Explanation
1. BACKGROUND: This legislation authorizes the Director of Public Utilities to enter into a construction contract with Complete Clearing, Inc. for the Upground Reservoir Tree Removal Project in the amount of $83,265.00; to transfer $83,265.00 from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund; and to amend the 2008 Capital Improvements Budget.
2. CONSTRUCTION CONTRACT AWARD: The Director of Public Utilities publicly opened five bids on September 10, 2008. Bids were received from: Complete Clearing, Inc. - $82,320.00; Beltwood Processing, Inc. dba Clear Cut Tree Co. - $83,265.00; Vermilion Tree and Landscaping Services, Inc. - $84,420.00; Stover and Turner Excavating, Inc. - $89,250.00; and Homer Tree Service - $123,900.00.
The low bid at opening was Complete Clearing, Inc. with an amount of $82,320.00. A correction in the Extended Item Total Price for item number three was needed based on the estimated quantity of two trees instead of one, resulting in a corrected bid amount of $83,265.00. Bid specifications state that the City will verify that the total price and the individual unit and/or lump sum prices correspond. If there is a discrepancy, the unit and/or lump sum shall govern. This correction made the first and second lowest bidders' total equal.
The bids have been reviewed for conformance with City requirements and Beltwood Processing, Inc. dba Clear Cut Tree Company, the apparent second lowest bidder, did not provide a valid contract compliance number, per Mandatory Factor, M-6 Contract Compliance, of the Qualifications and Resources Factors Proposed for This Project. It was confirmed with the Equal Business Opportunity Commission Office that this vendor is inactive, and that 60 days prior to expiration, they received e-mail notification advising them they needed to rectify their Contract Compliance status.
Therefore, Beltwood Processing, Inc. dba Clear Cut Tree Company has been deemed non-responsive based on the failure to provide a valid Contract Compliance Number and Complete Clearing is the lowest responsive and responsible bidder in the amount of $83,265.00. Their Contract Compliance Number is 31-1442642 (expires 8/17/09, Majority). Additional information regarding all bidders, description of work, contract time frame and detailed amounts can be found on the attached Legislation Information Form.
3. FISCAL IMPACT: This legislation includes a transfer of funds from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund as a temporary measure until such time as the proceeds from a bond sale can be made available. An amendment to the 2008 CIB is also necessary.
Title
To authorize the Director of Public Utilities to execute a construction contract with Complete Clearing, Inc. for the Upground Reservoir Tree Removal Project; to authorize the appropriation and transfer of $83,265.00 from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund; to authorize the expenditure of $83,265.00 from the Water Works Enlargement Voted Bonds Fund; and to authorize an amendment to the 2008 Capital Improvements Budget; for the Division of Power and Water. ($83,265.00)
Body
WHEREAS, five bidders for the Upground Reservoir Tree Removal Project were received and publicly opened in the offices of the Director of Public Utilities on September 10, 2008; and
WHEREAS, a correction in the extended item total price made the lowest bidder's amount equal to the second lowest bidder's amount; and
WHEREAS, the second lowest bidder did not provide a valid contract compliance number and thereby deemed non-responsive; and
WHEREAS, the lowest responsive and responsible bidder was Complete Clearing, Inc.; and
WHEREAS, it is necessary to authorize an amendment to the 2008 Capital Improvements Budget for purposes of providing sufficient funding and expenditure authority for the aforementioned project expenditure; and
WHEREAS, it is necessary for this Council to authorize the City Auditor to transfer funds from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds 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").
WHEREAS, it has become necessary in the usual daily operation of the Division of Power and Water, Department of Public Utilities, to authorize the Director of Public Utilities to enter into a construction contract for the Upground Reservoir Tree Removal Project; to authorize the appropriation and transfer of funds from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund, 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 from the unappropriated monies in the Water System Reserve Fund, 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, 2008, the sum of $83,265.00 is hereby appropriated to the Division of Power and Water, Division 60-09, Object level One 10, Object level Three 5502, OCA 695056.
SECTION 2. That the City Auditor is hereby authorized and directed to transfer $83,265.00 from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund, Fund No. 606, into the appropriate project account as specified within Section 3 herein, at such time as deemed necessary by him, and to expend said funds, or so much thereof as may be necessary.
SECTION 3. That the appropriation and expenditure of $83,265.00 is hereby authorized for the Upground Reservoir Tree Removal Project within the Water Works Enlargement Voted Bonds Fund, Fund No. 606, Division 60-09, Project No. 690370, Object Level Three 6621, OCA Code 642900.
SECTION 4. That the 2008 Capital Improvements Budget is hereby amended as follows:
Project No. | Project Name | Current Authority | Revised Authority | change
690370 | Upground Reservoir | $273,000 | $356,265 | +$83,265
SECTION 5. 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 under Section 2 above, and said funds are hereby deemed appropriated for such purpose.
SECTION 6. That the Director of Public Utilities be and hereby is authorized to award and execute a construction contract for the Upground Reservoir Tree Removal Project with the lowest responsive and responsible bidder, Complete Clearing, Inc.; 510 Industrial Way, Marengo, Oh 43334; in the amount of $83,265.00; in accordance with the terms and conditions of the contract on file in the Office of the Division of Power and Water.
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 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 $83,265.00 (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 the Water System Reserve Fund 603, which is the fund from which the advance for costs of the Project will be made.
SECTION 9. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.