Explanation
Background: This ordinance authorizes the Director of the Recreation and Parks Department to modify the existing contract with CK Construction Group for the Kilbourne Run Sports Park Improvements Project. The modification amount being authorized by this ordinance is $5,004,500.00.
Kilbourne Run Sports Park, located at 4625 Westerville Road, is a soccer specific facility that stretches over 62 acres with 35 of those acres dedicated to athletic space. This is a Construction Manager at Risk (CMR) Contract. This delivery method will save the project money and time compared to a traditional Design-Bid-Build delivery. This is one of a few planned modifications for the project's guaranteed maximum price. This modification will cover costs for Phase 2 construction which includes a traffic roundabout, park frontage, and signage.
This modification was foreseen due to the nature of the CMR contract. The total contract value with this modification is $35,730,125.00. The modification fee was determined by the Construction Manager at Risk's subcontractor's cost estimates for the proposed work. No other vendor could perform this work since it is part of the scope for the Kilbourne Run Sports Park CMR contract. The original project completion date of the project was January 1, 2025. The modified project completion date, as a result of the proposed modification, will be May 1, 2026.
Amount of Additional Funds: $5,004,500.00
Why Additional Services Were Not Foreseen: This modification was foreseen due to the nature of CMR contracts. This modification covers scope for Phase 2 construction of the Project, which are the last components of the project to be built. This includes roundabout construction, park frontage construction, and signage installation.
Why It Is Not In The Best Interest For The City To Award Additional Services Through Another Procurement Process: All of the scope associated with this vendor's contract modification is associated with the original project scope. The project was broken into phase and contract modifications to align with the CMR project delivery method.
How The Price For The Additional Services Was Determined: The price for additional services was determined by the vendor providing anticipated construction costs by their construction team. CK Construction Group's construction team is part self-performing CK Construction Group trade groups and part subcontractors. All of the construction team has been selected by the Columbus Recreation and Parks Department based on quality of vendor, competitive pricing, etc.
Principal Parties:
CK Construction Group
6245 Westerville Road
Westerville, Ohio 43081
James Negron, (614) 901-8844
Contract Compliance Number: 006875
Contract Compliance Expiration Date: August 23, 2025
Emergency Justification: Emergency action is requested in order to start construction in July 2025, meet the revised construction completion date in May 2026, and meet commitments that have been made to residents in opening the new facilities for programming.
Benefits to the Public: This project benefits the public by significantly enhancing the soccer amenities and outdoor sports programs the City can offer to the public. Additionally, this modification will improve the roadway and right of way, creating safer access into the park for motorists and pedestrians.
Community Input/Issues: Input for this project was primarily gathered through the Columbus Community Sports Park feasibility study conducted by Conventions, Sports, and Leisure International (CSL) and managed by the Recreation and Parks Department in the summer of 2021. An open house for the project was conducted in the fall of 2023. Input was also received by internal Recreation and Parks stakeholders and the Mayor’s Office.
Area(s) Affected: Northland (35)
Master Plan Relation: This project will support the Recreation and Parks Master Plan by helping to update sports related parks, expanding amenities to appeal to a more diversified audience, and updating five neighborhood parks per year.
Fiscal Impact: The expenditure of $30,725,625.00 was legislated for the Kilbourne Run Sports Park Improvements Project by Ordinances 1801-2023, 3061-2023, and 1374-2024. This ordinance will provide funding that will modify the previously authorized amount by $5,004,500.00. $5,004,500.00 is budgeted and available from within the Recreation and Parks Voted Bond Fund 7702, Morse Road TIF Fund 7414, and Northland TIF Fund 7423 to meet the financial obligations of this expenditure. The aggregate total amount authorized, including this modification, is $35,730,125.00. A portion of the funds, in the amount of $1,004,500.00 will not be available to the Recreation and Parks Department until the proceeds of the 2024-2025 bond sale are available at a future date. Therefore, it is necessary to certify the required funds against the General Fund 1000, Income Tax Set Aside Subfund 100099. Upon the sale of bonds, this will be reimbursed.
