Explanation
1. BACKGROUND
This legislation authorizes the Director of Public Service to modify a Design Guaranteed Maximum Reimbursement Agreement (DGMRA) with Pizzuti Short North, LLC relative to the Economic and Community Development - Pizzuti Short North Projects.
The City of Columbus has undertaken efforts to improve Pearl and Eden alleys and to renovate and expand the existing public parking lot, all of which are situated south of Russell Street and east of High Street behind Le Méridien Columbus hotel. Construction of the project is underway and will be complete in July 2018. Pursuant to Ordinance 0866-2013, the City entered into a Design Guaranteed Maximum Reimbursement Agreement with Pizzuti Short North, LLC to secure and oversee the design of those projects. It since has become apparent that the cost of those services will be higher than originally estimated. Ordinance 1179-2013 authorized the Director of Public Service to modify the original reimbursement agreement to provide for electrical infrastructure inspection services required for the Pizzuti Short North Projects.
This legislation authorizes the Department of Public Service to modify the existing DGMRA and to encumber and expend an additional $95,000.00 to reimburse Pizzuti Short North, LLC to fund additional design services and utility and construction coordination necessary to complete the project.
Original DGMRA: $225,000.00 (Ordinance 0866-2013, EL014338)
Modification 1: $55,811.00 (Ordinance 1179-2013, EL016358)
This modification: $95,000.00
Total reimbursement amount, including all modifications: $375,811.00
2. CONTRACT COMPLIANCE
Pizzuti Short North, LLC currently does not have a valid contract compliance number with the City and will be required to become contract compliant prior to executing the aforementioned modification.
3. FISCAL IMPACT
Funding in the amount of $95,000 is available in Streets and Highways Bond Fund. An amendment to the 2017 Capital Improvements Budget is necessary to provide sufficient budget authority for the appropriate project.
4. EMERGENCY JUSTIFICATION
Emergency action is requested to facilitate timely reimbursement of project costs incurred by the developer during the completion of the aforementioned projects.
Title
To amend the 2017 Capital Improvement Budget; to authorize the City Auditor to transfer cash and appropriation between projects within the Streets and Highways Bond Fund; to authorize the Director of Public Service to modify a Design Guaranteed Maximum Reimbursement Agreement with Pizzuti Short North, LLC; to authorize the expenditure of up to $95,000.00 from the Streets and Highways Bond Fund; and to declare an emergency. ($95,000.00)
Body
WHEREAS, pursuant to Ordinance 0866-2013, the Director of Public Service entered into a Design Guaranteed Maximum Reimbursement Agreement (DGMRA) with Pizzuti Short North Project, LLC relative to various public improvements known as the Economic and Community Development - Pizzuti Short North Projects; and
WHEREAS, those projects include improving Pearl and Eden alleys and renovating and expanding the parking lot behind Le Méridien Columbus hotel; and
WHEREAS, Ordinance 1179-2013 authorized the Director of Public Service to modify the original reimbursement agreement to provide for electrical infrastructure inspection services required for the Pizzuti Short North Projects; and
WHEREAS, additional design services and utility and construction coordination are necessary to complete the aforementioned projects; and
WHEREAS, the City has committed to funding the costs of those costs in the amount of up to $95,000.00; and
WHEREAS, this legislation authorizes the Director of Public Service to modify the DGMRA with Pizzuti Short North, LLC in connection with the Economic and Community Development - Pizzuti Short North Projects for that purpose; and
WHEREAS, it is necessary to authorize an amendment to the 2017 Capital Improvements Budget for the purpose of providing sufficient spending authority for the aforementioned project expenditure; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Service in that it is immediately necessary to authorize the Director of Public Service to execute said modification so as to provide for the timely reimbursement of project costs incurred by the developer during the completion of the aforementioned projects; 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 2017 Capital Improvement Budget, authorized by Ordinance 1124-2017, be amended as follows to establish sufficient authority for this project:
Fund / Project / Project Name / Current / Change / Amended
7704 / P440104-100002 / Miscellaneous Econ Dev - Cols Coated Fabrics (Voted Carryover) / $483,492.00 / ($95,000.00) / $388,492.00
7704 / P590415-100009 / Pizzuti/Short North Projects - Utility Improvements (Voted Carryover) / $0.00 / $95,000.00 / $95,000.00
SECTION 2. That the transfer of $95,000.00, or so much thereof as may be needed, is hereby authorized between projects within Fund 7704 Streets and Highways Bond Fund per the accounting codes in the attachment to this ordinance.
SECTION 3. That the Director of Public Service be and hereby is authorized to modify a Design Guaranteed Maximum Reimbursement Agreement with Pizzuti Short North, LLC relative to the Economic and Community Development - Pizzuti Short North Projects.
SECTION 4. That the expenditure of $95,000.00, or so much thereof as may be needed, is hereby authorized in Fund 7704 Streets and Highways Bond Fund in Object Class 06 Capital Outlay per the accounting codes in the attachment to this ordinance.
SECTION 5. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
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 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 8. 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.