Explanation
BACKGROUND: This ordinance authorizes the Finance and Management Director to modify a contract with The Albert M. Higley Company for miscellaneous renovations and demolitions at the Municipal Court Building, 375 South High Street. The original contract was authorized by Ordinance No. 1919-2008, passed December 8, 2008.
During the electrical upgrades and the planned installation of the new Automatic Transfer Switch it was discovered that the bus duct of the existing power feed from the existing transformers is deteriorating and in need of replacement. The extent of this work was not noted in the Building Code Study prior to the engineering of the Automatic Transfer Switch. This modification will also authorize an upgrade for the main electrical service and distribution service.
This modification is necessary because the electrical system is thirty years old. It is practical and cost effective for coordination and continuity of the project to use The Albert M. Higley Company for this modification. Selecting another contractor at this point would lead to duplicated work and possibly mistakes. Therefore, it would not
be in the best interests of the City to select another contractor to complete this work.
Emergency action is requested so that needed renovations can be completed as soon a possible, thereby ensuring important electrical upgrades are not delayed.
Fiscal Impact: This project is funded in the 2010 Capital Improvements Budget. The project will cost $349,000.00. However, bonds have yet to be sold, necessitating a certification of $300,000.00 from the Special Income Tax Fund. Upon sale of the bonds, this will be reimbursed. The remaining $49,000.00 is available within the Gov'l B.A.B.'s (Build America Bonds) however, a transfer is necessary to provide sufficient funding in the correct project number. This legislation authorizes the expenditure of $349,000.00 or so much as may be necessary for this purpose. The original contract amount was $1,574,000.00. The cost of this modification is $349,000.00. The total cost of this contract is $1,923,000.00.
The Albert M. Higley Company Contract Compliance No. 34-1405260, expiration date August 14, 2011
Title
To authorize the Finance and Management Director to modify a contact on behalf of the Office of Construction Management with The Albert M. Higley Company for miscellaneous renovations and demolitions at the Municipal Court Building, 375 South High Street; to authorize and direct the City Auditor to transfer $300,000.00 from the Special Income Tax Fund to the Construction Management Capital Improvement Fund; to authorize the appropriation of said funds to the Construction Management Capital Improvement Fund; to amend the 2010 Capital Improvements Budget; to authorize the City Auditor to transfer $49,000.00 within the Gov'l B.A.B.'s (Build America Bonds); to authorize the expenditure of $349,00.00 from the Construction Management Capital Improvement Fund; and to declare an emergency. ($349,000.00)
Body
WHEREAS, Ordinance No. 1919-2008, passed December 8, 2008, authorized the Finance and Management Director to enter into a contract with The Albert M. Higley Company for miscellaneous renovations and selective demolition at the Municipal Court Building, 375 South High Street; and
WHEREAS, it is necessary to modify the contract with The Albert M. Higley Company for miscellaneous renovations and demolitions at the Municipal Court Building, 375 South High Street; 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, the transfer should be considered a temporary funding method; and
WHEREAS, the aggregate principal amount of obligations the City will issue to finance this contract is presently not to exceed $300,000.00; and
WHEREAS, the City anticipates incurring certain Original Expenditures (as define 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"), and
WHEREAS, it is necessary to amend the 2010 Capital Improvement Budget and transfer cash between projects in the Gov'l B.A.B.'s (Build America Bonds); and
WHEREAS, the total funding amount for this modification is $349,000.00 and will come from the Special Income Tax Certification of $300,000.00 and $49,000.00 from the Gov'l B.A.B.'s (Build America Bonds);and
WHEREAS, an emergency exists in the usual daily opeartion of the Finance and Management Department, Office of Construction Management, in that it is immediately necessary to authorize the Finance and Management Director to modify a contact on behalf of the Office of Construction Management with The Albert M. Higley Company for miscellaneous renovations and demolitions at the Municipal Court Building, 375 South High Street so that needed renovations can be completed as soon a possible, thereby ensuring important electrical upgrades are not delayed 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 Finance and Management Director is authorized to modify a contract with The Albert M. Higley Company for miscellaneous renovations and demolitions at the Municipal Court Building, 375 South High Street.
SECTION 2. That the sum of $300,000.00 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 unappropirated for any other purpose during the fiscal year ending December 31, 2010 to the City Auditor, Department 22-01, Object Level One 10, OCA Code 902023, Object Level Three 5502.
SECTION 3. That the City Auditor is hereby authorized to transfer said funds to the Construction Management Capital Improvement Fund 733, at such time as is deemed necessary by the City Auditor, and to expend said funds, or so much thereof as may be necessary.
SECTION 4. That the amount of $300,000.00 is hereby transferred and appropriated to the Office of Construction Management, 45-07, Construction Management Capital Improvement Fund, Fund 733, Municipal Court Electric Upgrades 570043-100006, Object Level One 06, Object Level Three Code 6620, OCA Code 733000.
SECTION 5. That upon obtaining other funds for the miscellaneous renovations and demolitions at the Municipal Court Building, 375 South High Street, the City Auditor is hereby authorized and directed to
repay the Special Income Tax Fund the amount transferred in SECTION 4.
SECTION 6. That the City Auditor is authorized to establish proper accounting numbers and to make any
accounting changes to revise the funding source for any contract or contraction modification associated with the expenditure of funds transferred.
SECTION 7. That the City intends 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 $55,434.00 (the "Obligations").
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen (18) months following the latter 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 the 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 8. That the 2010 Capital Improvement Budget, Fund 746 is hereby amended as follows:
Project No. | Project Name | Current Authority | Revised Authority | Difference
570030-100120 Facility Renovation - Various (Unvoted Carryover) |$297,693|$248,698|$49,000
570043-100006 Municipal Court Electric Upgrades (Unvoted Carryover) |$0|$49,000|$49,000
SECTION 9. That the City Auditor is hereby authorized and directed to transfer funds within the Gov'l B.A.B's (Build America Bonds) as follows:
FROM:
Dept/Div: 45-51|Fund: 746|Project Number 570030-100120 |Project Name - Facility Renovation - Various | OCA Code 764306 |Amount $49,000.00
TO:
Dept/Div: 45-51|Fund: 746|Project Number 570043-100006| Project Name - Municipal Court Electric Upgrades| OCA Code 764306 |Amount $49,000.00
SECTION 9. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
SECTION 10. That the expenditure of $349,000.00, or so much thereof as my be necessary in regard to the action authorized in SECTION 1, be and is hereby authorized and approved as follows:
Division: 45-51
Fund: 733
Project: 570043-100006
OCA Code: 734306
Object Level: 06
Object Level 3: 6620
Amount $300,000.00
Division: 45-51
Fund: 746
Project: 570043-100006
OCA Code: 764306
Object Level: 06
Object Level 3: 6620
Amount $49,000.00
SECTION 11. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contract or contract modifications associated with this ordinance.
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.