Title
To authorize the Director of the Recreation and Parks Department to modify an existing contract with CK Construction Group, Inc. for the Kilbourne Run Sports Park Improvements Project; to authorize the transfer of $1,004,500.00 between the General Fund Income Tax Set Aside Subfund and the Recreation and Parks Bond Fund; to authorize the appropriation of $1,004,500.00 in the Income Tax Set Aside Subfund and Recreation and Parks Voted Bond Fund; to authorize the collective transfer of $4,000,000.00 within the Morse Road TIF Fund and Northland TIF Fund; to authorize the collective appropriation of $4,000,000.00 within the Morse Road TIF Fund and Northland TIF Fund; to authorize the expenditure of $5,004,500.00 from the Recreation and Parks Voted Bond Fund, Morse Road TIF Fund, and Northland TIF Fund; and to declare an emergency. ($5,004,500.00)
Body
WHEREAS, it is necessary to authorize the Director of the Recreation and Parks Department to modify an existing contract with CK Construction Group, Inc. for the Kilbourne Run Sports Park Improvements Project; 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 (the "Project"); and
WHEREAS, it is necessary to authorize the transfer of $1,004,500.00 between the General Fund 1000, Income Tax Set Aside Subfund 100099, and the Recreation and Parks Bond Fund, Fund 7702; and
WHEREAS, funds will need to be appropriated within the General Fund 1000, Income Tax Set Aside Subfund 100099 and within the Recreation and Parks Bond Fund, Fund 7702; and
WHEREAS, the City will reimburse the General Fund 1000, Income Tax Set Aside Subfund 100099; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregated principal amount of obligations which the City will issue to finance this project is presently expected not to exceed 1,004,500.00; and
WHEREAS, it is necessary to authorize the transfer of both $2,727,775.94 between projects within the Morse Road TIF Fund 7414 and $1,272,224.06 between projects within the Northland TIF Fund 7423; and
WHEREAS, it is necessary to authorize the appropriation of both $2,727,775.94 within the Morse Road TIF Fund 7414 and $1,272,224.06 within the Northland TIF Fund 7423; and
WHEREAS, it is necessary to authorize the expenditure of $5,004,500.00 from the Recreation and Parks Voted Bond Fund 7702, Morse Road TIF Fund 7414, and Northland TIF Fund 7423; and
WHEREAS, an emergency exists in the usual daily operations of the Recreation and Parks Department in that it is immediately necessary to authorize the Director to modify the existing contract with CK Construction Group in order to start construction in July 2025, meet the revised construction completion date in May 2026, and meet commitments that have been made to residents in opening the new facilities for programming, all for the immediate 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 the Director of the Recreation and Parks Department be and is hereby authorized to modify an existing contract with CK Construction Group, Inc. for the Kilbourne Run Sports Park Improvements Project.
SECTION 2. 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 3. 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 4. 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 5. That from the unappropriated monies and from all monies estimated to come into said funds from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2025, the sum of $1,004,500.00 is appropriated in General Fund 1000, Income Tax Set Aside Subfund 100099, in Object Class 10 Transfer Out Operating, and in Fund 7702, Recreation and Parks Bond Fund, in Object Class 06 Capital Outlay per the account codes in the attachment to this ordinance.
SECTION 6. That the transfer of $1,004,500.00 or so much thereof as may be needed, is hereby authorized between the General Fund 1000, Income Tax Set Aside Subfund 100099, and the Recreation and Parks Bond Fund, Fund 7702, per the account codes in the attachment to this ordinance.
SECTION 7. That the transfer of $2,727,775.94, or so much thereof as may be needed, is hereby authorized between projects within the Morse Road TIF Fund 7414 per the account codes in the attachment to this ordinance.
SECTION 8. That the transfer of $1,272,224.06, or so much thereof as may be needed, is hereby authorized between projects within the Northland TIF Fund 7423 per the account codes in the attachment to this ordinance.
SECTION 9. That the appropriation of $2,727,775.94 is authorized within the Morse Road TIF Fund 7414 per the accounting codes in the attachment to this ordinance.
SECTION 10. That the appropriation of $1,272,224.06 is authorized within the Northland TIF Fund 7423 per the accounting codes in the attachment to this ordinance.
SECTION 11. That the City Auditor is hereby authorized to transfer said funds to the Recreation and Parks Voted Bond Fund 7702, 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 12. That upon obtaining other funds from the 2024-2025 Bond Sale for the City of Columbus, the City Auditor is hereby authorized and directed to repay the General Fund 1000, Income Tax Set Aside Subfund 100099 the amount transferred under Section 6.
SECTION 13. That the City intends that this ordinance constitutes 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 $1,004,500.00 (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 fund from which the advance for costs of the Project will be made.
SECTION 14. That for the purpose stated in Section 1, the expenditure of $5,004,500.00, or so much thereof as may be necessary to pay the cost thereof, be and is hereby authorized from the Recreation and Parks Voted Bond Fund 7702, Morse Road TIF Fund 7414, and Northland TIF Fund 7423 in object class 06 Capital Outlay per the accounting codes in the attachments to this ordinance.
SECTION 15. That this ordinance, for the reasons stated in the preamble, which are made a part of this ordinance and fully incorporated for reference as if rewritten, is declared to be an emergency measure and shall take effect and be in force from and after this ordinance’s passage and approval by the Mayor or ten (10) days after its adoption if the Mayor neither approves nor vetoes the same.