..Explanation
1. BACKGROUND
This legislation authorizes the Director of Public Service to modify and increase the construction contract with Double Z Construction for the Bridge Rehabilitation - Annual Citywide Contract Project 1 project in an amount up to $480,488.80.
Company Name City/State Majority/MBE/FBE
Double Z Construction Columbus, OH Majority
Work performed to date as part of this contract includes routine rehabilitation to several bridges within the City. This rehabilitation includes crack sealing, concrete rehabilitation on all elements of a bridge, railing rehabilitation, epoxy injection, maintenance of traffic, concrete removal, asphalt overlays, sealing cracks in bridge decks and replacement of expansion joint seals.
Work to be performed as part of this contract modification includes the hydrodemolition and microsilicia overlay, including any concrete deck rehabilitation, of the High Street over SR-104 bridge and the Groveport Road over SR-104 bridge.
Deck rehabilitation on the High Street over SR-104 structure was included in the original contract. At the time of construction the amount of the rehabilitation was greater than what would be covered as routine rehabilitation. In working with ODOT, ODOT concurred and agreed to pay 80% of the cost of a new overlay. The Groveport Road bridge was in a similar condition, and ODOT agreed to include this bridge in our project to get an economy of scale price for this work.
The work to be performed as part of the contract modification cannot be bid out because of the additional time required to bid this project out and the need to perform this work this construction season. It is estimated that the High Street Bridge is 60% debonded and the Groveport Road bridge is 80% debonded. In order to reduce the City maintenance cost of these bridge, this work needs to be performed this construction season.
Original contract amount: $869,565.00 (Ordinance 1015-2010, City contract number EL010734)
Modification #1: $480,488.80
Total contract amount including this Modification: $1,350,053.80
Searches in the Excluded Party List System (Federal) and the Findings for Recovery list (State) produced no findings against Double Z Construction.
2. CONTRACT COMPLIANCE
Double Z's contract compliance number is 311788042 and expires 12/2/12.
3. FISCAL IMPACT
Funds are available for this modification within the 2011 Capital Improvement Budget. A C.I.B. Amendment is necessary to establish authority within the correct projects. This ordinance authorizes the expenditure of $480,488.80 for construction. The Department of Public Service has received an Ohio Department of Transportation grant for this project of 80% of the project cost up to a maximum of $384,391.04. The City share of this project is estimated to be $96,097.76. This expense can be accommodated by appropriating and transferring funds needed in the amount of $96,097.76 from the Special Income Tax Fund. Bonds have yet to be sold for the whole project, necessitating a certification of $96,097.76 against the Special Income Tax Fund. Upon sale of bonds, this will be reimbursed. Those funds will then be transferred to the Fed-State Highway Engineering Fund. The project cost, $480,488.80, will then be appropriated within and expended from that fund.
4. EMERGENCY DESIGNATION
The Department of Public Service is requesting City Council to enact this legislation as an emergency measure in order to allow for the execution of a construction contract modification, pursuant to the immediate commencement of the additional bridge work to ensure the safety of the structures that are included in this contract modification.
Title
To authorize the Director of Public Service to modify and increase the contract for the construction of the Bridge Rehabilitation - Annual Citywide Contract Project 1 with Double Z Construction for the Division of Planning and Operations; to amend the 2011 Capital Improvement Budget; to authorize and direct the City Auditor to appropriate and transfer $96,097.76 from the Special Income Tax Fund to the Streets and Highways G.O. Bonds Fund; to authorize the City Auditor to appropriate $96,097.76 within the Streets and Highways G.O. Bonds Fund; to authorize the transfer of funds to the Fed-State Highway Engineering Fund; to appropriate and authorize the expenditure of $480,488.80 from the Fed-State Highway Engineering Fund; and to declare an emergency. ($480,488.80)
Body
WHEREAS, contract no. EL010734 was authorized by ordinance no. 1015-2010, passed by City Council July 12, 2010, executed July 23, 2010 and approved by the City Attorney on July 30, 2010; and
WHEREAS, the Department of Public Service has determined it to be in the City's best interest to modify the subject contract for purposes of adding additional bridge work to the contract; and
WHEREAS, this ordinance authorizes the first modification to the Bridge Rehabilitation - Annual Citywide Contract Project 1 project in the amount of $480,488.80; and
WHEREAS, it is necessary to amend the 2011 Capital Improvement Budget; and
WHEREAS, it is necessary to transfer funds from the Special Income Tax Fund to this project; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Special Income Tax Fund; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregate principal amount of obligations which the city will issue to finance this project is presently expected not to exceed $96,097.76; 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 project described in this ordinance (the "Project").
