Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Utilities to enter into a service contract with Synagro Central, LLC, through the City’s Invitation For Bid process, to provide ongoing residuals removal services for the Parsons Avenue Water Plant (PAWP) Residuals Removal and Disposal - Lagoon 3 project, CIP #690566-100001, in an initial amount up to $5,000,000.00. The contract is expected to last up to four and a half years and cost $41,379,583.30.
Water residuals are the byproduct of treating raw water to create safe drinking water. Residuals are created when chemicals react with suspended solids in the raw water. Under the National Pollutant Discharge Elimination System (NPDES) of the Clean Water Act, the entity that creates the residuals is responsible for safely and responsibly storing and disposing them. At PAWP, these residuals are stored in lagoons until disposal is needed. Periodically, approximately every 12 to 15 years, Lagoon 3 nears its residual storage capacity and must be emptied both to continue as a residuals storage facility and to prevent a discharge of these materials back into the environment.
The purpose of the PAWP Residuals Removal and Disposal - Lagoon 3 project is to provide services to remove, transport, and dispose of the water treatment residuals and grit-laden material from Lagoon 3. Some of these materials will be disposed of in a beneficial reuse manner as fertilizer or compost, while some of the materials will be taken to landfills for disposal. This disposal preserves the existing lagoon to continue to be used for residual storage. The cost of emptying Lagoon 3 of residuals is much less than it would cost to buy new land and build another residuals storage lagoon.
The Community Planning Area is 99 - Citywide.
TIMELINE
All work shall be substantially complete within 1580 calendar days of the Notice to Proceed, with the Final Completion to occur within 1610 calendar days. The City anticipates issuing a Notice to Proceed in fourth quarter 2024. The first stage of this contract (Start-up) is expected to last through March 2025 and is being funded for $5,000,000. The contract is subject to annual funding approval by Columbus City Council for the remaining four years of the service. The Department of Public Utilities anticipates funding the remainder of the work in three contract funding modifications of $12,000,000.00 to $13,000,000.00 each.
ESTIMATED COST OF PROJECT
The bid amount and proposed award amount is $41,379,583.30, including a 10% contingency amount that will be utilized to fund needed and approved changes in the work.
Cost summary:
Original Contract (Start-Up Phase) $5,000,000.00
Contract Modification 1 (future) $12,379,583.00
Contract Modification 2 (future) $12,000,000.00
Contract Modification 3 (future) $12,000,000.00
CONTRACT TOTAL $41,379,583.30
2. ECONOMIC IMPACT/ADVANTAGES; COMMUNITY OUTREACH; PROJECT DEVELOPMENT; ENVIRONMENTAL FACTORS/ADVANTAGES OF PROJECT
The removal of residuals from Lagoon 3 will provide additional storage for residuals generated by the Parsons Avenue Water Plant. This added capacity helps reduce the City’s risk of an NPDES violation caused from discharges from the lagoons containing residuals, and is considerably less expensive than buying land and building a new storage lagoon. There are no anticipated public meetings during this project. The Division of Water will be responsible for coordinating with stakeholders.
3. SERVICES CONTRACT AWARD
An Invitation for Bids for the Parsons Avenue Water Plant Residuals Removal and Disposal - Lagoon 3 project was advertised on the Vendor Services and Bid Express websites from April 18, 2024 through June 5, 2024. Two bids were received for the project and opened on June 5, 2024. The following companies submitted a bid:
Company Bid Amount City/State ODI Status
Synagro Central, LLC $41,379,583.30 Baltimore, MD MAJ
WM National Services, Inc. $54,103,104.31 Houston, TX MAJ
The Synagro Central, LLC 's bid was deemed the lowest, best, most responsive and responsible bid in the amount of $41,379,583.30.
The certification of Synagro Central, LLC was in good standing at the time the bid was awarded.
4. CONTRACT COMPLIANCE INFORMATION
Synagro Central, LLC’s contract compliance number is CC010213 and expires 5/23/26.
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 20% as assigned by the City’s Office of Diversity and Inclusion (ODI). After review of the submitted diversity paperwork, ODI has approved a goal of 2.9% for this project. 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 bid documents for this contract.
