Explanation
Background
This legislation authorizes the Finance and Management Director to enter into a contract on behalf of the Office of Construction Management with Messer Construction Company in an amount of $73,750,000 for the construction of a new office building to be located at 111 North Front Street and a new parking garage to be located at 141 North Front Street.
The city demolished the former 109 North Front Street building in 2014 due to its energy inefficiency and functional obsolescence. The new building (111 North Front Street) will unite four separate service departments (Public Service, Development, Building and Zoning, and a portion of Public Utilities) into an efficient “One Stop Shop” for a myriad of business, regulatory, neighborhood, and code functions. This building has a targeted LEED Silver design. As such, the building will have natural and energy efficient lighting, will utilize reduced flow water components, high performance heating and air-conditioning that will employ recycled products, reflective roof coatings, a “green roof”, and low VOC paints and sealants. Additionally, a permanent green space will be constructed and suitable for a variety of civic uses, replacing the current surface parking lot at Gay and Front Streets.
The new building will eliminate the need for residents and the business community to travel among multiple locations. For example, a citizen looking to obtain a certified address, a building permit, new water and sewer connections, and all fee payments can do so at a single location. This building will also reduce efforts related to the approval process from boards such as Historic Preservation, Urban Design, Area Commissions, and Zoning. Considering operations costs, this building will eliminate the need for operation and maintenance of several facilities, and the city will realize efficiencies by sharing of common spaces and services among multiple departments. It is contemplated that the Piedmont/Carolyn Avenue Complex and the Beacon Building will eventually be sold.
111 North Front will finalize a decades-long program attempting to create a City Hall Municipal Campus which enhances connections, teamwork, and proximity to other departments already located on the Campus. The goal of this project is to develop and enhance the cohesiveness, functionality, flexibility, sustainability, durability, and accessibility to all requiring the services located at the City Hall Municipal Campus.
Also, the project includes constructing a companion garage containing 707 parking spaces at the northwest corner of North Front Street and West Long Street. The city is determined to ensure that plans address convenience and ease of accessibility to the 111 North Front Building. Plans for the new building include dedicating a portion of new parking spaces for campus visitors while the remaining spaces will be for city vehicles and employee parking.
Stakeholders, such as the Building Services Review Committee, have been engaged in the review and planning of this project and support the project. Additionally, the Downtown Commission unanimously approved the project at their April 28, 2015 meeting.
The Department of Finance and Management, Office of Construction Management, solicited bids for the 111 North Front Street Building and Garage Project. The city formally advertised on the Vendor Services web site from May 18, 2015, to June 17, 2015. Additionally, in February the city held two informational meetings to inform potential contractors of the scope of the project and to ensure they were familiar with the city’s new construction front end documents, and prequalification process. Also, in May the city held a pre-bid meeting to allow for questions and to review again the city’s new construction front end documents, and prequalification process.
On June 17 the city received four (4) responses. The estimated Notice to Proceed date is July 24, 2015. After the Department chose the alternates to include in the contract, the bid amount from each company is as follows:
Company Name Bid Amount City/State
Messer Construction Company $73,158,185.00 Columbus, Ohio
Turner Construction Company $74,471,810.00 Columbus, Ohio
R.W. Setterlin Building Company $74,852,499.00 Columbus, Ohio
Gutknecht-Mascaro Joint Venture $75,940,916.54 Columbus, Ohio
Award is to be made to Messer Construction Company as the lowest, responsive, responsible, and best bidder. The contract amount will be $73,750,000.00, including contingency.
Waiver of Competitive Bidding
The City advertised the project on Vendor Services and received four bids. City Code, Chapter 329.20(h)(5) states that bidders shall, “bid one subcontractor for each portion of work to be subcontracted.” Because of the complexity of the project, and that there were 25 alternates listed in the bid, bidders were getting prices from subcontractors up to just before when the bid was due. This resulted in all bidders not submitting clean lists of subcontractors where only one subcontractor was identified for a portion of work or if there were multiple subcontractors for a portion of work, a price breakdown was not provided. Some bidders also listed subcontractors, but did not provide a contract amount.
Messer Construction Company was the lowest bidder. All other portions of Messer Construction Company’s bid conformed to the requirements of Chapter 329 of Columbus City Code except their list of subcontractors.
All bidders incorrectly submitted lists of subcontractors, and Messer Construction Company’s bid otherwise conformed to Chapter 329, and because Messer Construction Company was the lowest bid, the Director is seeking approval under Columbus City Code Section 329 to waive competitive bidding for the selection of construction services for this project and enter into contract with Messer Construction Company.
