HomeMy WebLinkAbout(0051) M&C 21-0826City of Fort Worth,
Mayor and
Texas
Council Communication
DATE: 10/19/21 M&C FILE NUMBER: M&C 21-0826
LOG NAME: 60NP24INWM-KHAFUNDING-SJLOUIS
SUBJECT
(CD 7 and FW ETJ) Authorize Execution of a Contract with SJ Louis Construction of Texas, Ltd. in the Amount of $3,940,000.43 for the
Northpointe 24-inch Water Transmission Main (N4-1A) Project, Provide for Total Project Cost in the Amount of $4,501,025.00, Adopt 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 a contract with SJ Louis Construction of Texas, Ltd. in the amount of $3,940,000.43 for the Northpointe 24-inch Water
Transmission Main (N4-1A) project;
2. Adopt the attached resolution expressing official intent to reimburse expenditures with proceeds of future debt for the Northpointe 24-inch
Water Transmission Main project; and
3. Adopt the attached appropriation ordinance adjusting appropriations in the Water and Sewer Commercial Paper Fund by increasing
appropriations in the Water and Sewer Commercial Paper Fund in the amount of $4,501,025.00 in the Northpointe 24-inch Water
Transmission Main (N4-1A) project (City Project No. 103505) and decreasing appropriations in the Unspecified project (City Project No.
UNSPEC) by the same amount.
DISCUSSION:
This Mayor and Council Communication (M&C) is to authorize a construction contract and appropriate funding for the Northpointe 24-inch Water
Transmission Main (N4-1A) project.
Construction of the project was advertised for bid on August 19, 2021 and August 26, 2021 in the Fort Worth Star -Telegram. On September 9,
2021, the following bids were received:
Bidder
I Base Bid
lContractTime
Canary Construction, Inc.*
SJ Louis Construction of Texas, Ltd
$3,467,536.00
$3,940,000.4327s
Calendar
�Day
Circle C Construction Co.
$4,707,036.00
Reyes Group Ltd.
$5,043,858.75
Western Municipal Construction of
Texas, LLC
$7,526,145.30
*Subsequent to receipt of bids, Canary Construction, Inc. contacted the City and requested to withdraw its bid due to subsequently discovered unit
cost bid errors.
Funding in the amount of $99,250.00 is also provided for a professional services agreement with Kimley-Horn & Associates, Inc. for construction
phase services for the Northpointe 24-inch Water Transmission Main (N4-1A) project.
In addition to the contract costs, $304,174.00 is required for project management, utility coordination, and material testing and $157,600.57 is
provided for project contingencies.
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.
Appropriations for the Northpointe 24" Water Transmission Main (N4-1A) project are as depicted below:
Existing
Additional
Fund
Appropriations
Appropriations
project Total*
Water & Sewer
Commercial Paper
$0.00
$4,501,025.00
$4,501,025.00
(Fund - 56020______]l 11 1kEA
Project Total $0.00 $4,501,025.00
*Numbers rounded for presentation purposes.
This project will have no impact on the Water Department's operating budget when completed.
Business Equity: SJ Louis Construction of Texas Ltd. is in compliance with City's Business Equity Ordinance by committing to 17 percent MWBE
participation on this project. The City's MWBE goal on this project is 17 percent.
The project is located in COUNCIL DISTRICT 7 and FW ETJ.
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 NS IV 24" Water Main PH 1A (Northpointe) project to support the approval of the above recommendations and execution of the
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: Suzanne Abbe 8209