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HomeMy WebLinkAboutOrdinance 17213-09-2006Ordinance Nn. 1 72 1 309-20Q6 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE SPECIALLY FUNQED CAPITAL PROJECTS FUND IN THE AMOUNT OF $5,198,937 FROM AVAILABLE FUNDS FOR THE PURPOSE OF EXECUTING AMENDMENT NUMBER 2 TO CITY SECRETARY CONTRACT NO. 29110 W[TH JCI FOR CONSTRUCTION OF THE ESPC PHASE III PROJECT; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES 1N 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 2005-2006 in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Specially Funded Capital Projects Fund in the amount of $5,178,937 from available funds for the purpose executing Amendment Number 2 to City Secretary Contract Nn. 29110 with JCI for construction of the ESPC Phase III project. SECTION 2. That should any portion, section or part of a section of this ordinance be declared invalid, inoperative nr void for any reason by a court of competent jurisdiction, such decision, opinion nr 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 No. 16582 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with sunk 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 A~'TO FO City ,y ADOPTED AND EFFECTIVE: September 26, 2006 ~ ®f F®r~ VfI®~'t~r, T°~acas Mayor and Council Communication _~ COUNCIL ACTION: Approves! on 912612~Ofi - Ordinance No. 17213-09-2{I0~ ®ATE: Tuesday, September 26, 200 LOG NAViE: 20ESPC1}I REFERENCE NO.: C-21737 SU_BJ_ECT; Authorize Execution of a Loan Agreemenfi with the Texas State Energy Conservation Office, Authorize a Transfer of Funds, Adopt an Appropriation Ordinance, and Authorize Execution of a Contract Amendment to Construct Phase III of the City's Energy Savings Performance Contract with Johnson Controls, Inc. RECOfVIMEN©ATION: It is recommended that the City Council: 1. Authorize the City Manager to execute a Loan Agreement in the amount of $5,000,000 from the Texas State Energy Conservation Office {SEGO) to finance the construction of Phase 111 of the City`s Energy Savings Performance Contract with Johnson Controls, loc., (JCl) pending approval of the SEGO LaanSTAR Loan Application; 2. Authorize the transfer of funds from the Public Events Fund to the Specially Funded Capital Projects Fund in the amount of $198,937; 3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Specially Funded Capital Projects Fund in the amount of $5,198,937; and 4. Authorize the City Manager to execute Amendment Number 2 to City Secretary Contract No.29110 with Johnson Controls, Inc., {JCI) in the amount of $5,178,937 for construction of the ESPC Phase III project. ©ISCUSSi®N: Total funding of $5,198,937 includes the Johnson Controls, fns. {JCI} contract amount of $5,178,937 and $20,000 for construction management by City Architectural Services Division staff. Funding for this $5,198,937 infrastructure project is to come from two sources. The majority of the project construction funding is from a SEGO LnanSTAR loan of $5,000,000, and includes the $20,OOQ far construction management by City staff. Repayment of this loan will come from accumulated utility cost avoidance accruing to the General Fund's Non-Departmental electricity account. The second funding source for this project is from the Public Events Department's Improvement Fund in the amount of $198,937. These funds are to be used for maintenance work necessary at the Will Rogers Memorial Center {WRMC); work appropriately undertaken during construction of the larger conservation project. The proposed project represents the third such energy conservation project undertaken by the City in service of Texas Senate Bill 5 goals, improving the Clty's air quality while also reducing the City's energy budget. Phase 111 of the City's Energy Savings Performance Contract (ESPC} is recommended due to the success of the previous two phases. Background. Logname: 20ESPCIII Page I aI' 3 On September 2, 2003, (M&C C-19739) City Council authorized execution of the City's first Energy Savings Performance Contract {ESPC) with Johnson Controls, Inc. (JCI), ESPC Phase I. Completed in September 2004, ESPC Phase I resulted in the implementation of a $3,063,090 infrastructure project at the City Hall, Public