Explanation
1. BACKGROUND: This legislation authorizes the Director of Public Utilities to enter into a construction contract with Nickolas Savko & Sons, Inc., in the amount of $2,232,890.00, for the Hap Cremean Water Plant Lagoon No. 1 Embankment Improvements Project, Division of Power and Water Contract Number 1030 - Part 3A. This legislation will also authorize the appropriation and expenditure of said funds from the Ohio Water Development Authority (OWDA) Fund.
This overall project provides for the physical removal of sludge from Lagoon No.'s 1, 2 and 3 at the Hap Cremean Water Plant, and for construction of new exterior embankments and interior baffles in the lagoons. This current phase will provide for construction services for the reconstruction of the exterior lagoon embankment and construction of interior baffles on Lagoon No. 1. These improvements, along with the sludge removal under a previous contract, will allow this lagoon to be put back into service. This will provide additional storage for emergency situations due to loss of pumping capabilities and allow for replacement of portions of the sludge line that extends from HCWP to McKinley Quarry. Repairs to the sludge lagoon embankments are necessary to allow for lagoon utilization for sludge storage. The internal baffles will provide improved decantation of the sludge and will significantly increase the useful storage of the lagoon. External embankment repair along Big Walnut Creek will ensure public health and safety by preventing lime/alum sludge from entering the Big Walnut Creek if there were an embankment failure.
2. CONSTRUCTION CONTRACT AWARD: The Director of Public Utilities publicly opened four bids on April 7, 2010. Bids were received from: Nickolas Savko & Sons, Inc. - $2,232,890.00; George J. Igel & Co, Inc. - $2,995,879.15; Trucco Construction - $3,021,654.46; and Kokosing Construction Co. - $3,333,884.40.
The lowest bid was from Nickolas Savko & Sons, Inc. in the amount of $2,232,890.00. Their Contract Compliance Number is 31-0907362 (expires 3/10/11, Majority). Additional information regarding all bidders, description of work, contract time frame and detailed amounts can be found on the attached Legislation Information Form.
3. FISCAL IMPACT: This Ordinance authorizes the City Auditor to appropriate and transfer funds from the Water System Reserve Fund to the Ohio Water Development Authority (OWDA) Fund 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 loan with the Ohio Water Development Authority (OWDA) and reimburse the Water System Reserve Fund. The loan is expected to be approved on Thursday, April 22, 2010.
4. EMERGENCY DESIGNATION: Embankment construction is weather dependant and construction cannot take place when the ground is frozen. Emergency legislation is requested to take advantage of prime construction season and to begin construction in May or early June to maximize the work that can be completed before construction must be halted for the winter months.
Title
To authorize the Director of Public Utilities to execute a contract with Nickolas Savko & Sons, Inc. for the Hap Cremean Water Plant Lagoon No. 1 Embankment Improvements Project; for the Division of Power and Water; to authorize the appropriation and transfer of $2,232,890.00 from the Water System Reserve Fund to the Ohio Water Development Authority (OWDA) Fund; to authorize the appropriation and expenditure of $2,232,890.00 from the Ohio Water Development Authority (OWDA) Fund. ; and to declare an emergency. ($2,232,890.00)
Body
WHEREAS, four bids for the Hap Cremean Water Plant Lagoon No. 1 Embankment Improvements Project were received and publicly opened in the offices of the Director of Public Utilities on April 7, 2010; and
WHEREAS, the lowest and best bid was from Nickolas Savko & Sons, Inc. in the amount of $2,232,890.00; and
WHEREAS, it is necessary to authorize the Director of the Department of Public Utilities to award and execute a construction contract for the Hap Cremean Water Plant Lagoon No. 1 Embankment Improvements 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 Ohio Water Development Authority (OWDA) Fund, in order to temporarily fund this expenditure, until such time as the City is able to execute a loan for the above stated purpose and 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, the aggregate principal amount which the City will issue to finance this phase of the project is presently expected not to exceed $2,232,890.00; and
WHEREAS, it is necessary to appropriate the proceeds from the aforementioned loan, to authorize the expenditure of funds required to award the subject contract, and to provide the requisite budget authority for said award; and now, therefore.
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 Director of Public Utilities to enter into a construction contract with Nickolas Savko & Sons, Inc. for the Hap Cremean Water Plant Lagoon No. 1 Embankment Improvements Project, to authorize the appropriation and transfer of funds from the Water System Reserve Fund to the Ohio Water Development Authority (OWDA) Fund, 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 Public Utilities be and hereby is authorized to award and execute a construction contract for the Hap Cremean Water Plant Lagoon No. 1 Embankment Improvements Project with the lowest and best bidder, Nickolas Savko & Sons, Inc., 4636 Shuster Rd., Columbus, Ohio 43214; in the amount of $2,232,890.00; in accordance with the terms and conditions of the contract on file in the Office of the Division of Power and Water.
SECTION 2. 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 $2,232,890.00 is hereby appropriated to the Division of Power and Water, Division 60-09, Object level One 10, Object level Three 5502, OCA 695056.
SECTION 3. That the City Auditor is hereby authorized to transfer $2,232,890.00 to the Ohio Water Development Authority (OWDA) Fund, Fund No. 616, into the appropriate project accounts as specified within Section 4 herein, at such time as deemed necessary by him, and to expend said funds, or so much thereof as may be necessary.
SECTION 4. That for the purpose of paying the cost of the Ohio Water Development Authority (OWDA) Fund Eligible Items within the Hap Cremean Water Plant Lagoon No. 1 Embankment Improvements Project, and funds from the unappropriated monies in Fund 616, the amount of $2,232,890.00 is hereby appropriated and to be expended by the Division of Power and Water, Division 60-09, Fund No. 616, Project No. 690331-100001, OCA Code 663311, Object Level One 06, Object Level Three 6623.
SECTION 5. 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 3 above, and said funds are hereby deemed appropriated for such purpose.
SECTION 6. 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 7. 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 8. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 9. 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 10. 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. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.