Explanation
BACKGROUND: This legislation authorizes the Director of Public Utilities to enter into a construction contract with Layne Inliner, LLC for the Blueprint Miller Kelton: Lining Project. The work to be completed by this contract consists of the rehabilitation of approximately 50,860 LF of 8- thru 48-inch sewers utilizing the Cured-in-Place Pipe (CIPP) process, manhole rehabilitation, and other such work as may be necessary to complete the contract in accordance with the plans and specifications set forth in the Bid Submittal Documents.
PROJECT TIMELINE: Contract work is required to be completed in a manner acceptable to the City within 365 days from the date that a Notice To Proceed (NTP) is given by the City.
PROCUREMENT: The Division advertised for competitive bids for the Blueprint Miller Kelton: Lining Project on the City’s Vendor Services website and in the City Bulletin in accordance with the overall provisions of Chapter 329 of the Columbus City Code. The Division of Sewerage and Drainage received two (2) bids on May 27th, 2015 from the following companies:
Name _____ C.C. No. /Exp. Date _____ City/State __ Status
Layne Inliner, LLC 01-0684682 02/06/2016 Hilliard, OH MAJ
SAK* 20-4193988 / Inactive O’Fallon, MO MAJ
SAK: bid deemed non-responsive
The bids were reviewed and ranked utilizing the Bid Tab and Quality Factor Form process. After reviewing the bids and the QFF form, it was determined that Layne Inliner, LLC was the lowest responsive, responsible, and best bid. The Engineer’s Estimate was $5,044,978.00
Contract Compliance No.: 01-0684682 | MAJ | Exp. 02/06/2016
Emergency Designation: The Department of Public Utilities is requesting emergency legislation. Due to a scheduling error this project was delayed and now must be completed to keep the required work on schedule.
Economic Impact: Project will rehabilitate existing sanitary sewers within the Miller Kelton area reducing inflow and infiltration to the City’s sanitary system. Project will mitigate sanitary sewer overflows to basements and waterways.
Fiscal Impact: This ordinance authorizes the appropriation and transfer of $4,930,657.90 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund, Fund 664; to authorize the creation of sufficient budget authority; to authorize the expenditure of up to $4,930,657.90 from the G.O. Bond Fund, Fund 664 and to amend the 2015 Capital Improvements Budget to establish sufficient budget authority for this ordinance. 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 construction contract with Layne Inliner, LLC for the Blueprint Miller Kelton: Lining Project; to authorize the appropriation and transfer of $4,930,657.90 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund; to authorize the expenditure of up to $4,930,657.90 from the Sanitary Sewers General Obligation Bond Fund; to amend the 2015 Capital Improvements Budget; and declare an emergency. ($4,930,657.90)
Body
WHEREAS, the Department of Public Utilities advertised for competitive bids for the Blueprint Miller Kelton: Lining Project on the City’s Vendor Services website and in the City Bulletin in accordance with the overall provisions of Chapter 329 of the Columbus City Code; and
WHEREAS, two companies submitted bids that were reviewed and ranked utilizing the Bid Tab and Quality Factor Form process and it was determined that Layne Inliner, LLC be awarded the construction contract; and
WHEREAS, it is necessary to authorize the appropriation and transfer of $4,930,657.90 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund; and
WHEREAS, it is necessary for City Council to authorize the expenditure of up to $4,930,657.90 from the Sanitary Sewer System GO Bond Fund, Fund 664; and
WHEREAS, it is necessary to amend the 2015 Capital Improvements Budget for purposes of creating and providing sufficient budget authority for the aforementioned expenditures; 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, an emergency exists in the daily operations of the Division of Sewerage and Drainage, Department of Public Utilities, in that it is immediately necessary to authorize the Director of Public Utilities to enter into a construction contract with Layne Inliner, LLC for the Blueprint Miller Kelton: Lining Project 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 Director of Public Utilities be, and hereby is, authorized to enter into a construction contract with Layne Inliner LLC, 4143 Weaver Court, Hilliard, Ohio 43026, for the Blueprint Miller Kelton: Lining Project 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 $4,930,657.90 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 $4,930,657.90 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer Bond Fund, Fund 664, into the Blueprint Miller Kelton: Lining Project, CIP 650875-100001, at such time as deemed necessary by the Auditor, or so much thereof as may be necessary in the following manner: Division 60-05 | 648751 | Object Level 06 | Object Level Three 6630
SECTION 4. That the Director of Public Utilities be and hereby is authorized to expend up to $4,930,657.90 from the Sanitary Sewer General Obligation Bond Fund, Fund 664 | Div. 60-05 | Obj. Lvl 3 6630 in the following manner:
Fund # | Project No. | Project Name | OCA Code | Amount ($)
664 | 650875-100001 | Blueprint Miller Kelton: Lining Project | 648751 | +$4,929,657.90
$1,000 for administration of Prevailing Wages
SECTION 5. That the 2015 Capital Improvements Budget is hereby amended as follows:
Fund No. | Project No. | Project Name | Current | Revised | (Change)
664 | 650888-100000 | Scioto Main Sanitary Trunk Sewer | $2,784,950 | $0 | (-$2,784,950)
664 | 650885-100000 | Scioto Peninsula Improvements | $2,000,000 | $0 | (-$2,000,000)
664 | 650560-100000 | Franklinton East Sewer Improvements | $239,670 | $93,963 | (-$145,708)
664 | 650875-100001 | Blueprint Miller Kelton: Lining Project | $0 | $4,930,658 | (+$4,930,658)
SECTION 6. That the said firm, Layne Inliner, LLC shall perform the work to the satisfaction of the Director of Public Utilities and the Administrator of the Division of Sewerage and Drainage.
SECTION 7. 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 8. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
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 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 in Section 2 and Section 3, and said funds are hereby deemed appropriated for such purposes.
SECTION 11. 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 $4,930,657.90 (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 12. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure which 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.