M&C Review


COUNCIL ACTION:  Approved on 12/4/2018 - Ordinance No. 23494-12-2018 & Resolution No. 5005-12-2018

DATE: 12/4/2018 REFERENCE NO.: **C-28949 LOG NAME: 60CROWLEYSSP2-SJLOUIS
CODE: C TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:   Authorize Execution of Amendment No. 2 in the Amount of $226,610.00 to City Secretary Contract No. 48102 an Engineering Agreement with Teague Nall and Perkins, Inc., for a Revised Contract Amount of $1,513,479.00, Authorize Execution of a Contract with S.J. Louis Construction of Texas, Ltd., in the Amount of $4,518,099.30 for Crowley Relief Interceptor M-325 for Village Creek Basin, Part 2 , Provide for Project Costs for a Total Project Total in the Amount of $7,413,648.00, Adopt Resolution Expressing Official Intent to Reimburse Expenditures with Proceeds of Future Debt and Adopt Appropriation Ordinance (COUNCIL DISTRICT 6)

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 Crowley Relief Interceptor M-325 for Village Creek Basin, Part 2 Project;

2.  Adopt the attached Appropriation Ordinance increasing appropriations in the Water & Sewer Commercial Paper Fund in amount of $5,318,974.00;

3.  Authorize the execution of a contract with S. J. Louis Construction of Texas, Ltd, in the amount of $4,518,099.30 for Crowley Relief Interceptor M-325 for Village Creek Basin, Part 2 (City Project No. 100276); and

4.  Authorize the execution of Amendment No. 2 in the amount of $226,610.00 to City Secretary Contract No. 48102 for inspection services on Crowley Relief Interceptor M-325 for Village Creek Basin. (City Project No. 100276)  

 
DISCUSSION:

This Mayor and Council Communication provides for the construction of the Crowley Relief Interceptor M-325 for Village Creek Basin, Part 2, a segment of a three part project that will provide additional capacity to convey anticipated flows from proposed development within the Upper Village Creek and Clear Fork Drainage Basins.

On August 9, 2016, (M&C C-27864), the City authorized an engineering agreement in the amount of $1,274,494.00 with Teague Nall & Perkins, Inc., for Crowley Relief Interceptor M-325 for Village Creek Basin. To expedite design and construction the project was divided into Parts 1, 2 and 3. The agreement was subsequently revised by Amendment No. 1 in the amount of $12,375.00 administratively authorized July 12, 2018.

Amendment No. 2 will allow Teague Nall & Perkins, Inc., to provide inspection services during construction of all three parts of the project. Staff considers the proposed fee to be fair and reasonable for the scope of services proposed.

Construction of the project was advertised for bid on August 30, 2018 and September 6, 2018 in the Fort Worth Star-Telegram. On September 27, 2018 the following bids were received:

BIDDERAMOUNTTIME OF COMPLETION
S. J. Louis Construction of Texas, Ltd$4,518,099.30360 Calendar Days
William J. Schultz dba Circle C. Construction, Co.$4,840,092.00
Mountain Cascade of Texas$5,028,073.00
Jackson Construction, Ltd$5,086,120.00
Thalle Construction Company$5,190,859.82
Venus Construction Company$5,747,584.80
BAR Constructors, Inc.$7,010,988.00

In addition to the contract cost, $318,360.00 is required for Project Management, inspection and material testing and $255,905.00 is provided for project contingency.

In accordance with the terms of the Agreement between the Cities of Crowley and Fort Worth, Crowley will reimburse Fort Worth for its share of the total project cost upon completion of the entire project.

This project is anticipated to be included in a future revenue bond issue for the Water and Sewer Fund. Available ash 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 September 26, 2017. 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.

Construction for Part 2, is anticipated to commence in December, 2018 and be completed by December, 2019. 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 the City's BDE Ordinance by committing to 25 percent MBE participation on this project. The City's MBE goal on this project is 25 percent.

The project is located in COUNCIL DISTRICT 6 and within the City of Crowley.


 
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 Water & Sewer Commercial Paper Fund for the Crowley Relief Interceptor M-325 for Village Creek Basin, Part 2 Project. The Water and Sewer Commercial Paper Fund includes authority of $150,000,000.00 for the purpose of providing interim funding for Water and Sewer Capital Projects. After this transfer, the balance will be $105,422,532.00 for future capital projects. Funding for the Crowley Relief Interceptor M-325 for Village Creek Basin, Part 2 project is as depicted below:

FUNDExisting AppropriationsAdditional AppropriationsProject Total*
Sewer Capital Fund - Legacy 59607 $2,094,494.00$0.00$2,094,494.00
Water & Sewer Commercial Paper Fund 56016$0.00$5,318,974.00$5,318,974.00
Project Total$2,094,494.00$5,318,974.00$7,413,468.00

* Numbers rounded for presentation.

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:
Chris Harder (5020)
Additional Information Contact:
Rakesh Chaubey (6051)

 
 
ATTACHMENTS
  60CROWLEYSSP2-SJLOUIS Map.pdf
  60CROWLEYSSP2-SJLOUIS- REIMB RESOLUTION.docx
  60CROWLEYSSP2-SJLOUIS_56016_AO19r.docx
  FORM 1295-60CrowleySSP2-SJL-Redacted.pdf
  FORM 1295-60CrowleySSP2-TNP-Redacted.pdf