HomeMy WebLinkAboutOrdinance 15939Ordinance No. ~~C 1~
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE SEWER CAPITAL PROJECT FUND IN THE
AMOUNT OF $231,384 00 FROM AVAILABLE FUNDS FOR THE PURPOSE OF
FUNDING PROFESSIONAL ENERGY SERVICES FOR THE VILLAGE CREEK
GAS TURBINE GENERATION PLANT MAKING THIS ORDINANCE
CUMULATIVE OF PRIOR ORDINANCES IN 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 2003-
2004 in the Budget of the City Manager there shall also be increased estimated receipts and
appropriations in the Sewer Capital Project Fund in the amount of $231,384 00 from available
funds for the purpose funding professional energy services for The Village Creek Gas Turbine
Generation Plant.
SECTION 2.
That should any portion, section or part 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 cumulative of Ordinance No 15636 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conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed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
APPRO ED AS T~ M AND LEGALITY
Assistant Ci y Attorney
ADOPTED AND EFFECTIVE. ~„ ~ ~
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved on 3/30/2004 Ordinance No 15937
DATE Tuesday March 30 2004
LOG NAME 60LONE
REFERENCE NO *C-20017
SUBJECT
Appropriation Ordinance and Confirmation of Letter of Agreement with Lone Star Energy Services
Inc. for Professional Energy Services for the Village Creek Gas Turbine Generation Plant
RECOMMENDATION
It is recommended that the City Council
1 Authorize the transfer of $231 384 from the Water and Sewer Fund to the Sewer Capital Project Fund
and
2. Adopt the attached appropriation ordinance increasing the estimated receipts and appropriations in the
Sewer Capital Project Fund in the amount of $231 384 from available funds and
3 Confirm the execution of an Interim Letter Agreement with Lone Star Energy Services Inc. for
professional energy services for the Village Creek Gas Turbine Generation Plant, for a total cost of
$231 384
DISCUSSION
On December 19 2000 (M8~C C-18397) the City Council authorized the execution of an agreement with
Lone Star Energy Services, Inc. a subsidiary of TXU Energy for the operations and maintenance of the
Village Creek Wastewater Treatment Plant gas turbine power generation system Under the terms of the
agreement, the City agreed to outsource operation of the system to Lone Star Energy Services, Inc. for an
accelerating monthly fee over a 20-year period The agreement was structured to provide the City with the
benefit of reducing overall energy costs for the system, and the ability to potentially sell any excess power
generated at the Village Creek Wastewater Treatment Plant back to the energy grid
The City Council appropriated funds only to cover the contract for the period October 1 2003 to December
31 2003 after staff determined that Lone Star Energy Services Inc: planned to assign the contract to an
unknown provider The parties were unable to negotiate a transfer of the operation and maintenance of the
turbine system prior to expiration of the contract on December 31 2003
On January 20 2004 (M&C C-19945) the City Council confirmed the execution of an interim letter
agreement that allowed for the operation maintenance and other related services under terms virtually
identical to the original agreement until March 31 2004
The parties are continuing to negotiate a transfer of responsibilities under the agreement to another
provider that is agreeable to both parties. While progress has been made an agreement will not be in
place before March 31 2004 the end date of the current letter agreement. The parties have agreed
subject to City Council approval to a new letter agreement that allows for the operation maintenance and
other related services as stated in the original agreement until June 30 2004
Lo~name 60LONE ~ Paue 1 ~f ~
The new letter agreement provides. for the City to pay the monthly fee of $77 128 the same fee that would
have been paid under the December 2000 agreement for this time period The same operation and
maintenance terms of the original agreement are adopted as set forth in the letter agreement. During fhe
term of the letter agreement, the parties agree to continue to negotiate in good faith toward an amicable
resolution of outstanding issues related to the continued operation and maintenance of the turbines.
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that upon approval and completion of recommendation No 1 and adoption of
the attached appropriation ordinance funds will be available in the current capital budget, as appropriated
of the Sewer Project Fund
TO Fund/AccountlCenters FROM Fund/Account/Centers
1 & 2)PS58 472045 070580300120 $231.384.00 1)PE45 538070 0709020 $231.384.00
2)PS58 539120 070580300120 $231.384.00 3~PS58 539120 070580300120 $231.384..00
Submitted for City Manager's Office by. Marc Ott (8476)
Originating Department Head. Dale Fisseler (8207)
Additional {nformation Contact: Dale Fisseler (8207)
Lo~name 60LONE PauP ~ of ~