Explanation
1. BACKGROUND
This Ordinance authorizes the Director of the Department Public Utilities to modify and increase the professional services agreement with EMA, Inc. for the Advanced Metering System (AMS) Study and Implementation Project, CIP #690358-100000, in an amount up to $1,200,000.00
In 2015 the Department of Public Utilities awarded a contract to EMA, Inc. through the City’s Request for Proposal process to develop and recommend a strategy, roadmap, and plan for implementation of an Advanced Metering System (AMS) for water and electrical meters. The contract was for the entire process anticipated to last several years and to consist of the following phases:
Phase 1: Develop an AMS System Roadmap (current)
Phase 2: Prepare an AMS system RFP
Phase 3: Coordinate an AMS System Vendor Selection Process
Phase 4: Provide program management assistance during the implementation.
Under Original Contract No. EL017444 authorized by Ordinance 1597-2015, the Department of Public Utilities contracted with EMA, Inc. to assist in Phase 1 of the contract which was to develop and recommend a strategy, roadmap, and implementation plan of an Advanced Metering System (AMS) for water and electric meters. Under this phase, EMA, Inc. evaluated state-of-the-art AMS technologies; evaluated and compared cost impacts; developed a detailed implementation schedule; and assisted the City in budgetary planning efforts.
Modification No. 1 occurred in May 2017 to procure Phase 2 Services, which included preparation of a Request for Proposal (RFP) for an AMS system that clearly defined the City’s objectives and requirements.
Modification No. 2 occurred in June 2019 to provide Phase 3 and Phase 4 Services, which included coordination of the AMS System vendor selection process, assisting the City in negotiating the technical requirements of the project so a final scope and cost could be determined for the project solution, and program management assistance.
Modification No. 3 occurred in October 2021 to provide continued Phase 3 and Phase 4 Services. This included coordination of AMS business process development, program management assistance during the implementation of the project, and coordinating the system installation, system interface development and testing plans.
Modification No. 4 occurred in November 2022 to provide continued Phase 4 Services. These services included continued program management assistance during implementation from Proof of Concept through mass meter installations, introduction to the customer portal, vendor management, area management, continued public outreach communications, installations inspections, and reporting.
Modification No 5 (current) is a planned modification to continue providing Phase 4 Services. This includes continued program management assistance during implementation from Proof of Concept through mass meter installations, introduction to the customer portal, vendor management, area management, continued public outreach communications, installations inspections, and reporting. Due to the volume of meter installations this phase is projected to last the remainder of the project and will need annual funding through the project completion.
The planning area is “99 - Citywide” as this project serves multiple planning areas.
1.1 Amount of additional funds to be expended: $1,200,000.00
Original agreement: $369,077.71 (EL017444)
Modification No. 1: $550,000.00 (PO065223)
Modification No. 2: $750,000.00 (PO218378)
Modification No. 3: $750,000.00 (PO304311)
Modification No. 4: $750,000.00 (PO359482)
Modification No. 5 (current): $1,200,000.00
Total to Date: $4,369,077.71
1.2. Reasons additional goods/services could not be foreseen:
This is a planned modification as indicated in the original authorizing legislation, Ordinance No. 1597-2015, as well as the modifications under Ordinance No’s 0797-2017, 1847-2019, 2572-2021, and 2746-2022.
1.3. Reason other procurement processes are not used:
Modifications to the agreement were planned as part of the original Request for Proposals RFP. Additionally, the current consultant is familiar with the project and has completed all the work to-date. Bidding the work to another consultant will further delay the project and will result in higher costs due to bringing the new consultant up to speed on the project.
1.4. How cost of modification was determined:
A cost proposal was provided by EMA, Inc. based upon pricing consistent for job titles and tasks already performed under the contract. The proposal was reviewed by Department staff and deemed acceptable.
2. FUTURE CONTRACT MODIFICATION(S)
Due to the volume of meter installations, this phase is projected to last the remainder of the project and will need annual funding through the project completion, which is estimated to be January 2027.
3. ECONOMIC IMPACT/ADVANTAGES; COMMUNITY OUTREACH; PROJECT DEVELOPMENT; ENVIRONMENTAL FACTORS/ADVANTAGES OF PROJECT
An AMS program is favorable to DPU’s operations and customer service functions, as replacing older water and electrical meters will improve service, decrease burden on maintenance operations, reduce water loss, and improve revenue. Moving from quarterly to monthly billing will have a positive impact on customers as the bills will be more manageable in both cost and time.
4. CONTRACT COMPLIANCE INFORMATION
EMA, Inc.’s contract compliance number is CC007843 and expired 10/7/23. Contract compliance will need to be renewed before the contract modification can be executed.
Searches in the Excluded Party List System (Federal) and the Findings for Recovery list (State) produced no findings against EMA, Inc.
