Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Utilities to enter into a construction contract with Sehlhorst Equipment Services, LLC, via the City’s Invitation for Bid process for the Jackson Pike Waste Water Treatment Plant (JPWWTP) Sludge Concentration Building Demolition project, CIP #650260-102018, in an amount up to $2,217,600.00; and to encumber funds with the Department of Public Service for construction prevailing wage services in an amount up to $2,000.00, for a total expenditure of $2,219,600.00.
This is a contract for the demolition of the sludge concentration tanks and rehabilitation of the portion of the building to remain. The portion of the Sludge Concentration Building (SCC) building added as an annex to the control building has been abandoned since the sludge concentration tanks were removed from service. The control building roof has begun to deteriorate, along with some other structural issues, which will be addressed to stabilize this building. The work consists of removal of the sludge concentration portion of the building and the sludge concentration tanks, rerouting centrate piping, rehabilitation of the remaining building along with adding a new roof on the north portion of the remaining building to protect existing electrical systems and control equipment within.
The Community Area for this ordinance will be 59, Southwest.
TIMELINE: Contract work is required to be completed in a manner acceptable to the City within 290 days from the date that a Notice to Proceed (NTP) is given by the City.
ESTIMATED COST OF PROJECT: The bid amount and proposed award amount is $2,217,600.00, including a 20% construction contingency amount that will be utilized to fund needed and approved changes in the work. No contract modifications are anticipated at this time; however, construction exigency might later compel modification of this contract, if unforeseen difficulties are encountered.
Cost summary:
Original Contract $2,217,600.00
Future Anticipated Needs $0.00
Prevailing Wage Services $2,000.00
CONTRACT TOTAL $2,219,600.00
2. ECONOMIC IMPACT/ADVANTAGES; COMMUNITY OUTREACH; PROJECT DEVELOPMENT; ENVIRONMENTAL FACTORS/ADVANTAGES OF PROJECT
The portion of the Sludge Concentration Building (SCC) building added as an annex to the control building has been abandoned since the sludge concentration tanks were removed from service. The control building roof has begun to deteriorate, along with some other structural issues, which will be addressed to stabilize this building. Removal and replacement of the failed equipment, electronic and electrical components, would be a major impact to the budget.
No community outreach impact is considered for this project. Public informational meetings were not required because all proposed work is within the boundaries of the wastewater treatment plant. Regulatory agencies have been notified of the proposed work as appropriate.
3. BID INFORMATION
This opportunity was advertised on the City’s Vendor Services website and on Bid Express from 7/23/24 through 8/21/24. One bid was received as follows:
Company Bid Amount Compliance Number ODI Status
Sehlhorst Equipment Services, LLC $2,217,600.00 CC048042 MAJ
The Sehlhorst Equipment Services, LLC’s bid was deemed the lowest, best, most responsive and responsible bid in the amount of $2,217,600.00.
4. CONTRACT COMPLIANCE INFORMATION
Sehlhorst Equipment Services, LLC’s contract compliance number is CC048042 and expires 3/12/26.
Searches in the Excluded Party List System (Federal) and the Findings for Recovery list (State) produced no findings against Sehlhorst Equipment Services, LLC
5. MINORITY AND WOMAN OWNED BUSINESS ENTERPRISE & SMALL LOCAL BUSINESS ENTERPRISE PROGRAM
This contract was bid with an anticipated City of Columbus MBE/WBE Program goal of 15% as assigned by the City’s Office of Diversity and Inclusion (ODI). After ODI’s review of the Utilization Plan and other related information the contractor submitted with their bid response, ODI has approved an MBE/WBE Program goal of 0% for this contract as this was the only bid received after two bids.
Sehlhorst Equipment Services, LLC listed the following company as a subcontractor for this project:
Company Name City/State ODI Certification Status
Environmental Demolition Group, LLC Erlanger, KY MAJ
The certification of Sehlhorst Equipment Services, LLC and the above company was in good standing at the time the bid was awarded.
6. PRE-QUALIFICATION STATUS
Sehlhorst Equipment Services, LLC and all subcontractors have met code requirements with respect to pre-qualification, pursuant to relevant sections of Columbus City Code Chapter 329. Sehlhorst Equipment Services, LLC was not pre-qualified at the time of bid opening. Even though they are now pre-qualified, a waiver of the relevant sections of Columbus City Code Chapter 329 with respect to pre-qualification must be approved to contract with them.
7. BID WAIVER: This project was advertised in March and April of 2024 with no bids received. It was re-advertised in July and August and received one bid. During evaluation of that bid, it was determined that Sehlhorst Equipment Services, LLC was not a pre-qualified construction vendor. Sehlhorst Equipment Services, LLC agreed to apply for construction pre-qualification and has since become pre-qualified. Per City Code 329.201(a), a bid is deemed non-responsive if the bidder has not been pre-qualified at the time of the bid due date. The Department of Public Utilities would like to proceed with a bid award to Sehlhorst Equipment Services, LLC due to the project being advertised for bid twice and Sehlhorst Equipment Services, LLC being the only bidder. A waiver of the construction bid requirements of Chapter 329 of Columbus City Code is needed to contract with Sehlhorst Equipment Services, LLC for this project.
