Explanation
This legislation authorizes the Director of the Department of Public Utilities to modify and increase the Power Distribution Installation and Restoration services contract with New River Electrical Corporation, in the amount of $250,000.00. The original contract was intended to be used for overall system improvements that includes installing pad-mount switches and circuit improvements specifically in the Downtown area; and for the purpose of setting poles, installing conductors, and the removal of poles and conductors at various locations within the Columbus Electric System on an as needed basis, and other such work as may be necessary. This modification is necessary to address new customer service issues such as building line extensions to serve the new county facility on Hague Avenue, installing reclosers, providing pole replacements and re-conductoring lines. Funds in the amount of $2,000.00 will also be encumbered with the Department of Public Service for prevailing wage services.
The Director of Public Utilities publicly opened five bids on July 31, 2019. New River Electrical Corporation was deemed to be the lowest, best, most responsive and responsible bid.
The original contract was for a period of one (1) year from the date of execution through and including October 22, 2020 with the option to renew for two (2) additional one (1) year periods, based upon mutual agreement, availability of funding and approval by Columbus City Council. The contract provided for the provision that if additional funding is necessary a modification would be requested. This modification is to provide the additional funding necessary for the payment of services to be provided through October 22, 2020. If unforeseen issues or difficulties are encountered that would require additional funding, a modification would be required.
This Ordinance is being submitted in accordance with the relevant provisions of Chapter 329 of City Code pertaining to contract modifications.
SUPPLIER: New River Electrical Corporation, FID #54-0562496, DAX #009173, Expires January 16, 2020
New River Electrical Corporation does not hold MBE/FBE status.
The company is not debarred according to the Excluded Party Listing System of the Federal Government or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search.
1. Amount of additional funds: Total amount of additional funds needed for this contract modification No. 1 is ADD $250,000.00. Total contract amount including this modification is $600,000.00.
Total amount of additional funds needed for Prevailing Wage Services for this modification No. 1 is ADD $2,000.00. Total Prevailing Wage Services amount including this modification is $4,000.00.
2. Reasons additional funds were not foreseen: The need for additional funds was known at the time of the initial contract. This modification is to provide the additional funding necessary for the payment of services to be provided through October 22, 2020.
3. Reason other procurement processes were not used: Work under this modification is a continuation of services included in the scope of the original bid contract. No lower pricing/more attractive terms and conditions are anticipated at this time.
4. How was cost determined: The cost, terms and conditions are in accordance with the original agreement.
FISCAL IMPACT: A total of $252,000.00 in additional funding is budgeted and needed for this contract modification for the Division of Power.
$878,487.91 was spent in 2018
$378,506.53 was spent in 2017
Title
To authorize the Director of Public Utilities to modify and increase the contract with New River Electrical Corporation for the Power Distribution Installation and Restoration services for the Division of Power, to provide for payment of prevailing wage services to the Department of Public Service, Design and Construction Division; and to authorize the expenditure of $252,000.00 from the Electricity Operating Fund. ($252,000.00)
Body
WHEREAS, the Division of Power entered into a contract with New River Electrical Corporation for the purpose of providing Power Distribution Installation and Restoration services for the Division of Power, and
WHEREAS, this contract provides the Department of Public Utilities, Division of Power the service of providing labor and equipment for overall system improvements that includes installing pad-mount switches and circuit improvements specifically in the Downtown area; and for setting poles, installing conductor, removal of poles and conductors at various locations within the Columbus Electric System on an as needed basis, and other such work as may be needed, and
WHEREAS, this modification is necessary to address new customer service issues such as building line extensions to serve the new county facility on Hague Avenue, installing reclosers, providing pole replacements and re-conductoring lines, and
WHEREAS, the term of this contract is for the period of one (1) year from the date of execution by the City of Columbus. The contract specifications allow for two (2) one (1) year extensions on a year to year basis with funds being reviewed and approved for each subsequent year of the three (3) year contract. This contract shall not automatically renew. The parties agree that the City’s obligation for subsequent years is subject to and conditioned upon the approval of City Council, and appropriation and certification of funds by the City Auditor, and
WHEREAS, the contract provided for the provision that if additional funding is necessary a modification would be requested. The Department of Public Utilities, Division of Power wishes to modify and increase PO196816 with New River Electrical Corporation to provide the additional funding necessary for the payment of services to be provided through October 22, 2020, and
WHEREAS, the vendor has agreed to modify and increase PO196816 at current prices and conditions, and
WHEREAS, it is necessary to authorize the Director of the Department of Public Utilities to encumber and expend funds to provide for payment of prevailing wage services associated with said project, and
WHEREAS, it has become necessary in the usual daily operation of the Department of Public Utilities, Division of Power, to authorize the Director of Public Utilities to modify and increase the current contract for Power Distribution Installation and Restoration services with New River Electrical Corporation and to provide for the payment of prevailing wage services to the Department of Public Service, Design and Construction Division as needed; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Utilities be and is hereby authorized to modify and increase contract No. PO196816 with New River Electrical Corporation, for Power Distribution Installation and Restoration services for the Department of Public Utilities, in accordance with the terms and conditions as shown in the agreement on file in the office of the Division of Power. Total amount of modification No. 1 is ADD $250,000.00. Total contract amount including this modification is $600,000.00. The Director of Public Utilities is also hereby authorized to provide for the additional payment of prevailing wage services to the Department of Public Service, Design and Construction Division in an amount up to $2,000.00, as may be necessary.
SECTION 2. That this modification is in accordance with the relevant provisions of Chapter 329 of City Code relating to contract modifications.
SECTION 3. That the expenditure of $252,000.00 or so much thereof as may be needed, is hereby authorized in Fund 6300 Electricity Operating Fund, Object Class 03 Services per the accounting codes in the attachment to this ordinance.
SECTION 4. 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 5. 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 6. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.