Safety, West Annex and Meacham Airport Terminal buildings. The project scope included lighting, HVAC, control and water conservation measures. The City's contract with JCI allows far the execution of subsequent phases of work via contract amendment. Construction financing was secured through SECO's LoanSTAR program, a revolving fund offering financing at an interest rate of 3.0% of conservation projects that indicate a maximum 10-year simple-payback. On February 7, 2006, (M&C C-21289) City Council authorized execution of the City's ESPC Phase II with JCI. Scheduled far completion in December 2006, the $2,395,659 ESPC Phase II project includes HVAC, control and power factor correction improvements at the City's WRMC, Fart Worth Convention Center {I=WCC), and Central Library facilities. Construction of Phase II has been funded through amendment of the City's original SEGO LoanSTAR loan approved for ESPC Phase I. Current On July 26, 2005, {M&C C-20867) City Council authorized execution of a contract with JCI to conduct a detailed energy audit and engineering evaluation of the City's WRMC, 1=WCC, Police Administration and Central Library facilities in development of a fallow-an project to the successful ESPC Phase 1 project. The assessment reports and ESPC's II & III have been reviewed and approved by City staff as well as by Kinsman and Associates, retained by the City as a 3rd-party reviewer. ESPC Phase III is to be contracted separately from the Phase II project due to SECO funding limitations. ESPC Phase III's recommends a $5,198,937 infrastructure improvement project that will pay for itself through avoided energy casts. The estimated energy cast savings generated will result in asimple-payback of 7.3-years, less than the 10-year limit set by the City. JCl guarantees the City energy savings of $711,324 in Year 1 after implementation and a total of $7,960,145 over its 10-year Assured Performance Guarantee period. The project scope includes lighting, HVAC, and control system improvement far the City's WRMC, FWCC, and Central Library facilities. ESPC Phase III incorporates two annual service agreements in support of the project, in addition to the project's turnkey design, installation and construction. The first agreement is for JCI to provide Assured Performance Guarantee Services far reporting of actual energy savings, as required by law far such projects, at a Year 1 cost to the City of $51,060. The second agreement is far JCI to provide the services of a Building Efficiency Specialist to support City staff in central system programming and optimization, at a Year 1 cost of $54,042. The appropriation ordinance recommended by this M&C is necessary so that construction funds will be available to make monthly progress payments to JCI as the project work progresses. During construction, City-approved JCI requests far payment will be made through this appropriation. In turn, the City will request expense reimbursement from the SECO. The Fund/Account/Centers listed below will be used bath to make the associated construction progress payments to JCI and to receive the reimbursements from the SECO. JCI is in compliance with the City's MIVIIBE Ordinance by committing to 25 percent M/WBE participation from the tots! award for construction and supplies. The City's goal on this project is 25 percent. The City facilities involved in this project are in COUNCIL DISTRICTS 7 and 9, but serve the entire City. 1=1SCAI_ IN~'ORMATIONlCERTIFICATION: The Finance Director further certifies that, upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the current operating budget, as appropriated, of the Specially Funded Capital Projects f=und. l=ands will be available in future operating budgets far the repayment of the loan. Logrrame: 20ESPCIII Page 2 0~ 3 TO FundlAccountl~nt~.rs. 1 GC35 4881DD 02D02DOD30D0 ~OOOAOD.DO {~ GC35 472192 D2D020DD3D00 198 937.00 3 GC35 539120 D2D02D0030DD ~5.19$.937.OD FROM FundlAccountlCenters l4) GC35 53912D D20D20DD3DD0 ~5,198,937.OD (2} C192 538D70 D25192004D02 19$.,937.00 SuEsmitted for City Manager's office Eay Marc Ott (8476) ®riginating Department Head: Rnbert Goade (7804} Additional Information Contact: Greg Simmons (7862) Lngnaane: 20ESPCIII Page 3 of 3