Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Utilities to enter into a construction contract with Underground Utilities, Inc., for the Lee Ellen Place Area Water Line Improvements, CIP #690236-100128, in an amount up to $3,742,886.35, and to encumber funds with the Department of Public Service for construction administration and inspection services in an amount up to $2,000.00, for a total expenditure of $3,744,886.35.
The purpose of this project is to construct necessary improvements to the water distribution system in the Lee Ellen Place Area. The improvements identified in the scope of work will replace or rehabilitate water lines that have high break histories and require frequent maintenance. The work consists of replacing or rehabilitating approximately 9,900 linear feet of 6-inch, 8-inch, and 12-inch water lines. The streets include Lee Ellen Place, Thorndale Avenue, Amsterdam Avenue, Amsterdam Court, Southgate Drive, Markham Drive, Currier Drive, Delaney Drive, South High Street, and Kingston Avenue.
The Community Area for this ordinance will be 63 - South Side and 64 - Far South.
TIMELINE: All work shall be complete within 270 calendar days from the Notice to Proceed. The City anticipates issuing a Notice to Proceed in February 2024.
ESTIMATED COST OF PROJECT:
The bid amount and proposed award amount is $3,742,886.35 including a 10% construction contingency amount that will be utilized to fund needed and approved changes in the work. No contract modifications are anticipated at this time; however, construction exigency might later compel modification of this contract, if unforeseen difficulties are encountered.
Cost summary:
Original Contract $ 3,742,886.35
Future Anticipated Needs $ 0.00
CONTRACT TOTAL $ 3,742,886.35
DPS Davis Bacon Wage Rate Administration $ 2,000.00
$ 3,744,886.35
Construction Administration / Inspection will be performed by Resource International, Inc.
2. ECONOMIC IMPACT/ADVANTAGES; COMMUNITY OUTREACH; PROJECT DEVELOPMENT; ENVIRONMENTAL FACTORS/ADVANTAGES OF PROJECT
The goal of this project is to replace or rehabilitate the existing water lines that have a high break frequency. Replacement of these water lines will improve water service, decrease burden on water maintenance operations, and reduce water loss. The Neighborhood Liaison(s) has been contacted and informed of this project during the design phase. Further community outreach may result through the Neighborhood Liaison Program.
3. CONSTRUCTION CONTRACT AWARD
An Invitation for Bids for the Lee Ellen Place Area Water Line Improvements project was advertised on the Vendor Services and Bid Express websites from September 7, 2023 through October 4, 2023. Four bids were received for the project and opened on October 4, 2023. The following companies submitted a bid:
Company Bid Amount Compliance Number ODI Status
1. Underground Utilities, Inc. $3,742,886.35 CC006588 MAJ
2. Shelly and Sands, Inc. $4,569,843.21 CC006043 MAJ
3. Danbert, Inc. $4,469,646.47 CC004618 MAJ
4. Elite Excavating Co. of Ohio, Inc. $4,714,992.50 CC001064 MAJ
The Underground Utilities, Inc. bid was deemed the lowest, best, most responsive and responsible bid in the amount of $3,742,886.35.
The certification of Underground Utilities, Inc. was in good standing at the time the bid was awarded.
4. CONTRACT COMPLIANCE INFORMATION
Underground Utilities, Inc.’s contract compliance number is CC006588 and expires 2/17/25.
Searches in the Excluded Party List System (Federal) and the Findings for Recovery list (State) produced no findings against Underground Utilities, Inc.
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 8% as assigned by the City’s Office of Diversity and Inclusion (ODI). The MBE/WBE program goal has been met by the use of MBE/WBE subcontractors. Failure by the contractor to meet this goal subjects the contractor to the Penalties for Non-Compliance as described in the “City’s Minority and Women-Owned Business Enterprise & Small Local Business Enterprise Program Manual” and in the bid documents for this contract.
As part of their proposal, Underground Utilities, Inc. has proposed the following subcontractor to perform contract work:
Company Name City/State ODI Certification Status
Griffin Pavement Striping Columbus, Ohio MAJ
Smith Paving & Excavating Norwalk, Ohio MAJ
CAP-Stone Columbus, Ohio WBE
Rath Builders Supply Defiance, Ohio EBE
6. PRE-QUALIFICATION STATUS
Elford, Inc. and all subcontractors have met code requirements with respect to pre-qualification, pursuant to relevant sections of Columbus City Code Chapter 329.
7. FISCAL IMPACT
The construction portion of this project is anticipated to be financed with a loan from the Water Supply Revolving Loan Account (WSRLA), a program jointly administered by the Ohio EPA's Division of Environmental and Financial Assistance and the Ohio Water Development Authority (OWDA). City Council authorized this loan application and acceptance of funding via Ordinance 0944-2023, passed by Council on April 24, 2023. The loan is expected to be approved in January, 2024. Funds will need to be certified against the Water System Reserve Fund, Fund 6003, to proceed with this project until the loan has been approved.
