Explanation
This legislation authorizes the Director of the Department of Public Utilities to renew and increase the Power Distribution Installation and Restoration services contract with New River Electrical Corporation, in the amount of $800,000.00. 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 renewal is necessary to continue the system improvements needed throughout the City.
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. This renewal is to provide the additional time and funding necessary for services to be provided through October 22, 2021. 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 renewals.
SUPPLIER: New River Electrical Corporation, FID #54-0562496, DAX #009173, Expires November 18, 2021
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 renewal is $800,000.00. Total contract amount including this modification is $1,400,000.00.
2. Reasons additional funds were not foreseen: The need for additional funds was known at the time of the initial contract. This legislation is to provide the additional funding necessary for the payment of services to be provided through October 22, 2021.
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 $800,000.00 in funding is budgeted and needed for this contract renewal for the Division of Power.
$606,655.49 was spent in 2019
$878,487.91 was spent in 2018
Title
To authorize the Director of Public Utilities to renew and increase the contract with New River Electrical Corporation for the Power Distribution Installation and Restoration services for the Division of Power; and to authorize the expenditure of $800,000.00 from the Electricity Operating Fund. ($800,000.00)
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, the original contract was for one (1) year to and including October 22, 2020. The contract language allows for the Department of Public Utilities to renew the contract for two (2) additional years based upon mutual agreement of the parties, availability of budgeted funds, and approval by City Council. If unforeseen issues or difficulties are encountered that would require additional funding, a modification would be requested. This proposed renewal is for year 2 of the contract. The contract will be extended through October 22, 2021, and
WHEREAS, the contract provided for the renewals to have additional funding requested and approved by City Council. The Department of Public Utilities, Division of Power wishes to renew 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, 2021, and
WHEREAS, the vendor has agreed to renew and increase PO196816 at current prices and conditions, 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 renew and increase the current contract for Power Distribution Installation and Restoration services with New River Electrical Corporation; 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 renew 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 renewal No. 1 is $800,000.00. Total contract amount including this modification is $1,400,000.00.
SECTION 2. That this renewal is in accordance with the relevant provisions of Chapter 329 of City Code relating to contract renewals.
SECTION 3. That the expenditure of $800,000.00 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.