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 DLZ Ohio, Inc. The funds approved within this legislation will provide for payment of additional services that were needed to conclude ongoing construction projects.
This modification (Mod #2) will increase the funding of the contract by an additional $405,000.00 for construction administration - construction inspection services that need additional funding. This project typically involves the replacement and or rehabilitation of sanitary and combined sewer infrastructure. The projects involved in this specific modification are two sanitary projects: (1) General Construction Contract and (2) 2009 Annual Lining Contract; and one stormwater project: Floodwall Concrete Repair.
The original contract for DLZ Ohio, Inc was for construction administration and construction inspection.
1.1. Amount of additional funds to be expended: $405,000.00
Original Contract Amount: $ 925,000.00
Modification 1 $ 257,019.84
Modification 2 (current) $ 405,000.00
Total (Orig. + Mod 1, 2) $1,587,019.84
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 DLZ Ohio, Inc. 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 $325,000.00 for two sanitary sewer projects and $80,000.00 for one stormwater 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 needs subject to the approval of a contract modification by City Council. The rates 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 two sources: the Sanitary Sewer Reserve Fund and the Storm Sewer Bond Fund. This ordinance authorizes the Director of Public Utilities to transfer and appropriate $325,000.00 in funds from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund; to expend $325,000.00 from the Voted Sanitary Sewer Bond Fund; to transfer and expend $80,000.00 within the Stormwater Bonds Fund; and to amend to the 2008 Capital Improvements Budget to establish and create sufficient budget authority to cover the expenditure upon passage of the ordinance. 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: 31-1268980 | MBR | Expiration Date: 03/10/2011
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 and stormwater systems are 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 DLZ Ohio, Inc., for two sanitary projects: (1) General Construction Contract and (2) 2009 Annual Lining Contract; and one stormwater project: Floodwall Concrete Repair; to authorize the transfer and appropriation of $325,000.00 from the Sanitary Sewer Reserve Bond Fund to the Voted Sanitary Sewer Bond Fund; to authorize the expenditure of $325,000.00 from within the Voted Sanitary Sewer Bond Fund; to authorize the transfer and expenditure of $80,000.00 within the Storm Sewer Bonds Fund; to authorize an amendment to the 2008 Capital Improvements Budget, for the Division of Sewerage and Drainage; and to declare an emergency. ($405,000.00)
Body
WHEREAS, it is necessary to modify the construction administration and construction inspection services contract with DLZ Ohio, Inc., for two sanitary projects: (1) General Construction Contract and (2) 2009 Annual Lining Contract; and one stormwater project: Floodwall Concrete Repair; 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 and stormwater infrastructures; and
WHEREAS, City Auditor Contract No. EL008289 for $925,000, was executed on June 30, 2008, as authorized by Ordinance 0845-2008, as passed by City Council on June 9, 2009, and approved by the City Attorney on July 2, 2008, for purposes of providing construction administration and construction inspection services necessary to ensure the successful completion of many of the Divisions sanitary and storm sewer improvement projects; and.
WHEREAS, the original contract was based upon an evaluation of the twelve proposals received for the three construction administration and inspection contracts to be awarded for the years of 2008-2010, utilizing a predetermined criteria, a selection committee submitted the rankings to the Director of Public Utilities who determined that DLZ Ohio, Inc., Prime Engineering & Architects, Inc., and Stantec Consulting Services, Inc. (formerly R.D. Zande) were the highest ranking firms capable of providing the required services; and
WHEREAS, Modification No. 1 for Contract No. EL009167 (Beulah Road Trunk Sewer Rehabilitation ) was authorized by Ordinance No. 0093-2009 for $257,019.84, passed February 10, 2009, was executed March 26, 2009, and approved by the City Attorney on March 27, 2009, 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 two sanitary expenditures; and
WHEREAS, it is necessary to authorize the transfer and expenditure of funds within the Storm Sewer Bond Fund for purposes of providing sufficient funding for the Floodwall Concrete Repair project; and
WHEREAS, it is necessary to authorize an amendment the 2008 Amend Capital Improvement Budget for purposes of creating and providing sufficient budget authority for the aforementioned 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 DLZ Ohio, Inc., for two sanitary projects: (1) General Construction Contract and (2) 2009 Annual Lining Contract; and one stormwater project: Floodwall Concrete Repair, to ensure the continued operation of vital sanitary and stormwater infrastructures 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 be, and hereby is, authorized to modify the professional engineering services agreement with DLZ Ohio, Inc., 6121 Huntley Rd., Columbus, Ohio 43229, that will continue to provide construction administration and inspection services for sewer improvement and stormwater projects 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 $325,000.00 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 $325,000.00 from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund, Fund 664, into the following projects; the General Construction Contract, Project No. 650745-100000 in the amount of $225,000.00 and the 2009 Annual Lining Contract, Project No. 650404-1000034 in the amount of $100,000, at such time as deemed necessary by the Auditor, and expend said funds, or so much thereof as may be necessary.
Section 4. That the $325,000.00 is hereby appropriated for the (1) General Construction Contract and (2) 2009 Annual Lining Contract, within the Voted Sanitary Sewer Bond Fund as follows:
Fund 664 | Div. 60-05 | Project 650745-100000 | OCA Code 642918 | Object Level Three 6686 | $225,000
Fund 664 | Div. 60-05 | Project 650404-100034 | OCA Code 664404 | Object Level Three 6686 | $100,000
Section 5. That the City Auditor is hereby authorized and directed to transfer a total of $80,000.00 from within Division of Sewerage and Drainage | Dept./Div. 60-15 | Storm Sewer Bond Fund No. 685 | Object Level One 06 | Object Level Three 6686:
From:
Proj. 610750 | Clintonville Area Misc. SSI | OCA 685750| -$80,000.00
To:
Proj. 610892 | Floodwall Concrete Repair | OCA 685892 | +$80,000.00
Section 6. That the 2008 Capital Improvements Budget Ordinance No. 0690-2008 is hereby amended as follows, to create and provide sufficient budget authority for the execution of the cost agreement increase stated herein:
Transfer of Authority for Sanitary:
Proj. No. | Proj. Name | Current Authority | Revised Authority | (Change)
650510-100031 | Sewer Maintenance Facility | $1,296,000 | $971,000 |( -$325,000)
650745-100000 | General Construction | $0.00 | $225,000 | (+$225,000)
650404-100034 | 2009 Annual Lining| $0.00 | $100,000 | (+$100,000)
Creation of Authority for Storm:
Proj. No. | Proj. Name | Current Authority | Revised Authority | (Change)
610892-100000 | Floodwall Concrete Repair | $0.00 | $80,000 | (+$80,000)
Section 7. That the expenditure of $325,000.00, or as much thereof as may be needed, is hereby authorized from the Voted Sanitary Sewer Bond Fund:
Fund 664 | Div. 60-05 | Proj. 650745-100000 | OCA Code 642918 | Object Level Three 6686 | $225,000.00
Fund 664 | Div. 60-05 | Proj. 650404-100034 | OCA Code 664404 | Object Level Three 6686 | $100,000.00
Section 8. That the expenditure of $80,000.00, or as much thereof as may be needed, is hereby authorized from the Storm Sewer Bond Fund | Fund 685 | Div. 60-15 | Proj. 610892-100000 | OCA Code 685892 | Object Level Three 6686.
Section 9. 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 10. 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 $325,000.00 (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 11. 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 12. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
Section 13. 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 14. 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.