Explanation
This legislation authorizes the Director of Public Utilities to enter into a contract with Raftelis Financial Consultants, Inc. for operational review and strategic planning consulting services. The consultant will continue a comprehensive operational review and assess different strategies for achieving the Department’s goals.
The Department of Public Utilities (DPU) consists of its Director’s Office, which houses sections such as human resources, information technology and fiscal, among others, as well as the Divisions of Water, Sewerage and Drainage, Power and Stormwater. In total, DPU employs just over 1,400 full-time equivalent employees. The Department serves a population of approximately 1.2 million through the operation of three water and two waste water treatment plants and maintenance of approximately 3,600 miles of waterline and 4,600 miles of sewers. The Division of Power purchases and distributes power to approximately 18,500 customers and maintains approximately 59,000 streetlights. The Department’s 2025 operating budget, comprised of the enterprise funds for each of the four divisions, is over $850 million and it also has a 6-year capital improvement plan of over $3 billion.
This contract will supplement a previously agreed contract for operational review and strategic planning services. The first phase of this project included launching and managing the project, stakeholder engagement, and an effective utility management (EUM) 360 scan, which established a baseline of performance against various attributes of effective utility management. Phase two moved from the operational review to the strategic plan phase, and focused on tasks leading to its final development. The third phase continued the strategic plan development. As the project moves towards implementation, this new contract is a continuation of phase 3 and will also assess the optimal organizational design and structure for achieving DPU’s goals and objectives.
PROCUREMENT:
The original operational review and strategic planning project was formally advertised (RFQ023079) on the Vendor Services and Bonfire websites from October 6, 2022 to November 4, 2022 in accordance with the relevant provisions of Chapter 329 of Columbus City Code. The city received six (6) responses. All proposals were deemed responsive and were fully evaluated when the Evaluation Committee met on November 16, 2022. The committee recommended that the contract be awarded to Raftelis Financial Consultants Inc.
The original contract was for one year from the date of execution, with the option to renew for an additional two years on a year-to-year basis, or a portion thereof, based upon mutual agreement of the parties, availability of funding, and approval by Columbus City Council. The original authorizing ordinance was ordinance 3470-2022. A second ordinance, 1479-2023, authorized funding to cover phases 4-6. That ordinance, in error, did not extend the time period of the contract so it expired. As such, per Ordinance 0136-2024, it was deemed in the best interest of the City to waive the provisions of competitive bidding and enter into a contract with Raftelis Financial Consultants, Inc. to provide funding for tasks 7-8 of the overall project. DPU desires to supplement the final phase of this project and explore alternative paths for implementation. Due to continuity from the prior phases, it is in the City’s best interest to waive competitive bidding provisions.
The term of this new agreement is for one-year from the date of execution with the option to renew for three additional one-year terms. Renewal options are permitted on an annual basis based upon mutual agreement of the parties, availability of funding, and approval by Columbus City Council.
VENDOR:
Raftelis Financial Consultants, Inc. | EIN on file | D365 Vendor #011256 | Expires 3/12/2026 |
SUBCONTRACTORS:
Hazen and Sawyer, P.C. | EIN on file | D365 Vendor #000630 | Expires 2/27/2026 |
Neither the Contractor nor Subcontractor are debarred according to the Excluded Party Listing System of the Federal Government or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search.
FISCAL IMPACT:
$500,000.00 is budgeted and available for this contract.
$39,789.52 has been spent year-to-date in 2025
$151,913.37 was spent in 2024
$268,240.00 was spent in 2023
Title
To authorize the Director of Public Utilities to enter into a professional consulting services agreement with Raftelis Financial Consultants, Inc. for operational review and strategic plan development consulting services; to authorize the expenditure of $500,000.00 split among the Electricity, Water, Sanitary Sewer, and Stormwater Operating Funds; and to waive the competitive bidding provisions of City Code. ($500,000.00)
Body
WHEREAS, the Department of Public Utilities had a need for professional consulting services to supplement its operational review and strategic planning project and solicited bids through RFQ023079; and
WHEREAS, for that project, six (6) proposals were submitted and were opened on November 4, 2022 in accordance with the requirements of Chapter 329 of Columbus City Code 329, and Raftelis Financial Consultants, Inc. was selected based upon the City’s request for proposal evaluation process; and
WHEREAS, Raftelis has utilized two subcontractors for some of the work under the contract, Hazen and Sawyer and Rama Consulting, Inc., the former of which will be utilized on this contract; and
WHEREAS, the original project was for one (1) year from the date of execution, with the option to renew for an additional two (2) years on a year-to-year basis, or a portion thereof, based upon mutual agreement of the parties, availability of funding, and approval by Columbus City Council; and
WHEREAS, future contract modifications were anticipated, and Ordinance 1479-2023, authorized funding for the second renewal option to cover phases 4-6; however, that ordinance did not extend the time period of the contract so it expired; and
WHEREAS, in response, Ordinance 0136-2024 deemed in the best interest of the City to waive the provisions of competitive bidding and enter back into a contract with Raftelis; and
WHEREAS, DPU desires to supplement the final phase of this project by exploring alternative paths for implementation and assessing the feasibility of different strategies for achieving the Department’s goals; and
WHEREAS, the expenditure of $500,000.00 or so much thereof as may be needed, is hereby authorized from object class 03, Services, split among the Electricity, Water, Sanitary Sewer, and Stormwater Operating Funds, per the accounting codes in the attachment to this ordinance; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Public Utilities, to authorize the Director of Public Utilities to enter into a contract for operational review and strategic planning consulting services with Raftelis Financial Consultants, Inc.; 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 enter into a one-year contract with Raftelis Financial Consultants, Inc. 19 Garfield Pl. Suite 500, Cincinnati, OH 45202, from date of execution, for operational review and strategic planning consulting services. The contract may be renewed for three additional one-year terms. Renewal options are permitted on an annual basis based upon mutual agreement of the parties, availability of funding, and approval by Columbus City Council.
SECTION 2. That this Council finds it in the best interest of the City to waive the competitive bidding provisions of Chapter 329 of City Code for modification of the contract with Raftelis Financial Consultants, Inc.
SECTION 3. That the expenditure of $500,000.00 or so much thereof as may be needed, is hereby authorized from object class 03, Services, split among the Electricity, Water, Sanitary Sewer, and Stormwater Operating Funds, per the accounting codes in the attachment to this ordinance.
SECTION 4. 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 5. 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 6. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.