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 by $600,000.00.
The original contract was intended to be used for overall system improvements, including installation of pad-mount switches and circuit improvements, specifically in the Downtown area; setting poles, installing conductors, and the removal of each, as needed; and any other such work as may be necessary. The most recent, and third, modification was executed to continue these improvements. This fourth modification is necessary to ensure there are no gaps in electric service provision prior to the end of the current contract.
The Director of the Department 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 bidder. 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 modification is to add funding to the contract to ensure electrical distribution installation and restoration services continue to be provided through October 22, 2022. If further unforeseen issues or difficulties are encountered that require additional funding or time, another modification would be requested.
This Ordinance is being submitted in accordance with the relevant provisions of Chapter 329 of City Code pertaining to contract modifications.
1. Amount of additional funds: Total amount of additional funding needed for this contract modification is $600,000.00. Total contract amount including this modification is $4,800,000.00.
2. Reason additional funds were not foreseen: Spending on electricity distribution installation and restoration services was higher than anticipated.
3. Reason other procurement processes 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 cost was determined: Based on recent historical expenditure data and current electricity prices.
SUPPLIER:
New River Electrical Corporation | Federal EIN 54-0562496 | D365 Vendor #009173 | Expires 10/18/2023
New River Electrical Corporation does not hold MBE/WBE 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.
FISCAL IMPACT:
$600,000.00 is needed for this contract modification for the Division of Power.
$812,298.83 has been spent in 2022
$1,778,345.59 was spent in 2021
$1,224,504.54 was spent in 2020
EMERGENCY DESIGNATION:
This ordinance is being submitted as an emergency in order to ensure there are enough funds to provide electrical distribution installation and restoration services through the end of the current contract.
Title
To authorize the Director of the Department of Public Utilities to modify and increase the contract with New River Electrical Corporation for power distribution installation and restoration services for the Division of Power; to authorize the expenditure of $600,000.00 from the Electricity Operating Fund; and to declare an emergency. ($600,000.00)
Body
WHEREAS, the Department of Public Utilities has a contract with New River Electrical Corporation for the provision of power distribution installation and restoration services for the Division of Power; and
WHEREAS, the existing contract provides labor and equipment for overall system improvements such as installation of pad-mount switches and circuit improvements, specifically in the Downtown area; setting poles, installing conductors, and removal of each as necessary; and any other such work as may be needed; and
WHEREAS, the original contract was for one (1) year to and including October 22, 2020, with the option to renew for two (2) additional years based upon mutual agreement of the parties, availability of budgeted funds, and approval by City Council; and
WHEREAS, if unforeseen issues or difficulties are encountered that require additional funding or time, a modification would be requested; and
WHEREAS, this proposed modification is to provide additional funds to ensure electrical distribution installation and restoration services continue to be provided through the end of the contract on October 22, 2022; and
WHEREAS, that the expenditure of $600,000.00 or so much thereof as may be needed, is hereby authorized in Fund 6300, Electricity Operating Fund, in object class 03, Services, per the accounting codes in the attachment to this ordinance; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division of Power, in that it is immediately necessary to authorize the Director of Public Utilities to increase and extend the current contract for power distribution installation and restoration services with New River Electrical Corporation, without delay, for the immediate preservation of the public health, peace, property and safety; NOW, THEREFORE.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Public Utilities is hereby authorized to modify and increase contract No. PO196816 with New River Electrical Corporation, PO Box 70, 15 Cloverdale Place, Cloverdale, VA 24077, for power distribution installation and restoration services for the Division of Power. Total amount of modification #4 is ADD $600,000.00. Total contract amount including this modification is $4,800,000.00.
SECTION 2. That this modification is in accordance with the relevant provisions of Chapter 329 of City Code.
SECTION 3. That the expenditure of $600,000.00, or so much thereof as may be needed, is hereby authorized in Fund 6300, Electricity Operating Fund, in 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 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.