Explanation
1. BACKGROUND: This legislation authorizes the Director of Public Utilities to enter into a construction contract with Shook Heavy & Environmental Group for the Dublin Road Water Plant Disinfection and Miscellaneous Improvements Project; in the amount of $13,026,273.12; to transfer $3,231,964.66 from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund; and to amend the 2008 Capital Improvements Budget.
The Engineer's Estimate prepared by Malcolm Pirnie, Inc. was $14,400,000.00. The 2008 Capital Improvements Budget includes $9,000,000 for this project. This amount was last reviewed and confirmed by Malcolm Pirnie approximately six (6) months ago. They updated the Engineer's Estimate for the project based on the changes in the last 6 months and from updated vendors quotes. The major items that have increased in price are:
· Electrical estimate doubled to a current $700,000.00 due to price escalation in materials.
· Replacement of the Rectangular Butterfly Valves increased $600,000 due to escalation in materials (the last quote was received approximately a year ago).
· Offsite trucking of the last two feet of clearwell liquid adds about $500,000.00.
· Increased unit price quantities of the repair items in the sedimentation basins and clearwells about 20% to account for extra repair areas since the last repair survey was performed more than two years ago. This added about $650,000.00.
· Price escalations in concrete, steel, hand railing and other items added approximately $400,000.00 since the last estimate update about 6 months ago.
The total of these items is $2,850,000.00. Adding 10% General Contractor OH and Profit plus 15% Subcontractor OH and Profit and 15% Force Account puts the total increase to the estimate about $4,150,000.00.
2. CONSTRUCTION CONTRACT AWARD: The Director of Public Utilities publicly opened three bids on June 18, 2008. Bids were received from: Shook Heavy & Environmental Group - $13,026,273.12; Crace Construction Co. - $14,157,771.67; and Dugan & Meyers Construction Co. - $14,332,585.40.
The lowest and best bid was from Shook Heavy & Environmental Group in the amount of $13,026,273.12. Their Contract Compliance Number is 31-0443680 (expires 8/1/08, Majority). Additional information regarding each bidder, description of work, contract time frame and detailed amounts can be found on the attached Legislation Information Form.
3. FISCAL IMPACT: This legislation includes a transfer of funds within the Water Works Enlargement Voted Bonds Fund and a transfer of funds from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund as a temporary measure until such time as the proceeds from a bond sale can be made available. An amendment to the 2008 CIB is also necessary.
Title
To authorize the Director of Public Utilities to execute a construction contract with Shook Heavy & Environmental Group for construction of the Dublin Road Water Plant Disinfection and Miscellaneous Improvements Project; to authorize the transfer of $265,195.27 within the Water Works Enlargement Voted Bonds Fund; to authorize the appropriation, transfer, an expenditure of $3,231,964.66 from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund; to authorize the expenditure of $13,026,273.12 from the Water Works Enlargement Voted Bonds Fund; and to authorize an amendment to the 2008 Capital Improvements Budget; for the Division of Power and Water. ($13,026,273.12)
Body
WHEREAS, three bids for the Dublin Road Water Plant Disinfection and Miscellaneous Improvements Project were received and publicly opened in the offices of the Director of Public Utilities on June 18, 2008; and
WHEREAS, the lowest and best bid was from Shook Heavy & Environmental Group in the amount of $13,026,273.12; and
WHEREAS, it is necessary to authorize an amendment to the 2008 Capital Improvements Budget for purposes of providing sufficient funding and expenditure authority for the aforementioned project expenditure; and
WHEREAS, it is necessary for this Council to authorize the City Auditor to transfer funds from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund; 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 construction of the Project described in this Ordinance (collectively, the "Project").
WHEREAS, it has become necessary in the usual daily operation of the Division of Power and Water, Department of Public Utilities, to authorize the Director of Public Utilities to enter into a construction contract for the Dublin Road Water Plant Disinfection and Miscellaneous Improvements Project, to authorize the appropriation and transfer of funds from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund, for the preservation of the public health, peace, property and safety; now therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Auditor is hereby authorized to transfer $265,195.27 within the Division of Power and Water, Dept/Div. No. 60-09, Water Works Enlargement Voted Bonds Fund, Fund No. 606, Object Level One 06, Object Level Three 6623, as follows:
Project No. | Project Name | OCA Code | change
690414 | PAWP Sludge Disposal | 690414 | -$265,195.27
690379 | DRWP Chlorine Storage Imp's | 606379 | +$265,195.27
SECTION 2. That from the unappropriated monies in the Water System Reserve Fund, 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, 2008, the sum of $3,231,964.66, is hereby appropriated to the Division of Power and Water, Division 60-09, Object level One 10, Object level Three 5502, OCA 695056.
SECTION 3. That the City Auditor is hereby authorized and directed to transfer $3,231,964.66, from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund, Fund No. 606, into the appropriate project account as specified within Section 4 herein, at such time as deemed necessary by him, and to expend said funds, or so much thereof as may be necessary.
SECTION 4. That the expenditure of $3,231,964.66 is hereby appropriated for the Dublin Road Water Plant Disinfection and Miscellaneous Improvements Project within the Water Works Enlargement Voted Bonds Fund, Fund No. 606, Division 60-09, Project No. 690379, Object Level Three 6623, OCA Code 606379.
SECTION 5. That the expenditure of $13,026,273.12 is hereby authorized for the Dublin Road Water Plant Disinfection and Miscellaneous Improvements Project within the Water Works Enlargement Voted Bonds Fund, Fund No. 606, Division 60-09, Project No. 690379, Object Level Three 6623, OCA Code 606379.
SECTION 6. That the 2008 Capital Improvements Budget is hereby amended as follows:
Project No. | Project Name | Current Authority | Revised Authority | (change)
690414-100000 | PAWP Sludge Disposal | $265,195 | $265,196 | +$1 (add authority)
690414-100000 | PAWP Sludge Disposal | $265,196 | $0 | -$265,196
690379-100000 | DRWP Chlorine Storage Imp's | $11,948,787 | $13,185,897 | +$1,237,110
SECTION 7. That upon obtaining other funds for the purpose of funding water system capital improvement work, the City Auditor is hereby authorized to repay the Water System Reserve Fund the amount transferred under Section 3 above, and said funds are hereby deemed appropriated for such purpose.
SECTION 8. That the Director of Public Utilities be and hereby is authorized to award and execute a construction contract for the Dublin Road Water Plant Disinfection and Miscellaneous Improvements Project with the lowest and best bidder, Shook Heavy & Environmental Group; 4977 Northcutt Pl., Dayton, Ohio 45414; in the amount of $13,024,733.25; in accordance with the terms and conditions of the contract on file in the Office of the Division of Power and Water.
SECTION 9. 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 10. That said construction company shall conduct the work to the satisfaction of the Director of Public and the Administrator of the Division of Power and Water.
SECTION 11. That for the purpose of paying the cost of the contract, the following expenditure, or as much thereof as may be needed is hereby authorized as follows: Division of Power and Water, Dept./Div. No. 60-09, Water Works Enlargement Voted Bonds Fund, Fund No. 606, Project 690379, OCA Code 606379, Object Level One 06, Object Level Three 6623, Amount $13,026,273.12.
SECTION 12. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.