Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Utilities to enter into a planned contract modification for professional engineering services during construction with DLZ Ohio, Inc. for the Lower Olentangy Tunnel - Phase 1 project, CIP #650724-100000, in an amount up to $1,888,917.00.
The proposed Lower Olentangy Tunnel will work in tandem with the four pillars of the Blueprint Columbus program to enable the City to address several elements of its sewer consent orders that the four pillars alone cannot address and will also improve water quality in the Olentangy River. The project will provide hydraulic relief to both the Franklin Main Interceptor Sewer and the Olentangy Scioto Interceptor Sewer near Second Avenue and near Lane Avenue; it will control the seven upper Olentangy combined sewer overflows per the consent order; mitigate the activation of four designed sewer relief structures per the consent order; and allow closure of a fifth designed sewer overflow structure. This contract modification will fund the continuation of design services through plan signature, engineering services during construction bidding and approximately six months into construction.
Work completed to-date under this contract:
• The original contract included the review of existing information, preliminary field investigations, preliminary geotechnical investigation, and a preliminary design report.
• Modification No. 1 included a large portion of the detailed design, final geotechnical investigation, and survey and easement preparation.
• Modification No. 2 included completion of detailed design, production of specifications, and bidding related services.
• Modification No. 3 included engineering services during construction for the first year.
• Modification No. 4 included the continuation of engineering services during construction for the second year.
• Modification No. 5 included the continuation of engineering services during construction for the third year.
• Modification No. 6 will include the completion of engineering services during construction and the commissioning of the tunnel. This will be the final planned contract modification.
The project is located within the Downtown, Near North/University and West Olentangy community areas. The Community Area used for the ordinance will be “99 - Citywide” because the work associated with this contract serves multiple planning areas.
1.1 Amount of additional funds to be expended: $1,888,917.00
Original Contract $5,488,356.22 (PO018717 / ORD 1315-2016)
Mod. No. 1 $5,402,729.42 (PO117552 / ORD 0756-2018)
Mod. No. 2 $5,482,693.30 (PO181612 / ORD 1428-2019)
Mod. No. 3 $1,979,602.00 (PO270796 / ORD 0613-2021)
Mod. No. 4 $1,960,034.50 (PO316380 / ORD 0133-2022)
Mod. No. 5 $1,884,000.00 (PO383201 / ORD 0590-2023)
Mod. No. 6 $1,888,917.00 (current)
TOTAL $24,086,332.44
1.2. Reason other procurement processes are not used:
This contract was awarded through the City’s RFP process as a multi-year contract with planned modifications to add funding until the construction project is complete. Another procurement process is not required.
1.3. How cost of modification was determined:
The Consultant prepared an estimate based on the scope of work using established contract job titles, rates of pay, and allowable expenses. The City Project Manager and associated staff reviewed the proposal and negotiated the final cost.
2. ECONOMIC IMPACT/ADVANTAGES; COMMUNITY OUTREACH; PROJECT DEVELOPMENT; ENVIRONMENTAL FACTORS/ADVANTAGES OF PROJECT:
The project was identified in the Integrated Plan and 2015 Waste Water Management Plan Update Report which was developed with input from numerous stakeholder groups and submitted to the Ohio EPA. The project will mitigate sewer overflows into the Olentangy River as described in the report.
3. CONTRACT COMPLIANCE INFORMATION
DLZ Ohio, Inc.’s contract compliance number is CC004939 and expires 7/22/26.
As part of the modification of this contract, DLZ Ohio, Inc. has proposed the following two subcontractors to perform contract work:
Company Name City/State ODI Certification Status
Jacobs Associates Columbus, Ohio MAJ
CDM Smith Inc. Columbus, Ohio MAJ
The certification of DLZ Ohio, Inc. and the above companies was in good standing at the time of the contract modification.
Searches in the Excluded Party List System (Federal) and the Findings for Recovery list (State) produced no findings against DLZ Ohio, Inc. or their subcontractors.