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Service, Division of Planning and Operations, in that the contract should be modified and increased immediately so that the project may be proceed and construction can occur during the 2011 construction season to ensure the safety of these bridges, thereby preserving 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 modify and increase contract no. EL010734, with Double Z Construction, 1080 Ridge Street, Columbus, OH 43215, by $480,488.80 for additional work in accordance with the terms as shown on the modification on file in the Office of Support Services, which are hereby approved.
Section 2. That the 2011 Capital Improvement Budget be amended to provide sufficient authority for this project as follows:
Fund/Project / Project Name /OCA/ Current / Change / Amended
704 / 530103-100013 / Arterial Street Rehabilitation- North High Street (Voted 2008) / $843,669.00 / ($96,098.00) / $747,571.00
704 /530301-100010 / Bridge Rehabilitation - Annual Citywide Contract Project 1 (Voted 2008) / $0.00 / $96,098.00 / $96,098.00
SECTION 3. The sum of $96,097.76 be and is hereby appropriated from the unappropriated balance of the Special Income Tax Fund, Fund 430, and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2011 to the City Auditor, Department 22-01, Object Level One 10, OCA Code 902023, Object Level Three 5502.
SECTION 4. That the City Auditor is hereby authorized to transfer said funds to the Streets and Highways G.O. Bonds Fund, No. 704, at such time as it is deemed necessary by the City Auditor and to expend said funds or so much thereof as may be necessary.
SECTION 5. That $96,097.76 is hereby appropriated within Fund 704, the Streets and Highways G.O. Bonds Fund, Dept-Div. 59-11, Division of Planning and Operations as follows:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
704 / 530301-100010 / Bridge Rehabilitation - Annual Citywide Contract Project 1 / 10-5501 / 743010 / $96,097.76
SECTION 6. That the monies appropriated in the foregoing Section 5 shall be paid upon order of the Director of Public Service and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
SECTION 7. That upon obtaining other funds for this capital improvement, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 4 above.
SECTION 8. That the City Auditor is authorized to establish proper accounting project numbers and to make any accounting changes to revise the funding source for any contract or contract modification associated with the expenditure of funds transferred in Section 4, above.
SECTION 9. 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 $96,097.76. (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. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
SECTION 11. That the transfer of Funds between the Streets and Highways G.O. Bonds Fund, Number 704, and the Fed-State Highway Engineering Fund, Number 765, be authorized as follows:
From:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA Code / Amount
704 / 530301-100010 / Bridge Rehabilitation - Annual Citywide Contract Project 1 / 10-5501 / 743010 / $96,097.76
To:
Fund / Grant / Project Name / O.L. 01-03 Codes / Amount
765 / Grant and OCA to be determined by City Auditor / High Street and Groveport Road over SR104 / 80-0886 / $96,097.76
SECTION 12. That $480,488.80 is hereby appropriated within Fund 765, the Fed-State Highway Engineering Fund, Dept-Div. 59-11, Division of Planning and Operations as follows:
Fund / Grant / Project Name / O.L. 01-03 Codes / Amount
765 / Grant and OCA to be determined by City Auditor / High Street and Groveport Road over SR104 / 06-6600 / $96,097.76
SECTION 13. That for the purpose of paying the cost of this contract and inspection, the sum of $480,488.80 or so much thereof as may be needed, is hereby authorized to be expended from the Fed-State Highway Engineering Fund, No. 765 as follows:
Fund / Grant / Project Name / O.L. 01-03 Codes / Amount
765 / Grant and OCA to be determined by City Auditor / High Street and Groveport Road over SR104 / 06-6631 / $480,488.80
SECTION 14. 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 15. 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.