Explanation
1. BACKGROUND: This legislation authorizes the Director of Public Utilities to enter into a construction contract with Nickolas Savko & Sons, Inc., in the amount of $358,509.31; to encumber funds with the Transportation Division for inspection and other related services in the amount of $87,847.00; for the Doherty Road Water Line Improvements Project, Division of Power and Water Contract Number 996. This legislation will also authorize the appropriation and expenditure of said funds from the Ohio Water Development Authority (OWDA) Fund.
This project provides for the construction of approximately 3,500 linear feet of 12-inch water main on Doherty Road from just south of Norfolk Southern Railroad to Fender Road. The purpose of the project is to improve flow and pressure to the adjacent subdivisions & residential areas.
2. CONSTRUCTION CONTRACT AWARD: The Director of Public Utilities publicly opened six bids on July 8, 2009. Bids were received from: Nickolas Savko & Sons, Inc. - $358,509.31; Tata Excavating - $415,151.61; John Eramo & Sons, Inc. - $423,808.94; Elite Excavating - $437,562.18; Columbus Asphalt Paving - $460,535.90; and Foill, Inc. - $509,106.40.
The lowest bid was from Nickolas Savko & Sons, Inc. in the amount of $358,509.31. Their Contract Compliance Number is 31-0907362 (expires 3/10/11, Majority). Additional information regarding each bidder, description of work, contract time frame and detailed amounts can be found on the attached Legislation Information Form.
3. FISCAL IMPACT: This Ordinance authorizes the City Auditor to appropriate and transfer funds from the Water System Reserve Fund to the Ohio Water Development Authority (OWDA) Fund in order to fund this proposed expenditure. This transaction is a temporary measure that is required until such time as the Division is able to execute a loan with the Ohio Water Development Authority (OWDA) and reimburse the Water System Reserve Fund. The loan is expected to be approved on Thursday, August 27, 2009. An amendment to the 2009 Capital Improvements Budget is also necessary.
Title
To authorize the Director of Public Utilities to execute a contract with Nickolas Savko & Sons, Inc. for construction of the Doherty Road Water Line Improvements Project; to provide for inspection and other related services to the Transportation Division; to authorize the appropriation and transfer of $446,356.31 from the Water System Reserve Fund to the Ohio Water Development Authority (OWDA) Fund; to authorize the appropriation and expenditure of $446,356.31 from the Ohio Water Development Authority (OWDA) Fund; and to authorize an amendment to the 2009 Capital Improvements Budget. ($446,356.31)
Body
WHEREAS, six bids for the Doherty Road Water Line Improvements Project were received and publicly opened in the offices of the Director of Public Utilities on July 8, 2009; and
WHEREAS, the lowest and best bid was from Nickolas Savko & Sons, Inc. in the amount of $358,509.31; 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 and expend funds to provide for payment of inspection, testing and prevailing wage coordination services costs associated with the Doherty Road Water Line Improvements Project; and
WHEREAS, it is immediately necessary to both appropriate funds from the Water System Reserve Fund and to authorize the transfer of said funds into the Ohio Water Development Authority (OWDA) 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 Water System Reserve Fund; 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, the City will sell notes or bonds to fund this project and will reimburse the Water Reserve Fund the amount transferred; and
WHEREAS, the aggregate principal amount which the City will issue to finance this phase of the project is presently expected not to exceed $446,356.31; and
WHEREAS, it is necessary to authorize an amendment to the 2009 Capital Improvements Budget for purposes of providing sufficient funding and expenditure authority for the aforementioned project expenditure; and
WHEREAS, it has become necessary in the usual daily operation of the Division of Power and Water, Department of Public Utilities, to authorize the Director of Public Utilities to enter into a construction contract with Nickolas Savko & Sons, Inc., for the Doherty Road Water Line Improvements Project, to authorize the appropriation and transfer of funds from the Water System Reserve Fund to the Ohio Water Development Authority (OWDA) Fund, for the 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 Public Utilities be and hereby is authorized to award and execute a construction contract for the Doherty Road Water Line Improvements Project with the lowest and best bidder, Nickolas Savko & Sons, Inc., 4636 Shuster Rd., Columbus, Ohio 43214; in the amount of $358,509.31; in accordance with the terms and conditions of the contract on file in the Office of the Division of Power and Water; and to obtain the necessary inspection, testing and prevailing wage coordination services from the Transportation Division and to pay up to a maximum amount of $87,847.00.
SECTION 2. That from the unappropriated monies in the Water System Reserve Fund 603, 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, 2009, the sum of $446,356.31 is hereby appropriated to the Division of Power and Water, Division 60-09, Object level One 10, Object level Three 5502, OCA 695056.
SECTION 3. That the City Auditor is hereby authorized to transfer $446,356.31 to the Ohio Water Development Authority (OWDA) Fund, Fund No. 616, into the appropriate project accounts as specified within Section 4 herein, at such time as deemed necessary by him, and to expend said funds, or so much thereof as may be necessary.
SECTION 4. That for the purpose of paying the cost of the Ohio Water Development Authority (OWDA) Fund Eligible Items within the aforementioned contract, the following appropriation and expenditure, or as much thereof as may be needed is hereby authorized as follows: Fund No. 616, Dept/Div. No. 60-09, Project: 690263, OCA Code 616263, Object Level One 06, Object Level Three 6629, Amount $446,356.31.
SECTION 5. 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 under Section 3 above, and said funds are hereby deemed appropriated for such purpose.
SECTION 6. That the 2009 Capital Improvements Budget is hereby amended as follows:
Fund No. | Project No. | Project Name | Current Authority | Revised Authority | change
606 | 690263-100000 | Doherty Rd. W.L. Imp's | 1,700,000 | $0 | -$1,700,000
616 | 690263-100000 | Doherty Rd. W.L. Imp's | $0 | $446,357 | +$446,357
SECTION 7. That said construction company shall conduct the work to the satisfaction of the Director of Public Utilities and the Administrator of the Division of Power and Water.
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 $446,356.31 (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 603, which is the fund from which the advance for costs of the Project will be made.
SECTION 9. That the City Auditor is hereby authorized and directed to transfer any unencumbered balance in the project account to the unallocated balance 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 no longer required for said project; except that no transfer shall be made from a project account by monies from more than one source.
SECTION 10. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
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 this Ordinance shall take effect and be in force from and after the earliest period allowed by law.