Explanation
1.0 BACKGROUND: This legislation authorizes the Director of Public Utilities to enter into a construction contract with Elford, Inc. for the Water Quality Assurance Lab (WQAL) Renovations Project in an amount up to $21,545,250.00; to encumber funds with the Department of Public Service for prevailing wage services in an amount up to $2,000.00; for Capital Improvements Project No. 690515-100000, Division of Water Contract Number 2179.
Work consists of renovations and commissioning of the Water Quality Assurance Laboratory including, but not limited to, demolition of the existing laboratory interior walls, floors, drop ceilings, casework, miscellaneous architectural, mechanical, plumbing, fire protection, miscellaneous structural, electrical, and information technology to provide all construction and commissioning for new of the aforementioned items, renovations to areas outside of the Water Quality Assurance Laboratory footprint, construction and commissioning of a temporary laboratory facility, including laboratory operations sequencing, and other such work as may be necessary to complete the contract, in accordance with the plans and specifications set forth in the Invitation For Bid.
The Community Planning Area for this project is “99 - N/A” since the lab serves multiple community planning areas.
2.0 ECONOMIC IMPACT/ADVANTAGES; COMMUNITY OUTREACH; PROJECT DEVELOPMENT; ENVIRONMENTAL FACTORS/ADVANTAGES OF PROJECT: The lab was originally constructed in 1984 and has not had any major renovations in over 25 years. Equipment is aging and replacement parts are difficult to produce. When the lab was originally designed computer workstations were not in use and subsequent installations have not been ergonomically designed. The Water Quality Assurance Lab is an integral part of the water treatment process ensuring regulatory requirements and reporting are met. Safe, compliant water quality and quantity are necessary for community economic growth. The majority of the work will occur within areas that are not accessible to the public, so no community outreach is anticipated.
3.0 CONSTRUCTION CONTRACT AWARD: The Director of Public Utilities publicly opened three (3) bids on December 1, 2021:
1. Elford, Inc. $21,545,250.00 *after bid tab correction
2. 2K General Company $16,974,000.00
3. R.W. Setterlin Building Co. $19,252,964.20 *after bid tab correction
The bid from 2K General Company was deemed Non-Responsive for failing to name a subcontractor for the lab move as required by Spec 11 53 01.
The bid from R.W. Setterlin Building Co. was deemed Non-Responsive for failing to provide an employee or subcontractor with an active water/sewer contractor's tappers license.
Elford’s bid was deemed the lowest, best, most responsive and responsible bid in the amount of $21,545,250.00. Their Contract Compliance Number is 31-4371060 (expires 5/27/22, Majority) and their DAX Vendor No. is 6059. Additional information regarding all bidders, description of work, contract time frame and detailed amounts can be found on the attached Information form.
Searches in the Excluded Party List System (Federal) and the Findings for Recovery list (State) produced no findings against Elford, Inc.
3.1 PRE-QUALIFICATION STATUS: Elford, Inc. and all proposed subcontractors have met code requirements with respect to pre-qualification, pursuant to relevant sections of Columbus City Code Chapter 329.
4.0 FISCAL IMPACT: This Ordinance authorizes the City Auditor to appropriate and transfer funds from the Water System Reserve Fund - Fund No. 6003 to the Water Supply Revolving Loan Account Fund - Fund No. 6011, 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 Water Supply Revolving Loan Account Fund and reimburse the Water System Reserve Fund. The loan is expected to be approved in March 2022.
A transfer within the Water G.O. Voted Bonds Fund - Fund No. 6006 will be necessary as well as an amendment to the 2021 Capital Improvements Budget.
This ordinance will also amend Ord. 1543-2021, which authorized the Department of Public Utilities to apply for and accept loan funding from the Water Supply Revolving Loan Account Fund (WSRLA), in order to increase the maximum dollar amount of this project's loan award not to exceed $21,545,250.00.
