Explanation
1. BACKGROUND:
Need. This legislation authorizes the Director of Public Utilities to enter into a planned modification of the professional engineering services contract with Camp, Dresser, McKee, Inc. (CDM), for the Sewer System Capacity Model Update Project, for the Division of Sewerage and Drainage. This ordinance will authorize the establishment of $2,754,801.94 in additional funding. Under the terms of this contract, the City has the right to contract for additional services to fulfill emergency capital improvements or smaller scoped projects, subject to the approval of a contract modification by City Council to provide general engineering services for the Division of Sewerage and Drainage. The potential need for the additional work was foreseen and so stated in the original contract's legislation, and is therefore a planned continuation of the services originally included within the existing contract's scope of service. It is not deemed either feasible or reasonable to suspend work with the entity currently under contract and undertake continuation of these services with another procurement. The cost of this second modification is a continuation of the vendor's current pricing structure, as verified by City staff. The Division has determined that these services cannot be performed by City personnel at this time, and has planned for the procurement of these services on a routine basis.
This project will continue development and enhancement of the City's Sewer System Capacity Model (SSCM). The SSCM is the City's long-term commitment to accurately evaluate collection system capacity deficiencies and devise economical solutions to those deficiencies. Columbus' efforts to accurately predict sanitary flows began with the "Olentangy Scioto Interceptor Sewer Tributary Study - Phase I Report". That first effort ended with the "Columbus Sewer Capacity Study - Phase III" report and model. This, in turn, was updated in method and extent by the Model Update 2000 project (MU 2000).
The basic services to be provided under this Agreement are professional specialized technical services necessary to update the SSCM from year 2000 to 2006 conditions. The model update is necessary to ensure continued conformance with the existing Consent orders between the City of Columbus and the State of Ohio, ongoing efforts to eliminate sanitary sewer overflows, minimize Water-in-Basement (WIB) occurrences, evaluate future development/expansion of served areas and evaluate collection system capital improvement projects included in the City's Wet Weather Management Plan (WWMP), submitted to the Ohio EPA on July 1, 2005.
The original contract with Camp, Dresser, McKee, Inc (CDM) was a multi-year agreement for professional engineering and technical services.
1.1. Amount of additional funds to be expended: $2,754,801.94
Original Contract Amount: $1,954,291.68
Modification 1 $2,562,564.93
Modification 2 (current) $2,754,801.94
Total (Orig. + Mod 1, 2) $7,271,658.55
1.2. Reasons additional goods/services could not be foreseen:
The Department anticipates requesting additional appropriations to this contract for the 2010 fiscal year, through planned contract modifications duly authorized by City Council. Under the terms of this contract, the City has the right to contract for additional services to fulfill emergency capital improvements related needs subject to the approval of a contract modification by City Council.
1.3. Reason other procurement processes are not used:
The original contract selected two firms to provide construction administration services for projects in 2006 through 2010 which included CDM
1.4. How cost of modification was determined:
The rates schedules established within this contract will remain in force throughout the life of the contract.
2. MULTI-YEAR CONTRACT:
This ordinance will authorize the expenditure of $ 2,754,801.94. The Department anticipates requesting additional future appropriations to this contract through planned contract modifications duly authorized by City Council. Under the terms of this contract, the City has the right to contract for additional services to fulfill emergency capital improvements related needs subject to the approval of a contract modification by City Council. The rates schedules established within this contract will remain in force throughout the life of the contract.
3. Contract Compliance No.: 042473650 (MAJ) (Expires 04/11/2010)
4. Emergency Designation: Emergency designation is not requested.
5. FISCAL IMPACT:
This ordinance authorizes the Director of Public Utilities to transfer and appropriate $2,627,494.32 in funds from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund and to appropriate $360.00 as well as transfer $127,307.62 of funds from within the Voted Sanitary Sewer Bond Fund for the purpose of providing the necessary funding required for this expenditure; and to amend to the 2009 Capital Improvements Budget to create and establish sufficient budget authority to cover the expenditure upon passage of the ordinance. This legislation will authorize the expenditure of $2,754,801.94 within the Voted Sanitary Sewer Bond Fund. 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 execute a planned contract modification (#2) for professional engineering services with Camp, Dresser, McKee, Inc., in connection with the Sewer System Capacity Model Update; to authorize the appropriation and transfer of $2,627,494.32 from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund; to authorize the appropriation of $360.00 and the transfer of $127,307.62 within the Voted Sanitary Sewer Bond Fund; to authorize the expenditure of $2,754,801.94 within the Voted Sanitary Sewer Bond Fund; and to amend the 2009 Capital Improvements Budget, for the Division of Sewerage and Drainage. ($2,754,801.94)
Body
