Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Utilities to enter into a construction contract with The Ohio Edison Company for the Fourth Water Plant (FWP) Site Preparation project, CIP #690600-100002, in an amount up to $4,168,373.33.
The Fourth Water Plant Site Preparation project will design and construct a new water plant (aka Home Road Water Plant) to meet water supply needs and increase the resiliency and reliability of the water supply system. The FWP site is located on City owned property in Delaware County, Concord Township, at the southeast corner of Dublin Road (S.R. 745) and Home Road (C.R. 124). The address of the FWP site is 8415 Dublin Road, Delaware, Ohio 43065.
Ohio Edison is the electric utility that serves the FWP site and surrounding area. Existing electrical utility lines near the site do not have capacity to supply the water plant’s electrical needs and Ohio Edison must extend an electrical transmission main to the site to meet the FWP’s electrical needs. To extend the transmission main, the City must enter into a service installation agreement with Ohio Edison. The service installation agreement with Ohio Edison will provide engineering and construction services for the transmission main extension. The extension will construct approximately 3.3 miles of 138 kV transmission line that will run from Ohio Edison’s existing London-Tangy transmission line to the FWP site.
This work is anticipated to be performed as part of the Fourth Water Plant Site Preparation project that is currently out for bid, with bids due 11/6/24. The contractor awarded the contract for this project is to pay Ohio Edison to perform this work. This payment must be made by mid-February or the permit process will have to begin again with Ohio Edison, which will take a year to complete. This will substantially delay the construction of the FWP, and the price for the Ohio Edison work will increase substantially if the permit process has to be redone. The Department of Public Utilities requests this ordinance be approved so the payment can be made by Public Utilities if the contract for the Fourth Water Plant Site Preparation project cannot be awarded in time for the contractor to make the payment to Ohio Edison.
The Fourth Water Plant will service multiple planning areas so this project is coded as “99”, city wide.
TIMELINE: Upon receipt of the initial payment, design and construction of the line extension will proceed and the work shall be completed within a period of 26 months after receipt of the executed agreement. The completion of the line extension is anticipated to occur by the 2nd quarter of 2027.
ESTIMATED COST OF PROJECT:
Costs were developed by Ohio Edison after performing a detailed load study. The City is responsible for 40% of the estimated line extension cost in accordance with Ohio Edison’s line extension policy. The line extension policy is set forth in the Company’s Schedule of Rates for Electric Service, P.U.C.O. No. 11, as approved by the Public Utilities Commission of Ohio. Ohio Edison prepared a price quote for the work and the City’s share of the cost is $4,168,373.33.
2. ECONOMIC IMPACT/ADVANTAGES; COMMUNITY OUTREACH; PROJECT DEVELOPMENT; ENVIRONMENTAL FACTORS/ADVANTAGES OF PROJECT
The City currently has three water plants that collectively provide drinking water to approximately 1.4 million customers in the City of Columbus and surrounding communities. The existing water plants include the Hap Cremean Water Plant (HCWP), the Dublin Road Water Plant (DRWP), and the Parsons Avenue Water Plant (PAWP). The FWP will position the City to meet anticipated water system demands and will improve the reliability and resiliency of the water supply system.
Sustainable design options shall be evaluated for integration into the project. The evaluation shall result in a set of recommended sustainable design features to carry forward into preliminary design.
3. SOLE SOURCE PROCUREMENT
This purchase is being made under the Sole Source Procurement section of Columbus City Code (329.19.e). Ohio Edison is the electrical utility that serves the FWP site and surrounding area. We must have the work performed by Ohio Edison to have electrical service to the plant.
4. CONTRACT COMPLIANCE INFORMATION
The Ohio Edison Company’s contract compliance number is CC006414 but contract compliance has not been completed. We will ask Ohio Edison to complete the contract compliance process and become certified. However, we will need to proceed with the work if Ohio Edison refuses to complete the process as no other entity can perform the work.
5. MINORITY AND WOMAN OWNED BUSINESS ENTERPRISE & SMALL LOCAL BUSINESS ENTERPRISE PROGRAM
A goal of 15% was assigned to the Fourth Water Plant - Site Preparation project by the City’s Office of Diversity and Inclusion. This part of the project work must be performed by the utility company and there are no MBE/WBE subcontracting opportunities for this work. The overall project is still subject to the 15% goal and the requirements of the program.
6. PRE-QUALIFICATION STATUS
Ohio Edison is not construction pre-qualified by the City. This procurement is being made under the Sole Source provision of Columbus City Code so Ohio Edison is not required to be construction pre-qualified.
