Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Utilities to enter into a construction modification contract with Travco Construction, Inc. (hereafter referred to as Travco) for the Lead Service Line Replacement - Pilot Program project, CIP #690236-100178, in an amount up to $1,000,000.00.
The scope of work for the contract modification is not changing. The contractors will continue to provide the necessary labor and equipment to complete the Lead Service Line Replacement - Pilot Program project.
The Community Planning Area is 99 Citywide.
1.1 TIMELINE: The original project timeline is still in effect. All work shall be complete within 730 calendar days from the Notice to Proceed. The City issued a Notice to Proceed July 17, 2024.
1.2 ESTIMATED COST OF PROJECT: The bid amount and proposed awarded amount was $2,500,000.00, including a 10% construction contingency amount that will be utilized to fund needed and approved changes in the work.
Modification No. 1 is being proposed as part of this current legislation request. The modification is for $1,000,000.00.
Cost summary:
Original Contract (ORD 1648-2024, PO461754, PO461769) $ 2,500,000.00
H2Ohio Grant (ORD 1693-2025) $ 500,000.00
Modification No. 1 (Current) $ 1,000,000.00
TOTAL $ 4,000,000.00
This modification was unplanned, but considered beneficial to the City to permit the contractor to continue removing lead from the distribution system. No future modifications are anticipated
1.3 Reason other procurement processes are not used:
Due to the significance of getting lead service lines out of the distribution system, and due to the timing of setting up a new contract, it is critical to have these additional funds added to the original contract.
2. ECONOMIC IMPACT/ADVANTAGES; COMMUNITY OUTREACH; PROJECT DEVELOPMENT; ENVIRONMENTAL FACTORS/ADVANTAGES OF PROJECT
The additional funds provided for the project will permit the contractor to continue replacing lead or galvanized taps and private service lines. This will assist the Division of Water in meeting OEPA requirements regarding lead. This work will be performed on an “as-needed” basis at miscellaneous locations directed by the City, and will remain within the original scope of the contract. Community outreach may result through the Neighborhood Liaison Program.
3. CONTRACT COMPLIANCE INFORMATION
Travco’s contract compliance number is CC009944 and expires 9/3/26.
As part of their bid, Travco proposed the following three subcontractors to perform contract work:
Company Name City/State ODI Certification Status
Decker Construction Company Columbus, OH MAJ
Biz Tech DBA Tatum Landscaping Columbus, OH MBE
& Lawncare LLC
CLB Trucking, Inc. Columbus, OH MBE
The certification of Travco and the above companies was in good standing at the time the of this contract modification.
4. PRE-QUALIFICATION STATUS
Travco and all subcontractors have met code requirements with respect to pre-qualification, pursuant to relevant sections of Columbus City Code Chapter 329.
5. FISCAL IMPACT
Funding for the construction modification services contract ($1,000,000.00) will be obtained through the Ohio Water Development Authority (OWDA) Direct Loan Program. City Council authorized this loan application and acceptance of loan funding via Ordinance 0652-2024, passed by Council on 3/25/24. This loan is expected to be approved at the August Board meeting. Funds will need to be certified against the Water System Reserve Fund, Fund 6003, to proceed with this project until the loan has been approved.
Funds will need to be appropriated within the Water System Reserve Fund, Fund 6003, transferred to the Water - Fresh Water Market Rate Fund, Fund 6014, and then appropriated in the Water - Fresh Water Market Rate Fund, Fund 6014, in the amount of $1,000,000.00 is needed to fund construction for this project.
This transaction is a temporary measure that is required until a loan is executed with OWDA to reimburse the Water System Reserve Fund. An amendment to the 2024 Capital Improvement Budget is needed to align budget authority with the proper project.
The Ohio Water Development Authority Direct Loan Program is a reimbursement program. Purchase orders will need to be established to Travco for this contract. Public Utilities will need to pay invoices directly to Travco and then submit reimbursement requests based upon these paid invoices to OWDA for OWDA to reimburse Public Utilities.
6. EMERGENCY DESIGNATION
Emergency designation is requested for this ordinance. This contract is partially funded by a grant that requires funds to be encumbered and spent by milestone dates or the grant funding can be reduced or eliminated.
