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HomeMy WebLinkAbout(0060) M&C 21-0371City of Fort Worth, Mayor and Texas Council Communication DATE: 06/08/21 M&C FILE NUMBER: M&C 21-0371 LOG NAME: 60VCWRF THICKENING -EAGLE CO SUBJECT (CD 5) Authorize Execution of Change Order No. 2 in the Amount of $97,017.00 to the Contract with Eagle Contracting, LP for the Village Creek Water Reclamation Facility Sludge Thickening Improvements for a Revised Contract Amount of $17,668,855.00, Adopt Attached Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Attached Appropriation Ordinance RECOMMENDATION: It is recommended that the City Council: 1. Authorize execution of Change Order No. 2 in the amount of $97,017.00 to City Secretary No. 54148, with Eagle Contracting, LP for the Village Creek Water Reclamation Facility Sludge Thickening Improvements project for a revised contract amount of $17,668,855.00; 2. Adopt the attached Resolution expressing official intent to reimburse expenditures with proceeds from future debt for the Village Creek Reclamation Facility Sludge Thickening Improvements 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 $97,017.00 for the Village Creek Water Reclamation Facility Sludge Thickening Improvements project (City Project No. CO2647) and decreasing appropriations in the Unspecified project (City Project No. UNSPEC) by the same amount. DISCUSSION: On June 23, 2020, Mayor and Council Communication (M&C 20-0464), the City Council authorized a contract in the amount of $17,480,000.00 with Eagle Contracting LP, for the Village Creek Water Reclamation Facility (VCWRF) Sludge Thickening Improvements project. The contract was subsequently revised by Change Order No. 1 in the amount of $91,838.00 administratively authorized January 22, 2021, that provided for concrete demo and repair, cast stone replacement and feed pump motors on the project. This Change Order No. 2 provides for the following items that are necessary on the project: Primary grit sludge header pipe rehabilitation, waterproofing at loading docks, and service water gate valve addition. Overall funding for VCWRF Sludge Thickening Improvements project is depicted below: Fund Existing Appropriations Additional Appropriations Project Total* Water & Sewer Bond $315,113.00 $0.00 $315,113.00 2015A Fund 56007 Water &Sewer Bond $2 109,500.00 $0.00 $2,109,500.00 2017A Fund 56011 W&S Commercial $19,783,235.00 $97,017.00 $19,880,252.00 Paper Fund 56020 Project Total $22,207,848.00 $97,017.00 $22,304,865.00 *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. 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. Under federal law, debt must be issued within approximately three years in order for these expenses to be reimbursable. Adoption of the attached resolution does not obligate the City to sell bonds, but preserves the ability of the City to reimburse itself from tax-exempt bond proceeds. Business Equity: Eagle Contracting LP agrees to maintain its initial MBE commitment of 10 percent that it made on the original contract and extend and maintain the same MBE commitment of 10 percent to all prior change orders up to and inclusive of this Change Order No. 2. Therefore Eagle Contracting LP (CSC# 54148) remains in compliance with the City's BDE Ordinance and attests to its commitment by its signature on the Acceptance of Previous MBE Commitment form executed by an authorized representative of its company. The project is located in COUNCIL DISTRICT 5. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that funds are currently available in the UNSPEC project within the W&S Commercial Paper Fund and 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 VCWRF Thickener Process Improv project to support the approval of the above recommendations and execution of the engineering agreement. 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: Farida Goderya 8214