Explanation
1. BACKGROUND: This legislation authorizes the Director of Public Utilities to enter into a construction contract with Conie Construction Company for the Hap Cremean Water Plant Sludge Disposal Line Replacement - Part 1 Project; in the amount of $293,336.89; and to transfer $293,336.89 from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund.
2. CONSTRUCTION CONTRACT AWARD: The Director of Public Utilities publicly opened four bids on June 24, 2009. Bids were received from: Conie Construction Company - $273,336.89; John Eramo & Sons, Inc. - $317,150.09; Complete General Construction Company - $321,362.69; Bale Contracting, Inc. - $626,529.75.
The lowest and best bid was from Conie Construction Company in the amount of $273,336.89. Their Contract Compliance Number is 31-0800904 (expires 11/10/2010, Majority). Due to the potential for unanticipated problems with the bore and jack work under the intersection of Bethel Road and Olentangy River Road an additional contingency amount of $20,000 will be added to the bid price. This contingency will be considered Force Account and will be utilized following the requirements for Force Account set forth in the contract documents. 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 legislation includes a transfer of funds from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund as a temporary measure until such time as the proceeds from a bond sale can be made available. Monies for this contract from the Water System Reserve Fund will be provided from an upcoming Bond Sale via the transfer detailed in this Ordinance.
4. JUSTIFICATION FOR EMERGENCY DESIGNATION: This project is being performed in the general vicinity of previous leaks on the sludge line. The Ohio EPA has expressed concerns regarding sludge line leaks and has encouraged the City DOPW to demonstrate improvements are being implemented on the sludge line in order to avoid escalated enforcement action. The City DOPW has indicated to OEPA construction on this project will begin during this year's summer construction season.
Title
To authorize the Director of Public Utilities to execute a construction contract with Conie Construction Company for construction of the Hap Cremean Water Plant Sludge Disposal Line Replacement - Part 1 Project; to authorize the appropriation and transfer of $293,336.89 from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund; to authorize the expenditure of $293,336.89 from the Water Works Enlargement Voted Bonds Fund for the Division of Power and Water; and to declare an emergency. ($293,336.89)
Body
WHEREAS, four bidders for the Hap Cremean Water Plant Sludge Disposal Line Replacement - Part 1 Project were received and publicly opened in the offices of the Director of Public Utilities on June 24, 2009; and
WHEREAS, the lowest and best bid was from Conie Construction Company in the amount of $273,336.89; and
WHEREAS, unanticipated problems with the bore and jack work under the intersection of Bethel Road and Olentangy River Road may cause additional contingency funds to be needed and an amount of $20,000.00 will be added to the bid price; and
WHEREAS, it is necessary for this Council to authorize the City Auditor to transfer funds from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds 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").
WHEREAS, an emergency exists in the usual daily operation of the Division of Power and Water, Department of Public Utilities, to authorize the Director of Public Utilities to enter into a construction contract for the Hap Cremean Water Plant Sludge Disposal Line Replacement - Part 1 Project, to authorize the appropriation and transfer of funds from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund, for the 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 Sludge Disposal Line Replacement - Part 1 Project with the lowest and best bidder, Conie Construction Company; 1340 Windsor Avenue, Columbus, Ohio 43211; in the amount of $293,336.89; 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, 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, 2009, the sum of $293,336.89, 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 and directed to transfer $293,336.89 from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund, Fund No. 606, into the appropriate project account 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 the appropriation and expenditure of $293,336.89 is hereby authorized for the Hap Cremean Water Plant Sludge Disposal Line Replacement - Part 1 Project within the Water Works Enlargement Voted Bonds Fund, Fund No. 606, Division 60-09, Project No. 690510, Object Level Three 6621, OCA Code 642900.
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 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 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 intends that this Ordinance constitute 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 $293,336.89 (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 Water System Reserve Fund 603, which is the fund from which the advance for costs of the Project will be made.
SECTION 10. That said construction company shall conduct the work to the satisfaction of the Director of Public and the Administrator of the Division of Power and Water.
SECTION 11. That for 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.