Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Utilities to enter into a Guaranteed Maximum Reimbursement Agreement (GMRA) with PREMIER Design + Build Group, LLC. for the Intermodal Sanitary Subtrunk Extension Phase 2 project, CIP# 650491-100010, in an amount up to $2,560,356.00, pursuant to Section 186 of the Columbus City Charter.
The project will extend sanitary sewer service further into the Rickenbacker service area by constructing a new 24-inch sanitary subtrunk sewer from the terminus of the Intermodal Sanitary Subtrunk Extension (ISSE) Phase 1 easterly along Airbase/Wright Road and adjacent fields to the eastern service boundary near Walnut Creek.
Upon passage of this Ordinance, the City of Columbus will agree to pay a maximum reimbursement amount of up to $2,560,356.00 to PREMIER Design + Build Group, LLC for construction of the Intermodal Sanitary Subtrunk Extension Phase 2 project, CIP# 650491-100010. The developer has agreed to construct the improvements at their cost and then obtain reimbursement from the City. The guaranteed maximum reimbursement agreement provides that the developer will construct the public improvement on the City's behalf, the project is publicly bid and follows the City’s bid processes, the developer submits requests for reimbursement of construction costs related to the project, only pre-approved construction costs are reimbursed, and there is a limit to the dollar amount of costs that will be reimbursed.
TIMELINE: The construction contract is expected to be six (6) months to substantial completion and nine (9) months to final completion.
ESTIMATED COST OF PROJECT: The GMRA amount is $2,560,356.00 including a 20% 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 demand might later compel modification of this contract if unforeseen difficulties are encountered.
Cost summary:
Original Contract $2,560,356.00
Future Anticipated Needs $ 0.00
CONTRACT TOTAL $2,560,356.00
2. ECONOMIC IMPACT/ADVANTAGES; COMMUNITY OUTREACH; PROJECT DEVELOPMENT; ENVIRONMENTAL FACTORS/ADVANTAGES OF PROJECT
The project will provide sanitary sewer service to a rapidly developing section of the City which will spur economic and job growth for the entire area.
3. CONTRACT COMPLIANCE INORMATION
PREMIER Design + Build Group, LLC is not currently registered with the City. The company will need to become contract compliant prior to execution of the reimbursement agreement.
4. FISCAL IMPACT
Funds are available and appropriated within the Sanitary Bond Fund, Fund 6109, for this expenditure. An amendment to the 2025 Capital Improvement Budget is necessary to align budget authority with the proper project. A transfer of cash and appropriation is also needed to align cash and appropriation with the proper project.
5. EMERGENCY DESIGNATION
Emergency designation is requested so construction can begin on the public improvement part of the project to avoid interfering with and delaying the construction for the associated private development part of the project.
Title
To authorize the Director of Public Utilities to enter into a Guaranteed Maximum Reimbursement Agreement with PREMIER Design + Build Group, LLC for the Intermodal Sanitary Subtrunk Extension Phase 2 project; to amend the 2025 Capital Improvement Budget; to authorize a transfer of cash and appropriation within the Sanitary Bond Fund; to authorize an expenditure of up to $2,560,356.00 from the Sanitary Bond Fund; and to declare an emergency. ($2,560,356.00)
Body
WHEREAS, sanitary sewer needs to be constructed for the Intermodal Sanitary Subtrunk Extension Phase 2 project, CIP# 650491-100010; and
WHEREAS, PREMIER Design + Build Group, LLC is willing to construct this sanitary sewer and be reimbursed by the City for doing so; and
WHEREAS, it is necessary for the Director of Public Utilities to enter into a Guaranteed Maximum Reimbursement Agreement with PREMIER Design + Build Group, LLC for the Intermodal Sanitary Subtrunk Extension Phase 2 project to do this reimbursement; and
WHEREAS, funding must be available to perform this reimbursement; and
WHEREAS, it is necessary to amend the 2025 Capital Improvement Budget to align budget authority with the proper project; and
WHEREAS, it is necessary to authorize a transfer of cash and appropriation between projects within the Sanitary Bond Fund to align cash and appropriation with the proper project; and
WHEREAS, reimbursement must be made to PREMIER Design + Build Group, LLC, under the terms of the Guaranteed Maximum Reimbursement Agreement; 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 Public Utilities to enter into a Guaranteed Maximum Reimbursement Agreement with PREMIER Design + Build Group, LLC for the Intermodal Sanitary Subtrunk Extension Phase 2 project so construction can begin on the public improvement part of the project to avoid interfering with and delaying the construction for the associated private development part of the project, 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 2025 Capital Improvement Budget authorized by Ordinance 1790-2025 be amended as follows to establish sufficient budget authority for this project:
Fund / Project Number / Project Name (Funding Source) / Current Authority/ Revised Authority / Change
6109 / 650009-100003 / Real Time Control Sewer System Optimization, Part 2 (Voted Sanitary Carryover) / $0.00 / $892,259.00 / $892,259.00 (To match cash)
6109 / 650352-100000 / 60-05 Southerly Waste Water Treament Plant (Voted Sanitary Carryover) / $0.00 / $564,283.00 / $564,283.00 (To match cash)
6109 / 650346-100002 / SWWTP VFD and Harmonic Filter Upgrades (Voted Sanitary Carryover) / $1,991,574.00 / $2,478,493.00 / $486,919.00 (To match cash)
6109 / 650009-100003 / Real Time Control Sewer System Optimization, Part 2 (Voted Sanitary Carryover) / $892,259.00 / $0.00 / ($892,259.00)
6109 / 650352-100000 / 60-05 Southerly Waste Water Treament Plant (Voted Sanitary Carryover) / $564,283.00 / $0.00 / ($564,283.00)
6109 / 650346-100002 / SWWTP VFD and Harmonic Filter Upgrades (Voted Sanitary Carryover) / $2,478,493.00/ $1,991,574.00 / ($486,919.00)
6109 / 650491-100004 / Big Walnut Interceptor Lockbourne Subtrunk Canal Road Area (Voted Sanitary Carryover) / $549,234.00 / $320,000.00 / ($229,234.00)
6109 / 650138-100003 / Blacklick Creek Sanitary Subtrunk Sewer - Turning Branch (Voted Sanitary Carryover) / $439,038.00 / $51,377.00 / ($387,661.00)
6109 / 650491-100010 / Intermodal Sanitary Subtrunk Extension Phase 2 (Voted Sanitary Carryover) / $0.00 / $2,560,356.00 / $2,560,356.00
SECTION 2. That the City Auditor is hereby authorized to transfer up to $2,331,122.21 within the Sanitary Bond Fund, Fund 6109, per the account codes in the attachment to this ordinance.
SECTION 3. That the Director of Public Utilities is hereby authorized to enter into a Guaranteed Maximum Reimbursement Agreement with PREMIER Design + Build Group, LLC, 1305 Busch Parkway, Suite 101, Buffalo Grove, Illinois 60089; for the construction of the Intermodal Sanitary Subtrunk Extension Phase 2 project, CIP# 650491-100010, in accordance with the terms and conditions on file in the Department of Public Utilities.
SECTION 4. That the Director of Public Utilities is hereby authorized to expend up to $2,560,356.00 from the Sanitary Bond Fund, Fund 6109, per the account codes in the attachment to this ordinance.
SECTION 5. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 6. 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 7. 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 8. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this Ordinance is 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.