Explanation
1. BACKGROUND:
A. Need. This legislation authorizes the Director of Public Utilities to execute a construction contract with Complete General Construction Company, for the River South Phase II Rich Street Sanitary Redirect Sewer and Front Street, Main Street & Ludlow Street Sanitary Sewer Improvements and River South Phase II Storm Sewer Project. This legislation will additionally authorize the appropriation, transfer, and expenditure of $1,912,855.44 from the Sewer System Reserve Fund to the Water Pollution Control Loan Fund 666. A Water Pollution Control Loan Fund (WPCLF) loan to reimburse projects expenditures and up to $1,171,678 in subsidies from the American Recovery and Reinvestment Act (ARRA) of 2009 for Stimulus Projects will be utilized to reduce the principal amount of the WPCLF loan is tentatively scheduled for the Ohio Water Development Authority (OWDA) July 30, 2009 board meeting.
The proposed contract work with Complete General Construction Company consists of the construction of approximately 1,975 feet of 12-inch to 48-inch diameter storm sewer in Front, Rich and Main Streets; 175 feet of 8-inch diameter and 65 feet of 18-diameter sanitary sewer in Rich Street, rehabilitation of approximately 2081 feet of 10-inch diameter to 27-inch diameter sewer in Front, Ludlow, and Main Streets utilizing the Cured-in-Place-Pipe (CIPP) process; rehabilitation of approximately 8 brick manholes;cleaning of the sewers, pre and post videos, confirmation of the status of service laterals and their reinstatement, bypass pumping, maintenance of traffic, and other such work as may be necessary to complete the contract in accordance with the plans (CC-15505, CC-15531 & E-2712) and specifications.
The contract was advertised in the City Bulletin, and bids were received and opened on June 24, 2009, as follows:
1. Complete General Construction Company | Majority Firm | $1,912,855.44
2. George J. Igel Company, Inc. | Majority Firm | $2,690,680.08
3. Kokosing Construction Co., Inc. | Majority Firm | $2,944,128.18
The Engineer's construction cost estimate was $3,229,872.60
Award is recommended to the lowest and best bidder.
B. Contract Compliance No.: 31-4366382 (Majority | Expiration 01/30/2010)
C. Emergency Designation: Construction must begin in September to avoid conflict with the proposed Rich Street Bridge project
2. FISCAL IMPACT:
This ordinance authorizes the transfer and appropriation of funds in the amount of $1,912,855.44 from the Sewer System Reserve fund to the Water Pollution Control Loan 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 WPCLF loan with the Ohio Water Development Authority and reimburse the Sewer System Reserve Fund. The loan award is tentatively scheduled for the July 30, 2009 OWDA board meeting; and up $1,171,678 in subsidies from the American Recovery and Reinvestment Act (ARRA) of 2009 for Stimulus Projects will be utilized to reduce the principal amount of the WPCLF loan.
Title
To authorize the Director of Public Utilities to execute a contract with Complete General Construction Company, for the River South Phase II Rich Street Sanitary Redirect Sewer and Front Street, Main Street & Ludlow Street Sanitary Sewer Improvements and River South Phase II Storm Sewer Project; to authorize the appropriation, transfer, and expenditure of $1,912,855.44 from the Sewer System Reserve Fund to the Water Pollution Control Loan Fund for the division of Sewerage and Drainage; and to declare an emergency. ($1,912,855.44)
Body
WHEREAS,three competitive bids for construction of the River South Phase II Sanitary and Storm Sewer project were received and opened on June 24, 2009 in the offices of the Director of Public Utilities; and
WHEREAS, the Division of Sewerage and Drainage engineering personnel have determined it necessary to enter into a construction contract with Complete General Construction Company, in order to provide for project construction; and
WHEREAS, sufficient monies will be available within the Sewer System Reserve Fund and transferred to the Water Pollution Control Loan Fund for the aforementioned project expenditure; and
WHEREAS, it is immediately necessary to both appropriate funds from the Sewer System Reserve Fund and authorize the transfer of said funds into the Water Pollution Loan Fund, in order to temporarily fund this expenditure, until such time as the City is able to execute a WPCLF loan agreement for the above stated purpose and reimburse the Sewer System Reserve Fund; and
WHEREAS, The loan award is tentatively scheduled for the July 30, 2009 OWDA board meeting; and up $1,171,678 in subsidies from the American Recovery and Reinvestment Act (ARRA) of 2009 for Stimulus Projects will be utilized to reduce the principal amount of the WPCLF loan; 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 execute a construction contract with Complete General Construction Company in connection with the River South Phase II Sanitary and Storm Sewer project, in order to fulfill the City's capital improvement project scheduling commitments in the Downtown south area, and so that this project can begin in September, 2009 to avoid conflict with the proposed Rich Street Bridge project, 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 enter into a contract with Complete General Construction Company, 11221 E. Fifth Avenue, Columbus, Ohio 43219, for construction of the River South Phase II Rich Street Sanitary Redirect Sewer and Front Street, Main Street & Ludlow Street Sanitary Sewer Improvements and River South Phase II Storm Sewer Project in accordance with the terms and conditions as shown in the contract on file in the office of the Division of Sewerage and Drainage.
Section 2. That from the unappropriated monies in the Sewer System Reserve Fund 654, and from all monies estimated to come into said fund from any and all sources, and unappropriated from any other purpose for the River South Phase II Rich Street Sanitary Redirect Sewer and Front Street, Main Street & Ludlow Street Sanitary Sewer Improvements and River South Phase II Storm Sewer Project, the sum of $1,912,855.44 is hereby appropriated to the Division of Sewerage and Drainage; Division 60-05 | ObjLvl1 10 | ObjLvl3 5502 | OCA Code 901654
Section 3. That the City Auditor is hereby authorized to transfer $1,912,855.44 to the Water Pollution Control Loan Fund No. 666, into the appropriate project accounts as specified in the below section, at such time as deemed necessary by him, and to expend said funds, or so much thereof as may be necessary.
Section 4. That the expenditure of $1,912,855.44, or as much thereof as may be needed, be and the same is hereby appropriated and authorized for under the Water Pollution Control Loan Fund No. 666 | Division 60-05 | ObjLvl3 6621 | as follows:
Proj. No | Proj. Name | OCA Code | Amount:
650404.39 | River South Phase II Rich Street Sanitary Redirect Sewer and Front Street, Main Street & Ludlow Street Sanitary Sewer Improvements and River South Phase II Storm Sewer | 666404 | $1,912,855.44
Section 5. That upon obtaining other funds for the purpose of funding the sanitary sewer system capital improvement work, the City Auditor is hereby authorized to repay the Sewer System Reserve Fund the amount transferred under the above section, and said funds are hereby deemed appropriated for such purpose.
Section 6. That upon final approval, tentatively scheduled for the Ohio Water Development Authority (OWDA) July 30, 2009 board meeting, $1,171,678 in subsidies from the American Recovery and Reinvestment Act (ARRA) of 2009 for Stimulus Projects will be utilized to reduce the principal amount of the WPCLF loan.
Section 7. 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 $1,912,855.44 (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 Sanitary/Sewer Reserve Fund 654, which is the fund from which the advance for costs of the Project will be made.
Section 8. 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 are no longer required for said project; except that no transfer shall be made from a project by monies from more than one source.
Section 9. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
Section 10. 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 11. That for the reasons stated in the preamble hereto, which is 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.