Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Utilities to enter into a construction contract with BLD Services LLC for the Lateral Lining - Blueprint North Linden 1, Oakland Park Medina Project, CIP #650872-141003, in an amount up to $8,109,782.73, and to encumber funds with the Department of Public Service for prevailing wage services in an amount up to $2,000.00 for the project.
This project involves the lining sanitary laterals to prevent excess stormwater from entering the City's sanitary sewer system. No future phases are expected at this time.
The Community Planning Area is “40 - North Linden”.
2. ECONOMIC IMPACT/ADVANTAGES; COMMUNITY OUTREACH; PROJECT DEVELOPMENT; ENVIRONMENTAL FACTORS/ADVANTAGES OF PROJECT
This project is a Consent Order project and is an improvement identified in the Integrated Plan and 2015 WWMP Update Report. The project is needed to mitigate water in basement events and sanitary sewer overflows to the goal of a 10 year Level of Service (LOS). Public meetings were conducted to solicit public input regarding the project, and descriptions of the work associated with this project were included on the City of Columbus website.
3. CONSTRUCTION CONTRACT AWARD
An Invitation for Bids for the Lateral Lining - Blueprint North Linden 1, Oakland Park Medina Project was advertised on the Vendor Services and Bid Express websites from 3/15/23 through 4/19/23. Two bids were received for the project and were opened on 4/19/23. The following companies submitted bids:
Company Bid Amount Compliance Number ODI Status
BLD Services LLC $8,109,782.73 CC-004618 MAJ
Performance Pipelining $10,397,677.40 CC-005926 EBE
The BLD Services LLC bid was deemed the lowest, best, most responsive and responsible bid in the amount of $8,109,782.73.
4. CONTRACT COMPLIANCE INFORMATION
BLD Services’ contract compliance number is CC-019505 and expires 11/10/2023.
Searches in the Excluded Party List System (Federal) and the Findings for Recovery list (State) produced no findings against BLD Services LLC.
5. MINORITY AND WOMAN OWNED BUSINESS ENTERPRISE & SMALL LOCAL BUSINESS ENTERPRISE PROGRAM
This contract was bid with an anticipated City of Columbus MBE/WBE Program goal of 6% as assigned by the City’s Office of Diversity and Inclusion (ODI). After ODI’s review of the Utilization Plan and other related information the contractor submitted with their bid response, ODI has approved an MBE/WBE Program goal of 6% for this contract. Failure by the contractor to meet this goal subjects the contractor to the Penalties for Non-Compliance as described in the bid documents for this contract.
As part of their proposal, BLD Services LLC has proposed the following two subcontractors to perform contract work:
Company Name City/State ODI Certification Status
JLD Construction Services, LLC. Columbus, OH MBE
Underground Eyes, Inc. West Blocton, AL MAJ
The certification of BLD Services LLC and of the above companies was in good standing at the time the bid was awarded.
6. PRE-QUALIFICATION STATUS
BLD Services LLC and all subcontractors have met code requirements with respect to pre-qualification, pursuant to relevant sections of Columbus City Codes Chapter 329.
7. FISCAL IMPACT
The construction portion of this project is expected to be financed with a loan from the Water Pollution Control Loan Fund (WPCLF). City Council authorized this loan application and acceptance of funding via Ordinance 3120-2022, passed by Council on 12/12/22.
Funds will need to be appropriated within the Sanitary Sewer Reserve Fund, Fund 6102, transferred to the Sanitary Revolving Loan Fund, Fund 6111, and then appropriated again in order to fund this expenditure. This transaction is a temporary measure that is required until such time as the division is able to execute a loan with the WPCLF and reimburse the Sanitary Sewer Reserve Fund. The loan is expected to be approved in June, 2023.
Funds in the amount of $2,000.00 will be transferred within the Sanitary Sewer General Obligation Bond Fund, Fund 6109, to pay the Department of Public Service to provide prevailing wage services for this project. An amendment to the 2022 Capital Improvement Budget is necessary to align budget authority with the proper project.
