Explanation
1. BACKGROUND: This legislation requests City Council to waive the competitive bidding requirements of the Columbus City Codes pursuant to authorizing the Director of Public Utilities to enter into contract with the Kokosing Construction Company, Inc. in connection with the construction of the Jackson Pike Wastewater Treatment Plant Sludge Handling and Dewatering Improvements Project. This legislation also requests an amendment to the 2003 Capital Improvements Budget, in order to provide sufficient budget authority for the project expenditures contained within this construction contract award, as well as two contract modifications for engineering services for construction and construction administration services that are being requested within companion Ordinance No. 0321-2004.
The contract and proposed change order provides for the removal of the existing dewatering and thickening centrifuge equipment and the installation of new sludge thickening centrifuge equipment. The contract includes installation of new technology, high-rate thickening centrifuges, and process ancillary equipment, such as polymer feed, sludge conveyance systems, electrical, instrumentation and control equipment. Upon completion of this work, the Division expects lower operational costs and unplanned downtime for this component of the wastewater treatment process.
2. BID INFORMATION: The project was advertised in the City Bulletin, and one bid was received on August 27, 2003 from the Kokosing Construction Company in the amount of $14,194,840.00. The engineer's estimate for this contract work was $12,000,000.00.
3. BID WAIVER REQUEST: The Director of Public Utilities is requesting City Council to waive the city's competitive bidding requirements for this contract. A review of the individual bid submitted was conducted by division engineers and the Division's design consultant DLZ Ohio, Inc. It was the opinion of this panel that the City would not gain any benefit by rebidding this contract, due to the lack of interest shown by the fact that there was only one bid submitted under this procurement effort. There was further concern expressed that a failure to award a contract could potentially delay the delivery of the centrifuge equipment by the manufacturer. It was the consensus of this panel that the city should enter into negotiations with the low bidder in order to clarify equipment prices and the associated scope of work in an effort to identify potential cost savings on behalf of the City. As a result of these negotiations, Kokosing Construction has agreed to reduce their bid price for the centrifuge equipment and in return the City will agree to include the demolition and removal of the existing thickening centrifuges. The proposed bid waiver authorized by this legislation will enable the City to award the subject contract, and an accompanying change order that will establish these changes, pursuant to allowing the Division to meet its proposed project schedule.
4. FISCAL IMPACT: There will be sufficient authority in the 2003 Capital Improvements Budget for these expenditures upon passage of this ordinance. This contract is being funded utilizing a loan from the Ohio Water Polution Control Loan Fund (CS392244-03) which is administered by the Ohio Water Development Authority. This ordinance further appropriates the loan proceeds for the expenses of construction management; engineering; and inspection services that are authorized under separate, companion legislation.
5. EMERGENCY DESIGNATION: The Division of Sewerage and Drainage is requesting City Council to designate this ordinance an emergency measure in order to allow for the immediate commencement of this work which is necessary to fulfill the scheduling committments that are contained within the loan agreement between the City and the Ohio Water Development Authority as administered by the Ohio EPA.
Title
To authorize the Director of Public Utilities to enter into a contract with the Kokosing Construction Company, Inc. for the construction of the Jackson Pike Wastewater Treatment Plant Sludge Handling and Dewatering Improvements Project; to authorize the appropriation of $17,250,540.86; the expenditure of $13,101,330.00 from the Ohio Water Pollution Control Loan Fund; to waive the competitive bidding requirements of the Columbus City Codes; to amend the 2003 Capital Improvements Budget; for the Division of Sewerage and Drainage; and to declare an emergency. ($13,101,330.00)
Body
WHEREAS, the Kokosing Construction Company, Inc., submitted the only bid proposal for the construction of the Jackson Pike Wastewater Treatment Plant (JPWWTP) Sludge Handling and Dewatering Improvements Project, which was competitively bid and opened on August 27, 2003, in conformance with the provisions of Columbus City Code Section 329.09; and
WHEREAS, the bid submitted was much greater than the engineer's estimate and the City's budgeted amount; whereupon the city's engineering personnel and the project design consultant, determined that it was in the City's best interest to enter into negotiations with the low bidder for purposes of identifying potential cost saving changes to the project work that would enable the City to move forward with the project in an effort to avoid extensive delays in the completion of the project work that is required for the continued operation of this vital wastewater treatment infrastructure; and
WHEREAS, in order to allow the Director of Public Utilities to award this contract and the proposed change order, it is necessary for this Council to waive the competitive procurement provisions of the Columbus City Codes; and
WHEREAS, an emergency exists in the usual daily operation of the Division of Sewerage and Drainage, Department of Public Utilities, in that it is immediately necessary for this City Council to waive the competitive procurement provisions of the Columbus City Codes, pursuant to the successful award of the aforementioned contract and change order; to amend the 2003 Capital Improvements Budget; and to appropriate the proceeds of a loan from the Ohio Water Development Authority (OWDA) in connection with the immediate commencement of the Jackson Pike Wastewater Treatment Plant, Sludge Handling and Dewatering Improvements Project, which is required to fulfill the project scheduling committments contained within the loan agreement between the City and the OWDA as administered by the Ohio EPA; 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 this Council finds that it is in the best interest of the City to waive the provisions of Columbus City Code, Section 329.09, to authorize the Director of Public Utilities to execute a construction contract and change order in connection with the JPWWTP Sludge Handling and Dewatering Project.
Section 2. That the proceeds from the Ohio Water Development Authority Loan No. CS392244-03, for the JPWWTP Sludge Handling and Dewatering, Phase 3 Project; and funds from the unappropriated monies in Fund 666, the amount of $17,250,540.86 that includes funding for the cost of construction, engineering services during construction, and construction administration services, is hereby appropriated to the Division of Sewerage and Drainage within the Ohio Water Pollution Control Loan Fund No. 666| Division 60-05| Project 650246| OCA Code No. 651246| Object Level Three No. 6624.
Section 3. That the Director of Public Utilities be, and hereby is, authorized to award and execute a contract and change order for the construction of the JPWWTP Sludge Handling and Dewatering Improvements Project with the Kokosing Construction Company, Inc., of 886 McKinley Avenue, Columbus, Ohio 43222, and to pay a maximum amount of $13,101,330.00, in accordance with the terms and conditions of the contract documents on file in the General Engineering Section Office of the Division of Sewerage and Drainage.
Section 4. That for the purpose of paying the cost of the construction contract, the expenditure of $13,101,330.00 is hereby authorized from the Ohio Water Pollution Control Loan Fund No. 666| Division 60-05| Project 650246| OCA Code No. 651246| Object Level Three No. 6624.
Section 5. That the 2003 Capital Improvements Budget Ordinance No. 1943-03 is hereby amended as follows, to provide sufficient budget authority for the pending project expenditures associated with the the JPWWTP Sludge Handling and Dewatering Improvements Project.
CURRENT:
Project 650246-JPWWTP Sludge Handling & Dewatering Impr. $13,239,000.00
Project 650491-Big Walnut Augment./Rickenbacker Int. $117,520,837.00
AMENDED TO:
Project 650246-JPWWTP Sludge Handling & Dewatering Impr. $15,039,022.00
Project 650491-Big Walnut Augment./Rickenbacker Int. $115,720,815.00
Section 6. 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.