Explanation
1. BACKGROUND: This legislation authorizes the Director of Finance and Management, on behalf of the Office of Construction Management, to modify and increase the construction contract, with Smoot Construction Company of Ohio, for the Police Substation 19 - Hilltop Area (Sullivant Ave.) project, in the amount of $300,000.00.
The overall project scope included construction of a 13,500 square foot police substation located at 1860 Sullivant Avenue, Columbus, Ohio 43223.
The original contract was established under Contract No. PO526023, and was authorized by Ordinance No. 2112-2025, and approved by City Council on July 28, 2025.
The Construction Manager initially carried a 5% owner contingency below the typical 8-10% range to align with overall project budget constraints. Since the Notice to Proceed, the project has incurred unanticipated costs related to permitted site design changes, a 62-day delay in site compliance permitting, and discovery of unsuitable soil conditions.
As a result, the original $650,000.00 contingency has been reduced to $71,000.00, leaving approximately 11% of the contingency remaining while the project is only 30% complete. At this burn rate, the remaining contingency is insufficient to support the project through completion. Modification 1 (current) is needed to replenish contingency to carry the project through completion.
2. MODIFICATION INFO:
A. The amt of additional funds to be expended under the modification: $300,000.00
Original Contract Amount: $13,942,258.00 (PO526023)
Modification No. 1 (current): $ 300,000.00
Total (Original and Mod 1): $14,242,258.00
B. Why the need for additional goods or services could not be foreseen at the time the contract was initially awarded.
Unanticipated costs related to permitted site design changes, a 62-day delay in site compliance permitting, and the discovery of unsuitable soil conditions has caused this unforeseen situation.
C. Why it would not be in the city’s best interests to have the additional contract requirements awarded through other procurement processes?
The Modification is replenishing contingency for the contractor’s services and is not associated with work any other vendor could provide. The same unseen conditions would have occurred with any other vendor.
D. How the price for the additional goods or services which are subject of the modification was determined.
Costs are based on the projected change order values for the remainder of the project.
3. CONTRACT COMPLIANCE INFO: Smoot Construction Company of Ohio, DAX No. 4871, expires 3/7/27, MBE-designated
Searches in the Excluded Party List System (Federal) and the Findings for Recovery list (State) produced no findings against Smoot Construction Company of Ohio.
4. FUTURE MODIFICATION(S): Future modifications are not expected at this time.
5. EMERGENCY DESIGNATION: It is requested that this Ordinance be handled in an emergency manner as there is a significant risk of work delays, stoppage, and increased overall project costs if funding is not available for any potential change orders.
6. FISCAL IMPACT: A transfer of funds within the Safety Taxable G.O. Bonds Fund will be necessary as well as an amendment to the 2025 Capital Improvements Budget.
Title
To authorize the Director of Finance and Management, on behalf of the Office of Construction Management, to modify and increase the construction contract with Smoot Construction Company of Ohio; for the Police Substation 19 - Hilltop Area (Sullivant Ave.) project; to authorize a transfer of $300,000.00 and an expenditure up to $300,000.00 within the Safety Taxable General Obligations Bond Fund; to authorize an amendment to the 2025 Capital Improvements Budget; and to declare an emergency. ($300,000.00)
Body
WHEREAS, the Department of Finance and Management, on behalf of the Office of Construction Management, entered into a construction contract with Smoot Construction Company of Ohio for the Police Substation 19 - Hilltop Area (Sullivant Ave.) project, authorized by Ordinance No. 2112-2025, and approved by City Council on July 28, 2025; and
WHEREAS, Modification No. 1 (current) is needed to replenish contingency in the amount of $300,000.00; and
WHEREAS, it is necessary to authorize a transfer of $300,000.00 and an expenditure of $300,000.00 within the Safety Taxable G.O. Bonds Fund - Fund No. 7705; and
WHEREAS, it is necessary to authorize an amendment to the 2025 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 Finance and Management, Office of Construction Management, in that it is immediately necessary to authorize the Director of Finance and Management to modify and increase the construction contract with Smoot Construction Company of Ohio, for the Police Substation 19 - Hilltop Area (Sullivant Ave.) project, in an emergency in order to replenish contingency to avoid the risk of work delays, stoppage, and increased overall project costs due to a lack of funding for change orders; for the immediate preservation of the public safety, peace, property and safety; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Finance and Management is hereby authorized to modify and increase the construction contract, on behalf of the Office of Construction Management, with Smoot Construction Company of Ohio, for the Police Substation 19 - Hilltop Area (Sullivant Ave.) project, in the amount of $300,000.00.
SECTION 2. That a transfer of $300,000.00 and expenditure of $300,000.00, or so much thereof as may be needed, is hereby authorized in the Safety Taxable G.O. Bonds Fund - Fund No. 7705, per the accounting codes in the attachment to this ordinance.
SECTION 3. That the 2025 Capital Improvements Budget is hereby amended, in the Safety Taxable G.O. Bonds Fund - Fund No. 7705, per the accounting codes in the attachment to this ordinance.
SECTION 4. 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 5. 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 6. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 7. 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 8. That for reasons stated in the preamble hereto, which is hereby 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 days after passage if the Mayor neither approves nor vetoes the same.