Explanation
1. BACKGROUND: This legislation authorizes the Director of Public Utilities to modify the professional engineering agreement with Strand Associates, Inc. for Morse / Dominion Integrated Solutions Project (Mod #2) CIP#650870-100003. It is the objective of the City to mitigate overflows of Designed Sewer Relief (DSR) 335 to the 10-year level of service (LOS). The City has determined the LOS is best achieved with strict inflow & infiltration (I&I) elimination with green infrastructure (GI).
To accomplish this objective, the original scope of work and modification #1 for this project included all the requisite investigation, evaluation, formulation, and design to produce fully independent construction documents for the remediation of inflow and infiltration (I/I), green infrastructure (GI) technologies and other related activities and/or documents necessary for project completion.
The scope of work for this modification is to: complete additional GI layout analysis, all necessary plan changes required due to the new analysis, preparation of bid documents, conduct engineering services during construction as well as the two year warranty period and prepare the final record plans. All of this work is to complete the preliminary design, to prepare construction documents for the remediation of inflow and infiltration (I/I), and the improvement of water quantity and water quality within the project area(s) using Integrated Solutions.
MODIFICATION INFORMATION: Amount for Current Mod: $836,391.10
1.1 Amount of additional funds to be expended: $836,391.10
Original Contract Amount ($) $ 1,344,735.12
Modification #1: $ 249,859.40
Modification #2: (Current) $ 836,391.10
Total $ 2,430,985.62
1.2. Reasons additional goods/services could not be foreseen:
This was an anticipated modification. It is a planned continuation of the services originally included within the existing contract’s scope of service.
1.3. Reason other procurement processes are not used:
Re-bid of the project under the new requirements will likely result in a higher project costs as much of the project history would be lost and required to be rediscovered by another consultant unless won by the same consultant. In such a case, we would have wasted significant time in acquiring and evaluating the new proposals without significant benefit.
1.4. How cost of modification was determined:
The costs of Mod #2 were determined by negotiations between Strand Associates and DOSD.
2. THE PROJECT TIMELINE: It is anticipated that the construction plans will be completed in the 4th quarter of 2016 which will allow for the project to be advertised for construction in late 2016 or early 2017.
3. EMERGENCY DESIGNATION: An emergency designation is not requested at this time.
4. CONTRACT COMPLIANCE No.: 39-1020418 | MAJ | Exp. 09/25/2017
5. ENVIRONMENTAL IMPACT: The City had embarked upon its previously approved Wet-Weather Management Plan (WWMP). The former plan was almost entirely comprised of a series of treatment plant capacity upgrades, storage tanks, tunnels, and other piping system augmentations; collectively known as “gray” infrastructure. After approval of the original WWMP, the use of more renewable, sustainable, and environmentally friendly systems, commonly referred to as “green” infrastructure, has been recognized and implemented in many communities as a potential solution to many of the elements associated with consent order requirements.
Recently, the City received approval from Ohio EPA to implement Blueprint Columbus which will allow the City to meet the WWMP goals and future stormwater regulations with green infrastructure and I&I control on public and private property.
It is anticipated there will be a greater impact to both economic impact and advantages by implementing a group of smaller projects which would be conducive for competition with local suppliers and vendors as opposed to the large scale, previously devised, WWMP projects.
Community and Outreach for the project has been conducted by the City and its sub-consultants.
6. FISCAL IMPACT: This ordinance authorizes the appropriation and transfer of $836,391.10 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund, Fund 6109; to authorize the creation of sufficient budget authority; to authorize the expenditure of up to $836,391.10 from the G.O. Bond Fund, Fund 6109; and amend the 2016 Capital Improvements Budget. Monies for this contract from the Sanitary Sewer Reserve Fund will be provided from a future Bond Sale via the transfer detailed in this ordinance.