WHEREAS, Contract No. EL006787 was authorized by Ordinance No. 2216-2006, as passed by Columbus City Council on January 29, 2007 for purposes of authorizing the Director of Public Utilities to enter into a professional engineering services contract with Camp, Dresser, McKee, Inc., for general engineering services; this was executed on March 5, 2007, and was approved by the City Attorney on March 6, 2007 in the amount of $1,954,291.68; and
WHEREAS, Modification No. 1 to the original Contract No. EL006787, was passed by City Council for $2,562,564.93 (EL008199) via ORD0620-2008 on May 5, 2008; executed on June 16, 2008; and signed by the Attorney on June 19, 2008; and
WHEREAS, it is necessary to modify the subject contract again in order to provide funding for the ongoing and immediate demand for additional professional engineering, survey, and technical services in order to replace, rehabilitate, or expand existing sanitary, storm, and combined sewer infrastructure under both emergency and expedited circumstances; and
WHEREAS, the Division of Sewerage and Drainage engineering personnel have determined it to be in the best interest of the City of Columbus to increase the contract amount to obtain additional general engineering services with Camp, Dresser, McKee, Inc., through the existing contract; and
WHEREAS, it is necessary to authorize the transfer and appropriation of funds from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund for purposes of providing sufficient funding for the aforementioned project expenditure; and
WHEREAS, it is necessary to appropriate and authorize the transfer of funds within the Voted Sanitary Sewer Bond Fund to provide sufficient funding for the aforementioned project expenditure; 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 is necessary to authorize an amendment to the 2009 Capital Improvements Budget for the purpose of creating and providing sufficient spending authority for the aforementioned project expenditure; and
WHEREAS, it is necessary for City Council to authorize the expenditure of $2,754,801.94 from the Voted Sanitary Sewer Bond Fund to cover the legislation; and
WHEREAS, the Division of Sewerage and Drainage, Department of Public Utilities is requesting that this Council authorize the Director of Public Utilities to modify the professional engineering services agreement with Camp, Dresser, and McKee, Inc. in connection with the Sewer System Capacity Model Update, at the earliest practicable 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 Contract No. EL006787 with Camp, Dresser, McKee, Inc., 8800 Lyra Drive, Suite 500, Columbus, Ohio 43240, for professional engineering services for the Sewer System Capacity Model Update, in accordance with the terms and conditions as shown in the contract modification 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, 2009, the sum of $2,627,494.32 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 $2,627,494.32 from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund, Fund 664, into the Franklin/OSIS/Interconnector (Sewer Sys. Capacity Model Update), 650460, 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 $2,627,494.32 is hereby appropriated for the Franklin/OSIS/Interconnector (Sewer Sys. Capacity Model Update), within the Voted Sanitary Sewer Bond Fund | Fund 664 | Division 60-05 | Project 650460| OCA Code 664460 | Object Level Three 6676.
Section 5. That $360.000 is hereby appropriated to the Franklin/Main Interceptor Project, within the Voted Sanitary Sewer Bond Fund | Fund 664 | Division 60-05 | Project 650600| OCA Code 664600 | Object Level Three 6676.
Section 6. That the City Auditor is hereby authorized to transfer $127,307.62 within the Voted Sanitary Sewer Bond Fund, Fund 664; Object Level Three 6676; Division of Sewerage and Drainage; Div. 60-05:
FROM:
Proj. No. | Proj. Name | OCA | Amount
650100 | Sanitary Sewer Contingency | 650100 | $1,492.74
650348 | WWTF Instrumentation and C | 664348 | $10.15
650350 | WWTF Renovations and Rehab | 664350 | $2,900.00
650363 | SWWTP, New Effluent Pump Station | 650363 | $1.00
650370 | Maintenance Mgt.Plan Upgrade | 664370 | $6,993.28
650600 | Franklin/Main Interceptor | 664600 | $360.00
650604 | Big Run / Helbranch Subtrunk | 650604 | $94,723.97
650657 | Lenore Ave/Huy Rd Sanitary Relief | 664657 | $13,946.20
650721 | Downtown Comb. Area Sys Renov Pt. 3 | 664721 | $6,880.28
TO:
Proj. No. | Proj. Name | OCA | Amount
650460 | Franklin/OSIS/Interconnector (Sewer Sys. Capacity Model Update) | 664460 | $127,307.62
Section 7. That the 2009 Capital Improvements Budget Ordinance No.0806-2009 is hereby amended as follows, to create and provide sufficient budget authority for the award of the agreement stated herein:
Project No. | Project Name | Current Authority | Revised Authority | (Change)
650100-100000 | Sanitary Sewer Contingency | $1,493 | $0.00 | (-$1,493)
650348-100000 | WWTF Instrumentation and C | $11 | $0.00 | (-$11)
650350-100000 | WWTF Renovations and Rehab | $2,900 | $0.00 | (-$2,900)
650363-100001 | SWWTP, New Effluent Pump Station | $1 | $0.00 | (-$1)
650370-100000 | Maintenance Mgt.Plan Upgrade | $6,994 | $0.00 | (-$6,994)
650600-100000 | Franklin/Main Interceptor | $582 | $222 | (-$360)
650657-100000 | Lenore Ave/Huy Rd Sanitary Relief | $13,947 | $0.00 | (-$13,947)
650721-100000 | Downtown Comb. Area Sys Renov Pt. 3 | $6 | $0.00 | (-$6)
650460-100000 | Franklin/OSIS/Interconnector (Sewer Sys. Capacity Model Update) | $1,600,000| $2,754,802 | (+$1,154,802)
Section 8. That the expenditure of $2,754,801.94, or as much thereof as may be needed, is hereby authorized from the Voted Sanitary Sewer Bond Fund No. 664 | Division 60-05 | Project 650460 | OCA Code 664460 | Object Level Three 6676.
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 $2,627,494.32 (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 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 11. 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 12. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
Section 13. 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 14. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.
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