Explanation
1. BACKGROUND:
This legislation authorizes the Director of Public Utilities to modify the professional engineering services agreement with EMH&T, Inc., in connection with the Blacklick Creek Sanitary Interceptor Sewer, Part 6C Project. The consultant has performed the requisite field surveys, geotechnical investigations, and hydraulic calculations necessary to generate the Preliminary Engineering Report which outlined the recommended horizontal and vertical alignments for the proposed sewer. The report concluded that the most economical method for constructing the sewer will be via tunneling methods.
In the future the consultant will perform all necessary geotechnical investigations, field surveys, obtain and prepare all permits necessary, generate detailed construction plans and specifications, prepare site-specific maintenance of traffic plans, and supply all construction documents required for bidding. There is at least one future modification planned. The updated contract timeline is January 2015.
Amount of additional funds to be expended: $5,706,025.31
Original Contract $ 2,137,198.16
Modification # 1 Current $ 5,706,025.31
Future Modifications #2 $ 1,600,000.00
Current Proposed Total: $ 9,443,223.47
Reasons additional goods/services could not be foreseen:
This modification was anticipated and explained in the original contract. The amount of the modification has increased due to rate increases that occurred while the project was on hold, and due to a more thorough understanding of the extent of field investigations required to mitigate the project risks during construction phase.
Reason other procurement processes are not used:
Given the highly technical nature of the project and the specialized knowledge of the project area required to complete the services, it would be more costly to solicit proposals for completion of the services by other parties.
How cost of modification was determined:
Estimates were provided by the consultant for the number of hours needed to complete the remaining portions of work. Costs were generated using revised hourly rates to adjust the original contract rates approved in 2006.
Contract Compliance: 31-0685594 | MAJ | Exp 09/22/2013
Emergency Designation: Emergency designation is not requested at this time.
2. FISCAL IMPACT:
This ordinance authorizes the appropriation and transfer of $5,706,025.31from the Sewer System Reserve Fund, Fund 654 to the Sanitary Sewer General Obligation Bond Fund, Fund 664; to authorize the transfer within and expenditure of a total of $5,706,025.31from the following Sanitary Sewer General Obligation Bond Funds, Fund 664, and to amend the 2012 Capital Improvement Budget to establish sufficient budget authority for this ordinance. Monies for this contract from the Sanitary Sewer Reserve Fund will be provided from an upcoming Bond Sale via the transfer detailed in this Ordinance.
Title
To authorize the Director of Public Utilities to enter into a professional engineering services contract modification with EMH&T, Inc., in connection with the Blacklick Creek Sanitary Interceptor Sewer, Part 6C Project; and to authorize the appropriation and transfer of funds from the Sanitary Sewer Reserve Fund, to the Sanitary Sewer General Obligation Bond Fund, to authorize the expenditure of $5,706,025.31 from the Sanitary Sewer General Obligation Bond Fund; and to amend the 2012 Capital Improvements Budget; for the Division of Sewerage and Drainage. ($5,706,025.31).
