Explanation
1. BACKGROUND:
This legislation authorizes the Director of Public Utilities to enter into a contract with Lake Erie, Inc., for construction of the Southerly Wastewater Treatment Plant Electrical System Upgrade Project for the Division of Sewerage and Drainage.
This legislation also requests an amendment to the 2004 Capital Improvements Budget in order to provide sufficient budget authority for both this construction contract award and the associated professional engineering, construction, and inspection services needed during the project's construction. Authority for the professional services contract modification is being requested in companion ordinance No. 0568-2005.
The proposed construction contract provides for the replacement of electrical power control and distribution equipment in several areas of the plant that are at the end of their reliable service life; removal and disposal of electrical transformers that contain polychlorinated biphenyl (PCB) contaminated materials; rehabilitation of air-blower equipment for the aeration process; and expansion of the plant automated instrumentation and control (I&C) system.
2. CONSTRUCTION CONTRACT AWARD:
The project was advertised in the City Bulletin, and bids were received on October 6, 2004, as follows:
1. Jess Howard Electric Company Majority Firm $ 3,917,106.90
2. Lake Erie Electric, Inc. Majority Firm $ 4,700,000.00
3. Royal Electric, Inc. Majority Firm $ 4,897,765.00
4. Claypool Electric, Inc. Majority Firm $ 5,880,000.00
5. The Ryan Company Majority Firm $ 6,304,200.00
The Engineer's construction cost estimate was $4,185,579.00
3. AWARD RECOMMENDATION: A review of the bids submitted was conducted by Division engineers and the Division's design consultant, URS. Irregularities were noted in the proposal received from the low bidder, Jess Howard Electric Company. Most of the irregularities were minor and correctable. An omission on the Bid Bond prevented the Bid from being considered as responsive. Lake Erie Electric, Inc. is recommended as the lowest, best, responsive and responsible bidder. The award of this contract to Lake Erie Electric Inc. is requested for its bid amount minus the cost of Bid Item No. 12, for a contract amount of $4,610,749.50. This item was for the provision of equipment software programming, that will be performed by a subconsultant under our existing professional engineering services contract.
4. FISCAL IMPACT:
The Division is requesting a transfer from the Sewer System Reserve Fund to the Ohio Water Pollution Control Loan Fund as a temporary funding measure, until such time as a supplemental loan has been approved by the Ohio Water Development Authority. This supplemental loan is necessary to provide sufficient funding for this proposed contract expenditure.
The Division has included $4,747,000.00 within its 2005 Capital Improvements Budget (CIB) request. Insomuch as the 2004 CIB continues to be in effect, the Division is requesting City Council to amend it, in order to provide sufficient funding for this project.
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. This expediency is justified by the need to fulfill the scheduling commitments 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 contract with the Lake Erie, Inc. for construction of the Southerly Wastewater Treatment Plant Electrical System Upgrade, to authorize the appropriation, transfer and expenditure of $4,610,749.50 from the Sewer System Reserve Fund to the Ohio Water Pollution Control Loan Fund; to amend the 2004 Capital Improvements Budget.; and to declare an emergency. ($4,610,749.50)
Body
WHEREAS, five competitive bids for construction of the Southerly Wastewater Treatment Plant Electrical System Upgrade project were received and opened October 6, 2004 in conformance with the provisions of Columbus City Code Section 329.09; and
WHEREAS, it was determined that the low bidder had deficiencies in his bid package and was deemed to be non-responsive; and
WHEREAS, the Director of Public Utilities and Division of Sewerage and Drainage personnel determined that it was in the City's best interest to reject the low bid and to award the contract to the lowest, best, responsive and responsible bidder; and
WHEREAS, the Ohio Water Development Authority approved a loan to the City of Columbus on February 24, 2005, in the amount of $4,953,834.90, identified as Loan Number CS392466-01, and is in the process of applying for a supplemental loan for the increased costs of awarding the project to Lake Erie, Inc., as recommended herein; and whereupon it is necessary to authorize a temporary transfer of funds from the Sewer System Reserve Fund until such time as the supplemental loan can be appropriated; and now, therefore
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 Council to authorize transfer, appropriation and expenditure of funds from the Sewer System Reserve Fund to the Ohio Water Pollution Control Loan Fund; to amend the 2004 Capital Improvements Budget; pursuant to authorizing the Director of Public Utilities to enter into a contract with Lake Erie Inc., for construction of the Southerly Wastewater Treatment Plant Electrical System Upgrade project at the earliest practicable date; 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 from the unappropriated monies in the Sewerage System Reserve Fund No. 654, 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, 2005, the sum of $4,610,749.50 is hereby appropriated to the Division of Sewerage and Drainage| Division 60-05| Object Level One 10| Object Level Three 5502| OCA Code 901553.
Section 2. That the City Auditor is hereby authorized to transfer $4,610,749.50 to the Ohio Water Pollution Control Loan Fund, into the Southerly Wastewater Treatment Plant Electrical System Upgrade Project, Project No. 650346, at such time as deemed necessary by him, and to expend said funds, or so much thereof as may be necessary.
Section 3. That the $4,610,749.50 is hereby appropriated for the Southerly Wastewater Treatment Plant Electrical System Upgrade Project within the Ohio Water Pollution Control Loan Fund| Fund 666| Division 60-05| Project 650346| OCA Code 666346.
Section 4. That the Director of Public Utilities be, and hereby is, authorized to award and execute a contract for construction of the Southerly Wastewater Treatment Plant Electrical System Upgrade, with Lake Erie Electric, Inc., 360 Industrial Drive, Franklin, Ohio 45005, in the amount of $4,610,749.50 in accordance with the contract documents on file in the office of the Division of Sewerage and Drainage.
Section 5. That for the purpose of paying the cost of the construction contract, the expenditure of $4,610,749.50 is hereby authorized from the Ohio Water Pollution Control Loan Fund No. 666| Division 60-05| Project 650346| OCA Code 666346| Object Level 3: 6624.
Section 6. That the 2004 Capital Improvements Budget Ordinance No. 1059-2004 is hereby amended as follows, to provide sufficient budget authority for the project costs that include the construction services contract and the professional engineering services Contract Modification No. 2, that are covered within the aforementioned OWDA Loan.
Current:
Project 650346 - SWWTP Electrical System Upgrade - $4,371,000.00
Amended to:
Project 650346 - SWWTP Electrical System Upgrade - $5,380,484.50
Section 7. 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. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.