Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Utilities to enter into a construction contract with George G. Igel & Co., Inc., via the City’s Invitation For Bid process, for the Lead Service Line Replacement - Part 1, CIP No. 690236-100175, in an amount up to $10,000,000.00, and to encumber funds with the Department of Public Service for prevailing wage services in an amount up to $2,000.00, for a total expenditure of $10,002,000.00.
The purpose of this project is to replace known lead water service lines in the City’s water distribution system. This will assist with meeting Environmental Protection Agency (EPA) requirements to replace all lead and galvanized water lines (hereafter collectively referred to as lead water lines) in the City’s water distribution system. It is estimated that approximately 500 taps or service lines will be replaced as part of this project at various locations throughout the City.
This is the second in a series of contracts that will be put in place to replace lead water lines throughout the City. The main use of this contract will be to replace lead water lines discovered during the prosecution of other City construction projects. This will complement the Lead Line Replacement - Pilot Program, CIP #690236-100178, that was put in place for the replacement of low-income lead water lines and for the emergency replacement of lead water lines due to breaks.
This project is located within the following Community Planning Area: Citywide (99)
TIMELINE:
All work shall be complete within 730 calendar days from the Notice to Proceed. The City anticipates issuing a Notice to Proceed in February 2025.
ESTIMATED COST OF PROJECT:
The bid amount and proposed award amount is $10,000,000.00, including a 10% construction contingency amount that will be utilized to fund needed and approved changes in the work. No contract modifications are anticipated at this time; however, construction exigency might later compel modification of this contract if unforeseen difficulties are encountered.
Cost summary:
Original Contract $ 10,000,000.00
Future Anticipated Needs $ 0.00
CONTRACT TOTAL $ 10,000,000.00
DPS Prevailing Wage Administration $ 2,000.00
$ 10,002,000.00
2. ECONOMIC IMPACT/ADVANTAGES; COMMUNITY OUTREACH; PROJECT DEVELOPMENT; ENVIRONMENTAL FACTORS/ADVANTAGES OF PROJECT
The goal of this project is to remove lead water service lines from the distribution system. Replacement of these water services will assist with meeting Ohio EPA requirements pertaining to lead. Community outreach may result through the Neighborhood Liaison Program or the City’s own internal outreach team.
3. CONSTRUCTION CONTRACT AWARD
An Invitation for Bids for the Lead Service Line Replacement - Part 1 project was advertised on the Vendor Services and Bid Express websites from September 5, 2024 through October 2, 2024. Three bids were received for the project and opened on October 2, 2024. The following companies submitted bids:
Company Bid Amount ODI Status
George G. Igel & Co., Inc. $5,993,484.42 MAJ
Travco Construction, Inc. $6,785,374.44 MAJ
Boss Excavating $4,469,646.47 MAJ
Boss Excavating’s bid response did not meet the ODI MBE/WBE goal and did not submit documentation of a good faith effort. Boss Excavating was found to be non-responsive in regards to the MBE/WBE goal by the City and could not be considered for contract award.
The George G. Igel & Co., Inc.'s bid was deemed the lowest, best, most responsive and responsible bid in the amount of $5,993,484.12. Due to the unknown nature of the number of lead water service lines that will be encountered in City construction projects, and the decision to postpone the bidding of the next contract in the lead service line replacement program, this contract will be funded for $10,000,000.00.
The certification of George G. Igel & Co., Inc. was in good standing at the time the bid was awarded.
4. CONTRACT COMPLIANCE INFORMATION
George G. Igel & Co., Inc.’s contract compliance number is CC006024 and expires 2/6/25.
Searches in the Excluded Party List System (Federal) and the Findings for Recovery list (State) produced no findings against George G. Igel & Co., Inc. or their subcontractors.
5. MINORITY AND WOMAN OWNED BUSINESS ENTERPRISE & SMALL LOCAL BUSINESS ENTERPRISE PROGRAM
This contract was bid with an anticipated City of Columbus MBE/WBE Program goal of 8% as assigned by the City’s Office of Diversity and Inclusion (ODI). The MBE/WBE program goal has been met by the use of MBE/WBE subcontractors. Failure by the contractor to meet this goal subjects the contractor to the Penalties for Non-Compliance as described in the “City’s Minority and Women-Owned Business Enterprise & Small Local Business Enterprise Program Manual” and in the bid documents for this contract.
As part of their proposal, George G. Igel & Co., Inc., has proposed the following subcontractors to perform contract work:
Company Name City/State ODI Certification Status
Clive Stephans Plumbing Columbus, Ohio MBE
JLD Construction Columbus, Ohio MBE
Complete Clearing, Inc. Marengo, Ohio MAJ
U.S. Utility Construction Columbus, Ohio WBE
West Fairfield Inc. Kettering, Ohio MAJ
The certification of George G. Igel & Co., Inc., and all proposed subcontractors were in good standing at the time the bid was awarded.
6. PRE-QUALIFICATION STATUS
George G. Igel & Co., Inc. and all subcontractors have met code requirements with respect to pre-qualification, pursuant to relevant sections of Columbus City Code Chapter 329.
7. EMERGENCY DESIGNATION
Emergency designation is requested for this ordinance. The use of lead water lines is a public health hazard that must be eliminated as quickly as possible.
8. FISCAL IMPACT
The construction portion of this project is anticipated to be financed with a loan from the Water Supply Revolving Loan Account (WSRLA), a program jointly administered by the Ohio EPA's Division of Environmental and Financial Assistance and the Ohio Water Development Authority (OWDA). City Council authorized this loan application and acceptance of funding via Ordinance 0944-2023, passed by Council on April 24, 2023. The loan is expected to be approved in January, 2025.
