On December 2, 2014, Mayor and Council Communication (M&C C-27097), the City Council authorized an Engineering Agreement in the amount of $426,460.00 with CP&Y, Inc., to prepare plans and specifications for the Rolling Hills Water Treatment Plant (RHWTP) High Service Pump Station (HSPS) Switchgear Replacement and Electrical Improvements Project. On June 14, 2016, (M&C C-27766), the City Council authorized additional funding in the amount of $99,000.00 for additional staff time and engineering contingencies. On August 2, 2016, (M&C C-27848) the City Council authorized a construction contract with Texsun Electrical Contractors, Inc., in the amount $5,500,600.00 for this project. During the RHWTP HSPS design, the Engineer determined that the on-site Oncor Electrical Substation needed to be upgraded. A Service Agreement with Oncor Electric Delivery Company, LLC, is necessary to make the necessary upgrade/addition to the existing Oncor Substation at RHWTP. The Oncor upgrade facilities include, but not limited to, the following: Two 4.16 kV outdoor metering cubicles; two structural mounted outdoor revenue metering enclosures; one structural mounted telemetry enclosure; one outdoor demarcation junction box; all complete with associated conduits, cables and related ancillaries. Oncor will also test and commission the Upgraded Facilities. This Project is scheduled for completion around April 2018. Overall, this project will not increase the operational and maintenance budget for the RHWTP associated with this HSPS switchgear or Oncor substation. This project is anticipated to be included in a future revenue bond issue for the Water and Sewer Fund. 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 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.
The City Council adopted the Water Department's Fiscal Year 2016-2020 Five-Year Capital Improvement Plan on February 2, 2016 (M&C G-18662). This City Council adopted plan includes this specific project, with funding identified through the DPN program to be reimbursed with future revenue bonds. 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. This 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.
M/WBE OFFICE: A waiver for the goal for MBE/SBE subcontracting requirements was requested by the Water Department and approved by the M/WBE Office in accordance with the M/WBE or BDE Ordinance, because the purchase of goods or services is from source(s) where subcontracting or supplier opportunities are negligible.
This project serves many Districts and is located in COUNCIL DISTRICT 8, Mapsco 92S. |
