Explanation:
1. BACKGROUND
The Central Ohio Transit Authority (COTA) is currently planning several improvement projects within the City of Columbus. As part of this process, COTA has proposed to make certain modifications to adjacent public roadways for the purpose of improving pedestrian accessibility to its facilities.
Section 901.01(f) of Columbus City Codes, 1959, currently requires entities wishing to make such roadway improvements to enter into an "Agreement to Improve Streets" with the Director of Public Service and to provide to the City a surety bond, or letter of credit, equal to the amount estimated to complete each of these roadway improvements. However, as a public entity COTA is also required to obtain a surety bond, or letter of credit, from their contractor(s) for all proposed work, including work within the public right-of-way on City streets. Therefore, the current requirements of the City and COTA would result in these proposed public roadway improvements being bonded twice, thereby doubling COTA's cost for ensuring this work is completed in a satisfactory manner, while providing little or no additional benefit . Therefore, COTA requests that these surety bonds be waived, on a project by project basis, for all proposed work, including work within the public right-of-way on City streets.
In an effort to eliminate this expense to another public entity, this ordinance authorizes the Director of Public Service to waive on a project by project basis the surety bonding/letter of credit requirements associated with Section 901.01(f) of Columbus City Code, 1959, from within future "Agreements To Improve Streets" between the City and COTA for public roadway improvements associated with COTA projects and each agreement shall remain in effect for so long as the COTA remains in compliance with the following conditions:
1. In lieu of surety bonding/letter of credit, COTA shall, as a part of these future "Agreements to Improve Streets," certify that it shall not release its contractor's construction bond for each of its projects until such time that the City of Columbus, Department of Public Service, has issued a "Letter of Acceptance" to COTA noting the satisfactory completion of the improvement.
2. Furthermore, should COTA's contractor fail to complete a public roadway improvement to the satisfaction of the City within the timeframe allocated within the agreement, COTA shall agree upon demand by the City Engineer, to immediately call its contractor's bond for the improvement and immediately seek another qualified contractor to complete the work to the City's satisfaction. Should COTA be unable to obtain another qualified replacement contractor within thirty (30) calendar days after calling the contractor's bond, the City Engineer may determine the condition of the site presents a danger to the pedestrian and motoring public and demand that COTA shall take all appropriate steps to either obtain a replacement contractor within an additional thirty (30) days or post security acceptable to the City Engineer necessary to secure the completion of the improvement. In the absence of a danger to the pedestrian and motoring public, COTA shall continue with due diligence to pursue its contractual remedies against its contractor.
All other conditions associated with Section 901 of Columbus City Code (1959) and "Agreements To Improve Streets" shall remain in force.
2. FISCAL IMPACT
There is no fiscal impact upon the City of Columbus, Department of Public Service.
3. EMERGENCY DESIGNATION
Emergency action is requested in order to waive these surety bonding/letter of credit requirements for a planned COTA parking lot project and other projects to proceed and allow the public improvement project schedule to proceed for COTA and the general public.
Title
To provide the Director of Public Service with the authority to waive the surety bonding/letter of credit requirements associated with future "Agreements to Improve Streets" between the City and COTA, and to declare an emergency.
Body
WHEREAS, COTA is proposing to perform various public roadway improvements in conjunction with several improvement projects within the City, and
WHEREAS, such work requires COTA to enter into an "Agreement to Improve Streets" for each site proposing such roadway improvements with the City of Columbus, and
WHEREAS, the City of Columbus requires surety bonds or letters of credit to ensure the proper execution of this work, and
WHEREAS, as a public entity COTA requests such bonding be waived, and
WHEREAS, waiving the surety bond/letter of credit requirements associated with future "Agreements to Improve Streets" as prescribed within Section 901.01(f) of Columbus City Codes, 1959 requires City Council approval, and
WHEREAS, COTA has agreed to alternative assurance measures within future "Agreements To Improve Streets" whereby it shall certify that Final contractor payment shall not be released to the contractor responsible for performing the work applicable to the approved plans until such work passes all required City inspections, which inspections and approvals shall not be unreasonably withheld, conditioned or delayed after notification to the City has been made" and until such time that the City of Columbus, Department of Public Service, has issued a "Letter of Acceptance" to COTA noting the satisfactory completion of the improvement, and shall upon failing to satisfactorily complete said work within a prescribed period of time COTA shall file a claim against the contractor and seek another qualified contractor to complete the work to the City's satisfaction, and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Service in that it is immediately necessary to authorize the Director of Public Service to waive the surety bonding/letter of credit requirements of Section 901.01(f) of Columbus City Code (1959) from within future "Agreements To Improve Streets" with COTA for public roadway improvement projects for so long as COTA remains in compliance with alternative assurances previously outlined herein, for the immediate preservation of the public health, peace, property, safety and welfare; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Public Service be and is hereby authorized to waive the surety bonding/letter of credit requirements of Section 901.01(f) of Columbus City Code from within future "Agreement To Improve Streets" with COTA for public roadway improvements within the City and that said authority shall remain in effect so long as COTA remains in compliance with the remaining conditions of all such agreements.
Section 2. 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.