5. MINORITY AND WOMAN OWNED BUSINESS ENTERPRISE & SMALL LOCAL BUSINESS ENTERPRISE PROGRAM
This contract was put in place prior to the implementation of the City of Columbus MBE/WBE Program and is not subject to the requirements of that program. EMA, Inc. is classified as a majority company by the City’s Office of Diversity and Inclusion. Per the attached Utilization Plan, there are four subcontractors planned to be used on this contract and one subcontractor is certified as a WBE by the City’s Office of Diversity and Inclusion. The MBE/WBE percentage for this modification is anticipated to be 3.49%. The subcontractors EMA, Inc. proposes to use for this contract modification are listed below:
Company Name City/State ODI Certification Status
Diameter Services, Inc Garden City, NY MAJ
JECARRCO Grove City, Ohio MAJ
Paul Werth Associates Columbus, Ohio WBE
Anser Associates Hilliard, Ohio MAJ
The certification of EMA, Inc. and all subcontractors was in good standing at the time of this contract modification.
6. FISCAL IMPACT
This is a budgeted expense in the 2023 Capital Improvement Budget for the Department of Public Utilities. There is sufficient budgetary authority and cash for this expenditure within the Water Bond Fund, Fund 6006, Project 690358-100000. The funds are appropriated.
Title
To authorize the Director of the Department of Public Utilities to enter into a planned modification of the professional services contract with EMA, Inc. for the Advanced Metering System Project; and to authorize an expenditure of up to $1,200,000.00 from the Water Bond Fund for this contract modification. ($1,200,000.00)
Body
WHEREAS, the Department of Public Utilities solicited proposals through the City’s Request for Proposal process for the Advanced Metering System Study and Implementation Project; and
WHEREAS, contract No. EL017444 was authorized by Ordinance No. 1597-2015, passed July 20, 2015, was executed on August 21, 2015, and approved by the City Attorney on September 2, 2015, for the Advanced Metering System Study and Implementation Project; and
WHEREAS, modification No. 1 under Contract No. PO065223 was authorized by Ordinance No. 0797-2017, passed May 1, 2017, was executed on June 2, 2017, approved by the City Attorney on June 6, 2017, and established funding for Phase 2, preparing a Request for Proposal (RFP); and
WHEREAS, modification No. 2 under Contract No. PO218378 was authorized by Ordinance No. 1847-2019, passed July 29, 2019, was executed on March 10, 2020, approved by the City Attorney on March 12, 2020, and established funding for Phase 3 and Phase 4 Services, which include continued coordination of the AMS System vendor selection process and program management assistance during the implementation of the project; and
WHEREAS, modification No. 3 under Contract No. PO304311 was authorized by Ordinance No. 2572-2021, passed November 1, 2021, was executed on December 10, 2021, approved by the City Attorney on December 17, 2021, established funding for Phase 3 and Phase 4 services which include continued coordination of AMS business process development and program management assistance during the implementation of the project; and
WHEREAS, modification No. 4 under Contract No. PO359482, was authorized by Ordinance No. 2746-2022, was a planned modification to continue providing Phase 4 Services, which include: continued program management assistance during implementation from Proof of Concept through mass meter installations, introduction to the customer portal, vendor management, area management, continued public outreach communications, installations inspections, and reporting; and
WHEREAS, modification No 5 (current) is a planned modification to continue providing Phase 4 Services. This includes continued program management assistance during implementation from Proof of Concept through mass meter installations, introduction to the customer portal, vendor management, area management, continued public outreach communications, installations inspections, and reporting. Due to the volume of meter installations this phase is projected to last the remainder of the project and will need annual funding through the project completion.
WHEREAS, due to the volume of meter installations, future modifications are anticipated through project completion, estimated to be January 2027; and
WHEREAS, it is necessary to authorize the Director of Public Utilities to modify and increase the professional services agreement with EMA, Inc. for the Advanced Metering System Study and Implementation Project; and
WHEREAS, it is necessary to authorize an expenditure of funds within the Water Bond Fund for this contract modification; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Public Utilities, Division of Water, to authorize the Director of the Department of Public Utilities to modify the professional services agreement with EMA, Inc., for the Advanced Metering System Study and Implementation Project; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Public Utilities is hereby authorized and directed to modify and increase the professional services agreement with EMA, Inc., 2355 HWY 36 W, Suite 200, St. Paul, MN 55113, for the Advanced Metering System Project, in an amount up to $1,200,000.00.
SECTION 2. That the expenditure of $1,200,000.00, or so much thereof as may be needed, is hereby authorized in Fund 6006, Water Bond Fund, in Object Class 06, Capital Outlay, per the accounting codes in the attachment to this ordinance.
SECTION 3. 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 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 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 6. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.