Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Utilities to enter into a construction contract with General Temperature Control, Incorporated for the JPWWTP ADM HVAC Unit H39 Replacement project, CIP #650265-100201, in an amount up to $864,600.00, and to encumber funds with the Department of Public Service for prevailing wage services in an amount up to $2,000.00, for a total expenditure of $866,600.00.
Work under this project consists of replacement of the Jackson Pike Waste Water Treatment Plant HVAC Unit 39 and other such work as may be necessary to complete the contract, in accordance with the drawings and technical specifications. Many of the HVAC & air purification units are approaching the end of their useful life and are becoming increasingly difficult to repair and maintain. Replacement of failing HVAC & air purification units will provide proper environmental controls for essential process equipment, electrical equipment, furnishings, structures and documents. The replacement units will help to extend the useful life of the building and all equipment inside and inhibit deterioration.
The Community Area is 59 - Southwest.
TIMELINE: All work shall be substantially complete within 330 calendar days of the Notice to Proceed, with final completion to occur within 360 calendar days. The City anticipates issuing a Notice to Proceed in or about June, 2024.
ESTIMATED COST OF PROJECT: The bid amount and proposed award amount is $864,600.00, including a 10% construction contingency amount that will be utilized to fund needed and approved changes in the work. No contract modifications are anticipated at this time; however, construction exigency might later compel modification of this contract, if unforeseen difficulties are encountered.
Cost summary:
Original Contract $864,600.00
Future Anticipated Needs $ 0.00
CONTRACT TOTAL $864,600.00
Prevailing Wage Charge $ 2,000.00
$866,600.00
2. ECONOMIC IMPACT/ADVANTAGES; COMMUNITY OUTREACH; PROJECT DEVELOPMENT; ENVIRONMENTAL FACTORS/ADVANTAGES OF PROJECT
Many of the HVAC & air purification units are approaching the end of their useful life and are becoming increasingly difficult to repair and maintain. A DOSD replacement program was developed under CIP 650265-100200. Replacement of failing HVAC & air purification units will provide proper environmental controls for essential process equipment, electrical equipment, furnishings, structures and documents. The replacement units will help to extend the useful life of the building and all equipment inside and inhibit deterioration.
3. BID INFORMATION
This project was formally advertised on the Vendor Services and Bid Express websites from 1/10/2024 through 2/14/2024. One bid was received:
Name Bid Amount________City/State Status
General Temperature Control, Incorporated $864,600.00 Columbus, OH MAJ
General Temperature Control, Incorporated’s bid was deemed the lowest, best, most responsive bid and their certification was in good standing at the time of the bid award.
4. CONTRACT COMPLIANCE INFORMATION
General Temperature Control, Incorporated’s contract compliance number is CC004830 and expires 3/18/26.
5. 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 15% 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 15% for this contract. General Temperature Control, Incorporated plans to use one City-certified MBE subcontractor to perform $216,250.00 (25%) of the contract work.
As part of their proposal, General Temperature Control, Incorporated has proposed the following subcontractors to perform contract work:
Company Name City/State ODI Certification Status
Good Home Maintenance, Inc. Columbus, Ohio VBE
Hina Environmental Solutions Inc. Columbus, Ohio MBE
Capital City Electric, Inc. New Albany, Ohio MAJ
The certification of General Temperature Control, Incorporated and the above companies was in good standing at the time the bid was awarded.
6. PRE-QUALIFICATION STATUS
General Temperature Control, Incorporated and all subcontractors have met code requirements with respect to pre-qualification, pursuant to relevant sections of Columbus City Code Chapter 329.
7. FISCAL IMPACT
Funding for this contract will be obtained through the Ohio Water Development Authority (OWDA) Direct Loan Program. City Council authorized applying for these types of loans and the acceptance of the loan funding via Ordinance 0997-2023, passed by Council on 4/24/23. This specific project was added to the list after the ordinance was approved per Section 2 of the Ordinance that authorizes the Director of Public Utilities to add or subtract projects from the list per department need.
The Ohio Water Development Authority (OWDA) Direct Loan Program is a reimbursement program. Purchase orders will need to be established to General Temperature Control, Incorporated for this contract. Public Utilities will need to pay invoices directly to General Temperature Control, Incorporated and then submit reimbursement requests based upon these paid invoices to OWDA for OWDA to reimburse Public Utilities.
A transfer of funds from the Sanitary Reserve Fund, Fund 6102, to the Sanitary-Fresh Water Market Rate Program Fund, Fund 6124 in the amount of $864,600.00 is needed to fund construction for this project. This transaction is a temporary measure that is required until a loan is executed with OWDA to reimburse the Sanitary Reserve Fund. The loan is expected to be approved in May 2024. These funds will also need to be appropriated to be transferred and then appropriated after transfer to the new fund. An amendment to the 2023 Capital Improvement Budget is needed to align budget authority with the proper project.
Funds in the amount of $2,000.00 are budgeted, available and appropriated within the Sanitary Bond Fund, Fund 6109, to pay the Department of Public Service to provide prevailing wage services for this project. An amendment to the 2023 Capital Improvement Budget is needed to align budget authority with the proper project.
