Explanation
Background: In 1993, The City leased the Solid Waste Reduction Facility to the Solid Waste Authority of Central Ohio, ("SWACO"). In 1995, the Facility ceased to operate as a power plant. Since then efforts to find feasible alternate uses have not proved successful. Costs to keep the plant in "mothball" status exceed $100,000 per year. To increase the opportunity for economic redevelopment of the site SWACO recommends demolition of those portions of the facility which are not currently being used or have an anticipated reuse. The major portions of the Facility recommended for demolition are the conveyor, the turbine hall and boiler plant. The attachment to this ordinance outlines the structures proposed for demolition in red. In September SWACO requested bids for demolition. Seven responsive bids were submitted. The lowest and best bidder was B&B Wrecking & Excavating, Inc., out of Cleveland, Ohio ("B&B"). B&B submitted the only bid which proposed to pay SWACO (and hence the City). From the sale of scrap B&B will pay SWACO $377,500.00. All other bidders required payment by SWACO. Under the lease between the City and SWACO, SWACO is required to maintain all improvements and at the expiration of the term to deliver possession in good condition and repair. Consequently, in order to demolish these portions of the facility it is necessary to modify the lease agreement to release SWACO from this covenant with respect to the designated improvements.
Fiscal Impact: Demolition of the designated portions of the Solid Waste Reduction Facility under the proposal submitted by B&B will result in a $377,500 payment to SWACO. SWACO has agreed to pay that amount to the City at the time notice to proceed with the demolition contract is given. The funds will be deposited in the city's general operating fund, notwithstanding the provisions of Ordinance #0071-2004.
Emergency Justification: Because the B&B bid expires January 13, 2004, it ...
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