Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Utilities to enter into a contract modification for engineering services during construction with Arcadis US, Inc. for the JPWWTP Cogeneration Facility project, CIP #650250-100007, in an amount up to $962,500.00.
The Jackson Pike Wastewater Treatment Plant creates large amounts of methane rich digester biogas which is now burned in flares as a waste product. A recent feasibility study shows that installing a cogeneration system can beneficially use this biogas as fuel to create electricity that will supply about half the total electricity the plant uses, with an acceptable payback period and significant overall reductions in greenhouse gas emissions. The cogeneration system will be relatively large and complex. This project also includes design work for replacing certain plant boilers at the end of their useful life and installing office space.
Preliminary design and detailed design were completed. Modification 3 was intended to progress the work through the end of construction. However, due to construction delays of more than a year and a half, a new modification is required. This current modification will complete remaining engineering work and progress through the duration of construction. A separate construction project is underway and is expected to be completed by second quarter of 2025, and all engineering work will also be complete at that time.
Planning Area: 99 - Citywide
1.1 Amount of additional funds to be expended: $962,500.00
Original Contract Amount: $1,025,883.00 (ORD 1329-2017 PO071394)
Modification #1 Amount: $2,309,950.00 (ORD 2924-2018 PO152817)
Modification #2 Amount: $1,299,989.00 (ORD 0926-2021 PO279978)
Modification #3 Amount: $1,907,793.00 (ORD 0951-2022 PO 332296)
Modification #4 Amount: $962,500.00 (current)
Total (Orig. + Modification): $7,506,115.00
1.2. Reason other procurement processes are not used:
If this phase of the project were bid out it would result in inefficiencies and added fees, while attempting to bring a new consultant up to speed on the design. The design team that performed the other phases of design have key technical knowledge regarding the design intent which is required for technical representation during construction.
1.3. How cost of modification was determined:
The cost of the modification was determined based upon rates and allowable expenses already established in the contract.
2. ECONOMIC IMPACT/ADVANTAGES; COMMUNITY OUTREACH; PROJECT DEVELOPMENT; ENVIRONMENTAL FACTORS/ADVANTAGES OF PROJECT:
This project provides design work to install a cogeneration system that will use the facility’s biogas, now burned in flares as a waste product to create large amounts of electricity. The updated lifecycle cost analysis from preliminary design show a savings in electrical costs, which helps to offset the capital and operating costs of the improvement. A detailed feasibility study shows a large overall reduction in annual greenhouse gas emissions. The system will reduce overall greenhouse emissions by more than 4,000 tons a year of equivalent CO2.
3. CONTRACT COMPLIANCE INFO:
Arcadis US, Inc.’s contract compliance number is CC009409 and expires 2/22/25.
Searches in the Excluded Party List System (Federal) and the Findings for Recovery list (State) produced no findings against Arcadis US, Inc.
4. MINORITY AND WOMAN OWNED BUSINESS ENTERPRISE & SMALL LOCAL BUSINESS ENTERPRISE PROGRAM
This contract was put in place prior to the implementation of the City of Columbus MBE/WBE Program and is not subject to the requirements of that program. Arcadis US, Inc. is classified as a majority company by the City’s Office of Diversity and Inclusion. Arcadis US, Inc. anticipates performing the work on this contract modification with the use of one sub-consultant. The MBE/WBE spend for this contract modification is expected to be 0.0%.
As part of their proposal, Arcadis US, Inc. has proposed the following subcontractor to perform contract work:
Company Name City/State ODI Certification Status
Brown and Caldwell Columbus, Ohio MAJ
The certification of Arcadis US, Inc. and the above company was in good standing at the time the of the contract modification.
5. FISCAL IMPACT
Funds are available and appropriated within the Sanitary Bond Fund, Fund 6109. An amendment to the 2024 Capital Improvement Budget is needed to align budget authority with the proper project. A transfer of cash and appropriation between projects within the Sanitary Bond Fund, Fund 6109, is needed to align cash and appropriation with the proper projects.
Title
To authorize the Director of the Department of Public Utilities to modify and increase the contract with Arcadis US, Inc. for the Jackson Pike Waste Water Treatment Plant Cogeneration Facility Project; to authorize an amendment to the 2024 Capital Improvement Budget; to authorize the transfer of cash and appropriation between projects in the Sanitary Bond Fund; and to authorize an expenditure of up to $962,500.00 within the Sanitary Bond Fund to pay for the contract modification. ($962,500.00)
Body
WHEREAS, the Department of Public Utilities is engaged in the JPWWTP Cogeneration Facility Project; and
WHEREAS, Contract No. PO071394 was authorized by Ordinance No. 1329-2017, for the JPWWTP Cogeneration Facility Project; and
WHEREAS, a contract modification is needed for engineering services due to delays in construction; and
WHEREAS, it is necessary for Council to authorize the Director of Public Utilities to modify the professional engineering services agreement with Arcadis US, Inc. for the JPWWTP Cogeneration Facility Project; and
WHEREAS, an amendment to the 2024 Capital Improvement Budget is needed to align budget authority with the proper project; and
WHEREAS, it is necessary to transfer cash and appropriation within the Sanitary Bond Fund, Fund 6109, to align cash and appropriation with the proper project; and
WHEREAS, it is necessary to expend funds from the Sanitary Bond Fund to pay for the contract modification; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the 2024 Capital Improvement Budget authorized by Ordinance 1907-2024 be amended as follows to establish sufficient budget authority for this project:
Fund / Project Number / Project Name (Funding Source) / Current Authority / Revised Authority / Change
6109 / P650016-100000 / Hoover Farms Subtrunk (Voted Sanitary Carryover) / $2,593,539.00 / $1,631,039.00 / ($962,500.00)
6109 / P650250-100007 / JPWWTP Cogeneration Facility (Voted Sanitary Carryover) / $0.00 / $962,500.00 / $962,500.00
SECTION 2. That the Director of the Department of Public Utilities is hereby authorized to modify and increase the engineering services contract with Arcadis US, Inc., 7575 Huntington Park Dr. Suite 130, Columbus, OH 43235; for the JPWWTP Cogeneration Facility project, in an amount up to $962,500.00.
SECTION 3. That the transfer of $962,500.00, 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 4. That an expenditure of $962,500.00, or so much thereof as may be needed, is hereby authorized from the Sanitary Bond Fund, Fund 6109, to pay for this contract modification per the accounting codes in the attachment to this ordinance.
SECTION 5. That funds are hereby deemed appropriated and expenditures authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 6. 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 7. That the City Auditor is hereby 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 8. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.