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Home My WebLink AboutResolution 4439-04-2015 i 1 i 'r I , A Resolution NO. 4439-04-2015 ! STATEMENT EXPRESSING OFFICIAL INTENT TO REIMBURSE P I EXPENDITURES WITH PROCEEDS OF FUTURE DEBT FOR THE ROLLING HILLS WATER TREATMANT PLANT FLOCCULATION BASINS IMPROVEMENTS, PHASE 6 I i WHEREAS, the City of Fort Worth, Texas (the "City") is a home- rule municipality and political subdivision of the State of Texas; and WHEREAS, the City expects to pay expenditures in connection with the i design, planning, acquisition and construction for the Rolling Hills Water Treatment Plant Flocculation Basin Phase 6 project as shown on the attached map (the "Project") prior to the issuance of obligations by the City in connection with the financing of the Project from available funds; and WHEREAS, the City finds, considers, and declares that the reimbursement of the City for the payment of such expenditures will be appropriate and consistent with the lawful objectives of the City and, as such, chooses to declare its intention, in accordance with the I provisions of Section 1.150-2 of the Treasury Regulations, to reimburse itself for such payments at such time as it issues obligations to finance the Project; i NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: , Section 1. The City reasonably expects debt, as one or more series of j obligations, may be issued or incurred by the City with an aggregate maximum principal amount not to exceed $6,000,000.00 for the purpose of paying the aggregate costs of the Project. I I 1 I , FORT WORTH i I Resolution No.4439-04-2015 i Section 2. All costs to be reimbursed pursuant hereto will be capital expenditures. No obligations will be issued by the City in furtherance of this Statement after a date which is later than 18 months after the later of (1) the date the expenditures are paid or (2) the date on which the property, with t respect to which such expenditures were made, is placed in service. Section 3. The foregoing notwithstanding, no obligation will be issued pursuant to this Statement more than three years after the date any expenditure which is to be reimbursed is paid. Adopted this 14th day of April, 2015. p.01*®0T SPI a4 ; Ayt 0°°00° ATTEST: �O QO®�a�� 0 �00 0 B Y ttt�'�AE6�°o p° -1 - -- --------------- YJ\A O p0 •� K °00 0 00000 �b Mary Kayser, ty, ecretary I i i I i i I I I l t I ORT WORT � i 1\fwwcfsOl\water\Groups\GIS\projects\planning_engineering\facilities_design construction\RollingHills\RollingHillsWTP-Phase6ChemicalFacilitieslmprovem entsLocationMap3.mxd(CSC)1/23/2014 Y �r m zcY CO ZD . .. .... -- - - �--.. �-, ..O��m� ( r,l',l 1'..r, °^ti'r .`A, I�', f✓y�r tr7 r NCO \ i• d� 9 �P rxa „I cb, CV m m co CO � ,,� , o O ';r � '��) •>� - ^ LL CD :¢ 94 •�t ~tea - ! �:_ ( ,. t � }= ,0 ;• - -. �, , q.' ,,e�'2 t 'r/,u, . Ov- -� _ til 1 nsr�fl o 75 w �• any ,�`• s\ I tr9k O 'sasodjnd uoy3ngsu00 jo u6isap jot uotlewiclw ue d 196 04 8ZY8-Z6C-L L8 le 6uueau6u3 to 1uewUede yU uo o 4tp loeluo *6luo asodind leJeue6 Jo i I City of Fort Worth, Texas 4 Mayor and Council Communication COUNCIL:ACTION: ,Approved on 4/14/201'5 Resolution No °:4439-Q4=2015 _ m DATE: Tuesday, April 14, 2015 REFERENCE NO.: C-27266 i LOG NAME: 60RHWTP FLOCCULATION BASINS REHAB CONSTRUCTION SUBJECT: Authorize Execution of a Contract with Archer Western Construction, LLC., in the Amount of$4,312,900.00 for the Construction of the Rolling Hills Water Treatment Plant Flocculation Basins Improvements, Phase 6, Provide for Project Costs and Contingencies for a Total Project Amount of$5,056,240.00 and Adopt Reimbursement Resolution (COUNCIL DISTRICT 8) I i RECOMMENDATION: It is recommended that the City Council: 1. Authorize the execution of a construction contract with Archer Western Construction, LLC, in the a amount of$4,312,900.00 for construction of the Rolling Hills Water Treatment Plant Flocculation Basins Improvements, Phase 6; and 2. Adopt the attached resolution expressing its official intent to reimburse expenditures with proceeds of future debt for the Rolling Hills Water Treatment Plant Flocculation Basins Improvements Phase 6 project. DISCUSSION: On March 25, 2014, (M&C C-26732) the City Council authorized the execution of an Engineering Agreement with CDM Smith, Inc., in the amount of$537,420.00 for the design of the Rolling Hills Water Treatment Plant (RHWTP) Flocculation Basins Improvements, Phase 6. This Mayor and Council Communication is for the construction of the Rolling Hills Water Treatment Plant Flocculation Basins Improvements, Phase 6. This is the final phase of an upgrade project to increase the RHWTP capacity to 200 MGD from 160 MGD. The design and construction phases of the upgrade project were separated into six packages: Phase 1 - Ozonation Facilities, Phase 2 - Backwash Supply, Phase 3 - Plant Process Improvements, Phase 4 - High Service Pump Station, Phase 5 - Chemical Facilities Improvements and Phase 6 - Flocculation Basins Improvements. The first five phases of the project are complete. i The Phase 6 project work includes the reconstruction of the existing Flocculation Basins No. 1 to No. 4, and replacement of the existing three-stage, paddle wheel flocculation process with a two-stage, vertical turbine flocculation process. The vertical turbine process will be an open basin type configuration. Related electrical, structural, instrumentation and process/mechanical modifications will be performed as required for