Title
To authorize the Director of the Department of Public Utilities to enter into a construction contract with General Temperature Control, Incorporated, for the Jackson Pike Waste Water Treatment Plant HVAC Unit Replacement; to authorize an amendment to the 2023 Capital Improvement Budget; to authorize the appropriation and transfer of funds from the Sanitary Reserve Fund to the Sanitary-Fresh Water Market Rate Program Fund; to authorize the appropriation and expenditure of up to $864,600.00 from the Sanitary-Fresh Water Market Rate Program Fund for the contract; and to authorize a transfer and an expenditure of up to $2,000.00 within the Sanitary Bond Fund to pay for the prevailing wage services for the project. ($866,600.00)
Body
WHEREAS, the Department of Public Utilities is engaged in the JPWWTP ADM HVAC Unit H39 Replacement project; and
WHEREAS, one bid for the JPWWTP ADM HVAC Unit H39 Replacement project was received and opened on 2/14/24; and
WHEREAS, it is necessary to authorize the Director of the Department of Public Utilities to enter into a construction services contract with General Temperature Control, Incorporated for the JPWWTP ADM HVAC Unit H39 Replacement project; and
WHEREAS, Ordinance 0997-2023 authorized the use of loans from the Ohio Water Development Authority (OWDA) Direct Loan Program to finance Public Utilities projects; and
WHEREAS, a loan applications was submitted to OWDA to finance this project; and
WHEREAS, the 2023 Capital Improvements Budget must be modified to align budget authority with the proper project; and
WHEREAS, it is necessary to both appropriate and transfer funds from the Sanitary Reserve Fund, Fund 6102, to the Sanitary-Fresh Water Market Rate Program Fund, Fund 6124, in order to temporarily fund this expenditure until such time as the City receives loan proceeds from the Ohio Water Development Authority to reimburse the Sanitary Reserve Fund; and
WHEREAS, it is necessary to appropriate and expend funds from the Sanitary Fresh Water Market Rate Fund, Fund 6124, to pay for the construction of this project; 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 services of the Project described in this Ordinance (collectively, the “Project”); and
WHEREAS, it is necessary to authorize a transfer and expenditure of funds within the Sanitary Bond Fund, Fund 6109, to pay for the prevailing wage services for the project; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the 2023 Capital Improvements Budget authorized by Ordinance 1711-2023 be amended as follows to establish sufficient budget authority for this project:
Fund / Project Number / Project Name (Funding Source) / Current Authority / Revised Authority / Change
6124 / P650265-100201 / JPWWTP ADM HVAC Unit H39 Replacement (OWDA Direct Loan) / $0.00 / $864,600.00 / $864,600.00 (To match loan amount)
6109 / P650277-100000 / Jackson Pike WWTP Stormwater and Floodplain Improvements (Voted Sanitary Carryover) / $526,400.00 / $524,400.00 / ($2,000.00)
6109 / P650265-100201 / JPWWTP ADM HVAC Unit H39 Replacement (Voted Sanitary Carryover) / $0.00 / $2,000.00 / $2,000.00
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 ending December 31, 2024, the sum of $864,600.00 is appropriated in the Sanitary Reserve Fund, Fund 6102, per the account codes in the attachment to this ordinance.
SECTION 3. That the transfer of $864,600.00, or so much thereof as may be needed, is hereby authorized between the Sanitary Reserve Fund, Fund 6102, and the Sanitary-Fresh Water Market Rate Program Fund, Fund 6124, per the account codes in the attachment to this ordinance.
SECTION 4. That the appropriation of $864,600.00, or so much thereof as may be needed, is hereby authorized in the Sanitary-Fresh Water Market Rate Program Fund, Fund 6124, per the accounting codes in the attachment to this ordinance.
SECTION 5. That the Director of Public Utilities is hereby authorized to enter into a construction services contract for the JPWWTP ADM HVAC Unit H39 Replacement project with General Temperature Control, Incorporated, 970 West Walnut Street, Canal Winchester, OH 43110, in an amount up to $864,600.00, in accordance with the terms and conditions of the contract on file in the Department of Public Utilities; and to expend up to $2,000.00 to pay the Department of Public Service to perform prevailing wage services for the contract.
SECTION 6. That the transfer of $2,000.00, or so much thereof as may be needed, is hereby authorized between projects within the Sanitary Bond Fund, Fund 6109, per the account codes in the attachment to this ordinance.
SECTION 7. That the expenditure of $866,600.00, or so much thereof as may be needed, is hereby authorized to pay for this contract and for prevailing wage services from the Sanitary-Fresh Water Market Rate Program Fund, Fund 6124, and the Sanitary Bond Fund, Fund 6109, per the accounting codes in the attachment to this ordinance
SECTION 8. That upon obtaining other funds for the purpose of funding sanitary capital improvement work, the City Auditor is hereby authorized to repay the Sanitary Reserve Fund the amount transferred above (Section 3), and said funds are hereby deemed appropriated for such purposes.
SECTION 9. 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 $864,600.00 (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 Sanitary Reserve Fund, Fund 6102, which is the fund from which the advance for costs of the Project will be made.
SECTION 10. 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 11. 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 12. That the City Auditor is 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 13. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.