Contract Compliance
The contract compliance number for Messer Construction Company is 31-0740877 and expires 6/27/16.
Fiscal Impact
Funding for this project is available from Special Income Tax Fund, the Construction Management Capital Improvement Fund, the Streets and Highways Fund, the Water Works Enlargement G.O. Bond Fund, and the Sanitary Sewer G.O. Bond Fund. The cost for this construction project will be $73,158,185.00 with an additional contingency of $591,815.00 for a total of $73,750,000.00. Additionally, to fulfill the terms of the city’s Real Estate Purchase Agreement with the State of Ohio, as authorized by Ordinance # 1693-2014, for the purchase of the property for the construction of the garage, $250,000.00 is established for leasing and other expenses necessary during construction.
Emergency Action
Emergency action is requested so that contracting, mobilization, and actual construction can begin as soon as possible. There is significant equipment mobilization, excavation, and foundation work which is best performed in warmer months.
Title
To authorize and direct the City Auditor to appropriate and transfer $72,527,440.00 from the Special Income Tax Fund to the Construction Management Capital Improvement Fund and the Streets and Highways G.O. Bond Fund; to authorize and direct the City Auditor to appropriate and transfer $683,195.00 from the Water Reserve Fund to the Water Works Enlargement G.O. Bond Fund; to authorize and direct the City Auditor to appropriate and transfer $539,365.00 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer G.O. Bond Fund; to authorize the City Auditor to appropriate $73,750,000.00 within the Construction Management Capital Improvement Fund, the Streets and Highways G.O. Bond Fund, the Water Works Enlargement G.O. Bond Fund, and the Sanitary Sewer G.O. Bond Fund; to amend the 2015 Capital Improvement Budget; to authorize the Finance and Management Director to enter into a construction contract on behalf of the Office of Construction Management with Messer Construction Company for the 111 North Front Street Building and Garage Project; to authorize the Finance and Management Director to enter into contracts for leasing and other expenses necessary during construction; to authorize the appropriation and expenditure of $250,000.00 directly from the Special Income Tax Fund; to authorize the expenditure of $56,820,165.00 from the Construction Management Capital Improvement Fund, $15,707,275.00 from the Streets and Highways G.O. Bond Fund, $683,195.00 from the Water Works Enlargement G.O. Bond Fund, and $539,365.00 from the Sanitary Sewer G.O. Bond Fund; to waive the competitive bidding provisions of Columbus City Code, Chapter 329; and to declare an emergency. ($74,000,000.00)
body
WHEREAS, the Department of Finance and Management, Office of Construction Management, desires to enter into a construction contract with Messer Construction Company for the 111 North Front Street Building and the Front and Garage Project; and
WHEREAS, to fulfill the terms of the city’s Real Estate Purchase Agreement with the State of Ohio, as authorized by Ordinance # 1693-2014, for the purchase of the property for the construction of the garage, the Department of Finance and Management desires to enter into various contracts for leasing and other expenses necessary during construction; and
WHEREAS, funding for the 111 North Front Street Building and Garage Project is available from the Construction Management Capital Improvement Fund, Streets and Highways Fund, the Water Works Enlargement G.O. Bond Fund, and the Sanitary Sewer G.O. Bond Fund; and
WHEREAS, it is necessary to amend the 2015 Capital Improvement Budget; and
WHEREAS, it is necessary to transfer funds from the Special Income Tax Fund, the Water Reserve Fund, and the Sanitary Sewer Reserve Fund to fund this project; and
WHEREAS, the city will reimburse the Special Income Tax Fund, the Water Reserve Fund, and the Sanitary Sewer Reserve Fund; and
WHEREAS, these transfers should be considered as a temporary funding method; and
WHEREAS, the aggregated principal amount of obligations which the city will issue to finance this project is presently expected not to exceed $73,750,000; 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, for the reasons outlined in the background section of this ordinance, it is in the best interest of the city to waive the competitive bidding provisions of Columbus City Code Chapter 329; 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 enter into contract with Thomas & Marker Construction Company Messer Construction Company for the 111 North Front Street Building and Garage Project, so that the project can be initiated as soon as possible due to the significant excavation and foundation work which is best done in warmer months, thereby, preserving the public health, 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 to enter into a construction contract, on behalf of the Office of Construction, with Messer Construction Co. for the 111 North Front Street Building and Garage Project.
SECTION 2. That the Finance and Management Director is hereby authorized to enter into various contracts for leasing and other expenses necessary during construction, in order to fulfill the terms of the city’s Real Estate Purchase Agreement with the State of Ohio, as authorized by Ordinance # 1693-2014, for the purchase of the property for the construction of the garage.
