Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Utilities to enter into construction contract modification for the Big Walnut Trunk Extension (Phase 2) project, CIP #650033-100002, with the Obayashi Corporation in an amount up to $14,000,000.00.
The Big Walnut Trunk Extension project is an extension of the Big Walnut Sanitary Trunk Sewer north of Central College Road and east of Hoover Reservoir. This project will provide sanitary sewer service for the rapidly developing area between Hoover Reservoir and the Village of New Albany, north of State Route 161.
This contract modification is to pay for the work associated with the use of a road header machine to complete tunnel boring from the opposite direction. The original tunnel boring machine became inaccessible due to excessive levels of methane encountered which halted drilling. In addition, excessive amounts of pyrite were encountered during the tunnel boring which was unanticipated and significantly slowed boring operations. Shaft and tunnel mining operations have been completed even with the significant differing site conditions encountered. The remaining work includes: pipe installation and annular space grouting, shaft installation and backfill, and final restoration. Funding must be added to complete these tasks due to the extra expense associated with the unexpected site conditions.
Contract work was required to be completed in a manner acceptable to the City within 1,250 days of the date of Notice To Proceed (NTP) given by the City. This contract modification will include an extension to the contract duration of up to 180 calendar days.
Planning area = “99-Citywide”
1.1 Amount of additional funds to be expended: $14,000,000.00
Original Contract $81,491,778.00 (PO371241 / ORD 3581-2022)
Current Modification $14,000,000.00
Future Modifications $0.00
TOTAL $95,491,778.00
1.2. Reason other procurement processes are not used:
This scope of work was bid using the City’s Invitation for Bid process and included in the awarded contract. Another procurement process is not required to complete the work.
1.3. How cost of modification was determined:
The cost was determined via force account records and contracted bid item amounts, then further negotiated with the contractor.
2. ECONOMIC IMPACT/ADVANTAGES; COMMUNITY OUTREACH; PROJECT DEVELOPMENT; ENVIRONMENTAL FACTORS/ADVANTAGES OF PROJECT:
This project is an extension of the Big Walnut Sanitary Trunk Sewer north of Central College Road and east of Hoover Reservoir. This project will provide sanitary sewer service for the rapidly developing area between Hoover Reservoir and the Village of New Albany, north of State Route 161.
3. CONTRACT COMPLIANCE INFORMATION
Obayashi Corporation’s contract compliance number is CC033371 and expires 11/15/26.
The certification of Obayashi Corporation was in good standing at the time of the contract modification.
Searches in the Excluded Party List System (Federal) and the Findings for Recovery list (State) produced no findings against Obayashi Corporation.
4. FISCAL IMPACT
Funding for this contract will be obtained through the Water Pollution Control Loan Fund (WPCLF), a program jointly administered by the Ohio EPA's Division of Environmental and Financial Assistance and the Ohio Water Development Authority (OWDA). City Council authorized loan application and acceptance of funding for the WPCLF program via Ordinance 2720-2024, passed by Council on 10/28/24. This project was not specifically listed as one of the projects expected to be loan funded in Ordinance 2720-2024. Section 2 of that Ordinance authorized the Director of Public Utilities to make changes to the list based upon departmental need. However, OWDA still requires a separate ordinance showing City Council has approved the Department of Public Utilities applying for this specific loan. This loan is expected to be approved at the OWDA January Board meeting and this ordinance is contingent upon the loan being approved by OWDA. The Department of Public Utilities will inform the Auditor's Office when this loan has been approved.
The 2025 Capital Budget must be amended to match budget authority with the project. Funds must be appropriated within the WPCLF Loan Fund, Fund 6111. This is a reimbursement loan. The Department of Public Utilities must pay Obayashi Corporation and then submit the paid invoices to OWDA for reimbursement.
Title
To authorize the Director of Public Utilities to enter into a construction contract modification for the Big Walnut Sanitary Trunk Extension Phase 2 project with Obayashi Corporation; to authorize the Director of Public Utilities to apply for a Water Pollution Control Loan Fund loan to finance this contract modification; to make this ordinance contingent upon that loan being approved; to amend the 2025 Capital Improvement Budget; and to authorize the appropriation and expenditure of up to $14,000,000.00 from the Water Pollution Control Loan Fund. ($14,000,000.00)
Body
WHEREAS, the Department of Public Utilities is engaged in the Big Walnut Trunk Extension (Phase 2) project; and
WHEREAS, Contract No. PO371241 for construction of the project was authorized by Ordinance No. 3581-2022 for the Big Walnut Trunk Extension (Phase 2) project; and
WHEREAS, an unplanned contract modification is needed to add funding for pay for the work associated with the use of a road header machine to complete mining due to excessive levels of methane encountered beyond those anticipated at the time of bidding; and
WHEREAS, it is necessary for Council to authorize the Director of Public Utilities to modify the construction contract with Obayashi Corporation for the Big Walnut Trunk Extension (Phase 2) project; and
WHEREAS, Ordinance 2720-2024, passed by Council on 10/28/24, authorized the use of loans from the Water Pollution Control Loan Fund (WPCLF) to finance Public Utilities projects; and
WHEREAS, the Big Walnut Trunk Extension (Phase 2) project was not specifically listed as a project to be loan funded in Ordinance 2720-2024; and
WHEREAS, even though City Council authorized the Director of Public Utilities to add or subtract projects from the loan list as needed, OWDA still wants to see the project specifically listed in an ordinance City Council approves; and
WHEREAS, this ordinance is contingent upon that loan being approved; and
WHEREAS, the 2025 Capital Improvement Budget must be modified to align budget authority with the project; and
WHEREAS, it has become necessary in the usual daily operation to appropriate and to expend funds from the Water Pollution Control Fund, Fund 6111, to pay for the contract modification; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the 2025 Capital Improvement Budget authorized by Ordinance 1790-2025 be amended as follows to establish sufficient budget authority for this project:
Fund / Project Number / Project Name (Funding Source) / Current Authority / Revised Authority / Change
6111 / 650033-100002 / Big Walnut Sanitary Trunk Extension, Phase 2 (WPCLF Loan) / $0.00 / $14,000,000.00 / $14,000,000.00 (to match loan)
SECTION 2. That the appropriation of $14,000,000.00, or so much thereof as may be needed, is hereby authorized in the Water Pollution Control Loan Fund, Fund 6111, per the accounting codes in the attachment to this ordinance.
SECTION 3. That the Director of Public Utilities is hereby authorized to enter into a construction contract modification for the Big Walnut Trunk Extension (Phase 2) project with Obayashi Corporation, 577 Airport Blvd, Suite 600, Burlingame, CA 94010, in an amount up to $14,000,000.00, in accordance with the terms and conditions of the contract on file in the Department of Public Utilities.
SECTION 4. That City Council authorizes the Director of Public Utilities to apply for a loan from the Water Pollution Control Loan Fund (WPCLF) to finance this contract modification for the Big Walnut Trunk Extension (Phase 2) project and to execute any paperwork necessary to accept the loan.
SECTION 5. That this ordinance is contingent upon the Water Pollution Control Loan Fund loan being approved.
SECTION 6. That the expenditure of $14,000,000.00 or so much thereof as may be needed, is hereby authorized to pay for this contract modification per the accounting codes in the attachment to this ordinance.
SECTION 7. That funds are 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 8. 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 9. 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 10. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.