Explanation
1. BACKGROUND: This ordinance authorizes the Director of Public Utilities to enter into an agreement with Children's Hospital that will result in the elimination of the Division of Power and Water's current south substation located at 572 Wager Street. Children's Hospital needs the land that the south substation occupies in order to build their new patient tower. In exchange for this site, the hospital has agreed to have the current circuits that originate out of this substation converted to higher voltage. The Division of Power and Water will then route power to the area from other substations. A new substation would not be required. This will allow the Division to abandon the south substation site. When the conversion is complete, and the station is abandoned, the City will turn over the site to Children's Hospital. Children's Hospital has agreed to finance this project.
This ordinance also authorizes the Director of Public Utilities to enter into a contract with U.S. Utility Contractor Co. for construction needed to complete the project as noted above.
2. CONSTRUCTION CONTRACT AWARD: The Director of Public Utilities publicly opened one bid on March 14, 2007. The bid received was from U.S. Utility Contractor Co., in the amount of $2,521,000. This bid amount exceeded Children's Hospital's budgeted amount. By negotiating with U.S. Utility Contractor Co. to extend the contract duration by 90 days, overtime wages were thereby eliminated, reducing the bid amount by $101,000. This negotiated amount of $2,420,000 has been approved by Children's Hospital.
Since the Division of Power and Water only received one bid and was able to negotiate a lower bid amount with the contractor, the Director of Public Utilities is requesting the waiving of competitive bidding provisions of Columbus City Codes, to enter into a construction contract with U.S. Utility Contractor Co, for the elimination of the south substation and conversion of electrical circuits, in the amount of $2,420,000; to encumber a contingency amount of $121,000; to encumber a maximum reimbursement amount of $200,000 payable to the Division of Power and Water for construction administration services; and to reimburse any remaining funds to Children's Hospital. The grand legislative amount is $2,741,000.
The Contract Compliance Number for U.S. Utility Contractor Co. is 34-1606689. Additional information regarding this bidder, description of work, contract timeframe and detailed amounts can be found on the attached Legislation Information Form.
It is requested that this Ordinance be handled in an emergency manner in order to allow an agreement to be entered into prior to the end of the year so the hospital can meet their construction timetable.
3. FISCAL IMPACT: Children's Hospital has provided the funding for this project. The amount of $2,741,000 was deposited into the Division of Power and Water's Permanent Improvement Fund, under Receiving Warrant Number RW067614. Any remaining monies from the construction contract and associated services will be refunded to Children's Hospital. The Division is requesting an amendment to the 2006 Capital Improvements Budget for purposes of establishing sufficient budget authority for this project.
Title
To authorize and direct the Director of Public Utilities to accept payment from Children's Hospital in the amount of $2,741,000; to provide for the appropriation and expenditure of said funds from the unappropriated balance of the Permanent Improvements Fund; to authorize the Director of Public Utilities to enter into an agreement with Children's Hospital that will result in the elimination of the Division of Power and Water's current south substation located at 572 Wager Street; to waive provisions of competitive bidding and execute a construction contract with U.S. Utility Contractor Co. in the amount of $2,420,000; to encumber a contingency amount of $121,000; to encumber a maximum reimbursement amount of $200,000 payable to the Division of Power and Water for construction administration services; to refund any remaining monies to Children's Hospital; to convey the property to Children's Hospital; to authorize the expenditure in an amount no greater than $2,741.000; within the Division of Power and Water's Permanent Improvement Fund; to amend the 2006 Capital Improvements Budget; and to declare an emergency. ($2,741,000)
Body
WHEREAS, an electric substation owned by the City of Columbus and operated by the City's Division of Power and Water, is located on property needed by Children's Hospital for construction of a new patient tower; and
WHEREAS, the City is the owner of the fee simple title to the real property; and
WHEREAS, the south substation provides electricity at 7.2 KV to a portion of the electric distribution system owned by the City; and
WHEREAS, Children's Hospital desires to acquire the property and have the south substation removed there from; and
WHEREAS, the south substation cannot be eliminated until other facilities are constructed and installed so that the City may continue to provide electricity through the south distribution system; and
