Explanation
1.0 BACKGROUND: This legislation authorizes the Director of the Department of Public Utilities to enter into a contract with Complete General Construction for the Dublin Road 30-Inch Water Main in an amount up to $14,456,962.23; to encumber funds with the Department of Public Service for prevailing wage services in an amount up to $2,000.00; for Capital Improvements Project No. 690502-100000, Division of Water Contract Number 2234.
Work consists of installation of approximately 11,700 lineal feet of new 30-inch diameter water transmission main, and other such work as may be necessary to complete the contract, in accordance with the drawings, technical specifications, special provisions, and City of Columbus Construction and Material Specifications as set forth in this Invitation For Bid (IFB).
The Community Planning Area is “1 - Hayden Run”
2.0 ECONOMIC IMPACT/ADVANTAGES; COMMUNITY OUTREACH; PROJECT DEVELOPMENT; ENVIRONMENTAL FACTORS/ADVANTAGES OF PROJECT: The goal of this project is to improve water transmission and water storage tank turnover in the northwest part of the distribution system. The Neighborhood Liaison(s) will be contacted and informed of this project. Further community outreach may result through the Neighborhood Liaison Program. The project has been in coordination with the City of Hilliard, City of Dublin and Franklin County as portions of the project impact their jurisdictions.
3.0 CONSTRUCTION CONTRACT AWARD: The Director of Public Utilities publicly opened two (2) bids on October 26, 2022:
1. Complete General Construction $14,456,962.23
2. Elite Excavating Co. of Ohio, Inc. $17,890,033.65
Complete General’s bid was deemed the lowest, best, most responsive and responsible bid in the amount of $14,456,962.23. Their Contract Compliance Number is 31-4366382 (expires 6/8/23, Majority) and their DAX Vendor Account No. is 6056. 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 Complete General Construction.
All work shall be complete within 540 calendar days from the Notice to Proceed. The City anticipates issuing a Notice to Proceed in January 2023.
3.1. MINORITY AND WOMAN OWNED BUSINESS ENTERPRISE & SMALL LOCAL BUSINESS ENTERPRISE PROGRAM: This contract was bid with an anticipated City of Columbus MBE/WBE Program goal of 10% as assigned by the City’s Office of Diversity and Inclusion (ODI). After ODI’s review of the Utilization Plan and other related information the contractor submitted with their bid response, ODI has approved an MBE/WBE Program goal of 10% for this contract. Failure by the contractor to meet this goal subjects the contractor to the Penalties for Non-Compliance as described in the “City’s Minority and Women-Owned Business Enterprise & Small Local Business Enterprise Program Manual” and in the “City of Columbus MBE/WBE Program Special Provision” that were part of the bid documents for this contract.
3.2 PRE-QUALIFICATION STATUS: Complete General Construction and all proposed subcontractors have met code requirements with respect to pre-qualification, pursuant to relevant sections of Columbus City Code Chapter 329.
3.3 CONTRACT COMPLIANCE: The contract compliance number for Complete General Construction Company is 31-4366382 (expires 6/8/23, Majority) and their DAX Vendor Account No. is 6056 and expires 6/8/2023.
4.0 EMERGENCY DESIGNATION
An emergency designation is not requested at this time.
5.0 FISCAL IMPACT
This Ordinance authorizes the City Auditor to appropriate and transfer funds from the Water System Reserve Fund - Fund No. 6003 to the Water Supply Revolving Loan Account Fund - Fund No. 6011, in order to fund this proposed expenditure. This transaction is a temporary measure that is required until such time as the Division is able to execute a loan with the Water Supply Revolving Loan Account Fund and reimburse the Water System Reserve Fund. The loan is expected to be approved in February 2023. There is sufficient funding within the Water G.O. Bonds Fund - Fund No. 6006, however, an amendment to the 2022 Capital Improvements Budget will be necessary.
This ordinance will also amend Ord. 1107-2022, which authorized the Department of Public Utilities to apply for and accept loan funding from the Water Supply Revolving Loan Account (WSRLA), in order to increase the maximum dollar amount of this project's loan award “not to exceed” amount to $14,700,000.00.
