Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Service to enter into a construction contract with Kokosing Construction Company for the Resurfacing 2018 Project 3 project and to provide payment for construction, construction administration and inspection services.
This contract repairs and resurfaces 88 city streets, constructs 512 ADA curb ramps along those streets, and other work as may be necessary to complete the contract in accordance with the plans and specifications set forth in the Bid Submittal Documents.
The estimated Notice to Proceed date is August 10, 2018. The project was let by the Office of Support Services through Vendor Services and Bid Express. Three bids were received on June 26 2018, (all majority) and tabulated as follows:
Company Name Bid Amount City/State Majority/MBE/FBE
Kokosing Construction Co. $10,708,276.48 Columbus, OH Majority
Decker Construction Co. $10,979,509.30 Columbus, OH Majority
Strawser Paving Company $11,034,346.84 Columbus, OH Majority
Award is to be made to Kokosing Construction Co.as the lowest responsive and responsible and best bidder for their bid of $10,708,276.48.
The bid contained Special Provision 146 that allows an increase or decrease in both the award amount and the work to be performed to fully utilize the available funds budgeted for the resurfacing program. The bid award will be increased to establish a fund to do additional small resurfacing jobs that have been requested since this bid was issued. The contract amount will be $11,304,587.16. The amount of construction administration and inspection services will be $1,017,412.84. The total legislated amount is $12,322,000.00.
Searches in the System for Award Management (Federal) and the Findings for Recovery list (State) produced no findings against Kokosing Construction Co.
2. CONTRACT COMPLIANCE INFORMATION
The contract compliance number for Kokosing Construction Co. is CC004610 and expires 3/5/20.
3. PRE-QUALIFICATION STATUS
Kokosing Construction Co. 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
Public Service funding for this project is budgeted within the 2018 Capital Improvements Budget, which has been approved by Council under Ordinance 1010-2018. The funds will not be available to Public Service until the proceeds of the bond sale are available later this year. Therefore, it is necessary to certify funds in the amount of $12,217,226.00 against the Special Income Tax Fund.
The balance of the funding is available within the Streets and Highways Bond Fund. It is necessary to amend the 2018 Capital Improvement Budget and transfer funds between projects to establish sufficient cash in the proper project.
5. EMERGENCY DESIGNATION
Emergency action is requested in order to complete the needed improvements at the earliest possible time to ensure the safety of the travelling public.
Title
To amend the 2018 Capital Improvement budget; to authorize the City Auditor to appropriate funds within the Special Income Tax Fund and the Streets and Highways Bond Fund; to authorize the transfer of funds between the Special Income Tax Fund and the Streets and Highways Bond Fund; to authorize the transfer of funds within the Streets and Highways Bond Fund; to authorize the Director of Public Service to enter into contract with Kokosing Construction Company for the Resurfacing 2018 Project 3 project; to authorize the expenditure of up to $12,322,000.00 within the Streets and Highways Bond Fund; and to declare an emergency. ($12,322,000.00)
Body
WHEREAS, the Department of Public Service is engaged in the Resurfacing 2018 Project 3 project; and
WHEREAS, it is necessary to amend the 2018 Capital Improvement Budget to establish authority within the correct project; and
WHEREAS, the work for this project consists of repairs and resurfaces 88 city streets, constructs 512 ADA curb ramps along those streets, and other work as may be necessary to complete the contract in accordance with the plans and specifications set forth in the Bid Submittal Documents; and
WHEREAS, Kokosing Construction Co. will be awarded the contract for the Resurfacing 2018 Project 3 project; and
WHEREAS, the Department of Public Service requires funding to be available for the Resurfacing 2018 Project 3 project for construction expense along with construction administration and inspection services; and
WHEREAS, it is necessary for Council to authorize a transfer of funds within Fund 7704, the Streets and Highways Bond Fund, to establish sufficient cash to pay for the project; and
WHEREAS, it is necessary to transfer funds from the Special Income Tax Fund to fund this project; and