WHEREAS, the City is willing to convey the property to Children's Hospital and to remove the City's transformers and other equipment from the property if Children's Hospital pays the costs of designing, constructing and installing the facilities and of removing the City's transformers and other equipment from the property, all upon the terms and conditions more specifically set forth in this agreement; and
WHEREAS, one bid was received and publicly opened in the office of the Director of Public Utilities on March 14, 2007, for the elimination of the Division of Power and Water's current south substation and conversion of electrical circuits for Children's Hospital; and
WHEREAS, the bid amount exceeded Children's Hospital's budgeted amount, however, the City negotiated with the contractor to reduce the bid in an amount acceptable to Children's Hospital; and
WHEREAS, the Department of Public Utilities is requesting formal competitive bidding be waived in order to accept the negotiated bid amount; and
WHEREAS, the City of Columbus has deposited a check from Children's Hospital in the amount of $2,741,000, under Receiving Warrant No. RW067614; and
WHEREAS, it is necessary to accept and appropriate the $2,741,000 check received from Children's Hospital; and
WHEREAS, any monies remaining from the construction contract and accompanying services will be refunded to Children's Hospital via encumbering document (EA); and
WHEREAS, it is necessary to authorize the Director of the Department of Public Utilities to award and execute a construction contract and to encumber a contingency and a maximum reimbursement amount, for the elimination of the Division of Power and Water's current south substation and conversion of electrical circuits; and
WHEREAS, it is necessary to authorize an amendment to the 2006 Capital Improvements Budget for purposes of providing sufficient funding and spending authority for the aforementioned project expenditures; and
WHEREAS, an emergency exists in the usual daily operation of the Division of Power and Water, Department of Public Utilities, in that it is immediately necessary to authorize the Director of Public Utilities to enter into an agreement with Children's Hospital to allow the elimination of the Division of Power and Water's current south substation and conversion of electrical circuits; to enter into a construction contract and to encumber a contingency and a maximum reimbursement amount; in an emergency manner in order to allow an agreement to be entered into prior to the end of the year so the hospital can meet their construction timetable; for the immediate preservation of the public health, peace, property and safety; now therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Public Utilities is hereby authorized to enter into an agreement with Children's Hospital to allow the elimination of the Division of Power and Water's current south substation and conversion of electrical circuits.
SECTION 2. That the Director of Public Utilities is hereby authorized to convey the property to Children's Hospital and to remove the City's transformers and other equipment from the property if the hospital pays the costs of designing, constructing and installing the facilities and of removing the City's transformers and other equipment from the property, all upon the terms and conditions more specifically set forth in the agreement.
SECTION 3. That it is in the best interest of the City to waive the provisions of Section 329.06 of the Columbus City Codes, 1959, and such provisions are hereby waived.
SECTION 4. That the Director of Public Utilities be and hereby is authorized to enter into a construction contract for the elimination of the Division of Power and Water's current south substation and conversion of electrical circuits; with the lowest and best bidder, U.S. Utility Contractor Co., 3315 E. Seventeenth Avenue, Columbus, Ohio 43219; in the amount of $2,420,000; in accordance with the terms and conditions of the contract on file in the Office of the Division of Power and Water; to encumber a contingency amount of $121,000; to encumber a maximum reimbursement amount of $200,000 payable to the Division of Power and Water for construction administration services; to reimburse any remaining funds to Children's Hospital; for a grand legislative total of $2,741,000; that the funds deposited into Fund 565 under Receiving Warrant Number RW067614 are hereby appropriated and to be expended as noted above.
SECTION 5. That for the purpose of paying the cost of the construction contract, any contingency services required, and construction administration services, the following expenditure, or as much thereof as may be needed is hereby authorized as follows: Division of Power and Water (Power), Division No. 60-07, Permanent Improvement Fund, Fund No. 565, Project 671161, OCA Code 565161, Object Level One 06, Object Level Three 6621, Amount $2,741,000.
SECTION 6. That the 2006 Capital Improvements Budget is hereby amended to authorize an appropriation and expenditure of $2,741,000 from payment received from Children's Hospital as follows:
CURRENT:
671161: Children's Hospital Circuit Conversion - $0
AMENDED TO:
671161: Children's Hospital Circuit Conversion - $2,741,000 (+$2,741,000)
SECTION 7. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this Ordinance is declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.