Explanation
BACKGROUND: In response to the housing mortgage crisis, the City of Columbus was awarded $22,845,495.00 of Neighborhood Stabilization Program (NSP) grant funds from the U.S. Department of Housing and Urban Development (HUD). The City of Columbus has 18 months ending September 2, 2010 to obligate the entire grant. These funds will provide for the purchase of foreclosed or abandoned properties, and the redevelopment, rehabilitation or demolition of these properties in order to stabilize neighborhoods and stem the decline of values of neighboring homes.
This legislation will allow for the completion of asbestos abatement, a prerequisite to the demolition portion of the NSP program, for the properties in EE007939, EE007981, EE007982, and EE008126 by authorizing the Development Director to modify three contracts with Safeco Environmental, Inc. and one contract with Hina Environmental Solutions, LLC to provide asbestos abatement services on blighted vacant structures.
Safeco Environmental, Inc. was selected from a pool of five companies that responded to the request for bids under the informal bid process in City Code 329.08 for SO-033215 and SO-033217 and six companies for SO-033115. Hina Environmental Solution, LLC was selected from a pool of five companies that responded to the request for bids under the informal bid process in City Code 329.08 for 2010 SO-033669. The Land Redevelopment Office expected the contracts to be under $20,000.00; however, the cost for additional asbestos abatement that was not foreseen before the bidding is $22,340.00 for EE007939, $21,220.00 for EE007981, $13,000.00 for EE007982, and $18,162.00 for EE008126, exceeding the limit for informal bidding. Each company provided its best estimate of the cost to complete the abatement of the structures in their respective contracts and it is by that amount that the contracts need to be increased. The companies were selected based on lowest bid, prior experience, and qualifications. The formal bidding process must be waived to modify these contracts under City Code 329.16 and 329.09.
Safeco Environmental, Inc., Contract Compliance #03-0396927 (Expires 02/26/12)
Hina Environmental Solutions, LLC Contract Compliance # 26-1342009 (Expires 02/02/2011)
FISCAL IMPACT: Funding is available from a $22,845,495.00 Neighborhood Stabilization Program (NSP) grant from the U.S. Department of Housing and Urban Development (HUD). The Department's 2009 NSP budget includes funds for the abatement of asbestos prior to the demolition of properties.
EMERGENCY JUSTIFICATION: Emergency action is requested in order to remove blighted vacant structures in City neighborhoods as soon as possible.
Title
To authorize the Director of the Department of Development to modify contracts with Safeco Environmental, Inc. and Hina Environmental Solutions, LLC for the provision of asbestos abatement services on vacant structures within the municipal boundaries of the City of Columbus; to authorize the expenditure of $74,722.00 from the General Government Grant Fund; to waive the competitive bidding requirements of the Columbus City Code; and to declare an emergency ($74,722.00).
Body
WHEREAS, ordinance 1860-2008 adopted the City's Neighborhood Stabilization Program, authorized the filing of the Neighborhood Stabilization Program application with HUD, and made a substantial amendment to the Consolidated Plan's 2008 Action Plan; and
WHEREAS, the City's NSP application specified the expenditure of funds to demolish properties that meet the program's requirements as established in Title III of the Housing and Economic Recovery Act of 2008; and
WHEREAS, the Land Redevelopment Office is expecting to demolish more than 100 structures under the Neighborhood Stabilization Program which may require asbestos abatement. Additional contracts may be necessary in the future to meet the program goal; and
WHEREAS, this ordinance authorizes the Director of the Department of Development to modify three contracts with Safeco Environmental, Inc. and one contract with Hina Environmental Solutions, LLC to provide asbestos abatement services for the Land Redevelopment Office; and
WHEREAS, Safeco Environmental, Inc. was selected based on lowest bid, prior experience, and qualifications from a pool of five companies that responded to the request for bids (2010 SO-033215 and 2010 SO-033217) and six companies for bid (2010 SO-033115; and
WHEREAS, Hina Environmental Solutions, LLC. was selected based on lowest bid, prior experience, and qualifications from a pool of five companies that responded to the request for bids (2010 SO-033669) and
WHEREAS, the additional costs for abating structures under the contracts were unforeseen at the time of bidding and the formal bidding requirements would delay the demolition as the deadline for NSP fund obligation approaches; and
WHEREAS, Safeco Environmental, Inc. provided its best estimate for the cost to complete the abatement, $22,340.00 for 2010 SO-033115, $21,220.00 for 2010 SO-033215, $13,000.00 for 2010 SO-033217and Hina Environmental Solution, LLC provided their best estimate for completing abatement, $18,162.00 for 2010 SO-033669; and
WHEREAS, an emergency exists in the Department of Development in that it is immediately necessary to modify said contracts to abate asbestos from vacant, blighted structures in order to avoid delaying implementation of the demolition program and meeting the deadline for obligating the grant, all for the preservation of the public health, peace, property, safety and welfare; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Development is hereby authorized to modify four contracts for additional costs; $22,340 for EE007939, $21,220.00 for EE007981, $13,000.00 for EE007982 with Safeco Environmental, Inc. and $18,162.00 for EE008126 with Hina Environmental Solutions, LLC to complete abating asbestos from the blighted structures in those contracts.
Section 2. That for the purpose stated in Section 1, the expenditure of $74,722,from the Department of Development, General Government Grant Fund, Fund 220, Grant No. 440500, Division No. 44-01, Object Level One 03, Object Level Three 3412, OCA Code 440502 for the aforesaid purpose is hereby authorized.
Section 3. That the formal bidding requirements of Chapter 329.09 of the Columbus City Codes, 1959 are waived.
Section 4 That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby 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.