Explanation
Background: This ordinance authorizes the Director of Columbus Water & Power to modify an existing contract with Raftelis Financial Consultants, Inc., for general financial services. The modification amount being authorized by this ordinance is $200,000.00.
The consultant will continue to help with cost-of-service study updates, cost allocation plans, user fee studies, financial research, and more. The consultant will review all fees and charges and recommend changes based on cost of service results or other calculations and recommend the implementation of new fees if appropriate. These fees and charges may include, but are not limited to, meter service fees, system capacity fees, backflow fees, tampering and theft fees, front footage connection charges.
PROCUREMENT:
Columbus Water & Power solicited competitive bids through the Vendor Services and Bonfire from February 15th, 2023, to March 17th, 2023, for general financial services in accordance with the relevant provisions of Chapter 329 of City Code, RFQ024033. One bid was received. The bid was deemed responsive and was evaluated on March 20th, 2023. After reviewing the bid, the committee recommended the award be made to Raftelis Financial Consultants, Inc. The committee determined their proposal was strong because it demonstrated a full understanding of the scope of work, they met the requirements of the RFP, and they had a strong project team with clear roles and responsibilities.
The original term of the contract was for a period of one year from the date of execution by the City of Columbus, up to and including April 30th, 2024, with yearly renewal options for an additional two years, on a year-by-year basis, authorized by Ordinance 1230-2023. The contract amount authorized was $185,000.00.
Ordinance 0134-2024 authorized the first renewal increasing the funding allocations by $185,000.00 and extended the contract through April 30th, 2025.
Ordinance 3467-2024 authorized the second renewal increasing the funding allocations by $250,000.00 and extended the contract through April 30th, 2026.
Ordinance 1029-2025 authorized the first modification increasing the funding allocations by $250,000.00 and extended the contract through April 30th, 2027.
This ordinance authorizes the second modification and is being submitted in accordance with the relevant provisions of Chapter 329 of City Code. For each year of the contract, funding is contingent on availability within the budget, mutual agreement between the parties, approval of City Council, and certification of funds by the City Auditor. This contract does not automatically renew. If unforeseen issues or difficulties are encountered that would require additional funding, a modification would be requested.
1. Amount of additional funds: The total amount of additional funds needed for this contract modification No. 2 is $200,000.00. The total contract amount including this renewal is $1,070,000.00.
2. Reason additional funds were not foreseen: The need for additional funds was known at the time of the initial contract and this legislation authorizes funding to cover the continuation of the consultant’s work through the current contract expiration date.
3. Reason other procurement processes were not used: Work under this modification No. 2 is a continuation of services included in the scope of the original bid contract, which is expected to be completed in mid-2027. No lower pricing/more attractive terms and conditions are anticipated currently.
4. How was cost determined: The costs, terms, and conditions are in accordance with the original agreement.
Principal Party:
Raftelis Financial Consultants, Inc.
19 Garfield Place, Suite 500
Cincinnati, OH 45202
John Mastracchio, (513) 391-8944
Contract Compliance Number: 011256
Contract Compliance Expiration Date: April 7, 2028
Subcontractor:
One Water Econ LLC
4300 Fernbrook Drive
Loveland, CO 80538
FISCAL IMPACT: $200,000.00 is available from within the Public Utilities Operating Funds to meet the financial obligations of this contract.
$304,539.27 was spent in 2023
$262,207.50 was spent in 2024
Title
To authorize the Director of Columbus Water & Power to modify a contract with Raftelis Financial Consultants, Inc. for general financial services; and to authorize the expenditure of $200,000.00 split between the Electricity, Water, Sanitary Sewer, and Stormwater Operating Funds. ($200,000.00)
Body
WHEREAS, it is necessary to authorize the Director of the Columbus Water & Power to modify an existing contract with Raftelis Financial Consultants, Inc. for general financial services; and
WHEREAS, this ordinance is being submitted in accordance with the relevant provisions of Chapter 329 of City Code pertaining to contract modifications; and
WHEREAS, it is necessary to authorize the expenditure of $200,000.00 from the Public Utilities Operating Fund, split among the Electricity, Water, Sanitary Sewer, and Stormwater Operating Funds; and
WHEREAS, it has become necessary in the usual daily operation of Columbus Water & Power in that it is necessary to authorize the Director to enter into a modification agreement for general financial services with Raftelis Financial Consultants, Inc.; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Columbus Water & Power be and is hereby authorized to modify an existing contract with Raftelis Financial Consultants, Inc., for general financial services. The modification amount being authorized by this ordinance is $200,000.00.
SECTION 2. That this modification No. 2 is in accordance with the relevant provisions of City Code, Chapter 329, relating to contract modifications and renewals.
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. 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 5. That for the purpose stated in Section 1, the expenditure of $200,000.00, or so much thereof as may be needed, be and is hereby authorized in object class 03 Services, split among the Water, Electricity, Sanitary Sewer, and Stormwater Operating Funds, per the accounting codes in the attachment to this ordinance.
SECTION 6. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.