Explanation
1. BACKGROUND:
A. Need: This legislation authorizes the Director of Public Utilities to modify the construction contract with Liberty Mutual Insurance Company for the Wastewater Treatment Facilities Instrumentation and Control (I&C) System Upgrade Project. The original contract was signed with The Superior Electric Company, which defaulted on the contract. The Completion Surety, Liberty Mutual Insurance Company, entered into a Take-over Agreement with the City for the completion of the Contract Work. The Contract Work is being completed by the Surety's Completion Contractor, The Superior Group. The Liberty Mutual Insurance Company modification amount requested under this ordinance is $855,557.00. The contract total including this modification is $11,484,157.00. These additional funds will provide for the cost of several changes in contract work that have become necessary to complete the I&C Upgrade and to settle several Contractor's claims for compensation. Due to the complex and comprehensive nature of this project, this additional work could not be foreseen, and it is not practical or feasible to undertake a new procurement to deliver these services. This legislation will additionally authorize the expenditure of funds within the Sanitary Sewer Bond Fund.
B. Contract Compliance No.: The Contract Compliance No. for the Completion Contractor is 200354904 (MAJ).
C. Emergency Designation: The Division of Sewerage and Drainage hereby requests City Council to concur in the designation of this ordinance as an emergency measure, in order to assure that the construction contract work may proceed uninterrupted and avoid possible delays, thereby assuring minimum final costs to the City in the establishing of these vital plant facilities.
2. FISCAL IMPACT: Monies for this project were included in the recent bond sale and sufficient authority is in the 2006 Capital Improvements Budget.
3. PROJECT LOCATION: This project is located at the Jackson Pike and Southerly Wastewater Treatment Plants.
Title
To authorize the Director of Public Utilities to modify a contract with Liberty Mutual Insurance Company, for the Wastewater Treatment Facilities Instrumentation and Control (I&C) System Upgrade Project; to authorize the expenditure of $855,557.00 within the Voted Sanitary Sewer Bond Fund for the Division of Sewerage and Drainage; and to declare an emergency. ($855,557.00).
Body
Whereas, Contract No. EL001712 was authorized by Ordinance No.1698-2001, as passed by Columbus City Council on October 15, 2001 for purposes of authorizing the Director of Public Utilities to enter a construction contract for the Wastewater Treatment Facilities Instrumentation and Control (I&C) System Upgrade Project; and
WHEREAS, Modification No. 1 authorized by Ordinance No. 2572-2003, as passed by Columbus City Council on January 26, 2004 provided additional construction contingency funding that was estimated to be necessary; and
Whereas, the original contract was signed with The Superior Electric Company; and
Whereas, on or about January 22, 2004, The Superior Electric Company notified the City of default under the Contract; and
WHEREAS, the Contract's Completion Surety, Liberty Mutual Insurance Company, entered into a Take-over Agreement with the City for the completion of the Work on Contract J198B/S61B; and
WHEREAS, an emergency exists in the usual daily operation of the Division of Sewerage and Drainage, Department of Public Utilities, in that it is immediately necessary for this Council to authorize the Director of Public Utilities to modify the construction contract for the Wastewater Treatment Facilities Instrumentation and Control (I&C) System Upgrade Project at the earliest practical date in order to ensure that the construction contract work may proceed uninterrupted and avoid possible delays, thereby assuring minimum final costs to the City in the establishing of these vital plant facilities., 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 Public Utilities be, and hereby is, authorized to modify Contract No. EL001712 with Liberty Mutual Insurance Company, 450 Plymouth Road, Suite 400, Plymouth Meeting, Pennsylvania 19462 for construction of the Wastewater Treatment Facilities Instrumentation and Control (I&C) System Upgrade Project in order to provide for additional work in accordance with the terms and conditions as shown in the Modification on file in the office of the Division of Sewerage and Drainage.
Section 2. That for the purpose of paying the cost of the construction contract modification, the following expenditure, or as much thereof as may be needed, be and the same is hereby authorized as follows: Division 60-05; Fund 664; Project- Wastewater Treatment Facilities Instrumentation and Control (I&C) System Upgrade, Project No. 650348; Object Level3 6624; OCA Code 654348; Amount $855,557.00.
Section 3. That the City Auditor is hereby authorized 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 by monies from more than one source.
Section 4. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
Section 5. 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 which 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.
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