Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Utilities to enter into a contract modification with Evans Mechwart Hambleton & Tilton Inc. (EMH&T Inc.), for construction administration/inspection services for Department of Public Utilities construction projects bid during the calendar years 2023 through 2025 as part of the Construction Administration/Construction Inspection Services 2023-2025 contracts. The construction project to be administered by EMH&T Inc. under this contract modification is the Lead Service Line Replacements project, CIP No. 690236-100175, CT No. 2401 in an amount up to $1,133,050.50.
This work will primarily be performed in Community Planning Area 99 - Citywide.
UPDATED TIMELINE
The original agreement allowed for work is to be completed within the timeframe established by the individual construction contracts. This contract modification will be in effect through the completion of construction for this project.
1.1. Amount of additional funds to be expended: $495,415.00
Original Contract: $ 1,934,456.02 (PO386052)
Modification #1: $ 178,477.12 (PO402261)
Modification #2: $ 495,415.00 (PO425785 and PO425788)
Modification #3: (current): $ 1,133,050.50 (TBD)
Total: $ 3,741,398.64
1.2. Reasons additional goods/services could not be foreseen:
This is a three-year agreement for fiscal years 2023 - 2025 and modifications were anticipated and explained in the original legislation under Ordinance 0745-2023.
1.3. Reason other procurement processes are not used:
This is a multi-year contract that will be modified as required to provide Construction Administration/Construction Inspection services for construction projects that bid during the three-year (2023-2025) timeframe. Another procurement process is not required.
1.4. How cost of modification was determined:
The cost of this modification was determined by negotiations between EMH&T Inc. and Department of Public Utilities project staff based upon the existing contract labor titles, maximum labor rates, allowable contract expenses, and the time estimated to be needed to perform contract tasks.
2. ECONOMIC IMPACT/ADVANTAGES; COMMUNITY OUTREACH; PROJECT DEVELOPMENT; ENVIRONMENTAL FACTORS/ADVANTAGES OF PROJECT
The goal of this project is to remove lead water service lines from the distribution system. Replacement of these water services will assist with meeting Ohio Environmental Protection Agency requirements pertaining to lead. Community outreach may result through the Neighborhood Liaison Program or the City’s own internal outreach team.
3. CONTRACT COMPLIANCE INFORMATION
EMH&T Inc.’s contract compliance number is CC-004214 and expires 11/8/2025.
4. MINORITY AND WOMAN OWNED BUSINESS ENTERPRISE & SMALL LOCAL BUSINESS ENTERPRISE PROGRAM
This contract opportunity was submitted to the City’s Office of Diversity and Inclusion (ODI) for review and assignment of an MBE/WBE goal prior to bidding. ODI determined there was not an opportunity for MBE/WBE participation in this contract and did not assign a goal. This contract was not bid with a City of Columbus MBE/WBE Program goal and the requirements of the City’s MBE/WBE Program are not applicable to this contract. EMH&T Inc. is ODI certified as a majority company. As shown in the Utilization Plan attached to this ordinance, EMH&T Inc. plans to use one City-certified MBE/WBE sub-consultant on this task. The spend with the one sub-consultant is anticipated to be $61,458.32, or 5.42% for the contract task.
The subcontractor EMH&T Inc. proposes to use for this contract is listed below:
Company Name City/State ODI Certification Status
DHDC Columbus, Ohio MBE
EMH&T Inc.’s and all subcontractors’ certification were in good standing at the time of this contract modification.
5. FISCAL IMPACT
This design modification is expected to be financed with a loan from the Water Supply Revolving Loan Account (WSRLA) through the Ohio Environmental Protection Agency and administered by the Ohio Water Development Authority (OWDA). City Council authorized this loan application and acceptance of funding via Ordinance 0859-2024, passed by Council on 4/15/24. This loan is expected to be approved in December, 2024.
A transfer of funds from the Water System Reserve Fund, Fund 6003, to the Water Supply Revolving Loan Account Fund, Fund 6011, in the amount of $1,133,050.50 is needed to fund design for this project. This transaction is a temporary measure that is required until a loan is executed with the Ohio EPA to reimburse the Water System Reserve Fund. These funds will also need to be appropriated to be transferred and then appropriated after transfer to the new fund. It is necessary to appropriate funds in the amount of $1,133,050.50 in Fund 6011 (Water Supply Revolving Loan Fund).
6. EMERGENCY DESIGNATION
Emergency action is requested to authorize the Director of Public Utilities to execute this contract modification so construction can begin to replace lead water lines, removing this public health hazard as quickly as possible.
