Explanation
1. BACKGROUND: This legislation authorizes the Director of Public Utilities to enter into a professional engineering services agreement with the Smoot Construction Company for the Lockbourne Intermodal Subtrunk Professional Construction Management (PCM) Services for the Division of Sewerage and Drainage. As part of the Northern Pickaway Joint Economic Development District (JEDD) agreement, the City of Columbus agreed to construct the sanitary sewer infrastructure necessary to serve the district. A majority of that area will be served via the 60-78" Lockbourne Intermodal Subtrunk Sewer (LIS) which is planned to begin construction in 2016. Due to the size and complexity of the project, an RFP for the construction management services for the project was issued and proposals were received on December 12, 2014. The initial contract fee is meant to cover all costs the PCM will incur during the plan review, value engineering and bidding phases. Planned contract modifications will occur later to include the required inspection services.
This contract will provide construction administration and management services including, construction inspection, construction and startup coordination, reporting, budgeting, scheduling, document tracking, and other related tasks to ensure the City receives a quality product in conformance with the Contract Documents.
2. PROJECT TIMELINE: A contract modification for the design engineer will occur concurrently with the contract request. After the contracts have been executed later this summer, the designer will begin the value engineering (VE) process which will include the PCM consultant. Construction is expected to begin in late 2016 and will continue on through the end of 2018.
3. PROCUREMENT INFORMATION: Department of Public Utilities advertised a Request for Proposals (RFP) for this project in the City Bulletin in accordance with the overall provisions of Chapter 329 of Columbus City Codes. The RFP's were received and opened on December 12, 2014. Three (3) firms submitted detailed proposals for this project to the Director of Public Utilities. The following companies submitted bids:
4. Company Name __CCCN_ Expiration City/State Status
Black & Veatch 43-1833073 09/30/2015 Columbus, Ohio MAJ
Smoot Construction Co. 31-1224826 04/29/2016 Columbus, Ohio MBE
HR Gray & Associates 31-1050479 10/09/2015 Columbus, Ohio MAJ
The Offerors were ranked using criteria specified in the City Code and as stated in the RFP. Smoot Construction was awarded the agreement.
This company is not debarred according to the Federal Excluded Parties Listing or the State Auditor's Findings for Recovery Database.
5. Contract Compliance No.: 31-1224826 | MBE | Exp. 04/29/2016
6. Emergency Designation: Emergency designation is not requested.
7. ECONOMIC IMPACT: This project will allow the City to expand its collection system resulting in potential increases to our tax and rate payer bases. It will create environmental benefits by reducing the number of site septic treatment systems which allow for high quality treatment of the sewage. It will also decrease the long term maintenance and power usage that is associated with the pump stations that will be taken offline once the subtrunk is completed.
8. FISCAL IMPACT: This ordinance authorizes the appropriation and transfer of funds from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund, Fund 664 and to authorize the expenditure of $1,075,778.00 from the G.O. Bond Fund, Fund 664. Monies for this contract from the Sanitary Sewer Reserve Fund will be provided from a future Bond Sale via the transfer detailed in this ordinance.
Title
To authorize the Director of Public Utilities to enter into a professional engineering services agreement with the Smoot Construction Company for the Lockbourne Intermodal Subtrunk Professional Construction Management (PCM) Services; to authorize the appropriation and transfer of funds from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund; and to authorize the expenditure of $1,075,778.00 from the Sanitary Sewer General Obligation (G.O.) Bond Fund. ($1,075,778.00)
Body
WHEREAS, the City of Columbus agreed to construct the sanitary sewer infrastructure for the Northern Pickaway Joint Economic Development District (JEDD) agreement; and
WHEREAS, the majority of that area will be served via the 60-78" Lockbourne Intermodal Subtrunk Sewer (LIS); and
WHEREAS, it is necessary to authorize the appropriation and transfer of funds from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund
WHEREAS, it is necessary for City Council to authorize the expenditure of funds from the Sanitary Sewer System GO Bond Fund, Fund 664; and
WHEREAS, it is necessary to transfer funds from the Sanitary Sewer Reserve Fund in the amount $1,075,778.00 for this project; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Sanitary Reserve 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 project described in this ordinance (the "Project"); and
WHEREAS, this legislation authorizes the Director of Public Utilities to enter into a professional engineering services agreement with the Smoot Construction Company for the Lockbourne Intermodal Subtrunk Professional Construction Management (PCM) Services at the earliest practicable date; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Utilities be, and hereby is, authorized to enter into a professional engineering services agreement with the Smoot Construction Company, 1907 Leonard Ave., Columbus, Ohio 43219 for the Lockbourne Intermodal Subtrunk Professional Construction Management (PCM) Services in accordance with the terms and conditions as shown in the agreement on file in the office of the Division of Sewerage and Drainage.
SECTION 2. That from the unappropriated monies in the Sanitary Sewer Reserve Fund No. 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, the sum of $1,075,778.00 is hereby appropriated to the Division of Sewerage and Drainage: Division 60-05 | OCA Code 655225 | Object Level One 10 | Object Level Three 5502.
SECTION 3. That the City Auditor is hereby authorized to transfer and appropriate a total $1,075,778.00 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer Bond Fund, Fund 664, into the Lockbourne Intermodal Subtrunk Professional Construction Management (PCM) Services, 650491-100006, at such time as deemed necessary by the Auditor, or so much thereof as may be necessary in the following manner: Division 60-05 | OCA Code 644916 | Object Level 06 | Object Level Three 6667
SECTION 4. That the Director of Public Utilities be and hereby is authorized to expend up to $1,075,778.00 for the Lockbourne Intermodal Subtrunk PCM Services in the following manner for the Div. 60-05 | Obj. Lvl 3 6676:
650491-100006 | Lockbourne Intermodal Subtrunk PCM Services | 644916 | $1,075,778.00
SECTION 5. That the said firm Smoot Construction, shall perform the work to the satisfaction of the Director of Public Utilities and the Administrator of the Division of Sewerage and Drainage.
SECTION 6. That the City Auditor is hereby authorized to transfer any unencumbered balance in the project account to the unallocated balance 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; except that no transfer shall be made from a project by monies from more than one source.
SECTION 7. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
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 upon obtaining other funds for the purpose of funding sanitary sewer system capital improvement work, the City Auditor is hereby authorized to repay the Sanitary Sewer Reserve Fund the amount transferred above (Section 3), and said funds are hereby deemed appropriated for such purposes.
SECTION 10. 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 $1,075,778.00 (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 Sanitary/Sewer Reserve Fund 654, which is the fund from which the advance for costs of the Project will be made.
SECTION 11. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.