Title
To authorize an amendment to the 2022 Capital Improvement Budget; to authorize the appropriation and transfer of funds from the Sanitary Sewer Reserve Fund to the Sanitary Revolving Loan Fund; to authorize the appropriation of funds within the Sanitary Revolving Loan Fund; to authorize the Director of the Department of Public Utilities to enter into a construction contract with BLD Services LLC for the Lateral Lining - Blueprint North Linden 1, Oakland Park Medina Project; to authorize a transfer of cash and appropriation within the Sanitary Bond Fund; and to authorize the expenditure of up to $8,111,782.73 from the Sanitary Revolving Loan Fund and the Sanitary Bond Fund to pay for the project. ($8,111,782.73)
Body
WHEREAS, the Department of Public Utilities is engaged in the Lateral Lining - Blueprint North Linden 1, Oakland Park Medina Project; and
WHEREAS, two bids for the Lateral Lining - Blueprint North Linden 1, Oakland Park Medina Project were received and publicly opened in the offices of the Director of Public Utilities on April 19, 2023; and
WHEREAS, the lowest, best, most responsive and responsible bid was from BLD Services LLC in the amount of $8,109,782.73; and
WHEREAS, it is necessary to authorize an amendment to the 2022 Capital Improvements Budget for the purpose of providing sufficient budget authority for the aforementioned project expenditures; and
WHEREAS, it is necessary to both appropriate funds from the Sanitary Sewer Reserve Fund and to authorize the transfer of said funds into the Sanitary Revolving Loan Fund in order to temporarily fund this expenditure, until such time as the City is able to execute a loan for the above stated purpose and reimburse the Sanitary Sewer Reserve Fund; and
WHEREAS, the funds transferred into the Sanitary Revolving Loan Fund must be appropriated; and
WHEREAS, cash and appropriation must be transferred between projects within the Sanitary Bond Fund, Fund 6109, to align cash and appropriation with the proper project; and
WHEREAS, the City anticipates incurring certain Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the “Treasury Regulations”) promulgated pursuant to the Internal Revenue Code of 1986, as amended) with respect to the construction of the Project described in this Ordinance (collectively, the “Project”); and
WHEREAS, it is necessary to authorize the Director to enter into a construction contract with BLD Services LLC for the project; and
WHEREAS, it is necessary to authorize an expenditure of funds from the Sanitary Revolving Loan Fund to pay for the project; and
WHEREAS, it is necessary to expend funds from the Sanitary Bond Fund, Fund 6109, to provide for payment of prevailing wage services associated with said project; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the 2022 Capital Improvement Budget authorized by Ordinance 1896-2022 be amended as follows to establish sufficient budget authority for this project:
Fund / Project Number / Project Name (Funding Source) / Current Authority/ Revised Authority / Change
6111 / 650872-141003 / Lateral Lining - Blueprint North Linden 1, Oakland Park Medina (WPCLF/OWDA Loan) / $5,217,550.00 / $8,109,783.00 / $2,892,233.00 (To match amount to be borrowed from the loan fund)
6109 / 650895-100004 / Community Park Maple Canyon HSTS Elimination Project (Voted Sanitary Carryover) / $194,839.00 / $192,839.00 / ($2,000.00)
6109 / 650872-141003 / Lateral Lining - Blueprint North Linden 1, Oakland Park Medina (Voted Sanitary Carryover) / $784,941.00 / $786,941.00 / $2,000.00
SECTION 2. That from the unappropriated monies and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2023, the sum of $8,109,782.73 is appropriated in the Sanitary Reserve Fund, Fund 6102, per the account codes in the attachment to this ordinance.
SECTION 3. That the transfer of $8,109,782.73, or so much thereof as may be needed, is hereby authorized between the Sanitary Reserve Fund, Fund 6102, and the Sanitary Revolving Loan Fund, Fund 6111, per the account codes in the attachment to this ordinance.
SECTION 4. That the appropriation of $8,109,782.73, or so much thereof as may be needed, is hereby authorized in the Sanitary Revolving Loan Fund, Fund 6111, per the accounting codes in the attachment to this ordinance.
SECTION 5. That the transfer of $2,000.00, or so much thereof as may be needed, is hereby authorized between projects within the Sanitary Bond Fund, Fund 6109, per the account codes in the attachment to this ordinance.
SECTION 6. That the Director of Public Utilities is hereby authorized to enter into a construction contract for the Lateral Lining - Blueprint North Linden 1, Oakland Park Medina Project with BLD Services LLC, 2424 Tyler Street, Kenner, LA 70062, in an amount up to $8,109,782.73, in accordance with the terms and conditions of the contract on file in the Department of Public Utilities; and to obtain the necessary prevailing wage services from the Department of Public Service and to transfer within the Sanitary G.O. Fund and pay up to a maximum amount of $2,000.00 for them.
SECTION 7. That the expenditure of $8,111,782.73, or so much thereof as may be needed, is hereby authorized to pay for this contract and for the Department of Public Service to provide prevailing wage services for the contract, per the accounting codes in the attachment to this ordinance.
SECTION 8. That upon obtaining other funds for the purpose of funding sanitary sewer system capital improvement work, the City Auditor is hereby authorized to repay the Sanitary Reserve Fund the amount transferred under Section 3 above, and said funds are hereby deemed appropriated for such purpose.
SECTION 9. That the City intends that this Ordinance constitute an "official intent" for purposes of Section 1.150-2(e) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be $8,109,782.73 (the "Obligations").
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is "placed in service" within the meaning of Treasury Regulations Section 1.150-2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the Sanitary Reserve Fund, Fund 6102, which is the fund from which the advance for costs of the Project will be made.
SECTION 10. Funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 11. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 12. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account within the same fund upon receipt of certification by the Director of the Department administering said project that the project has been completed and the monies are no longer required for said project.
SECTION 13. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.