Explanation
BACKGROUND: This legislation amends the 2007 Capital Improvement Budget and authorizes the transfer of $172,818.93 from the Police Facility Renovation Project to the OSU Neighborhood Policing Center Project for the construction of the OSU Neighborhood Policing Center. This legislation also authorizes the Finance and Management Director to enter into contract on behalf of the Office of Construction Management with Altman Company, for the construction of the OSU Neighborhood Policing Center, located at Eleventh and Hamlet Avenues. Formal bids were solicited on May 25, 2007. The following five companies submitted bids by the June 27, 2007 deadline (1 MBE, 0 FBE):
Altman Company $3,772,667.00
Central Ohio Building Company, Inc. $3,907,067.00
Gutknecht Construction Company, Inc. $4,007,667.00
*Williamson Builders, Inc. $4,150,768.00
Summit Construction $4,161,667.00
*Minority Business Enterprise
The Office of Construction Management recommends that the bid be awarded to the most responsive and responsible bidder, Altman Company.
This ordinance also modifies Ordinance No. 1573-2006, passed by Columbus City Council on September 18, 2006, to memorialize the financial responsibilities of each of the parties involved in the construction of the Ohio State University (OSU) Neighborhood Policing Center. The original intergovernmental agreement between the City of Columbus and OSU, signed in September 2007, estimated that total project costs would not exceed $3.8 million. Because of the project's location on 248 East 11th Avenue, final design was subject to review and approval by the University Area Review Board (UARB). In order to gain final project approval from the UARB, it was necessary to make various design changes to the project. These changes in scope increased design costs as well as estimates for construction costs. This ordinance will memorialize the revised project total as well as the financial responsibilities of both the City of Columbus and OSU. The modification to the intergovernmental agreement reflects a change in total project estimates from $3.8 million to $4.4 million and increases the contribution from OSU from $1.9 million to $2.2 million. The actual bid came in over the estimate of $4.4 million by a total of $188,500. This additional cost will be borne by the Police Division's allocation in the Safety Voted Bond Fund. All other terms and conditions of the prior agreement remain unchanged. The City will be required to invoice the University, and OSU will promptly reimburse the City whenever a progress payment is due. This ordinance also allows for temporary transfers to occur, if needed, to cover project payments until reimbursements from OSU are deposited by the City. In addition, the ordinance directs project payments from OSU to be deposited into the proper fund and project.
This ordinance also authorizes the transfer of $300,000 from the Special Income Tax Fund to the Safety Voted Bond Fund to help fund the OSU Neighborhood Policing Center until bonds are sold.
EMERGENCY ACTION is requested so that the construction of the new neighborhood policing center may begin as soon as possible, thereby providing necessary safety services to City residents and The Ohio State University community and to allow for reimbursement of project costs to the City by Ohio State University can begin immediately.
Altman Company's Contract Compliance # 31-0714676, expiration date 07/23/2007.
FISCAL IMPACT: The 2007 Capital Improvement Budget amount for the OSU Neighborhood Policing Center in the Safety Capital Budget is $1,550,682. The intergovernmental agreement between the City and The Ohio State University calls for a total reimbursement of $2.2 million from the University, of which $1,793,750 will be allocated to construction. (The other $406,250 of the University's total commitment is being applied to professional services costs and property acquisition costs). After transfers authorized by this ordinance, the 2007 Capital Improvment Budget amount for the OSU Neighborhood Policing Center will be $4,143,855. The total cost of the contract authorized by this ordinance is $3,772,667.00.
Title
To amend the 2007 Capital Improvement Budget; to authorize the City Auditor to transfer funds between projects in the Safety Voted Bond Fund; to authorize the Finance and Management Director to enter into contract on behalf of the Office of Construction Management with Altman Company, Inc. for construction of the new OSU Neighborhood Policing Center; to authorize the Directors of the Finance and Management and Public Safety Departments to modify an intergovernmental agreement with The Ohio State University to increase funding for the construction of a University District Joint Policing Center; to authorize the City Auditor to make temporary transfers and repayments, if necessary, from and to the special income tax fund, fund 430, to cover project costs; to authorize the appropriation of $2,200,000 in the Safety Voted Bond Fund; to direct the deposit of reimbursements from the university into the public safety voted bond fund, fund 701; to authorize and direct the City Auditor to transfer $300,000.00 from the Special Income Tax Fund to the Safety Voted Bond Fund; to authorize the appropriation of said funds; to authorize the expenditure of $3,772,667.00 from the Safety Voted Bond Fund, and to declare an emergency. ($3,772,667.00)
Body
WHEREAS, it is necessary to amend the Capital Improvement Budget and transfer funds in order to construct a new OSU Neighborhood Policing Center, and
WHEREAS, it is necessary to transfer funds within the Safety Voted Bond Fund, and
WHEREAS, formal bids were solicited for the construction of said new neighborhood policing center, and
WHEREAS, the Office of Construction Management recommends Altman Company, Inc. as the most responsive and responsible bidder, and
WHEREAS, The Ohio State University and the City of Columbus have agreed to sign a modified intergovernmental agreement thereby increasing the total project cost estimate from $3.8 million to $4.4 million with the City of Columbus and The Ohio State University each committing $2.2 million to the project; and