Title
To authorize the Director of Public Utilities to enter into a construction contract with Elford, Inc. for the WQAL Renovations Project in an amount up to $21,545,250.00; to encumber $2,000.00 for prevailing wage services provided by the Department of Public Service; to authorize the appropriation and transfer of $21,545,250.00 from the Water System Reserve Fund to the Water Supply Revolving Loan Account Fund; to authorize the appropriation and expenditure of $21,545,250.00 within the Water Supply Revolving Loan Account Fund; to authorize a transfer and expenditure up to $2,000.00 within the Water General Obligations Voted Bond Fund; to amend Ord. 1543-2021 in order to increase the maximum dollar amount of this project's Water Supply Revolving Loan Account Fund (WSRLA) loan award to not exceed $21,545,250.00; and to authorize an amendment to the 2021 Capital Improvements Budget; for the Division of Water. ($21,547,250.00)
Body
WHEREAS, three (3) bids for the Water Quality Assurance Lab Renovations (WQAL) Project were received and publicly opened in the offices of the Director of Public Utilities on December 1, 2021; and
WHEREAS, the lowest, best, most responsive and responsible bid was from Elford, Inc. in the amount of $21,545,250.00; and
WHEREAS, it is necessary to authorize the Director of the Department of Public Utilities to enter into a construction contract for the WQAL Renovations Project; and
WHEREAS, it is necessary to authorize the Director of the Department of Public Utilities to encumber and expend funds to provide for payment of prevailing wage services associated with said project; and
WHEREAS, it is necessary to both appropriate funds from the Water System Reserve Fund and to authorize the transfer of said funds into the Water Supply Revolving Loan Account 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, it is necessary to authorize a transfer and expenditure of funds within the Water G.O. Voted Bonds Fund - Fund No. 6006, for the Division of Water; and
WHEREAS, it is necessary to amend Ord. 1543-2021, passed by Columbus City Council on July 12, 2021, authorizing the Department of Public Utilities to apply for and accept Water Supply Revolving Loan Account Fund (WSRLA) loan awards for the 2022 project cycle, in that the maximum dollar amount of the loan for the WQAL Renovations Project, CIP No. 690515-100000 was included at $15,300,000.00 (original amount authorized); and
WHEREAS, economic conditions have caused an increase in materials and labor costs throughout the construction industry, it is necessary to amend the maximum dollar amount of this project's loan award to not exceed $21,545,250.00; and
WHEREAS, it has become necessary in the usual daily operation of the Division of Water, Department of Public Utilities, to authorize the Director of Public Utilities to enter into a construction contract with Elford, Inc. for the WQAL Renovations Project, 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 is hereby authorized to enter into a construction contract for the WQAL Renovations Project with Elford, Inc. (FID #31-4371060), 1220 Dublin Road, Columbus, OH 43215, in an amount up to $21,545,250.00; in accordance with the terms and conditions of the contract on file in the Office of the Division of Water; and to obtain the necessary prevailing wage services from the Design and Construction Division and to pay up to a maximum amount of $2,000.00.
SECTION 2. That said construction company shall conduct the work to the satisfaction of the Director of Public Utilities and the Administrator of the Division of Water.
SECTION 3. 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 ending December 31, 2022, the sum of $21,545,250.00 is appropriated in Fund 6003 - Water System Reserve Fund, in Object Class 10 - Transfer Out Expenditure, per the account codes in the attachment to this ordinance.
SECTION 4. That the transfer of $21,545,250.00 or so much thereof as may be needed, is hereby authorized between Fund 6003 - Water System Reserve Fund and Fund 6011 - Water Supply Revolving Loan Account Fund, per the account codes in the attachment to this ordinance.
SECTION 5. That the expenditure of $21,545,250.00 or so much thereof as may be needed, is hereby authorized in Fund 6011 - Water Supply Revolving Loan Account Fund, in Object Class 06 - Capital Outlay, per the accounting codes in the attachment to this ordinance.
SECTION 6. That the transfer of $2,000.00 or so much thereof as may be needed, is hereby authorized between Fund 6006 - Water G.O. Bonds Fund, per the account codes in the attachment to this ordinance.
SECTION 7. That the expenditure of $2,000.00 or so much thereof as may be needed, is hereby authorized in Fund 6006 - Water G.O. Bonds Fund, in Object Class 06 - Capital Outlay, per the accounting codes in the attachment to this ordinance.
SECTION 8. That Ordinance 1543-2021, passed by Columbus City Council on July 12, 2021, is hereby amended increasing the maximum dollar not to exceed amount of this project's Water Supply Revolving Loan Account Fund (WSRLA) maximum loan award from $15,300,000.00 to $21,545,250.00 as it pertains to the 2022 funding year.
SECTION 9. 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 4 above, and said funds are hereby deemed appropriated for such purpose.
SECTION 10. 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 $21,545,250.00 (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 System Reserve Fund - Fund 6003, which is the fund from which the advance for costs of the Project will be made.
SECTION 11. 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 12. 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 13. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 14. 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 15. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.