Explanation
1. BACKGROUND:
This legislation authorizes the Director of Public Utilities to execute a contract with Insituform, Inc., for the construction of the Crestview/Calumet Area Sanitary Improvements Project. This project will rehabilitate approximately 21,093 lineal feet of eight to 21-inch diameter sanitary sewer lines serving homes within the project area that is located in the Clintonville Community. This contract will utilize trenchless technology methods to minimize the disruption to residences in the project area and to avoid the costlier method of traditional open trench sewer removal and replacement.
The Director of Public Utilities publicly opened four competitive bid proposals on April 26, 2006. The cumulative results of these bids were: Insituform, Inc.submitted a bid of $1,682,067.60; and Reynolds, Inc., submitted a bid of $1,874,239.20; Kokosing Construction submitted a bid of $2,112,942.60; and American Water Services Underground submitted a bid of $2,171,946.30.
Insituform's bid proposal was rejected by the Director of Public Utilities due to the vendor's failure to submit a responsive bid proposal bond. However, on July 7, 2006, Insituform Technologies, Inc., filed a lawsuit contesting the Department's rejection of their bid proposal. On August 27, 2006, the City Attorney's Office resolved the complaint, whereby the City agreed to award the contract to Insituform Technologies, Inc.
The Engineer's Estimate for this project was $2,187,535.20. In order to fund this contract, it was necessary to wait until an OWDA Loan could be requested, approved and executed by the Ohio Water Development Authority. The OWDA Board approved this loan on August 31, 2006.
2. FISCAL IMPACT:
This legislation was revised by the Department of Public Utilities to change the award from Reynolds, Inc. to Insituform Technologies, Inc. Insitform 's bid was the lowest bid submitted and represents a reduction in the cost of the contract by $192,171.60.
This legislation appropriates a total of $1,682,239.20 from the OWDA Loan that will be utilized for the subject project. Ord. No. 1100-2006 appropriated an additional amount to cover the cost of construction administration and inspection services. There is sufficient budget authority for this project within the 2006 Capital Improvements Budget.
3. EMERGENCY DESIGNATION:
The Division of Sewerage and Drainage is requesting City Council to consider this legislation an emergency measure in order to allow for the immediate commencement of this contract work that is necessary to rehabilitate nearly 21,093 lineal feet of sanitary sewer serving a residential area in the Clintonville community, pursuant to ensuring the continued operation of this vital sanitary sewer infrastructure.
Title
To authorize the Director of Public Utilities to enter into contract with Insituform, Inc., for the construction of the Crestview/Calumet Area Sanitary Improvements Project; to authorize the appropriation and expenditure of $1,682,067.60, from the Ohio Water Pollution Control Loan Fund; for the Division of Sewerage and Drainage; and to declare an emergency. ($1,682,067.60)
Body
WHEREAS, four competitive bids for the construction of the Crestview/Calumet Area Sanitary Improvements Project, were received on April 26, 2006; and
WHEREAS, the Ohio Water Development Authority approved a loan to the City of Columbus on August 31, 2006, in the amount of $2,281,688.52, identified as Ohio Water Development Authority No. 4563, for the above listed project with eligible costs including the construction contract; the construction administration services contract; and the original professional engineering design services contract; and capitalized interest; and
WHEREAS, it is immediately necessary for the City Council to both appropriate the proceeds from the aforementioned loan agreement and to authorize the expenditure of funds from the Ohio Water Pollution Control Loan Fund; and
WHEREAS, an emergency exists in the usual daily operation of the Division of Sewerage and Drainage, in that it is necessary for this City Council to authorize the Director of Public Utilities to execute a contract for the construction of the Crestview/Calumet Area Sanitary Improvements Project; to appropriate and authorize the expenditure of the proceeds from the aforementioned loan, all of which is necessary to allow for the immediate rehabilitation of this aging and structurally deficient sanitary sewer infrastructure, 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 proceeds from the Ohio Water Development Authority Loan No. 4563, for the Crestview/Calumet Area Sanitary Improvements Project; and funds from the unappropriated monies in Fund 666, the amount of $1,682,067.60 for the cost of construction services, is hereby appropriated to the Division of Sewerage and Drainage, Division 60-05, Fund No. 666:
Div.: 60-05| Fund 666| Proj: 650671| OCA Code 666671| Obj. Level 3: 6630| $1,682,067.60
Section 2. That the Director of Public Utilities be, and hereby is, authorized to award and execute a contract for the construction of the Crestview/Calumet Area Sanitary Improvements Project with the lowest, and best bidder, Insituform Technologies, Inc., 702 Spirit 40 Park Drive, Chesterfield, Missouri, 63005, in the amount of $1,682,067.60, in accordance with the terms and conditions of the Contract on file in the Sewer System Engineering Section Office of the Division of Sewerage and Drainage.
Section 3. That for the purpose of paying the cost of construction contract, the expenditure of $1,682,067.60 or as much thereof as may be needed, is hereby authorized from the Ohio Water Pollution Control Loan Fund as follows:
Div.: 60-05| Fund 666| Proj. 650671| OCA Code 666671| Obj. Level 3: 6630| $1,682,067.60
Section 4. 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.