WHEREAS, it is necessary to memorialize the attached modification to the intergovernmental agreement between the City of Columbus and The Ohio State University thereby establishing the financial responsibilities of each of the parties in regard to costs associated with site acquisition, design, construction, operation and maintenance of the facility; and
WHEREAS, it is necessary to establish a temporary mechanism to ensure that adequate funds are available in the necessary project account in the Public Safety Voted Bond Fund; and
WHEREAS, an emergency exists in the usual daily operation of the Finance and Management Department, Office of Construction Management, in that it is immediately necessary to authorize the Finance and Management Director to enter into contract with Altman Company, for the construction of the OSU Neighborhood Policing Center and to memorialize this modification to the original intergovernmental agreement so that reimbursement can begin at the earliest possible date, thereby facilitating and 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 2007 Capital Improvement Budget is hereby amended as follows:
CURRENT CIB:
Dept/Div: 30-03|Fund: 701|Project Number: 330031|Project Name: OSU Neighborhood Policing Center(Carryover Funding)
|Amount: $1,250,682
Dept/Div: 30-03|Fund: 701|Project Number: 330031|Project Name: OSU Neighborhood Policing Center(Ohio State University Funding)
|Amount: $0
Dept/Div: 30-03|Fund: 701|Project Number: 330021|Project Name: Police Facility Renovation(Carryover Funding)|Amount: $393,173
REVISED CIB:
Dept/Div: 30-03|Fund: 701|Project Number: 330031|Project Name: OSU Neighborhood Policing Center(Carryover Funding)
|Amount: $1,423,501
Dept/Div: 30-03|Fund: 701|Project Number: 330031|Project Name: OSU Neighborhood Policing Center(Ohio State University Funding)
|Amount: $2,200,000
Dept/Div: 30-03|Fund: 701|Project Number: 330021|Project Name: Police Facility Renovation(Carryover Funding)|Amount: $220,354
SECTION 2. That the City Auditor is hereby authorized and directed to transfer funds within the Safety Voted Bond Fund as follows:
FROM:
Dept/Div: 30-03|Fund: 701|Project Number: 330021|OCA Code - 644476|Project Name - Police Facility Renovation
|Amount $172,818.93
TO:
Dept/Div: 30-03|Fund: 701|Project Number: 330031|OCA Code - 330031|Project Name - OSU Neighborhood Policing Center|Amount $172,818.93
SECTION 3. That the Finance and Management Director is hereby authorized to enter into contract on behalf of the Office of Construction Management with Altman Company for the construction of the OSU Neighborhood Policing Center, located at 11th and Hamlet Avenues.
SECTION 4. That the Directors of the Finance and Management and Public Safety Departments are hereby authorized to modify an intergovernmental agreement with the Ohio State University for the funding and construction of a University District Joint Policing Center.
SECTION 5. The City Auditor, in his discretion, is authorized to increase AC026210 from $1,900,000.00 to $2,200,000.00, in order to make temporary transfers of cash from the special income tax fund, Fund 430, to the public safety voted bond fund, Fund 701, project number 330031, OSU Neighborhood Policing Center to allow payment of necessary capital expenses from the latter fund in the event of temporary cash shortages in that fund and project. These transfers are only made to address short-term cash flow issues, and they shall be repaid to Fund 430 upon the City Auditor determining that sufficient funds for such payment exist within fund 701, project 330031. Repayment of such temporary transfers shall be a priority for Fund 701, and it is the intention of this provision that all temporary transfers be repaid at the earliest possible time.
SECTION 6. That the amount of $2,200,000.00 is hereby appropriated to the Public Safety Department, Police Division 30-03, Safety Voted Bond Fund, Fund 701, OSU Neighborhood Policing Center 330031, Object Level One 06, Object Level Three Code 6604.
SECTION 7. 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 unappropriated for any other purpose during the fiscal year ending December 31, 2007 to the City Auditor, Department 22-01, Object Level One 10, OCA Code 902023, Object Level Three 5502.
SECTION 8. That the City Auditor is hereby authorized to transfer said funds to the Safety Voted Bond Fund, Fund 701, 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 9. That the amount of $300,000.00 is hereby transferred and appropriated to the Public Safety Department, Police Division 30-03, Safety Voted Bond Fund, Fund 701, OSU Neighborhood Policing Center 330031, Object Level One 06, Object Level Three Code 6604.
SECTION 10. That upon obtaining other funds for the OSU Neighborhood Policing Center, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 7, above, and said funds are hereby deemed appropriated for such purpose.
SECTION 11. That the City Auditor is authorized to establish proper accounting project numbers, and to make any accounting changes to revise the funding source for any contract or contract modification associated with the expenditure of funds transferred in Section 2, above.
SECTION 12. The City intends that this ordinance constitute an "official intent" for purposes of Section 1.150-2(e) of the Treasury Regulations promulgated pursuant to the Internal Revenue Code of 1986, as amended.
SECTION 13. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
SECTION 14. The City Auditor is hereby directed and authorized to deposit all payments related to the OSU Joint Policing Center received from the Ohio State University as reimbursement for costs associated with site acquisition, design and construction into the safety voted bond fund, fund 701, project number 330031, OSU Neighborhood Policing Center.
SECTION 15. That the expenditure of $3,772,667.00, or so much thereof as may be necessary in regard to the action authorized in SECTION 1, be and is hereby authorized and approved as follows:
Division: 30-03
Fund: 701
Project: 330031
OCA Code: 330031
Object Level 1: 06
Object Level 3: 6604
Amount: $3,772,667.00
SECTION 16. 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 17. 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.