A transfer of funds from the Water System Reserve Fund, Fund 6003, to the Water Supply Revolving Loan Account Fund, Fund 6011, in the amount of $10,000,000.00 is needed to fund construction for this project. This transaction is a temporary measure that is required until a loan is executed with the Ohio EPA to reimburse the Water System Reserve Fund. These funds will also need to be appropriated to be transferred and then appropriated after transfer to the new fund. An amendment to the 2024 Capital Improvement Budget is needed to align budget authority with the proper project.
Funds in the amount of $2,000.00 are available within the Water Bond Fund, Fund 6006, to pay the Department of Public Service to perform construction administration for the project. These funds are appropriated. The 2024 Capital Improvement Budget must be modified to align budget authority with the proper project.
Title
To authorize the Director of the Department of Public Utilities to enter into a construction contract with George G. Igel & Co., Inc., for the Lead Service Line Replacement - Part 1 project; to amend the 2024 Capital Improvement Budget; to authorize the appropriation and transfer of funds from the Water System Reserve Fund to the Water Supply Revolving Loan Account Fund; to authorize the appropriation and expenditure of$10,000,000.00 from the Water Supply Revolving Loan Account Fund for the contract; and to authorize the expenditure of $2,000.00 from the Water Bond Fund to pay for construction administration and inspection expenses for the project; and to declare an emergency. ($10,002,000.00).
Body
WHEREAS, the Department of Public Utilities is engaged in the Lead Service Line Replacement - Part 1 project; and
WHEREAS, three bids for the Lead Service Line Replacement - Part 1 project were received and opened on October 2, 2024; and
WHEREAS, the lowest, best, most responsive and responsible bid was from George G. Igel & Co., Inc.; and
WHEREAS, it is necessary to authorize the Director of the Department of Public Utilities to enter into a construction contract with George G. Igel & Co., Inc. for the Lead Service Line Replacement - Part 1 project; and
WHEREAS, Ordinance 0944-2023, passed April 24, 2023 authorized this project to be funded by a loan to be obtained through the Water Supply Revolving Loan Account (WSRLA); and
WHEREAS, the 2024 Capital Improvement Budget must be modified to align budget authority with the proper project; and
WHEREAS, it is necessary to both appropriate and transfer funds from the Water System Reserve Fund to the Water Supply Revolving Loan Account Fund; 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 (collectively, the “Project”); and
WHEREAS, it is necessary to appropriate and expend funds from the Water Supply Revolving Loan Account Fund to pay for the construction of this project; and
WHEREAS, it is necessary to expend funds from the Water Bond Fund to pay the Department of Public Service for prevailing wage services for this project; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities in that it is immediately necessary to authorize the Director of the Department of Public Utilities to execute this contract as soon as possible as the use of lead water lines is a public health hazard that must be eliminated as quickly as possible, 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 2024 Capital Improvement Budget authorized by Ordinance 1907-2024 be amended as follows to establish sufficient budget authority for this project:
Fund / Project Number / Project Name (Funding Source) / Current Authority / Revised Authority / Change
6011 / P690236-100175 / Lead Service Line Replacements - Part 1 (WSRLA Loan) / $5,000,000.00 / $11,133,050.00 / $6,133,051.00 (To match the loan amount)
6006 / P690236-100000 / Water Main Rehabilitation (Voted Water Carryover) / $1,965,309.00 / $1,963,309.00 / ($2,000.00)
6006 / P690236-100175 / Lead Service Line Replacements - Part 1 (Voted Water Carryover) / $0.00 / $2,000.00 / $2,000.00
SECTION 2. That from the unappropriated monies 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, 2024, the sum of $10,000,000.00 is appropriated in the Water System Reserve Fund, Fund 6003, per the account codes in the funding attachment to this ordinance.
SECTION 3. That the transfer of $10,000,000.00 or so much thereof as may be needed, is hereby authorized between the Water System Reserve Fund, Fund 6003, and the Water Supply Revolving Loan Account Fund, Fund 6011, per the accounting codes in the attachment to this ordinance.
SECTION 4. That from the unappropriated monies 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, 2024, the sum of $10,000,000.00 is appropriated in the Water Supply Revolving Loan Account Fund, Fund 6011, per the account codes in the funding attachment to this ordinance.
SECTION 5. That the Director of the Department of Public Utilities is hereby authorized to enter into a construction contract for the Lead Service Line Replacement - Part 1 project with George G. Igel & Co., Inc., 3500 Alum Creek Drive, Columbus, OH 43207, in an amount up to $10,000,000.00; in accordance with the terms and conditions of the contract on file in the Department of Public Utilities; and to obtain the necessary construction prevailing wage services for this project from the Department of Public Services in an amount up to $2,000.00.
SECTION 6. That the expenditure of $10,002,000.00, or so much thereof as may be needed, is hereby authorized to pay for this contract per the accounting codes in the attachment to this ordinance.
SECTION 7. That upon obtaining other funds for the purpose of funding water system capital improvement work, the City Auditor is hereby authorized to repay the Water System Reserve Fund the amount transferred above (Section 3), and said funds are hereby deemed appropriated for such purposes.
SECTION 8. 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 $10,000,000.00 (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 Water System Reserve Fund, Fund 6003, which is the fund from which the advance for costs of the Project will be made.
SECTION 9. That funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
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 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 12. 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.