Title
To authorize the Director of Public Utilities to modify the professional engineering services agreement with Strand Associates, Inc. for the Morse/Dominion Integrated Solutions Project (Mod #2); to authorize the appropriation and transfer of $836,391.10 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund; to authorize the expenditure of up to $836,391.10 from the Sanitary Sewers General Obligation Bond Fund; and amend the 2016 Capital Improvements Budget. ($836,391.10)
Body
WHEREAS, it is the objective of the City to mitigate overflows of DSR 335 to the 10-year level of service. The City will evaluate and determine if this LOS is best achieved with strictly I&I elimination with GI or in combination with some gray infrastructure; and
WHEREAS, the original contract number EL014344 was authorized by Ordinance No. Ord 0808-2013 passed by the Columbus City Council on April 22, 2013, executed by the Director of Public Utilities May 23, 2013, approved by the City Attorney on May 30, 2013, and certified by the City Auditor on June 03, 2013; and
WHEREAS, the original contract number EL016656 was authorized by Ordinance No. Ord 2683-2014 passed by the Columbus City Council on December 15, 2014, executed by the Director of Public Utilities January 26, 2015, approved by the City Attorney on January 28, 2015, and certified by the City Auditor on January 29, 2015; and
WHEREAS, it is necessary to authorize the appropriation and transfer of $836,391.10 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund; and
WHEREAS, it is necessary for City Council to authorize the expenditure of up to $836,391.10 from the Sanitary Sewer System GO Bond Fund, Fund 6109; and
WHEREAS, it is necessary to amend the 2016 Capital Improvements Budget; and
WHEREAS, it is necessary to provide sufficient budget authority for the aforementioned expenditures; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Sanitary Reserve Fund; and
WHEREAS, the aggregated principal amount of obligations which the City will issue to finance this project is presently not expected to exceed $836,391.10; 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”); and
WHEREAS, it has become necessary in the usual daily operation of the Division of Sewerage and Drainage, Department of Public Utilities, to authorize the Director of Public Utilities to modify the professional engineering services agreement with Strand Associates, Inc. for the Morse/Dominion Integrated Solutions Project, Mod #2, at the earliest practical date for the preservation of the public health, peace, property, safety; and now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Utilities is hereby authorized to modify and increase the professional engineering services agreement with Strand Associates, Inc., 4433 Professional Parkway, Columbus, Ohio 43215 for the Morse / Dominion Integrated Solutions Project (Mod #2) in accordance with the terms and conditions as shown in the agreement on file in the office of the Division of Sewerage and Drainage.
SECTION 2. That from the unappropriated monies in the Sanitary Sewer Reserve Fund No. 6102, Sub-fund 610201, 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, 2016, the sum of $836,391.10 is hereby appropriated to the Division of Sewerage and Drainage.
SECTION 3. That the City Auditor is hereby authorized to transfer and appropriate a total $836,391.10 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer Bond Fund, Fund 6109, into the Morse / Dominion Integrated Solutions Project (Mod #2), CIP 650870-100003, at such time as deemed necessary by the Auditor, or so much thereof as may be necessary in the following manner per the account codes in the attachment to this ordinance.
SECTION 4. That the Director of Public Utilities be and hereby is authorized to expend up to $836,391.10 from the Sanitary Sewer General Obligation Bond Fund, Fund 6109 | Div. 60-05 | per the account codes in the attachment to this ordinance.
SECTION 5. That the 2016 Capital Improvements Budget is hereby amended as follows:
Fund | Project Number | Project Name | Current | Revised | Change
6109 | 650888-100000 | Scioto Main Sanitary Trunk Sewer Rehab | $800,000 | $213,609 | (-$586,392)
6109 | 650870-100003 | Morse /Dominion Integrated Sol | $250,000 | $836,392 | (+$586,392)
SECTION 6. That the said firm, Strand Associates, Inc., shall perform the work to the satisfaction of the Director of Public Utilities and the Administrator of the Division of Sewerage and Drainage.
SECTION 7. 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 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 8. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 9. 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 10. 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 in Section 2 and Section 3, and said funds are hereby deemed appropriated for such purposes.
SECTION 11. 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 $836,391.10 (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 the fund from which the advance for costs of the Project will be made.
SECTION 12. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.