7. FISCAL IMPACT
Funding in the amount of $4,168,373.33 is available and appropriated within the Water Bond Fund, Fund 6006. An amendment to the 2024 Capital Improvement Budget is needed to align budget authority with the proper project. A transfer of cash and appropriation between projects within the Water Bond Fund is needed to align cash and appropriation with the proper project.
The contractor awarded the construction contract for this project is to pay this cost for the City. This ordinance has been submitted for approval as a back-up plan in case the contract cannot be awarded in time for the contractor to make the payment. One of the following will occur:
• The contract will be awarded in time for the contractor to make the payment to Ohio Edison and the ACPO assigned to this ordinance will be cancelled.
• The contract is not awarded in time for the payment to be made to Ohio Edison and the City will be reimbursed by the contractor for this expense, and such reimbursement shall be deposited to the Water Bond Fund.
• The contract is not awarded in time for the payment to be made to Ohio Edison and the City will be reimbursed by the Ohio Environmental Protection Agency or the Ohio Water Development Authority as part of the loan that is financing the Fourth Water Plant - Site Preparation project, and such reimbursement shall be deposited to the Water Bond Fund.
Title
To authorize the Director of the Department of Public Utilities to enter into a construction contract with The Ohio Edison Company for the Fourth Water Plant Site Preparation project; to authorize a sole source procurement with The Ohio Edison Company; to amend the 2024 Capital Improvement Budget; to authorize a transfer of cash and appropriation between projects within the Water Bond Fund; and to authorize an expenditure up to $4,168,373.33 from the Water Bond Fund. ($4,168,373.33)
Body
WHEREAS, the Department of Public Utilities is engaged in the Fourth Water Plant Site Preparation project; and
WHEREAS, the Fourth Water Plant requires electrical service to operate; and
WHEREAS, Ohio Edison Company is the sole provider of electrical service in the area where the Fourth Water Plant will be built; and
WHEREAS, it is necessary to authorize the Director of the Department of Public Utilities to enter into a sole source construction contract with the Ohio Edison Company for the Fourth Water Plant Site Preparation project to extend electrical service to the plant site; and
WHEREAS, the 2024 Capital Improvements Budget must be modified to align budget authority with the proper project; and
WHEREAS, it is necessary to transfer cash and appropriation between projects within the Water Bond Fund, Fund 6006, to align cash and appropriation with the proper project; and
WHEREAS, it is necessary to authorize an expenditure of funds from the Water Bond Fund, Fund 6006, to pay for the contracted services for the project; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the 2024 Capital Improvements Budget authorized by Ordinance 1907-2024 be amended as follows to establish sufficient budget authority for this project:
Fund / Project Number / Project Name (Funding Source) / Current Authority / Revised Authority / Change
6006 / 690537-100003 / Morse District 2 MG Elevated Storage Tank (Voted Water Carryover) / $1,500,000.00 / $0.00 / ($1,500,000.00)
6006 / 690538-100000 / Condition Assessment Program (Voted Water Carryover) / $1,500,000.00 / $0.00 / ($1,500,000.00)
6006 / 690358-100000 / Automatic Meter Reading (Voted Water Carryover) / $1,200,000.00 / $31,627.00 ($1,168,373.00)
6006 / 690600-100002 / Fourth Water Plant - Site Preparation (Voted Water Carryover) / $0.00 / $4,168,373.00 / $4,168,373.00
SECTION 2. That the transfer of $4,168,373.33 or so much thereof as may be needed, is hereby authorized between projects within the Water Bond Fund, Fund 6006, per the account codes in the attachment to this ordinance.
SECTION 3. That a sole source procurement from Ohio Edison Company to extend electrical service to the Fourth Water Plant is authorized.
SECTION 4. That the Director of Public Utilities is hereby authorized to enter into a construction services contract for the Fourth Water Plant Site Preparation project with The Ohio Edison Company, 1040 S. Prospect Street, Marion, Ohio 43302, in an amount up to $4,168,373.33, in accordance with the terms and conditions of the contract on file in the Department of Public Utilities.
SECTION 5. That the expenditure of up to $4,168,373.33, or so much thereof as may be needed, is hereby authorized to pay for this contract per the accounting codes in the attachment to this ordinance. If such expenditure is in the future reimbursed to the City, such reimbursement shall be deposited to the Water Bond Fund, Fund 6006.
SECTION 6. 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 7. 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 8. 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 9. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.