An amendment to the 2023 Capital Improvement Budget is needed to align budget authority with the project to reflect the loan amount will be for more than is shown in the 2023 Capital Improvement Budget. A transfer of funds from the Water System Reserve Fund, Fund 6003, to the Water Supply Revolving Loan Account Fund, Fund 6011, in the amount of $3,742,886.35 is needed to fund construction for this project. This transaction is a temporary measure that is required until a loan is executed with the Ohio EPA to reimburse the Water System Reserve Fund. These funds will also need to be appropriated to be transferred and then appropriated after transfer to the new fund.
Funds in the amount of $2,000.00 is available within the Water Bond Fund, Fund 6006, to pay the Department of Public Service to perform construction administration for the project. These funds are appropriated.
Title
To authorize the Director of Public Utilities to enter into a construction contract with Underground Utilities, Inc., for the Lee Ellen Place Area Water Line Improvements project; to authorize the appropriation and transfer of funds from the Water System Reserve Fund to the Water Supply Revolving Loan Account Fund; to authorize the appropriation and expenditure of up to $3,742,886.35 from the Water Supply Revolving Loan Account Fund for the contract; and to authorize the expenditure of up to $2,000.00 from the Water Bond Fund to pay for construction administration and inspection expenses for the project. ($3,744,886.35)
Body
WHEREAS, the Department of Public Utilities is engaged in the Lee Ellen Place Area Water Line Improvements project; and
WHEREAS, four bids for the Lee Ellen Place Area Water Line Improvements project were received and opened on October 4, 2023; and
WHEREAS, the lowest, best, most responsive and responsible bid was from Underground Utilities, Inc.; and
WHEREAS, it is necessary to authorize the Director of the Department of Public Utilities to enter into a construction contract with Underground Utilities, Inc. for the Lee Ellen Place Area Water Line Improvements project; and
WHEREAS, Ordinance 0944-2023, passed April 24, 2023, authorized this project to be funded by a loan to be obtained through the Water Supply Revolving Loan Account (WSRLA) Loan Agreements in an amount not to exceed $4,200,000.00; and
WHEREAS, an amendment to the 2023 Capital Improvement Budget is needed to align budget authority with the project; and
WHEREAS, it is necessary to both appropriate and transfer funds from the Water System Reserve Fund to the Water Supply Revolving Loan Account; 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 appropriate and expend funds from the Water Supply Revolving Loan Account Fund to pay for the construction of this project; and
WHEREAS, it is necessary to expend funds from the Water Bond Fund to pay the Department of Public Service for prevailing wage services for this project; and NOW, THEREFORE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the 2023 Capital Improvement Budget authorized by Ordinance 1711-2023 be amended as follows to establish sufficient budget authority for this project:
Fund / Project Number / Project Name / Current / Change / Amended
6011 / 690236-100128 / Lee Ellen Place Area Water Line Improvements (WSRLA Loan) / $3,500,000.00 / $3,742,886.00 / $242,886.00 (To match loan amount)
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 $3,742,886.35 is appropriated in the Water System Reserve Fund, Fund 6003, per the account codes in the funding attachment to this ordinance.
SECTION 3. That the transfer of $3,742,886.35 or so much thereof as may be needed, is hereby authorized between the Water System Reserve Fund, Fund 6003, and the Water Supply Revolving Loan Account Fund, Fund 6011, per the accounting codes in the attachment to this ordinance.
SECTION 4. 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 $3,742,886.35 is appropriated in the Water Supply Revolving Loan Account Fund, Fund 6011, per the account codes in the funding attachment to this ordinance.
SECTION 5. That the Director of Public Utilities is hereby authorized to enter into a construction contract for the Lee Ellen Place Area Water Line Improvements project with Underground Utilities, Inc., 416 W. Monroe St., PO Box 428, Monroeville, OH 44847, in an amount up to $3,742,886.35; in accordance with the terms and conditions of the contract on file in the Department of Public Utilities; and to obtain the necessary construction administration and inspection services for this project from the Department of Public Services in an amount up to $2,000.00.
SECTION 6. That the expenditure of $3,744,886.35, or so much thereof as may be needed, is hereby authorized to pay for this contract per the accounting codes in the attachment to this ordinance.
SECTION 7. That upon obtaining other funds for the purpose of funding water system capital improvement work, the City Auditor is hereby authorized to repay the Water System Reserve Fund the amount transferred above (Section 3), and said funds are hereby deemed appropriated for such purposes.
SECTION 8. 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 $3,742,886.35 (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 Water System Reserve Fund, Fund 6003, which is the fund from which the advance for costs of the Project will be made.
SECTION 9. 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 10. 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 11. 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 12. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.