M&C Review


COUNCIL ACTION:  Approved on 9/26/2017 - Ordinance No. 22946-09-2017 7 Resolution No 4852-09-2017

DATE: 9/26/2017 REFERENCE NO.: C-28412 LOG NAME: 60M257P1-SJLOUIS
CODE: C TYPE: NON-CONSENT PUBLIC HEARING: NO
SUBJECT:   Authorize Execution of a Contract with S.J. Louis Construction of Texas Ltd., in the Amount of $8,125,899.00 for Sanitary Sewer Main 257 Upper and Middle Village Creek Parallel Relief Main, Part 1, Provide for Project Costs, Materials Testing and Contingencies for a Total Project Amount of $8,870,607.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICT 8)

RECOMMENDATION:

It is recommended that the City Council:

1.  Adopt the attached resolution expressing official intent to Reimburse Expenditures with proceeds of future debt for the Sanitary Sewer Main 257 Upper and Middle Village Creek Parallel Relief Main, Part 1 Project;

2.  Adopt the attached appropriation ordinance increasing estimated appropriations in the Water and Sewer DPN Fund in the amount of $8,870,607.00; and

3.  Authorize execution of a contract with S.J. Louis Construction of Texas Ltd., Inc., in the amount of $8,125,899.00 for Sanitary Sewer Main 257 Upper and Middle Village Creek Parallel Relief Main, Part 1. (City Project No. 01226)

 
DISCUSSION:

Due to growth in the southeast part of Fort Worth and the wholesale customer cities of Burleson and Crowley, additional wastewater capacity is required to meet the anticipated demand. The proposed sanitary sewer main will begin north of Everman-Kennedale-Burleson Road and east of Anglin Drive and end South of Shelby Road. The alignment generally follows Village Creek for approximately 11,300 linear feet.

This project was advertised for bids on June 8, 2017 and June 15, 2017 in the Fort Worth Star-Telegram. On July 27, 2017 the following bids were received:

BidderAmountTime of Completion
S.J. Louis Construction of Texas, Ltd.$8,125,899.00450 Calendar Days
Thalle Construction Company$8,491,950.40
Oscar Renda Contracting, Inc.$9,198,289.50
Circle C Construction Company$9,281,410.00
Mountain Cascade of Texas, LLC$9,299,192.00
Ark Construction Services$9,976,343.00
Bar Constructors, Inc.$10,406,353.60

In addition to the contract amount, $582,190.00 is required for project management, material testing and inspection and $162,518.00 is provided for project contingency.

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 (DPN) 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 DPN 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 2017-2021 Five Year Capital Improvement Plan on January 24, 2017, Mayor and Council Communication (M&C G-18927). 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 Statement, 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 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. 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.

Construction is anticipated to commence in November 2017 and be completed by February 2019. The overall project budget is estimated to be $12,103,166.00. This project is part of the Water Department's Sanitary Sewer Overflow Initiative Program. This project will have no impact on the Water Department's Operating Budget when complete.

M/WBE OFFICE – S.J. Louis Construction of Texas, Ltd., is in compliance with City's BDE Ordinance by committing to five percent MBE participation. The City's MBE goal on this project is five percent.

The project is located in COUNCIL DISTRICT 8.

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the Water & Sewer DPN Fund for this project. The Water & Sewer DPN Fund includes authority of $100,000,000.00 for the purpose of providing interim funding for Water and Sewer Capital Projects. After this transfer, the balance will be $91,129,393.00.

Funding for the Sanitary Sewer Main 257 Upper and Middle Village Creek Parallel Relief Main, Part 1 Project as depicted in the table below.








Fund

Existing Appropriations

Additional Appropriations

Project Total*

2016 Water and Sewer Bond Fund 56005

$1,168,700.00

              $0.00

$1,168,700.00

Clean Water SRF Fund 59602

   $442,172.00

              $0.00

    $442,172.00

Sewer Capital Fund - Legacy 59607

$1,621,687.00

               $0.00

$1,621,687.00

Water & Sewer DPN Fund 56014

               $0.00

$8,870,607.00

$8,870,607.00

Project Total

$3,232,559.00

$8,870,607.00

$12,103,166.00
* Numbers rounded for presentation purposes.

TO
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

FROM
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

Submitted for City Manager's Office by:
Jay Chapa (5804)
Originating Department Head:
Kara Shuror (8819)
Additional Information Contact:
John Kasavich (8480)

 
 
ATTACHMENTS
  60M257P1 SJL 1295 Form.pdf
  60M257P1 SJLOUIS Map.pdf
  60M257P1-SJLOUIS-REIMB RESOLUTION.doc
  60M257P1-SJLOUIS_60_AO_17.docx