As part of their proposal, Synagro Central, LLC, has proposed the following subcontractors to perform contract work:
Company Name City/State ODI Certification Status
Kurtz Brothers Alexandria, Ohio MAJ
Claypool Electric Columbus, Ohio WBE
AFG Truck Force Columbus, Ohio MBE
Arch City Hauling, LLC Columbus, Ohio MBE
CLB Trucking, Inc Columbus, Ohio MBE
Enviro Recycling Group Columbus, Ohio WBE
H&A Services Transportation, LLC Columbus, Ohio MBE
JLD Construction Services, LLC Columbus, Ohio MBE
JRS Hauling, LLC Columbus, Ohio MBE
Mike Maurice Group, LLC Columbus, Ohio MBE
MPC Trucking, New Albany, Ohio MBE
MS Trucking, Inc Groveport, Ohio WBE
The certification of Synagro Central, LLC, and all proposed subcontractors were in good standing at the time the bid was awarded.
6. PRE-QUALIFICATION STATUS
Synagro Central, LLC 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
This contract is anticipated to be funded in stages. The initial stage (the Start-Up Stage) will be funded for $5,000,000.00 and is expected to fund work performed through March of 2025. Funding for this initial stage will be obtained through the Water Operating Fund, Fund 6000. The funds for this stage will need to be appropriated.
The balance of the contract amount is expected to be funded through annual contract modifications based upon the amount of work Synagro and the Department of Public Utilities agrees can be performed over the next year. It is anticipated there will be three annual contract modifications of $12,000,000.00 to $13,000,000.00 each to fund the remaining work.
Title
To authorize the Director of Public Utilities to enter into an ongoing services contract with Synagro Central, LLC to remove residuals for the Parsons Avenue Water Plant Residuals Removal and Disposal - Lagoon 3 project; to appropriate funds within the Water Operating Fund; and to authorize the expenditure of up to $5,000,000.00 from the Water Operating Fund. ($5,000,000.00)
Body
WHEREAS, the Department of Public Utilities is engaged in the Parsons Avenue Water Plant Residuals Removal and Disposal - Lagoon 3 project; and
WHEREAS, the project was formally advertised on the Vendor Services and Bid Express websites from April 18, 2024 through June 5, 2024; and
WHEREAS, two bids for the Parsons Avenue Water Plant Residuals Removal and Disposal - Lagoon 3 (PAWP) project were received and opened on June 5, 2024; and
WHEREAS, it is necessary to authorize the Director of the Department of Public Utilities to enter into an ongoing services contract with Synagro Central, LLC to remove residuals for the Parsons Avenue Water Plant Residuals Removal and Disposal - Lagoon 3 project; and
WHEREAS, the contract is a multi-year contract and is anticipated to be funded in stages; and
WHEREAS, the first stage of the contract is the Start-Up Stage and will be funded with $5,000,000.00; and
WHEREAS, the Department of Public Utilities anticipates funding the remainder of the ongoing residuals removal work with three contract funding modifications; and
WHEREAS, future contract funding modifications are subject to the approval of Columbus City Council; and
WHEREAS, it is necessary to appropriate funds in the Water Operating Fund, Fund 6000, for this first stage of the contract; and
WHEREAS, it is necessary to expend funds to pay for the services Synagro Central, LLC provides under this contract; NOW THEREFORE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Utilities be and hereby is authorized to enter into an ongoing contract for residual removal services for the Parsons Avenue Water Plant Residuals Removal and Disposal - Lagoon 3 with Synagro Central, LLC, 435 Williams Court, Suite 100, Baltimore, MD 21220, in accordance with the terms and conditions of the contract on file in the Department of Public Utilities, in an initial amount up to $5,000,000.00.
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 ended December 31, 2024, the sum of $5,000,000.00 is appropriated in Fund 6000 (Water Operating Fund), per the account codes in the attachment to this ordinance.
SECTION 3. That the expenditure of $5,000,000.00, or so much thereof as may be needed, is hereby authorized to pay for the contract Start-Up Stage per the accounting codes in the attachment to this ordinance.
SECTION 4. 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 5. 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 6. 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 7. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.