implementation of the improvements. Additionally, four isolation slide gates will be added in the hydraulic splitter box of each Rapid Mix Basin, preceding the flocculation basins. The project was advertised for bid in the Fort Worth Star-Telegram on December 18, 2014 and December 25, 2014. On January 22, 2015, the following six bids were received: i Logname: 60RHWTP FLOCCULATION BASINS REHAB CONSTRUCTION Page 1 of 4 1 Bidder JTotal Bid Amount lContract Time Archer Western Construction, LLC $4,312,900.00 440 Calendar Days Ark Contracting Services $4,831,500.00 — Bar Constructors $4,838,500.00 Cardinal Contractors $4,4653600.00 Gracon Construction, Inc $4,748,600.00 Pepper Lawson $4,589,000.00 In addition to the contract cost, the amount of$42,000.00 is required for Staff time and $130,000.00 is provided for project contingencies. Upon approval of this Mayor and Council Communication, appropriations for the Rolling Hills WTP Flocculation Basins Improvements, Phase 6 project will consist of the following: I CDM Smith Inc. Engineering Contract $537,340 00, Archer Western Construction, LLC $4,312,900.00; Construction Staking, Project Management, Inspection, Material Testing, and $172,000.00 Contingencies in Fundg of Existing Project Expenditures { .._. J p _. $34,000.00' Project Appropriations $5,056,240.00 Existing [Appropriations dditional [Appropriations.evised Encumbrances Fund Appropriations and [Balance Expenditures 2017 Water and Sewer 'Revenue Bonds $0.00 $4,484,900.00 $4,484,900.00 $0.00 $4,484,900.00 Capital Project Fund Water Capital Projects $537,340.00 $34,000.00 $571,340.00 $547,896.06 $23,443.94 Fund (P265) PROJECT TOTAL $537,340.00 [$4,518,900.00 $5,026,240.00 $547,896.06 $4,508,343.94; This project is anticipated to be included in a future revenue bond issue for the Water and Sewer Fund. Logname: 60RHWTP FLOCCULATION BASINS REHAB CONSTRUCTION Page 2 of 4 i i Available cash within the Water and Sewer portfolio and the City's portfolio along with the appropriation authority authorized under the Direct Purchase Note program 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 one-percent annually). Should the City's portfolio not support the liquidity needed to provide an interim short-term financing i source, another funding source will be required, which could mean issuance of securities under the Direct Purchase Note program or earlier issuance of Water and Sewer revenue bonds 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. In accordance with the provisions of the Financial Management Policy Statements, Staff anticipates presenting revenue-supported debt issuances to the City Council for consideration within the next three years. The Financial Management Services Department is currently working with all departments to i ensure that multi-year capital improvements plans are in place. Newly developed and already existing plans, such as the Water Department' s current multi-year capital improvement plan, will be presented to City Council for review and adoption. If the City Council-adopted plan does not include issuance of debt for this specific project, the project will be funded utilizing pay-as-you go financing sources. If the Council- adopted plan calls for debt issuance, that 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 other 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. I Construction is anticipated to commence in June 2015. With a contract time of 440 calendar days, the construction is estimated to be completed by the end of September 2016. M/WBE Office -Archer Western Construction, LLC, is in compliance with the City's BDE Ordinance by � committing to nine percent MBE participation and documenting good faith effort. Archer Western Construction, LLC, identified several subcontracting and supplier opportunities. However, the MBE's contacted in the areas identified did not submit the lowest bids. The City's MBE goal on this project is 22 percent. The project is located in COUNCIL DISTRICT 8, Mapsco 92S. I FISCAL INFORMATION /CERTIFICATION: The Financial Management Services Director certifies that appropriations are available as directed by M&C G-18375 in the 2017 Water and Sewer Revenue Bonds Capital Project Fund and in the Water Capital Projects Fund for transfer from Unspecified funding to the Rolling Hills Water Treatment Plant Flocculation Basins project for this contract, as depicted in the table: i Available Remaining i Fund Appropriation Transfer Available Amount Appropriation i Amount _ 2017 Water and Sewer Revenue Bonds Capital $86,474,093.06 $4,484,900.00[$81,989,193.06, Project Fund Water Capital Projects Fund $49,715,254.34 $34,000.00 $49,681,254 34 FUND CENTERS: i i Logname: 60RHWTP FLOCCULATION BASINS REHAB CONSTRUCTION Page 3 of 4 I TO Fund/Account/Centers FROM Fund/Account/Centers P265 511010 601510212220 $7,000.00 P265 485109 601159990100 $34,000.00 j P265 511010 601510212230 $20,000.00 P266 485114 601159990100 $4.484,900.00 I P265 511010 601510212233 $3,000.00 P265 511010 601510212280 $1,000.00 P265 511010 601510212283 $3,000.00 P266 511010 601510212280 $40.000.00 P266 541200 601510212283 $4,442,900.00 P266 531350 601510212284 $2,000.00 CERTIFICATIONS: Submitted for City Manaer's Office by: Fernando Costa (8476) g Originating Department Head: Andy Cronberg (5020) j Additional Information Contact: Farida Goderya (8214) I I 4 I i I P 1 i I II f I I I I II II Logname: 60RHWTP FLOCCULATION BASINS REHAB CONSTRUCTION Page 4 of 4 I