4. FISCAL IMPACT
Funding for this contract will be obtained through the Water Pollution Control Loan Fund (WPCLF), a program jointly administered by the Ohio EPA's Division of Environmental and Financial Assistance and the Ohio Water Development Authority (OWDA). City Council authorized this loan application and acceptance of funding via Ordinance 2720-2024, passed by Council on 10/28/24. This project was not specifically listed as one of the projects expected to be loan funded in Ordinance 2720-2024. Section 2 of that Ordinance authorized the Director of Public Utilities to make changes to the list based upon departmental need. This loan is expected to be approved at the OWDA December Board meeting. This ordinance is contingent upon the loan being approved by OWDA. The Department of Public Utilities will inform the Auditor's Office when this loan has been approved.
The 2025 Capital Budget must be amended to match budget authority with the project. Funds must be appropriated within the WPCLF Loan Fund, Fund 6111. This is a reimbursement loan. The Department of Public Utilities must pay DLZ Ohio, Inc., and then submit the paid invoices to OWDA for reimbursement.
Title
To authorize the Director of the Department of Public Utilities to modify and increase the contract with DLZ Ohio, Inc. for the Lower Olentangy Tunnel - Phase 1 project; to authorize the Director of Public Utilities to submit the Lower Olentangy Tunnel - Phase 1 contract modification for loan funding and to execute any paperwork necessary to accept loan funding for this project; to make this ordinance contingent upon the Ohio Water Development Authority approving a loan for this project; to amend the 2025 Capital Improvement Budget; to appropriate funds within the Water Pollution Control Loan Fund; and to authorize an expenditure of up to $1,888,917.00 from the Water Pollution Control Loan Fund to pay for the project. ($1,888,917.00)
Body
WHEREAS, the Department of Public Utilities is engaged in the Lower Olentangy Tunnel - Phase 1 project; and
WHEREAS, Contract No. PO018717 was authorized by Ordinance No. 1315-2016, for the Lower Olentangy Tunnel -Phase 1 project; and
WHEREAS, a planned contract modification is needed to add funding for continued engineering services during construction; and
WHEREAS, it is necessary for Council to authorize the Director of Public Utilities to modify the professional engineering services agreement with DLZ Ohio, Inc. for the Lower Olentangy Tunnel - Phase 1 project; and
WHEREAS, Ordinance 2720-2024, passed by Council on 10/28/24, authorized the use of loans from the Water Pollution Control Loan Fund (WPCLF) to finance Public Utilities projects; and
WHEREAS, the Lower Olentangy Tunnel - Phase 1 project was not specifically listed as a project to be loan funded in Ordinance 2720-2024; and
WHEREAS, even though City Council authorized the Director of Public Utilities to add or subtract projects from the loan list as needed, OWDA still wants to see the project specifically listed in an ordinance City Council approves; and
WHEREAS, this ordinance is contingent upon that loan being approved; and
WHEREAS, the 2025 Capital Improvement Budget must be modified to align budget authority with the project; and
WHEREAS, it is necessary to appropriate and to expend funds from the from the Water Pollution Control Fund, Fund 6111, to pay for the contract modification; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the 2025 Capital Improvements Budget authorized by Ordinance 1790-2025 be amended as follows to establish sufficient budget authority for this project:
Fund / Project Number / Project Name (Funding Source) / Current Authority / Revised Authority / Change
6111 / 650724-100000 / Lower Olentangy Tunnel - Phase 1 (WPCLF Loan) / $5,500,000.00 / $5,863,281.00 / $363,281.00 (to match loan)
SECTION 2. That the appropriation of $1,888,917.00, or so much thereof as may be needed, is hereby authorized in the Water Pollution Control Loan Fund, Fund 6111, per the accounting codes in the attachment to this ordinance.
SECTION 3. That the Director of Public Utilities is hereby authorized to enter into a contract modification for the Lower Olentangy - Phase 1 project with DLZ Ohio, Inc., 6121 Huntley Road, Columbus, Ohio, 43229, in an amount up to $1,888,917.00, in accordance with the terms and conditions of the contract on file in the Department of Public Utilities.
SECTION 4. That City Council authorizes the Director of Public Utilities to apply for a loan from the Water Pollution Control Loan Fund (WPCLF) to finance this contract modification for the Lower Olentangy - Phase 1 project and to execute any paperwork necessary to accept the loan.
SECTION 5. This ordinance is contingent upon that loan being approved.
SECTION 6. That the expenditure of $1,888,917.00, 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 7. Funds are 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 8. 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 9. 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 10. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.