Explanation
BACKGROUND: This Ordinance authorizes the Director of Public Utilities to modify and increase the construction contract with George J. Igel & Co., Inc. for the Reservoir Pollution Reduction Project, for the Division of Power and Water. This project was funded from the American Recovery and Reinvestment Act of 2009 (ARRA), also known as the federal stimulus bill.
According to the Ohio EPA, this project was awarded additional ARRA stimulus funding. Since the Division of Power and Water was only going to receive $4,500,000.00 in ARRA stimulus funding, deductions were taken against the base bid amount in the original contract. Now that the Division is receiving additional funding, some of these deductions can be omitted and additional items can be performed.
The total amount of this modification is $85,339.66, a 1.84% increase to the original contract.
1. Amount of additional funds to be expended: $85,339.66
Original Contract Amount: $4,558,275.40
Amount of original contract and this modification: $4,643,615.06
2. Reasons additional goods/services could not be foreseen:
The Division was just notified by the Ohio EPA that this project was awarded additional ARRA stimulus funding.
3. Reason other procurement processes are not used:
The Division is receiving extra ARRA stimulus funding for this project. Since deductions had to be made against the base bid amount in the original contract, additional items are now able to be performed by the contractor, George J. Igel & Co., Inc. They were the best, lowest, most responsive responsible bidder.
4. How cost of modification was determined:
The Division is omitting various deduct options that were originally deducted from the original contract.
Contract Compliance Information: 31-4214570, expires 3/11/11, Majority
Emergency Designation: It is requested that this Ordinance be handled in an emergency manner as the Ohio EPA requires the contract to be in place before February 10, 2010 or we could lose the ARRA stimulus funding.
FISCAL IMPACT: This Ordinance authorizes the City Auditor to appropriate and transfer funds from the Water System Reserve Fund to the Water Pollution Control Loan Fund (WPCLF) in order to fund this proposed expenditure. This transaction is a temporary measure that is required until such time as the Division is able to execute a WPCLF loan with the Ohio Water Development Authority and reimburse the Water System Reserve Fund. An amendment to the 2009 Capital Improvements Budget is also necessary.
Title
To authorize the Director of Public Utilities to modify and increase the construction contract with George J. Igel & Co, Inc. in order to receive additional ARRA stimulus funding for the Reservoir Pollution Reduction Project; to authorize the appropriation and transfer of $85,339.66 from the Water System Reserve Fund to the Water Pollution Control Loan Fund (WPCLF); to authorize the expenditure of $85,339.66 from the Water Pollution Control Loan Fund (WPCLF); to authorize an amendment to the 2009 Capital Improvements Budget; and to declare an emergency. ($85,339.66)
Body
WHEREAS, a contract is currently in process with George J. Igel & Co, Inc., for the Reservoir Pollution Reduction Project, authorized by Ordinance No. 1435-2009, passed November 16, 2009; and
WHEREAS, the contract needs modified in order to receive additional ARRA stimulus funding; and
WHEREAS, it is necessary to authorize the Director of the Department of Public Utilities to execute a modification to the construction contract for the Reservoir Pollution Reduction Project; and
WHEREAS, it is immediately necessary to both appropriate funds from the Water System Reserve Fund and to authorize the transfer of said funds into the Water Pollution Control Loan Fund (WPCLF), in order to temporarily fund this expenditure, until such time as the City is able to execute a WPCLF loan with the Ohio Water Development Authority, for the Reservoir Pollution Reduction Project, and to reimburse the Water System Reserve 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"); and
WHEREAS, it is necessary to authorize an amendment to the 2009 Capital Improvements Budget for purposes of providing sufficient funding and expenditure authority for the aforementioned project expenditure; and
WHEREAS, an emergency exists in the usual daily operation of the Division of Power and Water, Department of Public Utilities, in that it is immediately necessary to authorize the Public Utilities Director modify and increase the existing contract with George J. Igel & Co, Inc., in an emergency manner in order to have the contract in place before February 10, 2010 or we could lose the ARRA stimulus funding.; to authorize the appropriation and transfer of funds from the Water System Reserve Fund to the Water Pollution Control Loan Fund (WPCLF); to authorize the expenditure of funds from the Water Pollution Control Loan Fund (WPCLF); for the immediate preservation of 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 Director of Public Utilities is hereby authorized and directed to modify and increase the existing construction contract with George J. Igel & Co, Inc. in order to receive additional ARRA stimulus funding for the Reservoir Pollution Reduction Project, in the amount of $85,339.66.
SECTION 2. That this contract modification is in compliance with Section 329.16 of Columbus City Codes, 1959.
SECTION 3. That said construction company shall conduct the work to the satisfaction of the Director of Public Utilities and the Administrator of the Division of Power and Water.
SECTION 4. That from the unappropriated monies in the Water System Reserve Fund 603, 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, 2010, the sum of $85,339.66 is hereby appropriated to the Division of Power and Water, Division 60-09, Object level One 10, Object level Three 5502, OCA 695056.
SECTION 5. That the City Auditor is hereby authorized to transfer $85,339.66 to the Water Pollution Control Loan Fund (WPCLF), Fund No. 616, into the appropriate project accounts as specified within Section 7 herein, at such time as deemed necessary by him, and to expend said funds, or so much thereof as may be necessary.
SECTION 6. That the 2009 Capital Improvements Budget is hereby amended as follows:
Fund # | Project # | Project Name | Current Authority | Revised Authority | change
616 | 690506-100000 (new funding) | Watershed Impervious Surface | $4,500,000 | $4,585,340 | +$85,340
SECTION 7. That for the purpose of paying the cost of the Water Pollution Control Loan Fund (WPCLF) Eligible Items within the aforementioned contract, the following appropriation and expenditure, or as much thereof as may be needed is hereby authorized as follows: Fund No. 616, Dept/Div. No. 60-09, Project: 690506-100000 (new funding), OCA Code 616506, Object Level One 06, Object Level Three 6621, Amount $85,339.66.
SECTION 8. 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 5 above, and said funds are hereby deemed appropriated for such purpose.
SECTION 9. That upon final approval by the Ohio Environmental Protection Agency, an additional $85,339.66 from the American Recovery and Reinvestment Act of 2009 (ARRA) will be utilized to reduce the principal amount of the WPCLF loan.
SECTION 10. That the City Auditor is hereby authorized and directed to transfer any unencumbered balance in the project account to the unallocated balance 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 no longer required for said project; except that no transfer shall be made from a project account by monies from more than one source.
SECTION 11. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 12. 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 13. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this Ordinance is 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.