Explanation
1. BACKGROUND: This legislation authorizes the Director of Public Utilities to enter into a construction contract with John Eramo & Sons, Inc. for the Blueprint Clintonville: Blenheim/Glencoe Integrated Solution & Acton Road Area Water Line Improvements Project, CIP 650870-100001.
This is a joint project between the Department of Public Utilities (Sanitary Sewers and Water) and the Department of Public Service. Work under this project consists of: construction of 183 bioretention basins/rain gardens and a stormwater wetland to store and treat stormwater runoff as part of the City’s Wet Weather Integrated Plan mandated by the Ohio EPA; replacing/ rehabilitating water mains; and resurfacing pavement, replacing curbs and curb ramps, on Acton Road from High Street to Indianola Avenue. See attachment “ORD 1536-2017 Information” Item no. 5 for more detailed information.
Planning Area: “Clintonville” and the project area includes: East Torrence Road, East Dunedin Road, Foster Street, Yaronia Drive North, Wynding Drive, and Milton Avenue.
2. ECONOMIC IMPACT/ADVANTAGES; COMMUNITY OUTREACH; PROJECT DEVELOPMENT; ENVIRONMENTAL FACTORS/ADVANTAGES OF PROJECT:
DOSD: This project will capture and treat non-point source stormwater runoff using local contractors in order to improve water quality within the Olentangy River and other receiving streams. Several public meetings were conducted to incorporate stakeholder input into the project design.
DOW: The Division of Water’s goal is to rehabilitate existing water lines that have a high break frequency, which will decrease burden on water maintenance operations and should eliminate the pattern of frequent water line breaks. Neighborhood liaison(s) will be contacted and informed of this project during the design phase. Further community outreach may result through the Neighborhood Liaison Program.
DPS: The pavement on Acton Road has exceeded its useful life and has numerous potholes and spalled surfaces. The resurfacing is requested by the residents in the area. Performing the resurfacing with DOSD and DOW work is more cost-efficient because it reduces the mobilization costs and minimizes neighborhood disruption by having the paving contractor perform paving on the street only one time.
3. CONSTRUCTION CONTRACT AWARD: The Director of Public Utilities publicly opened three bids on May 17, 2017 from:
1. John Eramo & Sons, Inc. $13,621,530.79
2. Shelly & Sands, Inc. $15,401,506.94
3. Trucco Construction Co. $16,845,041.59
John Eramo & Sons’s bid was deemed the lowest, best, most responsive and responsible bid in the amount of $13,621,530.79. Their Contract Compliance Number is 31-0724866 (expires 10/20/17, Majority, DAX No. 004251). Additional information regarding all bidders, description of work, contract time frame and detailed amounts can be found on the attached Information form.
Searches in the Excluded Party List System (Federal) and the Findings for Recovery list (State) produced no findings against John Eramo & Sons.
3.1 PRE-QUALIFICATION STATUS: John Eramo & Sons and all proposed subcontractors have met code requirements with respect to pre-qualification, pursuant to relevant sections of Columbus City Code Chapter 329.
4. FISCAL IMPACT: Funding for this project will come from General Obligation Funds as well as loans from the Ohio Water Development (OWDA) Loan Fund and the Water Supply Revolving Loan Account (WSRLA) Fund.
DOSD & DOW: This Ordinance authorizes the City Auditor to appropriate and transfer funds from the Water and Sewer Reserve Funds to said loan funds, as a temporary measure that is required until the Divisions are able to execute the loans. The loans are expected to be approved on July 27, 2017. An amendment to the 2017 Capital Improvements Budget is also necessary.
DPS: Funds in the amount of $503,013.50 are available for the Public Service portion of this project in the Streets and Highways Bond Fund within the Department of Public Service. An amendment to the 2017 Capital Improvements Budget is necessary to provide sufficient budget authority for the appropriate project.
Title
To authorize the Director of Public Utilities to enter into a construction contract with John Eramo & Sons, Inc. for the Blueprint Clintonville: Blenheim/Glencoe Integrated Solution & Acton Road Area Water Line Improvements Project; to authorize appropriations and transfers from the Sanitary Sewer and Water Reserve Funds to the Ohio Water Development Loan (OWDA) Fund and the Water Supply Revolving Loan Account (WSRLA) Fund, respectively; to authorize the City Auditor to transfer cash and appropriation between projects within the Streets and Highways Bond Fund; to authorize an expenditure of up to $9,510,936.60 for the Division of Sewerage and Drainage; to authorize an expenditure of up to $3,607,580.69 for the Division of Water; to authorize an expenditure of up to $503,013.50 for the Department of Public Service; and to amend the 2017 Capital Improvements Budget. ($13,621,530.79)
Body
WHEREAS, it is necessary to authorize the Director of Public Utilities to enter into a construction contract with the John Eramo & Sons, Inc. for the Blueprint Clintonville: Blenheim/Glencoe Integrated Solution & Acton Road Area Water Line Improvements Project, CIP 650870-100001; and
WHEREAS, it is necessary to both appropriate funds from the Sanitary Sewer and Water System Reserve Funds and to authorize the transfer of said funds into the Ohio Water Development Loan (OWDA) Fund and Water Supply Revolving Loan Account Fund, respectively; in order to temporarily fund these expenditures, until such time as the City is able to execute loans for the above stated purpose and reimburse the Sanitary Sewer and Water System Reserve Funds; and
WHEREAS, it is necessary to authorize an amendment to the 2017 Capital Improvements Budget for purposes of providing sufficient funding and expenditure authority for the aforementioned project expenditures; 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 John Eramo & Sons, for the Blueprint Clintonville: Blenheim/Glencoe Integrated Solution & Acton Road Area Water Line Improvements Project, CIP 650870-100001 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 John Eramo & Sons, Inc. 3670 Lacon Rd., Hilliard, Ohio, 43026; for the Blueprint Clintonville: Blenheim/Glencoe Integrated Solution & Acton Road Area Water Line Improvements Project, in accordance with the terms and conditions on file in the office of the Division of Sewerage and Drainage.
