Explanation
1. BACKGROUND
This legislation authorizes the Director of Public Service to renew and modify an existing contract with Shelly and Sands, Inc. for the Wheatland Avenue Improvements project in an amount up to $175,000.00 to accommodate unexpected and substantial increases in pavement removal and replacement discovered during the original contract work, that have caused the project costs to exceed the original contract amount.
Ordinance 1108-2024 authorized the Director of Public Service to enter into a contract with Shelly and Sands, Inc. for the Wheatland Avenue Improvements project to convert the roadway to two-way traffic within the project limits. Improvements include concrete curbs, walks, storm sewer, bioretention basin, trees, street lighting, and electric transmission and distribution lines. The existing utility poles and lines will be relocated farther east to provide space for the project, and other work as may be necessary to complete the contract in accordance with the plans and specifications set forth in the Bid Submittal Documents.
This project was awarded funds from the Community Development Block Grant (CDBG) Entitlement Program which provides annual grants on a formula basis to entitled cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons. The amount needed for this contract was included in the City’s Action Plan for the Community Development Block Grant Wheatland Avenue Street Improvements Project as established in ordinance 2993-2023.
1.1 Amount of additional funds to be expended: $175,000.00
The original contract amount, no inspection: $5,614,884.67 (PO446642/PO446730, Ord. 1108-2024)
The total of Modification No. 1, no inspection: $175,000.00 (This Ordinance)
The contract amount including all modifications: $5,789,884.67
1.2 Reasons additional goods/services could not be foreseen:
While excavating through the existing pavement to install the improvements indicated in the plans, it was discovered that the condition of the remaining pavement was deteriorated and would not support normal traffic loads. A portion of the pavement on Wheatland Ave needs to be reconstructed to safely support vehicles and meet Department of Public Service requirements.
1.3 Reason other procurement processes are not used:
The pavement of Wheatland Ave is a critical aspect of the roadway, and the roadway will need to be closed until repairs can be completed. The costs of modifying the existing contract is an efficient method as the contractor has already mobilized and installed maintenance of traffic features. The savings on these items alone would be the majority of the modification being requested.
1.4 How cost of modification was determined:
A cost estimate was generated utilizing existing bid items with revised quantities. Force accounts and agreed unit costs for additional work have also been included to determine the modification amount needed.
Searches in the System for Award Management (Federal) and the Findings for Recovery list (State) produced no findings against Shelly and Sands, Inc.
2. CONTRACT COMPLIANCE
The contract compliance number for Shelly and Sands, Inc. is CC006043 and expires 01/16/2028
3. Pre-Qualification Status
Shelly and Sands, Inc. and all proposed subcontractors have met code requirements with respect to pre-qualification, pursuant to relevant sections of Columbus City Code Chapter 329.
4. FISCAL IMPACT
A reimbursable grant in the Community Development Act Fund, Fund 2248, provided by the U.S. Department of Housing and Urban Development (HUD), in the amount of $175,000.00 will fund this modification for this project. Funds will need to be appropriated.
5. EMERGENCY DESIGNATION
Emergency action is requested due to the need of completing the planned improvements in a timely manner while construction season is still in effect; emergency passage will ensure the maximum amount of time to complete the work, and also prevent unnecessary delays due to the above unexpected pavement removal and replacement work during the construction season, to complete modification 1 without disruption to the overall project schedule, and to ensure the safety of the traveling public.
Title
To appropriate funds within the Community Development Act Fund; to authorize the Director of Public Service to enter into contract modification with Shelly and Sands, Inc. for the Wheatland Avenue Improvements project; to authorize the expenditure of up to $175,000.00 from the Community Development Act Fund to pay for the project; and to declare an emergency. ($175,000.00)
Body
WHEREAS, contract no. PO446642/PO446730 with Shelly and Sands, Inc., in the amount of $5,614,884.67 was authorized by ordinance no. 1108-2024; and
WHEREAS, it has become necessary to modify the contract; and
WHEREAS, the Department of Public Service and Shelly and Sands, Inc. both desire to modify the existing contract; and
WHEREAS, it is necessary to provide for payment to accommodate unexpected and substantial increases in pavement removal and replacement discovered during the original contact work, that have caused the project costs to exceed the original contract amount; and
WHEREAS, a reimbursable grant in the Community Development Act Fund, Fund 2248, provided by the U.S. Department of Housing and Urban Development (HUD), in the amount of $175,000.00 will fund the construction for this project; and
WHEREAS, funds wi1l need to be appropriated within the Community Development Act Fund, Fund 2248; and
WHEREAS, funds will be expended from the Community Development Block Grant Fund, Fund 2248 to pay for the project; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Service in that it is immediately necessary to enter into contract modification with Shelly and Sands, Inc. due to the need of completing the planned improvements in a timely manner while construction season is still in effect; emergency passage will ensure the maximum amount of time to complete the work, and also prevent unnecessary delays due to the above unexpected pavement removal and replacement work during the construction season, to complete modification 1 without disruption to the overall project schedule, and to ensure the safety of the traveling public, for the immediate preservation of the public peace, health, property, and safety; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. 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 ended December 31, 2026, the sum of $175,000.00 is appropriated in Fund 2248 (Community Development Act Fund), Dept-Div 5912 (Design and Construction) in Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 2. That the Director of Public Service be and hereby is authorized to enter into a contract renewal and modification with Shelly and Sands, Inc., 1515 Harmon Avenue, Columbus, Ohio 43223, for the Wheatland Avenue Improvements project in the amount of up to $175,000.00, or so much thereof as may be needed.
SECTION 3. That the expenditure of $175,000.00 or so much thereof as may be needed, is hereby authorized in Fund 2248 (Community Development Act Fund), Dept-Div 5912 (Design and Construction), in Object Class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 4. 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 5. 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 6. 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 7. 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.