Explanation
Background: This ordinance authorizes the Director of the Recreation and Parks Department modify an existing contract with Setterlin Building Company to provide construction services associated with the Cultural Arts Center Renovations 2025 Project. The modification amount being authorized by this ordinance is $110,306.55.
During the construction of improvements at the Cultural Arts Center, it was discovered that additional services are needed to improve the emergency and life safety mechanisms at the facility. The additional work will specifically include an additional door operator, facility signage, and an upgraded fire alarm system
The original project completion date of the project was April 26, 2026. The modified project completion date, as a result of the proposed modification, will be December 31, 2026.
Amount of Additional Funds: $110,306.55
Why Additional Services Were Not Foreseen: The extent of repairs needed for the life safety systems was not known when the project began. These necessary systems improvements were determined during renovations.
Why It Is Not In The Best Interest For The City To Award Additional Services Through Another Procurement Process: Procurement of these services through another process would result in an increased cost to the City and delay these necessary life safety services for the community.
How The Price For The Additional Services Was Determined: The pricing was requested from the contractor and reviewed with the project manager, department stakeholders, and the architect of record.
Principal Parties:
Setterlin Building Company
560 Harmon Avenue
Columbus, Ohio 43223
Jordan Spano, (614) 614-459-7077
Contract Compliance Number: 004372
Contract Compliance Expiration Date: April 9, 2027
Emergency Justification: Emergency action is requested in order to complete the life safety improvements as quickly as possible for the immediate benefit of those who use this facility.
Benefits to the Public: This unique facility provides access to fine arts and special events within a historic setting. These improvements aim to ensure all residents can access this space and anticipated future needs.
Community Input/Issues: This project was deemed necessary based upon data provided by staff reports and community 311 requests.
Area(s) Affected: Downtown (55)
Master Plan Relation: This project will support the Recreation and Parks Master Plan by providing options to increase utilization of special use spaces and providing amenities to more user groups.
Fiscal Impact: The expenditure of $919,537.00 was legislated for the Cultural Arts Center Renovations 2025 Project by Ordinance 2386-2025. This ordinance will provide funding that will modify the previously authorized amount by $110,306.55. $110,306.55 is budgeted and available in the Recreation and Parks Voted Bond Fund 7712 to meet the financial obligations of this contract modification. The aggregate total amount authorized, including this modification, is $1,029,843.55. $110,306.55 of the funds, from within Voted Bond Fund 7712, will not be available to the Recreation and Parks Department until the proceeds of the 2025-2026 bond sale are available at a future date. Therefore, it is necessary to certify the required funds against the General Fund 1000, Income Tax Set Aside Subfund 100099. Upon the sale of bonds, this will be reimbursed.
Title
To authorize the Director of the Recreation and Parks Department to modify an existing contract with Setterlin Building Company for the Cultural Arts Center Renovations 2025 Project; to authorize the transfer of $110,306.55 between the General Fund Income Tax Set Aside Subfund and the Recreation and Parks Bond Fund; to authorize the appropriation of $110,306.55 in the Income Tax Set Aside Subfund and Recreation and Parks Voted Bond Fund; to authorize the expenditure of $110,306.55 from the Recreation and Parks Voted Bond Fund; and to declare an emergency. ($110,306.55)
Body
WHEREAS, it is necessary to authorize the Director of the Recreation and Parks to modify an existing contract with Setterlin Building Company to provide construction services associated with the Cultural Arts Center Renovations 2025 Project; 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 (the "Project"); and
WHEREAS, it is necessary to authorize the transfer of $110,306.55 between the General Fund 1000, Income Tax Set Aside Subfund 100099, and the Recreation and Parks Bond Fund, Fund 7712; and
WHEREAS, funds will need to be appropriated within the General Fund 1000, Income Tax Set Aside Subfund 100099 and within the Recreation and Parks Bond Fund, Fund 7712; and
WHEREAS, the City will reimburse the General Fund 1000, Income Tax Set Aside Subfund 100099; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregated principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $110,306.55; and
WHEREAS, it is necessary to authorize the expenditure of $110,306.55 from the Recreation and Parks Voted Bond Fund 7712; and
WHEREAS, an emergency exists in the usual daily operations of the Recreation and Parks Department in that it is immediately necessary to authorize the Director to modify an existing contract with Setterlin Building Company in order to complete the life safety improvements as quickly as possible for the immediate benefit of those who use this facility, all 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 the Recreation and Parks Department be and is hereby authorized to modify an existing contract with Setterlin Building Company for the Cultural Arts Center Renovations 2025 Project.
SECTION 2. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 3. 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 4. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account 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.
SECTION 5. That from the unappropriated monies and from all monies estimated to come into said funds from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2026, the sum of $110,306.55 is appropriated in General Fund 1000, Income Tax Set Aside Subfund 100099, in Object Class 10 Transfer Out Operating, and in Fund 7712, Recreation and Parks Bond Fund, in Object Class 06 Capital Outlay per the account codes in the attachment to this ordinance.
SECTION 6. That the transfer of $110,306.55, or so much thereof as may be needed, is hereby authorized between the General Fund 1000, Income Tax Set Aside Subfund 100099, and the Recreation and Parks Bond Fund, Fund 7712, per the account codes in the attachment to this ordinance.
SECTION 7. That the City Auditor is hereby authorized to transfer said funds to the Recreation and Parks Voted Bond Fund 7712, at such time as is deemed necessary by the City Auditor, and to expend said funds, or so much thereof as may be necessary.
SECTION 8. That upon obtaining other funds from the 2025-2026 Bond Sale for the City of Columbus, the City Auditor is hereby authorized and directed to repay the General Fund 1000, Income Tax Set Aside Subfund 100099 the amount transferred under Section 9.
SECTION 9. That the City intends that this ordinance constitutes 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 $110,306.55 (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 the fund from which the advance for costs of the Project will be made.
SECTION 10. That for the purpose stated in Section 1, the expenditure of $110,306.55, or so much thereof as may be necessary to pay the cost thereof, be and is hereby authorized from the Recreation and Parks Voted Bond Fund 7712 in object class 06 Capital Outlay per the accounting codes in the attachments to 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.