Explanation
1. BACKGROUND:
A.) Need: This legislation authorizes the Director of Public Utilities to enter into a professional construction management services contract modification with H. R. Gray & Associates, Inc. for the BWARI Tunnel Project, BWOAS Tunnel Project, and Air Quality Control Facility Project. The amount requested under this modification for the H. R. Gray & Associates, Inc. construction management services contract is $399,910.00. These funds are needed to provide inspection and continue construction management services through an extended period of construction.
This work is a continuation of Construction Management services for the BWARI Tunnel Project, BWOAS Tunnel Project, and Air Quality Control Facility Project that has been ongoing under contracts with URS Corporation. The funding for the Construction Management efforts is being separated from the services performed by the Design Professional (the City is replacing URS with CPI for engineering services associated with the protective linings). The Division of Sewerage and Drainage has determined that these services cannot be performed by City personnel at this time, and has planned for the procurement of these services on a routine basis. The potential need for the work was foreseen and so stated in the original contract's explanation of legislation.
Per the recommendation of legal council, it was determined that H.R. Gray's (sub) services should be contracted directly through the City, instead of a subsidiary of the primaries contract, during dispute resolution of URS Corporation's (primary) pending legal concerns in relation to the BWARI project due to a potential contrast of interest between URS and H.R. Gray. Due to this and the need for continued work by H.R. Gray competitive bidding on H.R. Gray's original contract for this project was waived.
B.) Contract Compliance No.: 31-1050479 | Exp. Date: 1/17/2010 | MAJ
C.) Emergency Designation: No emergency designation is requested for this project.
2. FISCAL IMPACT:
This ordinance authorizes the Director of Public Utilities to transfer and appropriate $399,910.00 in funds from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund for this expenditure; and to amend to the 2008 Capital Improvements Budget to establish sufficient budget authority to cover the expenditure upon passage of the ordinance. Monies for this contract from the Sanitary Sewer Reserve Fund will be provided from an upcoming Bond Sale via the transfer detailed in this Ordinance.
Title
To authorize the Director of Public Utilities to modify the professional construction management services contract with H. R. Gray & Associates, Inc. for the BWARI Tunnel Project, BWOAS Tunnel Project, and Air Quality Control Facility Project; to authorize the appropriation and transfer of $399,910.00 from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund; to authorize the expenditure of $399,910.00 from within the Voted Sanitary Sewer Bond Fund; and to amend the 2008 Capital Improvements Budget, for the Division of Sewerage and Drainage. ($399,910.00)
Body
WHEREAS, the Division of Sewerage and Drainage engineering personnel have determined it necessary to modify the professional construction management services contract with H. R. Gray & Associates, Inc., for the BWARI Tunnel Project, BWOAS Tunnel Project, and Air Quality Control Facility Project; and
WHEREAS, it is necessary to authorize the transfer and appropriation of funds from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund for purposes of providing sufficient funding for the aforementioned project expenditure; and
WHEREAS, it is necessary to authorize an amendment to the 2008 Capital Improvements Budget for the purpose of providing sufficient spending authority for the aforementioned project expenditure; and
WHEREAS, it is necessary for City Council to approve the aforementioned necessary expenditure from the Voted Sanitary Sewer Bond 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 project described in this ordinance (the "Project"); and
WHEREAS, the Division of Sewerage and Drainage, Department of Public Utilities is requesting that this Council authorize the Director of Public Utilities to modify the professional construction management services contract with H. R. Gray & Associates, Inc., which is necessary to continue construction for the BWARI Tunnel Project, BWOAS Tunnel Project, and Air Quality Control Facility Project, at the earliest practical date; Now, Therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Public Utilities be, and hereby is, authorized to modify a professional construction management services contract in the amount of $399,910.00 with H. R. Gray & Associates, Inc., 3770 Ridge Mill Dr., Columbus, Ohio 43026, for the BWARI Tunnel Project, BWOAS Tunnel Project, and Air Quality Control Facility Project in accordance with the terms and conditions as shown in the contract on file in the office of the Division of Sewerage and Drainage.
Section 2. That from the unappropriated monies in the Sanitary Sewer 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, 2009, the sum of $399,910.00 is hereby appropriated to the Division of Sewerage and Drainage: Division 60-05| OCA Code 901654 | Object Level One 10 | Object Level Three 5502.
Section 3. That the City Auditor is hereby authorized to transfer funds from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund, Fund 664, in the amount of $199,955.00 into the BWARI Tunnel Project, 650491, and $199,955.00 into the BWOAS Tunnel Project and Air Quality Control Facility Project, 650430, at such time as deemed necessary by the Auditor, and to expend said funds, or so much thereof as may be necessary.
Section 4. That the below amounts are hereby appropriated for the BWARI Tunnel Project, BWOAS Tunnel Project, and Air Quality Control Facility Project, within the Voted Sanitary Sewer Bond Fund, Fund 664, Division 60-05, as follows:
650491 | OCA Code 650491 | OBJLVL3 6678 | $199,955.00
650430 | OCA Code 664430 | OBJLVL3 6678 | $199,955.00
Section 5. That the 2008 Capital Improvements Budget Ordinance No.0690-2008 is hereby amended as follows, to provide sufficient budget authority for the award of the agreement stated herein.
Project No. | Project Name | Current Authority | Revised Authority | (Change)
650491-100001 | Big Walnut/Rickenbacker Sanitary | $3,000,000 | $2,800,045 | (-$199,955)
650430-100001 | Big Walnut Outfall | $0.00 | $199,955 | (+$199,955)
Section 6. That for the purpose of paying the cost of the professional construction management services contract, the following expenditure, or as much thereof as may be needed, be and the same is hereby authorized as follows: Division 60-05 | Fund 664 | Object Level Three 6678:
Proj. No. | Proj. Name | OCA | Amount
650491 | Big Walnut/Rickenbacker Sanitary | OCA Code 650491 | $199,955.00
650430 | Big Walnut Outfall Systems| OCA Code 664430 | $199,955.00
(NOTE for Purchase Order: 650430.1 = $79,982 and 650430.1B = $119,973)
Section 7. 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 the obligations to be issued by the City in a principal amount currently estimated to be $399,910.00 (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 fund from which the advance for costs of the Project will be made.
Section 8. That upon obtaining other funds for the purpose of funding sanitary sewer system capital improvement work, the City Auditor is hereby authorized to repay the Sewer System Reserve Fund the amount transferred above, and said funds are hereby deemed appropriated for such purposes.
Section 9. That the City Auditor is hereby authorized 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 are no longer required for said project; except that no transfer shall be made from a project by monies from more than one source.
Section 10. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
Section 11. 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 12. That the contracted firm shall perform the work to the satisfaction of the Director of Public Utilities and the Administrator of the Division of Sewerage and Drainage.
Section 13. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.