8. FISCAL IMPACT
The construction portion of this project is anticipated to be financed with a loan from the Water Pollution Control Loan Fund (WPCLF), a program jointly administered by the Ohio EPA's Division of Environmental and Financial Assistance and the Ohio Water Development Authority (OWDA). City Council authorized this loan application and acceptance of funding via Ordinance 2767-2023, passed by Council on 10/30/23. This loan is expected to be approved at the OWDA December Board meeting. This ordinance is contingent upon the loan being approved by OWDA. The Department of Public Utilities will inform the Auditor's Office when this loan has been approved. An amendment to the 2024 Capital Improvement Budget is needed to align budget authority with the proper project. Funds in the amount of $2,217,600.00 will need to be appropriated in the Sanitary Revolving Loan Fund, Fund 6111.
Funding in the amount of $2,000.00 is appropriated and available within the Sanitary Bond Fund, Fund 6109, to pay the Department of Public Service to provide prevailing wage services for this project. An amendment to the 2024 Capital Improvement Budget is necessary to align budget authority with the proper project.
Title
To authorize the Director of the Department of Public Utilities to enter into a construction contract with Sehlhorst Equipment Services, LLC, for the Jackson Pike Waste Water Treatment Plant Sludge Concentration Building Demolition project; to waive the procurement requirements of Columbus City Code; to authorize an amendment to the 2024 Capital Improvement Budget; to make this ordinance contingent upon the Ohio Water Development Authority approving a loan for this project; to authorize the appropriation of funds within the Sanitary Revolving Loan Fund; and to authorize the expenditure of $2,219,600.00 from the Sanitary Revolving Loan Fund and the Sanitary Bond Fund to pay for the project. ($2,219,600.00)
Body
WHEREAS, the Department of Public Utilities is engaged in the JPWWTP Sludge Concentration Building Demolition project; and
WHEREAS, one bid for the JPWWTP Sludge Concentration Building Demolition project was received and opened on 8/21/24; and
WHEREAS, Sehlhorst Equipment Services, LLC, the sole bidder, was not prequalified at the time of the bid requiring a waiver of the provisions of Columbus City Code, Chapter 329 in regards to competitive bidding in order to contract with this vendor; and
WHEREAS, the lowest, best, most responsive and responsible bid was from Sehlhorst Equipment Services, LLC; and
WHEREAS, Ordinance 2767-2023 authorized this project to be funded by a loan to be obtained through the Water Pollution Control Loan Fund (WPCLF); and
WHEREAS, this ordinance is contingent upon the loan being approved; and
WHEREAS, the 2024 Capital Improvement Budget must be modified to align budget authority with the proper project; and
WHEREAS, funds must be appropriated within the Sanitary Revolving Loan Fund, Fund 6111, for this project; and
WHEREAS, it is necessary to authorize the Director of the Department of Public Utilities to enter into a construction contract with Sehlhorst Equipment Services, LLC for the JPWWTP Sludge Concentration Building Demolition project; and
WHEREAS, it is necessary to authorize an expenditure of funds from the Sanitary Revolving Loan Fund to pay for the project; and
WHEREAS, it is necessary to expend funds from the Sanitary Bond Fund to provide for payment of prevailing wage services associated with said project; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the 2024 Capital Improvement Budget authorized by Ordinance 1907-2024 be amended as follows to establish sufficient budget authority for this project:
Fund / Project Number / Project Name (Funding Source) / Current Authority / Revised Authority / Change
6111 / 650260-102018 / JPWWTP Sludge Concentration Building Demolition (WPCLF Loan) / $0.00 / $2,217,600.00 / $2,217,600.00 (To match the loan amount)
6109 / 650260-102016 / JPWWTP Incinerator Building Rehabilitation (Voted Sanitary Carryover) / $138,299.00 / $136,299.00 / ($2,000.00)
6109 / 650260-102018 / JPWWTP Sludge Concentration Building Demolition (Voted Sanitary Carryover) / $0.00 / $2,000.00 / $2,000.00
SECTION 2. That the appropriation of $2,217,600.00, or so much thereof as may be needed, is hereby authorized in the Sanitary Revolving Loan Fund, Fund 6111, per the accounting codes in the attachment to this ordinance.
SECTION 3. That the Director of the Department of Public Utilities is hereby authorized to enter into a construction contract for the JPWWTP Sludge Concentration Building Demolition project with Sehlhorst Equipment Services, LLC, 8073 Furlong Drive, Cleves, OH 45002, in an amount up to $2,217,600.00; in accordance with the terms and conditions of the contract on file in the Department of Public Utilities; and to obtain the necessary prevailing wage services for this project from the Department of Public Service in an amount up to $2,000.00.
SECTION 4. That this Council finds it in the best interest of the City to waive the competitive bidding provisions of Columbus City Code in order to contract with Sehlhorst Equipment Services, LLC, for the JPWWTP Sludge Concentration Building Demolition Project, and such provisions are hereby waived.
SECTION 5. That the expenditure of $2,219,600.00, or so much thereof as may be needed, is hereby authorized to pay for this contract per the accounting codes in the attachment to this ordinance.
SECTION 6. This ordinance is contingent upon the Ohio Water Development Authority's Board approving the loan for this project.
SECTION 7. That funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 8. 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 9. 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 10. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.