WHEREAS, the City will reimburse the Special Income Tax Fund; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregated principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $12,217,226.00; 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 usual daily operation of the Department of Public Service in that it is immediately necessary to enter into contract with Kokosing Construction Co. to ensure the safety of the travelling public, thereby preserving the public health, peace, property, safety and welfare; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the 2018 Capital Improvements Budget authorized by ordinance 1010-2018 be amended as follows to establish sufficient authority for this project:
Fund / Project / Project Name / Current / Change /C.I.B. as Amended
7704 / P530282-100051/ Resurfacing - Resurfacing Projects (Voted 2016 Debt SIT Supported) / $14,897,887.00 / ($12,217,226.00) / $2,680,661.00
7704 / P530161-100179 / Roadway Improvements - Yearly Traffic Calming (Voted Carryover) / $750,000.00 / ($71,955.00) / $678,045.00
7704 / P540002-100009 / Bikeway Development - General Engineering Design Services (Voted Carryover) / $36,756.00 / ($32,819.00) / $3,937.00
7704 / P530282-932018 / Resurfacing 2018 Project 3 (Voted 2016 Debt SIT Supported) / $0.00 / $12,217,226.00 / $12,217,226.00
7704 / P530282-932018 / Resurfacing 2018 Project 3 (Voted Carryover) / $0.00 / $104,774.00 / $104,774.00
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, 2018, the sum of $12,217,226.00 is appropriated in Fund 4430 (Special Income Tax), Dept-Div 2201 (City Auditor) in Object Class 10 (Transfer Out Operating) and in Fund 7704 (Streets and Highways Bond Fund), Dept-Div 5911 (Division of Infrastructure Management), Project P530282-932018 (Resurfacing - 2018 Project 3), in Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 3. That the transfer of $71,955.00, or so much thereof as may be needed, is hereby authorized within Fund 7704 (Streets and Highways Bond Fund), from Dept-Div 5911 (Division of Infrastructure Management), Project P530161-100179 (Roadway Improvements - Yearly Traffic Calming), Object Class 06 (Capital Outlay) to Dept-Div 5911 (Division of Infrastructure Management), Project P530282-932018 (Resurfacing 2018 Project 3), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 4. That the transfer of $32,819.00, or so much thereof as may be needed, is hereby authorized within Fund 7704 (Streets and Highways Bond Fund), from Dept-Div 5911 (Division of Infrastructure Management), Project P540002-100009 (Bikeway Development - General Engineering Design Services), Object Class 06 (Capital Outlay) to Dept-Div 5911 (Division of Infrastructure Management), Project P530282-932018 (Resurfacing 2018 Project 3), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 5. That the transfer of $12,217,226.00,or so much thereof as may be needed, is hereby authorized from Fund 4430 (Special Income Tax), Dept-Div 5911 (Division of Infrastructure Management) to Fund 7704 (Streets and Highways Bond Fund), Dept-Div 5911 (Division of Infrastructure Management) per the account codes in the attachment to this ordinance.
SECTION 6. That the monies appropriated in the foregoing Section 2 shall be paid upon order of the Director of Public Service and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
SECTION 7. That upon obtaining other funds for this project for the Department of Public Service, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 5.
SECTION 8. 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 $12,217,226.00 (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 the fund from which the advance for costs of the Project will be made.
SECTION 9. That the Director of Public Service be and is hereby authorized to enter into a construction contract with Kokosing Construction Co., 886 McKinley Avenue, Columbus, OH 43222, for the Resurfacing 2018 Project 3 project in the amount of up to $11,304,587.16 in accordance with the specifications and plans on file in the Office of Support Services, which are hereby approved; and to pay for necessary construction administration and inspection costs associated with the project up to a maximum of $1,017,412.84.
SECTION 10. That the expenditure of $12,322,000.00, or so much thereof as may be needed, is hereby authorized in Fund 7704 (Streets and Highways Bond Fund), Dept-Div 5911 (Division of Infrastructure Management), Project P530282-932018 (Resurfacing 2018 Project 3), in Object Class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 11. Funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 12. 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 13. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account 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.
SECTION 14. 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 and 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.