HomeMy WebLinkAboutOrdinance 20764-05-2013 Ordinance No. 20764-05-2013
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE SPECIAL TRUST FUND IN THE AMOUNT OF
511,095,452.00 FROM AVAILABLE FUNDS, FOR THE PURPOSE OF FUTNDING
IMPLEMENTATION OF ESPC PHASE 7 WITH J011NSON CONTROLS, INC. IN THE
AMOUNT OF $10,955,452,00 AND FUNDING CONSTRUCTION INSPECTION AND
CONTINGENCES IN THE AMOUNT OF $140,000.00; PROVIDING FOR A
SEVER-ABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR
ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND
PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE crry 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 2012-2013 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
Special Trust Fund in the amount of $11,095,452.00, from available funds, for the purpose of funding
implementation of ESPC Phase 7 with Johnson Controls, Inc. in the amount of$10,955,452.00 and funding
construction inspection and contingencies in the amount of$140,000.00.
SECTION 2.
That should any portion, section or pail 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 ew-nulative of Ordinance No. 204 1 1-09-20 1 2 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of said prior ordinances and appropriations are hereby expressly repealed.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:
Doug Black, Assistant City Attorney
ADOPTED AND EFFECTIVE: May 21, 2013
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 512112013 - Ordinance No. 20764-05-2013
DATE: Tuesday, May 21, 2013 REFERENCE NO.. C-26273
LOG NAME: 20ESPC7
SUBJECT:
Authorize Execution of a Master Municipal Equipment Lease-Purchase Agreement with All American
Investment Group, LLC, in the Amount of$18,443,309.30, Authorize Execution of an Escrow Agreement
with All American Investment Group, LLC, and SunTrust Bank, Authorize Execution of Amendment No. 8 to
City Secretary Contract No. 29110 with Johnson Controls, Inc., in the Amount of$10,955,452.00 to
Support the Refinance of Phase 4 of the City's Energy Savings Performance Contract and the Finance and
Implementation of Phase 7 of the City's Energy Savings Performance Contract at Selected City-Owned
Facilities, Provide for Project Costs and Contingencies in the Amount of$140,000.00 for a Total Project in
the Amount of$11,095,452.00 and Adopt Appropriation Ordinance (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of a Master Municipal Equipment Lease-Purchase Agreement with All
American Investment Group, LLC (AAIG) in the amount of$18,443,309.30 to refinance Phase 4,
$7,487,857.30 of the City's Energy Savings Performance Contract(ESPC)with Johnson Controls, Inc.
(JCI)and to finance implementation of ESPC Phase 7, in the amount of$10,955,452.00 with JCI;
2. Authorize the execution of an Escrow Agreement with AAIG and SunTrust Bank as required by the
Master Municipal Equipment Lease-Purchase Agreement;
3. Adopt the attached Appropriation Ordinance increasing Fiscal Year 2013 estimated receipts and
appropriations in the Special Trust Fund in the amount of$11,0,95,452.00 from available funds to fund
implementation of ESPC Phase 7, in the amount of$10,955,452.00 with JCI and construction inspection
and contingencies in the amount of$140,000.00; and
4. Authorize execution of Amendment No. 8 to City Secretary Contract No. 29110 with JCI in the amount
of$10,955,452.00 to implement ESPC with JCI for selected City-owned and operated facilities.
DISCUSSION:
The purpose of this Mayor and Council Communication is to authorize the following three actions:
1. Consolidate all previous phases of the existing City General Fund Energy Savings Performance
Contract projects into a single ESPC Phase 7 project.
2. Implement $10,955,452.00 in new energy efficient infrastructure improvements in ESPC Phase 7 as
recommended by a detailed energy study conducted by Johnson Controls, Inc., as a result of M&C C-
25751 approved on July 24, 2012.
Logname: 20ESPC7 Page l of 3
3. Refinance ESPC Phase 4 from an effective interest rate of 4.48 percent to 2.236 percent.
Scope of Work
The Phase 7 project inc|udesUhefoUovvn8nowfeoi|ih/ inoprovomenha: LightinO; AirConditioninQand
Controls- Retru'Comnniaeioning- Window Film and Sealing- Water Conservation; and Power Factor
Corn*cti�n. This work is planned variously ai the following hsci|ities: City Hall and Service Building; Monroe
Street and Zipper Annexes; Public SGh5h/ and Courts; Animal Core and Control Center; Fort Worth Water
Gardens; Central, East and Southwest Regional Libraries; Fort Worth Convention Center; Commerce
Street Parking Garage; and James Avenue, Southside, and Brennan Avenue Service
Centers. A|h)ge|her, over 1OO-cih+owned and-operated facilities are included in Phase 7'sconsolidation
of ESPC Phases 1, 2, 3' 4. and Gb. Phases 5 and Ga were implemented with separate funding from the
Water Department and are not part of this consolidated Phase 7.
Funding Source
Master M Di i / Lease Purchase Agreement
��pecialT-[US1Fund Energy Conservation Reserve --- |
Account �
Total $ 18,583,309.30
Costs
New Energy Efficient Infrastructure Improvements - 10,955,45Z00
Phase 7
Previous Phase 4 improvements being refinanced 7,487,857.30
Contingency :$ 100,000.00
Staff costs 40,000.00
Total $ 18,583,309.30
Project funding primarily re|iesonayWanterEouiprnen| Leane'PurcheseAmreementihetwiUberopaid
through guaranteed utility cost avoidance from previous phases and from implementation of new Phase 7
work elements. Cost avoidance from two current loans and one lease that would have been paid down
from previous phases in Fiscal Years 2014, 2015, and 2018 will be used to financially support the new
facility improvements. Funding for Staff construction inspection services and potential project
contingencies is provided from previously secured utility incentives received by the City from participation
inOncor Electric Delivery's energy efficiency programs. These incentive funds were deposited into the
Special Trust Fund's Energy Conservation Reserve Account, and any incentive revenues secured through
implementation of Phase 7 will be deposited back into this same account.
Utility Cost Avoidance
,Utility |atiV8 <�0StAv0idaOce0v8[ 14y8�nG-� --�� |$—41,723---- -----
Project' -- - -- ---- -years
--- ------� -
Project Financing Principal and Interest i$ 27,962,176.00
Annual Service Agreements 2,907,600.00
Total Cumulative Project Costs 30,869,77611.00
Logoanuo: 2O2SPC7 Page 2of3
Net Cumulative Cost Avoidance over 14 years $ 10,853,354.00
M/WBE Office - Johnson Controls, Inc., is in compliance with the city's Business Diversity Enterprise
Ordinance by committing to 10 percent Minority Business Enterprise participation on this project. The city's
Minority Business Enterprise goal on this project is 10 percent.
ESPC Phase 7 involves improvements to city facilities located in ALL COUNCIL DISTRICTS,
FISCAL INFORMATION /CERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above recommendations
and adoption of the attached appropriation ordinance, funds will be available in the capital budget, as
appropriated, of the Special Trust Fund.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
5) FE72 488302 020543008000 $140,000.00 3) FE72 531200 020543008000 $100,000.00
5) FE72 531200 020543008000 $100,000.00 3) FE72 511080 020543008000 $40,000.00
5) FE72 511080 020543008000 $40,000,00 5) FE72 539120 020543009000 $10,955,452.00
3) FE72 485700 020543009000 $10,955,452.00
3) FE72 539120 020543009000 $10,955,452-00
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Jay Chapa (8517)
Originating Department Head: Douglas W. Wiersig (7801)
Samuel C. Steele (1276)
Additional Information Contact: Glenn Balog (2028)
Logname: 20ESPC7 Page 3 of 3