Body
WHEREAS, the Division of Sewerage and Drainage, Department of Public Utilities, has determined it necessary and advantageous to combine the construction of Part B and Part C extensions of the Blacklick Creek Interceptor Sewer, that will allow for the construction by deep tunnel sewer technology from just north of East Broad Street, north along Reynoldsburg-New Albany Road to the vicinity of Morse Road; and
WHEREAS, Contract No. EL007221 for $2,137,198.16 was authorized by Ord. No. 0663-2007, passed June 11, 2007; executed by the Director on August 16, 2007, and signed by the City Attorney on August 21, 2007, and
WHEREAS, it is necessary to authorize the transfer and appropriation of funds from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation Bond Fund for purposes of providing sufficient funding for the sanitary expenditure; and
WHEREAS, it is necessary for City Council to authorize the expenditure of funds from the Sanitary Sewer General Obligation Bond Fund, Fund 664; and
WHEREAS, it is necessary to authorize an amendment to the 2012 Capital Improvements Budget for purposes of providing sufficient budget authority for the aforementioned project expenditure; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Sanitary Sewer Reserve Fund the amount transferred; 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 project described in this ordinance (the "Project"); and
WHEREAS, it has been determined necessary for this Council to authorize the Director of Public Utilities to modify a professional engineering services agreement with EMH&T, Inc. for the Blacklick Creek Sanitary Interceptor Sewer, Part 6C Project and to authorize the appropriation and transfer of funds from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation Bond Fund; to authorize the expenditure of funds from the Sanitary Sewer General Obligation Bond Fund for purposes of providing sufficient funding for the aforementioned project expenditure; at the earliest practical date; Now, Therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Public Utilities be, and hereby is, authorized to modify aprofessional engineering services agreement with EMH&T, Inc., 5500 New Albany Road, Columbus, Ohio, 43054, in connection with the Blacklick Creek Sanitary Interceptor Sewer, part 6C, in accordance with the terms and conditions of the Contract on file in the office of the Division of Sewerage and Drainage.
Section 2. That from the unappropriated monies in the Sanitary Sewer Reserve Fund No. 654, 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, 2012, the sum of $5,706,025.31 is hereby appropriated to the Division of Sewerage and Drainage: Division 60-05 | OCA Code 901654 | Object Level One 10 | Object Level Three 5502.
Section 3. That the City Auditor is hereby authorized to transfer $5,706,025.31 to the Sanitary Sewer General Obligation Bond Fund, Fund 664, into the Blacklick Creek Sanitary Interceptor Sewer, Part 6C Project; 650034-100000, at such time as deemed necessary by the Auditor, and to expend said funds, or so much thereof as may be necessary.
Section 4. That the $5,706,025.31 is hereby appropriated for the Blacklick Creek Sanitary Interceptor Sewer, Part 6C Project, within the Sanitary Sewer General Obligation Bond Fund, Fund 664 | Division 60-05 | Project 650034-100000 | OCA Code 651034 | Object Level Three 6676.
Section 5. That the expenditure of up to $5,706,025.31 or as much thereof as may be needed, is hereby authorized from the Voted Sanitary Sewer Bond Fund No. 664 | Division 60-05 | Project 650034-100000 | OCA Code 651034 | Object Level Three 6676.
Section 6. That the 2012 Capital Improvements Budget Ordinance No. 0368-2012 is hereby amended as follows, to provide sufficient budget authority for the Capital Improvements Projects listed in:
Fund No. | Project No. | Project Name | Current Authority | Revised Authority | (Change)
664 | 650034-100006 | Blacklick Creek Sanitary Intcptor Sewer | $5,000,000 | $0 | (-$5,000,000)
664 | 650034-100000 | Blacklick Creek Sanitary Intcptor Sewer | $0 | $5,000,000 | (+$5,000,000)
664 | 650034-100000 | Blacklick Creek Sanitary Intcptor Sewer | $5,000,000 | $5,706,026 | (+$706,026)
Creation of Authority to match expenditure
Section 7. That the said firm, EMH&T, shall perform the work to the satisfaction of the Director of Public Utilities and the Administrator of the Division of Sewerage and Drainage.
Section 8. That upon obtaining other funds for the purpose of funding sanitary sewer system capital improvement work, the City Auditor is hereby authorized to repay the Sewer System Reserve Fund the amount transferred above, and said funds are hereby deemed appropriated for such purposes.
Section 9. 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 the obligations to be issued by the City in a principal amount currently estimated to be $5,706,025.31(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 the fund from which the advance for costs of the Project will be made.
Section 10. That the City Auditor is hereby authorized to transfer any unencumbered balance in the project account to the unallocated balance 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; except that no transfer shall be made from a project by monies from more than one source.
Section 11. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
Section 12. 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 13. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.