This Mayor and Council Communication is to authorize the preparation of plans and specifications for a parallel 60-inch relief sanitary sewer main to the existing 72-inch, M-245 West Fork Interceptor to address system capacity issues in the West Fork Basin. The Fort Worth Wastewater Master Plan recommends the construction of a parallel relief line to connect two downtown deep tunnel sewers with two West Fork trunk sewers near 1st Street, north of Gateway Park. The existing M-245 is located along Ham Branch Creek and along the original channel of the West Fork of the Trinity River. The proposed scope of services includes design for a 13,600 foot, 60-inch sanitary sewer main; design for an additional 6,000 feet for the replacement and rehabilitation of various segments immediately upstream and downstream of the existing M-245 that are severely deteriorated and/or require rerouting to eliminate conflict with Trinity Railway Express railroad track expansion project building encroachment; design for connection to the proposed 60-inch relief main and the existing M-245; manhole inspection; geotechnical investigation; environmental permitting; easement preparation; subsurface utility engineering; coordination with various agencies and assistance during construction. RJN Group, Inc., proposes to provide all the necessary design services for the Sanitary Sewer Main M-245 Parallel Relief Pipeline for a fee of $1,290,000.00. Staff considers the proposed fee to be fair and reasonable for the scope of services proposed.
In addition to the contract amount, $2,295,000.00 is required for project management, utility coordination and real property acquisition.
Engineering for the Sanitary Sewer Main M-245 Parallel Relief Pipeline project is one component of the overall project that includes project management, real property/easement acquisition, utility coordination, material testing, inspection, construction and contingencies. The overall project budget is $19,000,000.00. Design is expected to start in June 2018 and be completed by June 2020. Construction is anticipated to commence in October 2020 and be completed by October 2022. This project is part of the Water Department' s Sanitary Sewer Overflow Initiative Program.
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 Callable Commercial Paper Program (CP) 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 CP 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 2018-2022 Five Year Capital Improvement Plan on December 12, 2017, Mayor and Council Communication (M&C G-19187). This City Council adopted plan includes this specific project, with funding identified through the CP 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.
This project will have no impact on the Water Department's operating budget.
M/WBE OFFICE – RJN Group, Inc., is in compliance with City's BDE Ordinance by committing to 26 percent SBE participation on this project. The City's SBE goal on this project is 10 percent.
The project is located in COUNCIL DISTRICTS 4 AND 8.
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