SECTION 3. That the sum of $72,527,440.00 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, 2015 to the City Auditor, Department 22-01, Object Level One 10, OCA 902023, Object Level Three 5502.
SECTION 4. That the City Auditor is hereby authorized to transfer and appropriate said funds in SECTION 3 to the Construction Management G.O. Bonds Fund, Fund 733, and the Streets and Highways G.O. Bonds Fund, Fund 704 as follows:
Fund/Project/Project Name/O.L. 01-03 Codes/OCA/Amount
733/570066-100000/111 N. Front Street/06-6604/733066/$56,820,165.00
704/570066-100000/111 N. Front Street/06-6604/704066/$15,707,275.00
SECTION 5. That the sum of $683,195.00 be and is hereby appropriated from the unappropriated balance of the Water Reserve Fund, Fund 603, 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, 2015 to the Division of Water, Division 60-09, Object Level One 10, OCA, 695056 Object Level Three, 5502.
SECTION 6. That the City Auditor is hereby authorized to transfer and appropriate said funds in SECTION 5 to the Water Works Enlargement G.O. Bonds Fund, Fund 606, as follows:
Fund/Project/Project Name/O.L. 01-03 Codes/OCA/Amount
606/570066-100000/111 N. Front Street/06-6604/ 606066/$683,195.00
SECTION 7. That the sum of $539,365.00 be and is hereby appropriated from the unappropriated balance of the Sanitary Sewer Reserve Fund, Fund 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, 2015 to the Division of Sewerage and Drainage, Division 60-05, Object Level One 10, OCA 655225, Object Level Three, 5502.
SECTION 8. That the City Auditor is hereby authorized to transfer and appropriate said funds in SECTION 7 to the Sanitary Sewer G.O. Bonds Fund, Fund 664, as follows:
Fund/Project/Project Name/O.L. 01-03 Codes/OCA/Amount
664/570066-100000/111 N. Front Street/06-6604/664066/$539,365.00
SECTION 9. That the 2015 Capital Improvement Budget authorized by ordinance 0557-2015 be amended as follows to establish sufficient authority for this project:
Fund / Project / Project Name / Current / Change / Amended
664/650744-100000/Brimfield Area Sanitary Sewer/$880,000/($539,365)/$340,635
664/570066-100000/111 N. Front Street/$0/$539,365/$539,365
SECTION 10. That upon obtaining funds for this project for the Director of Finance and Management, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under SECTION 4.
SECTION 11. That upon obtaining funds for this project for the Director of Finance and Management, the City Auditor is hereby authorized and directed to repay the Water Reserve Fund the amount transferred under SECTION 6.
SECTION 12. That upon obtaining funds for this project for the Director of Finance and Management, the City Auditor is hereby authorized and directed to repay the Sanitary Sewer Reserve Fund the amount transferred under SECTION 8.
SECTION 13. 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 obligations to be issued by the City in a principal amount currently estimated to be $73,750,000 (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 14. That the expenditure of $73,750,000.00 or so much thereof as may be necessary in regard to the actions authorized in Sections 1, be and is hereby authorized and approved as follows:
Dept/Div: 45-50
Fund: 733
Project: 570066-100000
OCA: 733066
Object Level 1: 06
Object Level 3: 6604
Amount: $56,820,165.00
Division: 59-12
Fund: 704
Project: 570066-100000
OCA Code: 704066
Object Level 1: 06
Object Level 3: 6604
Amount: $15,707,275.00
Division: 60-09
Fund: 606
Project: 570066-100000
OCA Code: 606066
Object Level 1: 06
Object Level 3: 6604
Amount: $683,195.00
Division: 60-05
Fund: 664
Project: 570066-100000
OCA Code: 664066
Object Level 1: 06
Object Level 3: 6604
Amount: $539,365.00
SECTION 15. That the City Auditor is authorized to appropriate $250,000.00 within the Special Income Tax Fund as follows:
Fund: 430
Dept/Div: 45-50
OCA: 430100
Object Level 1: 03
Object Level 3: 3304
Amount: $250,000.00
SECTION 16. That the expenditure of $250,000.00, or so much thereof as may be necessary in regard to the actions authorized in Section 2 above, be and is hereby authorized and approved from the Special Income Tax Fund as follows:
Fund: 430
Dept/Div: 45-50
OCA: 430100
Object Level 1: 03
Object Level 3: 3304
Amount: $250,000.00
SECTION 17. 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 18. That the competitive bidding provisions of Columbus City Codes Chapter 329 are hereby waived in regard to the actions authorized in SECTIONS 1 and 2 above.
SECTION 19. 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 20. 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 21. 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 22. 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.