Explanation
BACKGROUND: This legislation authorizes the Finance and Management Director to enter into a contract on behalf of the Office of Construction Management with General Temperature Control for the installation of a new backup chiller at Columbus Public Health, located at 240 Parsons Avenue.
In late 2015, the Office of Construction Management became aware of mechanical issues associated with the backup chiller at Columbus Public Health. It was the original intent to conduct a condition assessment, repair any faulty mechanicals, and return the chiller to operational status. The condition assessment revealed extensive deterioration to the unit, requiring complete replacement of the chiller tubing infrastructure with an associated cost of approximately $125,000, which was cost prohibitive given that the unit was already beyond its useful life. It was therefore determined that it was in the City's best interest to replace the existing unit with a new chiller.
Star Architects was engaged to design the acquisition and installation of a new backup chiller and this design process was completed in December 2015. Due to the City's year-end fiscal closeout period and the transition to a new accounting and online bidding system (Bid Express), the Office of Construction Management was unable to process a competitive bid through normal City processes. However, the Office of Construction Management contacted three HVAC construction firms (General Temperature Control, Farber Corporation, and Kirk Williams Company). Each of these firms were provided with the official design assessment/recommendation produced by Star Architects and each firm was asked to submit an informal quote to the Office of Construction Management within six days of receipt (on or before January 28, 2016).
Informal quotes were solicited and the City received 3 quotes/bids on January 28, 2016 as follows:
General Temperature Control $460,000.00
Farber Corporation $466,500.00
The Kirk Williams Company $514,163.00
After receiving three quotes/bids for this work, the Office of Construction Management recommends awarding this project to the lowest, most responsive and responsible bidder, General Temperature Control (Federal ID #31-1201236) with the lower quote of $460,000.00 which includes contingency. General Temperature Control is a registered and pre-qualified contractor with the City and has all the necessary resources, capability and availability to begin this work immediately and complete it in a timely manner.
The Office of Construction Management has determined it is necessary to immediately retrofit the Health Department’s chilled water system with a backup chiller. The Health Department at 240 Parsons Avenue is currently down to one operating chiller which may fail with increasing temperatures early this summer and cooling to the facility may be lost. Due to the estimated 13 week lead time for the proposed chiller, the Office of Construction Management believes it is necessary to immediately engage a mechanical contractor to order and supply the necessary components and provide labor to install the backup chiller. Pursuing a formal competitive bid now that the City's accounting and Bid Express systems are online, plus the ensuing legislation needed to authorize the contract, would add another one to two months to the procurement process. This would place project completion sometime in late August, when the highest temperatures could occur. Without the chiller the Columbus Public Health Department would be utilizing one (1) chiller which cannot effectively cool the facility.
Because informal quotes were solicited, a waiver of the competitive bidding provisions of the Columbus City Codes is necessary.
Emergency action is requested so as to expedite this project. Due to the 13 week timeframe for delivery, it is necessary to enter into the contract as soon as possible to allow installation of the system prior to the summer months.
SUPPLIER: General Temperature Control, Inc., Contract Compliance No. 31-1201236, expiration date: 03-10-2016
Fiscal Impact: The cost of this contract is $460,000.00. Funding is budgeted and available within the Construction Management Capital Improvement Fund.
Title
To authorize the Finance and Management Director to enter into a contract, on behalf of the Office of Construction Management, with General Temperature Control for acquisition and installation of a backup chiller at Columbus Public Health, 240 Parsons Avenue; to authorize the expenditure of $460,000.00 from the Construction Management Capital Improvement Fund; to waive the competitive bidding provisions of Columbus City Code, Chapter 329; and to declare an emergency. ($460,000.00)
Body
WHEREAS, the Department of Finance and Management, Office of Construction Management desires to enter into a contract with General Temperature Control for the acquisition and installation of a backup chiller at Columbus Public Health, located at 240 Parsons Avenue; and
WHEREAS, informal quotes were solicited and the City received three (3) submissions; and
WHEREAS, General Temperature Control was deemed the lowest, most responsive, and responsible quote/bidder; and
WHEREAS, it is necessary to waive the competitive bidding provisions of Columbus City Code, Chapter 329 due to the extensive lead time necessary to acquire the chiller and ensure that it is installed as quickly as possible; and
WHEREAS, an emergency exists in the usual daily operation of the Finance and Management Department, Office of Construction Management, in that it is immediately necessary to authorize the Director to enter into a contract with General Temperature Control for acquisition and installation of a backup chiller at Columbus Public Health, 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 Finance and Management Director is hereby authorized and directed to enter into a contract, on behalf of the Office of Construction Management, with General Temperature Control for the acquisition and installation of a backup chiller at Columbus Public Health, 240 Parsons Avenue.
SECTION 2. That the expenditure of $460,000.00, or so much thereof as may be necessary in regard to the action authorized in SECTION 1, be and is hereby authorized and approved from the Construction Management Capital Improvement Fund 7733, in Object Class 06 Capital Outlay per the accounting codes in the attachment to this ordinance.
See Attached File: Ord 0492-2016 Legislation Template.xls
SECTION 3. That this Council finds it in the best interests of the City to waive the competitive bidding provisions of Columbus City Code, Chapter 329 in regard to the action authorized in Section 1.
SECTION 4. That the monies in the foregoing Sections shall be paid upon order of the Director of Finance and Management, and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
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 the 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.