HomeMy WebLinkAbout(0131) M&C 20-0096City of Fort Worth,
Mayor and
DATE: 02/18/20
Texas
Council Communication
LOG NAME: 60M34SSIPl-CIRCLECRJN
SUBJECT
M&C FILE NUMBER: M&C 20-0096
Authorize Execution of a Contract with William J. Schultz dba Circle C Construction Company, in the Amount of $5,745,825.00 for Mains 34, 100,
D100 Drainage Areas Sanitary Sewer Improvements, Part 1, Provide for Project Costs for a Project Total in the Amount of $6,697,010.00,
Authorize Execution of Amendment No. 3 in the Amount of $192,000.00 to an Engineering Agreement with RJN Group, Inc. for Mains 34, 100,
D100 Drainage Areas Sanitary Sewer System Evaluation Study and Improvements for a Revised Contract Amount of $1,081,238.02 and Adopt
Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL
DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of a contract with William J. Schultz Inc., dba Circle C Construction Company, in the amount of $5,745,825.00 for the
Mains 34, 100, D100 Drainage Areas Sanitary Sewer Improvements, Part 1 project (City Project No. CO2397);
2. Authorize the execution of Amendment No. 3 to City Secretary Contract No. 29961, an Engineering Agreement with RJN Group, Inc. in the
amount of $192,000.00 for assistance during construction of the Mains 34, 100, D100 Drainage Areas Sanitary Sewer System
Improvements, Part 1 project for a revised contract amount of $1,081,238.02;
3. Adopt the attached Appropriation Ordinance increasing estimated receipts and appropriations in the Water & Sewer Commercial Paper
Fund in the amount of $6,697,010.00 for the Mains 34, 100, D100 Drainage Areas Sanitary Sewer Improvements, Part 1 project; and
4. Adopt the attached Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt for the Mains 34, 100,
D100 Drainage Areas Sanitary Sewer Improvements, Part 1 project.
DISCUSSION:
The Sanitary Sewer Main 34, Main 100 and D100 Drainage Areas Sanitary Sewer Improvements, Part 1 project consists of the replacement of
deteriorated water or sanitary sewer mains as indicated on the following streets and alleys located in the Downtown Central Business District:
Street
From
To
Scope
Burnett Street
IW. 6th Street
W. 7th Street JSewer
Houston Street
IW. 7th Street
W. 8th Street JSewer
Commerce
234 feet South of the
Northerly 834
Street
15th Street/Commerce
feet
Sewer
Street intersection
Grove Street
JE. 4th Street
JE. 7th Street
Sewer/Water
Monroe Street
IW. 10th Street JITexas
Street J
Water
E. 5th Street
IGrove Street
Jones Street
Sewer/Water
Henderson
Henderson
Henderson Street West
Street East of
Sewer
Street Crossing
of right-of-way line
right-of-way
line
W. 7th 7et]W
7th Street West of
JWesterly 20
Sewer
right-of-way line JLfeet
Fahey Street
]right-of-way
Fahey Street West of
line
Westerly 80
feet
Sewer
Alley between
Monroe Street
W. 10th Street
W. 13th Street
Sewer
and Taylor Street
Alley between
Houston Street
W. 2nd Street
W. 3rd Street
Sewer
and Main Street
Alley between
��
ioun Street E. 12th Street E. 14th Street
Jones
Construction of the project was advertised for bid on November 21, 2019 and November 28, 2019 in the Fort Worth Star -Telegram. On December
19, 2019 the following bids were received:
BIDDER
FMOUNT
TIME OF
COMPLETION
William J. Schultz Inc., dba Circle C
Construction Company
$5,745,825.00
400 Calendar
Days
In addition to the contract cost, $568,424.00 (Sewer: $452,421.00; Water: $116,003.00) is required for project management, inspection and
material testing and $190,761.00 (Water: $45,964.00; Sewer: $144,797.00) is provided for project contingency.
The Transportation & Public Works Department will pave all affected roadways after the completion of this project.
On March 23, 2004 (M&C C-20006) the City Council authorized an engineering agreement in the amount of $740,698.02 with RJN Group, Inc. for
Mains 34, 100, D100 Drainage Area Sanitary Sewer System Evaluation Study and Improvements. The agreement was subsequently revised by
Amendment No. 1 in the amount of $18,600.00 administratively authorized March 6, 2015, and Amendment No. 2 in the amount of $129,940.00
authorized August 14, 2018 (M&C C-28795).
Amendment No. 3 will provide inspection assistance during construction. Staff considers the proposed fee to be fair and reasonable for the scope
of services proposed.
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 2.3% 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 Water and Sewer revenue bonds earlier 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
approved plan includes this specific project, with funding identified through the CIP 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.
Funding for the Main 4, 100, D100 Drainage Areas Sanitary Sewer Improvements, Part 1 Improvements project:
Fund
Existing
Appropriations
Additional
Appropriations
Project Total*
W&S Capital Fund
56002
$146,941.00
$0.00
$146,941.00
Sewer Capital Fund -
Legacy 59607
$160,227.00
$0.00
$160,227.00
Water & Sewer
Commercial Paper
$0.00
$6,697,010.00
$6,697,010.00
Fund 56017
Project Fund
$307,168.00
$6,697,010.00
$7,004,178.00
*Numbers rounded for presentation.
This project will have no impact on the Water Department's operating budget when completed.
Construction is anticipated to commence in March 2020 and be completed by August 2021. This project is part of the Water Department's
Sanitary Sewer Overflow Initiative Program.
MWWBE: William J. Schultz, Inc., dba Circle C Construction Company is in compliance with the City's BIDE Ordinance by committing to zero
percent MBE participation and documenting good faith effort. William J. Schultz, Inc. dba Circle C Construction Company 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 eight percent.
RJN Group, Inc.: A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Department and approved by the MWBE
Office in accordance with the MWBE Ordinance, because the purchase of goods and 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 Water & Sewer Commercial Paper Fund (W&S Commercial Paper) for the future growth in the Main 34, 100, D100
Drainage Areas Sanitary Sewer Improvements, Part 1 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: John Kasavich 8480