SECTION 2. That said construction company shall conduct the work to the satisfaction of the Directors of Public Utilities and Public Service.
SECTION 3. That the 2017 Capital Improvements Budget is hereby amended as follows:
Fund No. | Project ID | Project Name | Current Authority | Revised Authority | Change
6011 | P690236-100061 (WSRLA) | Acton Rd. Area WL Imp’s | $0 | $3,562,283 | +$3,562,283
6109 | P650009-100002 | Real Time Control Sewer Sys. Optimization | $85,553 | $33,776 | -$51,777
6109 | P650870-100001 | Blueprint Clintonville Blenheim Glencoe Int. Solutions | $0 | $51,777 | $51,777
6111 | P650870-100001 (OWDA) | Blueprint Clintonville Blenheim Glencoe Int. Solutions | $0 | $9,459,160 | +$9,459,160
7704 | P530282-100000 | 59-03 Resurfacing | $1,409,678.00 | $906,664.00 | -$503,014
7704 | P530282-100117 | Resurfacing - Resurfacing coord. w/future DPU projects | $0 | $503,014 | $503,014
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DOSD:
SECTION 4. 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 $9,459,159.60 is appropriated in Fund 6102 - Sanitary Sewer Reserve Fund, in Object Class 10, Transfer Out Expenditure, per the account codes in the attachment to this ordinance.
SECTION 5. That the transfer of $9,459,159.60 or so much thereof as may be needed, is hereby authorized between Fund 6102 - Sanitary Sewer Reserve Fund and Fund 6111 - Ohio Water Development Loan (OWDA) Fund, per the accounting codes in the attachment to this ordinance.
SECTION 6. That the appropriation and expenditure of $9,459,159.60 or so much thereof as may be needed, is hereby authorized in Fund 6111 - Ohio Water Development (OWDA) Loan Fund, in Object Class 06, Capital Outlay, per the accounting codes in the attachment to this ordinance.
SECTION 7. That the City Auditor is hereby authorized to transfer $51,777.00 within Fund 6109 - Sanitary Sewer General Obligation Bond Fund, per the account codes in the attachment to this ordinance.
SECTION 8. That the expenditure of $51,777.00 or so much thereof as may be needed, is hereby authorized in Fund 6109 - Sanitary Sewer General Obligation Bond Fund, in Object Class 06, Capital Outlay, per the accounting codes in the attachment to this ordinance.
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DOW:
SECTION 9. 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 $3,562,282.69 is appropriated in Fund 6003 - Water System Reserve Fund, in Object Class 10, Transfer Out Expenditure, per the account codes in the attachment to this ordinance.
SECTION 10. That the transfer of $3,562,282.69 or so much thereof as may be needed, is hereby authorized between Fund 6003 - Water System Reserve Fund and Fund 6011 - Water Supply Revolving Loan Account Fund, per the account codes in the attachment to this ordinance.
SECTION 11. That the appropriation and expenditure of $3,562,282.69 or so much thereof as may be needed, is hereby authorized in Fund 6011 - Water Supply Revolving Loan Account Fund, in Object Class 06 Capital Outlay, per the accounting codes in the attachment to this ordinance.
SECTION 12. That the expenditure of $45,298.00 or so much thereof as may be needed, is hereby authorized in Fund 6006 - Water General Obligation Bond Fund, in Object Class 06, Capital Outlay, per the accounting codes in the attachment to this ordinance.
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DPS:
SECTION 13. That the transfer of $503,013.50 or so much thereof as may be needed, is hereby authorized between projects within Fund 7704 - Streets and Highways Bond Fund per the account codes in the attachment to this ordinance.
SECTION 14. That the expenditure of $503,013.50 or so much thereof as may be needed, is hereby authorized in Fund 7704 - Streets and Highways Bond Fund , in Object Class 06 Capital Outlay, per the accounting codes in the attachment to this ordinance.
SECTION 15. That upon obtaining other funds for the purpose of funding sewer and water system capital improvement work, the City Auditor is hereby authorized to repay the Sanitary and Water Systems Reserve Funds the amounts transferred under Sections 5 and 10 above, respectively, and said funds are hereby deemed appropriated for such purpose.
SECTION 16. 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 $13,021,442.29 (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 Sanitary Sewer Reserve Fund - Fund 6102, and the Water System Reserve Fund - Fund 6003, which are the funds from which the advance for costs of the Project will be made.
SECTION 17. 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 18. 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 19. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 20. 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 21. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.