agreement with Freese and Nichols, Inc.,in the amount of$3,099,361.00 for the preparation of plans and specifications for the Lake Arlington Lift Station and Force Main Project. The agreement was subsequently revised by Amendment No. 1 in the amount of$229,755.00 authorized March 19,2019(M&C C-29067), Amendment No.2 in the amount of$366,044.00 authorized June 25,2019(M&C C-29178)and Amendment No.3 in the amount of$211,344.00 authorized March 3,2020(M&C 20-0137). Amendment No.4 will provide construction support phase services including inspection,project submittal reviews,change order review,record drawings,and lift station start up. Construction of the project was advertised for bid on April 9,2020 and April 16,2020 in the Fort Worth Star-Telegram.On May 14,2020 the following bids were received: Bidder _ Base Bid Contract Time Bar Constructors, Inc. $10,077,693.00 487 Calendar_Days Crescent Constructors, Inc. $10,573,000.00 _ Felix Construction Company $10,764,021.00 Gracon Construction, Inc. $11,763,810.00 In addition to the contract cost,$392,611.00 is required for project management and inspections,and$201,554.00 is provided for project contingency. Construction is anticipated to commence in August 2020 and be completed by December 2021.This project will have no impact on the Water Department's operating budget when complete.This project is part of the Water Department's Sanitary Sewer Overflow Initiative Program. Funding for the Lake Arlington Lift Station and Force Main project is depicted in the table below. Existing Additional Fund Appropriations Project Total* Appropriations W&S Capital Project�[$9,306,709-00[ $9,306,709.00 2018-Fund 56014 WS Capital Project [!11 064 526�O L11,064,526.00 2020A-Fund 56019 Project Total $9,306,709.00 $11,064,526.00 $20,371,235.00 *Numbers rounded for presentation purposes. This project is anticipated to be included in a future revenue bond issue for the Water&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 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. 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. MWWBE OFFICE: Bar Constructors, Inc. is in compliance with the City's BDE Ordinance by committing to nine percent MBE participation on this project.The City's MBE goal on this project is six percent.Additionally, Bar Constructors, Inc. is a certified MM/BE firm. MWBE OFFICE: Freese and Nichols, Inc.-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 DBE 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 5 and CITY OF KENNEDALE. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies upon approval of the above recommendations and adoption of the attached appropriation ordinance,funds will be available in the Water&Sewer Commercial Paper(W&S Commercial Paper) Fund for the Lake Arlington Lift Station and Force Main(Lake Arlington, FM, LS and SS)project to support the approval of the above recommendation and execution of the amendment to the engineering agreement and construction contract.Prior to an expenditure being incurred,the Water Department has the responsibility of verifying the availability of funds. Submitted for City Manager's Office by: Dana Burghdoff 8018 Originating Business Unit Head: Chris Harder 5020 Additional Information Contact: Pratima Poudyal 6149