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Home My WebLink AboutOrdinance 24622-12-2020 ORDINANCE NO.24622-12-2020 AN ORDINANCE ADJUSTING APPROPRIATIONS IN THE WATER & SEWER COMMERCIAL PAPER FUND BY DECREASING APPROPRIATIONS IN THE UNSPECIFIED PROJECT(CITY PROJECT NO.UNSPEC)IN THE AMOUNT OF $162,699.00 AND INCREASING APPROPRIATIONS IN THE NORTH HOLLY WATER TREATMENT PLANT SEDIMENTATION BASIN SLUDGE REMOVAL SYSTEM REPLACEMENT PROJECT(CITY PROJECT NO. CO2328) 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 2020-2021 in the Budget of the City Manager, there shall also be adjusted appropriations in the Water& Sewer Commercial Paper Fund by decreasing appropriations in the Unspecified project(City Project No.UNSPEC)in the amount of$162,699.00 and increasing appropriations in the North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement project(City Project No.CO2328)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 24446-09-2020 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which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: A20 13:37 CST) 'for Ronald P,Gonzales(De,1' _ Douglas W Black Mary J.Kayser F� Sr Assistant City Attorney City Secretary ADOPTED AND EFFECTIVE:December 15,2020 * ;� MAYOR AND COUNCIL COMMUNICATION MAP 60 N HWTPS BS RS RC03-BARCO N .57f1 ST _ i � ■. g �w 1��"��+� a S ► �� '� �.. ,W 5TH ST _ 3 I • y +� f ° r VIA 77M ST i • i�,. �lh r _ ,TEXA ST tu SEDIMENTATIONNoon BASIN k. - @ .la., �•. . W,I3TH ST oF (4 LO►NASTER AYE F FORTWORT ++y !ft 1. IWIE�PASO.ST City of Fort worth, Texas Mayor and Council Communication DATE: 12/15/20 M&C FILE NUMBER: M&C 20-0982 LOG NAME: 60NHWTPSBSRCO3-BARCON SUBJECT (CD 9)Authorize Execution of Change Order No.3 in the Amount of$162,698.57 and the Addition of 150 Calendar Days to the Contract with Bar Constructors, Inc.,for North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement for a Revised Contract Amount of$7,712,290.86,Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance RECOMMENDATION: It is recommended that the City Council: 1. Authorize execution of Change Order No.3 in the amount of$162,698.57 and the addition of 150 calendar days to City Secretary No.52222 with Bar Constructors, Inc.,for the North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement project for a revised contract amount of$7,712,290.86.(City Project No.CO2328); 2. Adopt the attached Resolution expressing official intent to reimburse expenditures with proceeds of future debt for the North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement Project;and 3. Adopt the attached Appropriation Ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing appropriations in the amount of$162,699.00 for the North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement project(City Project No.CO2328)and decreasing appropriations in the Unspecified project(City Project No. UNSPEC) DISCUSSION: On April 9,2019(M&C C-29090),the City Council authorized a contract in the amount of$7,528,000.00 with Bar Constructors, Inc.,for the North Holly Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement project.The contract was subsequently revised by Change Order No. 1 in the amount of$10,762.50 administratively authorized February 14,2020 that provided revised mechanical drawings to reflect actual field measurements of the sedimentation basins and Change Order No.2 in the amount of$10,829.79 administratively authorized March 19,2020 that provided for six plug valves in the sludge valve vault. Change Order No.3 will provide for the replacement of the six existing deteriorated gate valves located in sedimentation basins 5,6 and 7 at the plant.Staff considers the proposed fee to be fair and reasonable for the scope of services proposed. Funding for the North Water Treatment Plant Sedimentation Basin Sludge Removal System Replacement project as depicted below: Existing Additional L -71 Fund Project Total* Appropriations Appropriations W&S Capital Project $786,000.00 $0.00 $786,000.00 2018-Fund 5 1014 W&S Bond 2020A- $8 307,069.00 $0.00$8,307,069.00 Fund 56017 W&S Commercial $0.00 $162,699.00 $162,699.00 Paper-Fund 56019 Project Total $9,093,069.00 $162,699.00$9,255,768.00 *Numbers rounded for presentation. 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 0.79 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 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 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. 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 9. 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 W&S Commercial paper Fund for the North Holly Sedimentation Basi project.Prior to any 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: Dena Johnson 7866