Explanation
BACKGROUND: This legislation authorizes the Finance and Management Director to enter into a contract on behalf of the Office of Construction Management for domestic hot water system improvements at the Fire Training Academy, 3639 Parsons Avenue.
This project will include, but is not limited to, the removal of the existing domestic hot water storage tank and the associated boiler and piping. Then two new domestic hot water boilers will be installed, and storage vessel piping and mixing valves will be installed in order to bring the system up to current code requirements. The existing boiler and associated equipment is approximately 46 years old, is leaking and is well past its useful life.
Formal bids were solicited and six companies submitted bids as follows (0 FBE, 0 MBE):
General Temperature Control $180,000.00
Farber Mechanical $183,000.00
Bull Construction $185,000.00
Fox Mechanical $192,315.00
Radico, Inc. $225,200.00
TP Mechanical Contractors $274,503.00
The Office of Construction Management recommends the bid be awarded to the most responsive and responsible bidder, General Temperature Control.
Emergency action is requested to allow the necessary improvements to occur without delay, to meet the operational needs of the facility.
General Temperature Control, Inc. Contract Compliance No. 31-1201236, expiration date March 13, 2014.
Fiscal Impact: This project is funded in the 2012 Capital Improvement Budget. However, bonds have yet to be sold for the whole project, necessitating a certification of $180,000.00 against the Special Income Tax Fund. Upon the sale of bonds, this will be reimbursed. This legislation authorizes the expenditure of $180,000.00 or so much as may be necessary for this purpose.
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 domestic hot water system improvements at the Fire Training Academy, 3639 Parsons Avenue; to authorize and direct the City Auditor to transfer $180,000.00 from the Special Income Tax Fund to the Safety Voted Bond Fund; to authorize the expenditure of $180,000.00 from the Safety Voted Bond Fund; and to declare an emergency. ($180,000.00)
Body
WHEREAS, the Finance and Management Department, Office of Construction Management, desires to contract with an HVAC company for domestic hot water system improvements at the Fire Training Academy, 3639 Parsons Avenue; and
WHEREAS, General Temperature Control is the most responsive and responsible bidder; and
WHEREAS, it is necessary to transfer funds from the Special Income Tax Fund to the this project; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Special Income Tax Fund; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregate principal amount of obligations the City will issue to finance this contract is presently not to exceed $180,000.00; and
WHEREAS, the City anticipates incurring certain Original Expenditures (as define 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, 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 Finance and Management Director to enter into a contract with General Temperature Control for domestic hot water system improvements at the Fire Training Academy, to meet the operational needs of the facility, thereby preserving the public peace, property, health, 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 to enter into a contract on behalf of the Office of Construction Management with General Temperature Control for domestic hot water system improvements at the Fire Training Academy, 3639 Parsons Avenue.
SECTION 2. That the sum of $180,000.00 be and is hereby appropriated from the unappropriated balance of the Special Income Tax Fund, Fund 430, 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, 2012 to the City Auditor, Department 22-01, Object Level One 10, OCA Code 902023, Object Level Three 5502.
SECTION 3. That the City Auditor is hereby authorized to transfer said funds to the Safety Voted Bond Fund 701, at such time as deemed necessary by the City Auditor, and to expend said funds, or so much thereof as may be necessary.
SECTION 4. That the expenditure of $180,000.00, is hereby transferred and appropriated to the Safety Voted Bond Fund 701, Project 340103-100000, Object Level One 06, OCA Code 711103, Object Level Three 6620.
SECTION 5. That upon obtaining other funds for professional engineering consulting services for the Central Safety building plumbing, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred in SECTION 3.
SECTION 6. That the City Auditor is authorized to establish proper accounting project numbers and to make any accounting changes to revise the funding source for any contract or contract modification associated with the expenditure of funds transferred in SECTION 3 above.
SECTION 7. That the City intends 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 $180,000.00 (the "Obligations").
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen (18) months following the latter 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 the 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. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
SECTION 9. That the expenditure of $180,000.00, or so much thereof as may be necessary in regard to the action authorized in SECTION 1, be and is hereby authorized and approved as follows:
Division: 30-04
Fund: 701
Project: 340103-100000
OCA Code: 711103
Object Level 1: 06
Object Level 3: 6620
Amount: $180,000.00
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 the contracts or contract modifications associated with this ordinance.
SECTION 12. 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.