Title
To authorize the Director of the Department of Public Utilities to enter into a contract modification with Evans Mechwart Hambleton & Tilton, Inc. (EMH&T) for the Construction Administration/Construction Inspection Services 2023-2025 contract; to authorize the appropriation and transfer of funds from the Water Reserve Fund to the Water Supply Revolving Loan Account Fund; to authorize the appropriation and expenditure of $1,133,050.50 from the Water Supply Revolving Loan Account Fund to pay for the contract modification; and to declare an emergency. ($1,133,050.50)
Body
WHEREAS, the Department of Public Utilities is engaged in the Lead Service Line Replacements project; and
WHEREAS, Contract No. PO402261 was authorized by Ordinance No. 0745-2023, for the Construction Administration/Construction Inspection Project; and
WHEREAS, Contract No. PO386052 was authorized by Ordinance No. 1676-2023, for Modification 1 to the Construction Administration/Construction Inspection Project; and
WHEREAS, Contract No. PO425785 and PO425788 was authorized by Ordinance No. 3100-2023, for Modification 2 to the Construction Administration/Construction Inspection Project; and
WHEREAS, a planned contract modification is needed to add additional funds for the Construction Administration/Construction Inspection tasks needs to be performed for the Lead Service Line Replacements project; and
WHEREAS, the contract with EMH&T Inc. will need to be modified to add this task to the contract and to add funding to pay for the task; and
WHEREAS, it is necessary to authorize the Director of the Department of Public Utilities to enter into a contract modification with EMH&T, Inc. to add funding for the Construction Administration/Construction Inspection of the project; and
WHEREAS, Ordinance 0859-2024, passed by City Council on 4/15/24, authorized this contract modification to be funded by a loan to be obtained through the Water Supply Revolving Loan Account (WSRLA) program; and
WHEREAS, it is necessary to both appropriate funds from the Water Reserve Fund, Fund 6003, and to authorize the transfer of said funds to the Water Supply Revolving Loan Account Fund, Fund 6011, in order to temporarily fund this expenditure, until such time as the City is able to execute a loan for the above stated purpose and reimburse the Water Reserve Fund; and
WHEREAS, it is necessary to appropriate and expend funds from the Water Supply Revolving Loan Account Fund, Fund 6011, to pay for the design of this project; 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 construction of the Project described in this Ordinance (collectively, the “Project”); and
WHEREAS, it is necessary to authorize an expenditure of up to $1,133,050.50 from the WSRLA Fund, Fund 6011, for the Division of Water in order to temporarily fund this expenditure until such time as the City receives loan proceeds for the above stated purpose and reimburses the Water System Reserve Fund; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities in that it is immediately necessary to authorize the Director of the Department of Public Utilities to execute this contract modification as soon as possible so construction can begin to replace lead water lines, removing this public health hazard as quickly as possible, for the immediate 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 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 ending December 31, 2024, the sum of $1,133,050.50 is appropriated in the Water Reserve Fund, Fund 6003, per the account codes in the attachment to this ordinance.
SECTION 2. That the transfer of $1,133,050.50 or so much thereof as may be needed, is hereby authorized from the Water Reserve Fund, Fund 6003, to the Water Supply Revolving Loan Account Fund, Fund 6011, per the account codes in the attachment to this ordinance.
SECTION 3. 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 ending December 31, 2024, the sum of $1,133,050.50 is appropriated in the Water Supply Revolving Loan Account Fund, Fund 6011, per the account codes in the attachment to this ordinance.
SECTION 4. That the Director of the Department of Public Utilities be and hereby is authorized to enter into a contract modification for Construction Administration/Construction Inspection services for the Lead Service Line Replacements project, CIP No. 690236-100175, with EMH&T, Inc., 5500 New Albany Road, Columbus, OH 43054, in an amount not to exceed $1,133,050.50; in accordance with the terms and conditions of the contract modification on file in the Department of Public Utilities.
SECTION 5. That the expenditure of $1,133,050.50, 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 6. That upon obtaining other funds for the purpose of funding water system capital improvement work, the City Auditor is hereby authorized to repay the Water Reserve Fund the amount transferred above (Section 2), and said funds are hereby deemed appropriated for such purposes.
SECTION 7. 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 $1,133,050.50 (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 Water Reserve Fund 6003, which is the fund from which the advance for costs of the Project will be made.
SECTION 8. That 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 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 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 11. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, 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 passage if the Mayor neither approves nor vetoes the same.