Explanation
1. BACKGROUND: This legislation authorizes the Director of Public Utilities to enter into a construction contract with the Sunesis Construction Company for the Upper Scioto West Shaft Improvements project, 650499-100000, the work for which consists of the repair of 14 access shafts to the Upper Scioto West Interceptor Sewer and other such work as may be necessary to complete the contract, in accordance with the drawings, technical specifications, and City of Columbus Construction and Material Specifications as set forth in this Invitation For Bid (IFB).
This project has been approved for below market-rate loan financing through the Ohio Environmental Protection Agency’s Water Pollution Control Loan Fund (WPCLF) which is administered by the Ohio Water Development Authority (OWDA). Ordinance 2241-2015, passed October 19, 2015, authorizes the Director of Public Utilities to enter into a WPCLF Loan for the project. The project’s assigned WPCLF Number is CS390274-0250. The loan award is expected on May 25, 2017, an OWDA Loan Account number will be assigned.
2. PROJECT TIMELINE: The work under this contract shall be completed in a manner acceptable to the City within 270 calendar days after the date of the Notice to Proceed.
3. PROCUREMENT INFORMATION: The Division advertised for competitive bids for the subject project on the City's Vendor Services website, the City's Bulletin in accordance with the overall provisions of Section 329 of Columbus’s City Codes, and the Bid Express website. The Division of Sewerage and Drainage received two (2) bids on March 17, 2017 from the following companies:
4. Name C.C. No Vendor # Exp. Date City/State Status
Sunesis Construction Company 31-1323837 019623 4/18/2019 West Chester, Ohio MAJ
The Righter Company 31-0889208 004433 2/18/2018 Columbus, Ohio MAJ
These bids were reviewed and ranked utilizing the Bid Tab and Quality Factor Form process. After reviewing these bids and the QFF form, it was determined that Sunesis Construction Company was the lowest responsive, responsible, and best bid submitted. The Engineer's Estimate was $1,572,050.00.
5. EMERGENCY DESIGNATION: An emergency designation is not requested at this time.
6. CONTRACT COMPIANCE NO: 31-1323837 | MAJ | 04/18/19 | Vendor #: 019623
7. ECONOMIC IMPACT: The work being done in this project will mitigate possible failure of the shafts that could create blockages in the sanitary sewer and lead to surface flooding and/or discharge to the streams.
8. FISCAL IMPACT: This legislation authorizes the appropriation and transfer of $1,968,783.73 from the Sanitary Sewer Reserve Fund 6102 to the Ohio Water Development (OWDA) Loan Fund 6111; authorizes the expenditure of up to $1,968,783.73 from the loan fund; and amends the 2017 Capital Improvements Budget to create sufficient budget authority for this project.
Title
To authorize the Director of Public Utilities to enter into a construction contract with the Sunesis Construction Company for the Upper Scioto West Shaft Improvements Project; to authorize the appropriation and transfer of $1,968,783.73 from the Sanitary Sewer Reserve Fund to the Ohio Water Development Loan Fund; to authorize the expenditure of up to $1,968,783.73 from said loan fund for the Division of Sewerage and Drainage; and authorize an amendment to the 2017 Capital Improvements Budget to create sufficient budget authority for this project. ($1,968,783.73).
Body
WHEREAS, it is necessary to authorize the Director of Public Utilities to enter into a construction contract with the Sunesis Construction Company for the Upper Scioto West Shaft Improvements Project, CIP 650499-100000; and
WHEREAS, the work for which consists of the repair of 14 access shafts to the Upper Scioto West Interceptor Sewer and other such work as may be necessary to complete the contract; and
WHEREAS, the Ohio Water Development Authority (OWDA) will approve an Ohio EPA WPCLF loan agreement with the City of Columbus on May 25th, 2017, in the amount of $1,968,783.73 to provide financing for the above listed project with eligible costs including the construction contract and contingency; and
WHEREAS, it is necessary to both appropriate funds from the Sewer System Reserve Fund and to authorize the transfer of said funds to the OWDA Loan Fund in order to temporarily fund this expenditure until such time as the City receives loan proceeds for the above stated purpose and reimburse the Sewer System Reserve Fund; and
WHEREAS, it is necessary to amend the 2017 Capital Improvements Budget to create sufficient budget authority for this project; and
WHEREAS, the aggregate principal amount of obligations which the City will issue to finance this project will not exceed $1,968,783.73; and
WHEREAS, it is necessary to authorize the expenditure of up to $1,968,783.73 from the Ohio Water Development (OWDA) Loan Fund, Fund 6111; 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, it has become necessary in the usual daily operation of the Department of Public Utilities to authorize the Director to enter into a construction contract with the Sunesis Construction Company for the Upper Scioto West Shaft Improvements Project, CIP 650499-100000 at the earliest practical date for the preservation of the public health and safety; Now, Therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Utilities is hereby authorized to enter into a construction contract with Sunesis Construction Company, 2610 Cresentville Rd, West Chester, Ohio 45069 for the Upper Scioto West Shaft Improvements Project in accordance with the terms and conditions on file in the office of the Division of Sewerage and Drainage.
SECTION 2. That from the unappropriated monies 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 ended December 31, 2017, the sum of $1,968,783.73 is appropriated in Fund 6102, per the account codes in the DAX Financial attachment to this ordinance.
SECTION 3. That the transfer of $1,968,783.73 or so much thereof as may be needed, is hereby authorized between the Sanitary Sewer Reserve Fund 6102 and OWDA Loan Fund 6111 per the accounting codes in the attachment to this ordinance.
SECTION 4. That the appropriation and expenditure of $1,968,783.73 or so much thereof as may be needed, is hereby authorized in the Ohio Water Development (OWDA) Loan Fund, Fund 6111 per the accounting codes in the attachment to this ordinance.
SECTION 5. That the 2017Capital Improvements Budget Ordinance is hereby amended as follows:
Project No. | Project Name | Current Authority | Revised Authority | Change
P650725-100003 | Lrg Dia Sewer Alum Crk Mid Sec Alum Crk Interceptor | $8,500,000 | $8,031,216 | -$468,784
P650499-100000 | Upper Scioto West Shaft | $1,500,000 | $1,968,784 | +$468,784
SECTION 6. That the said firm, Sunesis Construction Company, 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 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 8. That the City Auditor is hereby authorized and directed 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 no longer required for said project; except that no transfer shall be made from a project account by monies from more than one source.
SECTION 9. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 10. 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 11. 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 12. 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 $1,968,783.73 (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 6102, which is the fund from which the advance for costs of the Project will be made.
SECTION 13. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.