Title
To authorize the Director of the Department of Public Utilities to enter into a contract modification with Travco for the Lead Service Line Replacement - Pilot Program project; to authorize an amendment to the 2024 Capital Improvement Budget; to authorize the appropriation and transfer of funds from the Water Reserve Fund to the Water Fresh Water Market Rate Fund; to authorize the appropriation of funds; to expend up to $1,000,000.00 from the Water Fresh Water Market Rate Fund; and to declare an emergency. ($1,000,000.00)
Body
WHEREAS, the Department of Public Utilities is engaged in the Lead Service Line Replacement - Pilot Program project; and
WHEREAS, Contract No. PO461754 and PO461769 was authorized by Ordinance No. 1648-2024 with Travco for the Lead Service Line Replacement - Pilot Program project; and
WHEREAS, Ordinance No. 1693-2025 will authorize the expenditure of funds from Grant G602500 award (Childcare Facility Lead Service Line Replacement project) from the H2Ohio Fund with Travco for the Lead Service Line Replacement - Pilot Program project; and
WHEREAS, it is necessary to authorize the Director of the Department of Public Utilities to enter into a contract modification with Travco for the Lead Service Line Replacement - Pilot Program project; and
WHEREAS, it is necessary to appropriate funds in the Water Fresh Water Market Rate Fund, Fund 6014 for this expenditure; and
WHEREAS, Ordinance 0652-2024 authorized the use of by a loan to be obtained through Ohio Water Development Authority (OWDA) Direct Loan Program to finance Public Utilities projects; and
WHEREAS, an amendment to the 2024 Capital Improvement Budget is needed to align budget authority with the proper project; and
WHEREAS, it is necessary to both appropriate and transfer funds from the Water Reserve Fund to the Water Fresh Water Market Rate Fund; and
WHEREAS, the funds transferred into the Water Fresh Water Market Rate Fund must be appropriated; 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 services of the Project described in this Ordinance (collectively, the “Project”); and
WHEREAS, funds must be expended to pay for the services Travco provides under the Lead Service Line Replacement - Pilot Program contract; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities in that it is immediately necessary to execute the contract with Travco for the Lead Service Line Replacement - Pilot Program due to this contract being partially funded by a grant that requires funds to be encumbered and spent by milestone dates or the grant funding can be reduced or eliminated, thereby preserving 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 2024 Capital Improvement Budget authorized by Ordinance 1907-2024 be amended as follows to establish sufficient budget authority for this project:
Fund / Project Number / Project Name (Funding Source) / Current Authority / Revised Authority / Change
6014 / 690236-100178 / Lead Line Replacement - Pilot Program (OWDA Direct Loan) / $0.00 / $1,000,000.00 / $1,000,000.00 (To match loan amount)
SECTION 2. That from the unappropriated monies 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 ended December 31, 2024, the sum of $1,000,000.00 is appropriated in Fund 6003 (Water Reserve Fund) per the account codes in the attachment to this ordinance.
SECTION 3. That the transfer of $1,000,000.00, or so much thereof as may be needed, is hereby authorized between the Water Reserve Fund and the Water Fresh Water Market Rate Fund per the accounting codes in the attachment to this Ordinance.
SECTION 4. That from the unappropriated monies 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 ended December 31, 2024, the sum of $1,000,000.00 is appropriated in Fund 6014 (Water Fresh Water Market Rate Fund) per the account codes in the attachment to this ordinance.
SECTION 5. That the Director of Public Utilities is authorized to enter into a contract modification for the Lead Service Line Replacement - Pilot Program project with Travco Construction, Inc., 5506 Harrisburg Pike, Grove City, Ohio, 43123, for construction services in accordance with the terms and conditions as shown in the contract on file with the Department of Public Utilities in an amount not to exceed $1,000,000.00.
SECTION 6. That an expenditure not to exceed $1,000,000.00 is authorized per the accounting codes in the attachment to this Ordinance.
SECTION 7. 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 Reserve Fund, Fund 6003, the amount transferred above (Section 3), and said funds are hereby deemed appropriated for such purposes.
SECTION 8. 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 $1,000,000.00 (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 Reserve Fund, Fund 6003, which are the funds from which the advance for costs of the Project will be made.
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 the City Auditor is authorized to transfer the unencumbered balance in a project account to the unallocated balance account 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 are no longer required for said project.
SECTION 11. That funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 12. That for the reasons stated in the preamble hereto, which is 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 (10) days after passage if the Mayor neither approves nor vetoes this Ordinance.