Title
To authorize the Director of the Department of Public Utilities to enter into a construction contract with Complete General Construction for the Dublin Road 30-Inch Water Main Project in an amount up to $14,456,962.23; to encumber $2,000.00 for prevailing wage services provided by the Department of Public Service; to authorize the appropriation and transfer of $14,456,962.23 from the Water System Reserve Fund to the Water Supply Revolving Loan Account Fund; to authorize the appropriation and expenditure of $14,456,962.23 within the Water Supply Revolving Loan Account Fund; to authorize an expenditure up to $2,000.00 within the Water General Obligations Voted Bond Fund; to amend Ord. 1107-2022, which authorized the Department of Public Utilities to apply for and accept loan funding from the Water Supply Revolving Loan Account (WSRLA), in order to increase the maximum dollar amount of this project's loan award “not to exceed” amount to $14,700,000.00; and to amend the 2022 Capital Improvement Budget. ($14,458,962.23)
Body
WHEREAS, two (2) bids for the Dublin Road 30-Inch Water Main Project were received and publicly opened in the offices of the Director of Public Utilities on October 26, 2022; and
WHEREAS, the lowest, best, most responsive and responsible bid was from Complete General Construction in the amount of $14,456,962.23; and
WHEREAS, it is necessary to authorize the Director of the Department of Public Utilities to enter into a construction contract for the Dublin Road 30-Inch Water Main Project; 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 is necessary to both appropriate funds from the Water System Reserve Fund and to authorize the transfer of said funds into the Water Supply Revolving Loan Account Fund in order to temporarily fund this expenditure, until such time as the City is able to execute a loan for the above stated purpose and reimburse the Water System Reserve Fund; 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 construction of the Project described in this Ordinance (collectively, the “Project”); and
WHEREAS, it is necessary to authorize an appropriation and expenditure of funds within the Water Supply Revolving Loan Account Fund- Fund No. 6011, for the Division of Water; and
WHEREAS, it is necessary to authorize an expenditure of funds within the Water G.O. Voted Bonds Fund - Fund No. 6006, for the Division of Water; and
WHEREAS, it is necessary to authorize an amendment to the 2022 Capital Improvements Budget for the purpose of providing sufficient spending authority for the aforementioned project expenditures; and
WHEREAS, it has become necessary in the usual daily operation of the Division of Water, Department of Public Utilities, to authorize the Director of Public Utilities to enter into a construction contract with Complete General Construction for the Dublin Road 30-Inch Water Main Project; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Public Utilities be and hereby is authorized to award and execute a contract for the Dublin Road 30-Inch Water Main to Complete General Construction Co. (FID #31-4366382), 1221 East Fifth Avenue Columbus, OH 43219 USA; in an amount up to $14,456,962.23; in accordance with the terms and conditions of the contract on file in the Office of the Division of Water; and to obtain the necessary prevailing wage related services from the Department of Public Service and to pay up to a maximum amount of $2,000.00.
SECTION 2. That said construction company shall conduct the work to the satisfaction of the Director of Public Utilities and the Administrator of the Division of Water.
SECTION 3. 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 ending December 31, 2022, the sum of $14,456,962.23 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 4. That the transfer of $14,456,962.23, 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 5. That the appropriation of $14,456,962.23, 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 6. That the expenditure of $14,458,962.23, or so much thereof as may be needed, is hereby authorized per the accounting codes in the attachment to this ordinance.
SECTION 7. That the 2022 Capital Improvements Budget is amended per the accounting codes in the attachment to this ordinance.
SECTION 8. That Ordinance 1107-2022, passed by Columbus City Council on May 2, 2022, is hereby amended increasing the maximum dollar not to exceed amount of this project's Dublin Road 30-Inch Waterline maximum loan award from $12,000,000.00 to $14,700,000.00 as it pertains to the 2022 program funding year.
SECTION 9. That upon obtaining other funds for the purpose of funding water system capital improvement work, the City Auditor is hereby authorized to repay the Water System Reserve Fund the amount transferred under Section 4 above, and said funds are hereby deemed appropriated for such purpose.
SECTION 10. 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 $14,456,962.23 (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 Water System Reserve Fund - Fund 6003, which is the fund from which the advance for costs of the Project will be made.
SECTION 11. 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 12. 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 13. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 14. 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 15. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.