Explanation
1. BACKGROUND:
This legislation authorizes the Director of Public Utilities to execute a planned contract modification to the Sewer System Engineering Section's Construction Administration and Construction Inspection Services Agreement with Stantec Consulting Services, Inc. This contract was originally procured to provide construction administration and construction inspection services for the sanitary system projects during the fiscal years of 2008-2010. The funds approved within this legislation will provide for payment of additional services that were needed to conclude ongoing construction projects.
This modification (Mod #3) will increase the contract by an additional $450,000.00 for construction administration - construction inspection services for the River South Phase II project.
The original contract and modification for Stantec Consulting Services:
1.1. Amount of additional funds to be expended: $450,000.00
Original Contract Amount: $ 640,000.00
Modification 1 $ 315,000.00
Modification 2 $ 867,000.00
Modification 3 (current) $ 450,000.00
Amt of orig. contract + Mods 1, 2, 3 $2,272,000.00
1.2. Reasons additional goods/services could not be foreseen:
The modification was anticipated and explained in the original legislation. This is a continuation of the anticipated process.
1.3. Reason other procurement processes are not used:
The original contract selected three firms to provide construction administration services for projects in 2008, 2009, and 2010.
1.4. How cost of modification was determined:
A cost proposal was provided by Stantec Consulting Services and reviewed by the Division of Power and Water and the Division of Sewerage and Drainage and was deemed acceptable.
2. MULTI-YEAR CONTRACT:
This ordinance will authorize the expenditure of $450,000.00 for the River South Phase II project. The Department anticipates requesting additional appropriations to this contract for 2009 and 2010 fiscal years, through planned contract modifications duly authorized by City Council. Under the terms of this contract, the City has the right to contract for additional services to fulfill emergency capital improvements related to the approval of a contract modification by City Council. The rate schedules established within this contract will remain in force throughout the life of the contract.
3. FISCAL IMPACT:
The funding for this modification will come from the Sanitary Sewer Reserve Fund. This ordinance authorizes the Director of Public Utilities to transfer and appropriate $450,000.00 in funds from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund; and to expend $450,000.00 from the Voted Sanitary Sewer Bond Fund. Monies for this contract from the Sanitary Sewer Reserve Fund will be provided from an upcoming Bond Sale via the transfer detailed in this Ordinance.
4. CONTRACT COMPLIANCE INFO: 11-2167170 | MAJ | Expiration Date: 01/07/2010
5. EMERGENCY DESIGNATION:
The Department of Public Utilities is requesting that this ordinance be made an emergency measure in order to expedite the establishment of the contract services that are necessary to ensure that the sanitary system is being rehabilitated and/or replaced to ensure continued operation of these vital infrastructures.
Title
To authorize the Director of Public Utilities to execute a planned contract modification of the construction administration - construction inspection services agreement with Stantec Consulting Services, Inc., for the River South Phase II project; to authorize the transfer and appropriation of $450,000.00 from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund; to authorize the expenditure of $450,000.00 from within the Voted Sanitary Sewer Bond Fund for the Division of Sewage and Drainage; and to declare an emergency. ($450,000.00)
Body
WHEREAS, it is necessary to modify the construction administration and construction inspection services contract with Stantec Consulting Services, Inc., for the River South Phase II project; to provide additional monies to cover the cost of needed additions to the contract work in accordance with the Department's design requirements in an effort to ensure the continued operation of its sanitary infrastructure; and
WHEREAS, the original contract number EL008272-002 for $640,000 was authorized by Ordinance No. 0847-2008, passed June 9, 2008, was executed on June 24, 2008, and was approved by the City Attorney on June 30, 2008; and
WHEREAS, modification #1 (Morse Road 36" Water Main Part II) to the original Contract No. EL008814-001 for $315,000 was passed by City Council via Ordinance No. 1548-2008, October 27, 2008; and signed by the City Attorney on 12/05/08; and
WHEREAS, modification #2 (Dublin Road Water Plant Disinfection & Miscellaneous Improvements Project) to the original contract No. EL008272-002 for $867,000 was passed by City Council via Ordinance 1732-2008, November 10, 2008; signed by the City Attorney on 12/04/08; and
WHEREAS, it is necessary to authorize the transfer and appropriation of funds from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund for purposes of providing sufficient funding for the project expenditure; and
WHEREAS, it is necessary for City Council to authorize the expenditure of funds from the Voted Sanitary Sewer Bond 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 project described in this ordinance (the "Project").
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division of Sewerage and Drainage, that the Department request that this Council authorize the Director of Public Utilities to modify the construction administration and construction inspection services contract with Stantec Consulting Services, Inc., for the River South Phase II project, to ensure the continued operation of vital sanitary infrastructure for the City; and for the 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 Public Utilities is, authorized to modify the professional engineering services agreement with Stantec Consulting Services, Inc., 1500 Lake Shore Dr., Columbus, Ohio 43204, that will continue to provide construction administration and inspection services for sewer improvement project in accordance with the terms and conditions of the contract on file in the office of the Division of Sewerage and Drainage's Sewer System Engineering Section.
Section 2. That from the unappropriated monies in the Sanitary Sewer Reserve Fund No. 654, 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, 2009, the sum of $450,000.00 is hereby appropriated to the Division of Sewerage and Drainage: Division 60-05| OCA Code 901654 | Object Level One 10 | Object Level Three 5502.
Section 3. That the City Auditor be and hereby is authorized and directed to transfer a total of $450,000.00 from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund, Fund 664, into the River South Phase II project 650404-100039, at such time as deemed necessary by the Auditor, and to expend said funds, or so much thereof as may be necessary.
Section 4. That the $450,000.00 is hereby appropriated for the River South Phase II project within the Voted Sanitary Sewer Bond Fund as follows:
Fund 664| Div. 60-05| Project 650404-100039| OCA Code 664404 | Object Level Three 6686
Section 5. That the expenditure of $450,000.00, or as much thereof as may be needed, is hereby authorized from the Voted Sanitary Sewer Bond Fund:
Fund 664 | Div. 60-05 | Proj. 650404-100039 | River South Phase II | OCA Code 664404 | Object Level Three 6686
Section 6. That upon obtaining other funds for the purpose of funding sanitary sewer system capital improvement work, the City Auditor is hereby authorized to repay the Sanitary Sewer Reserve Fund the amount transferred above, and said funds are hereby deemed appropriated for such purposes.
Section 7. 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 $450,000.00 (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/Sewer Reserve Fund 654, which is the fund from which the advance for costs of the Project will be made.
Section 8. 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 are 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 9. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
Section 10. 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 11. That for the reasons stated in the preamble hereto, 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 its passage if the Mayor neither approves not vetoes the same.