Explanation
1. BACKGROUND:
This legislation authorizes the Director of Public Utilities to modify contracts with Kokosing Construction Company, Inc. and BBS Corporation in connection with the Southerly Wastewater Treatment Plant Sludge Dewatering and Miscellaneous Improvements Project. This legislation will additionally amend the 2004 Capital Improvements Budget for purposes of increasing the budget authority for the loan proceeds associated with the supplemental loan pending with the Ohio Water Pollution Control Loan Fund.
This project provides for installation of new sludge dewatering centrifuges, and the associated support systems and sludge conveyance equipment at the Southerly Wastewater Treatment Plant. In order to provide a complete and operational system, it has become necessary to adjust the work scope.
2. CONSTRUCTION CONTRACT MODIFICATION:
a. Name, Location and Status of Companies Submitting a bid for the Original Contract
The following companies responded to the advertised Request for Bids for the Contract:
Kokosing Construction Company, Inc.| Columbus, Ohio| Majority Firm
Adams Robinson Enterprises| Dayton, Ohio| Majority Firm
Shook, Inc.| Dayton, Ohio| Majority Firm
b. Firm Awarded the Contract; Contract Number
Kokosing Construction Company, Inc.| EL003060
c. Contract History
Original Contract: $11,427,150.00 (EL003060 - January 22, 2003)
The Contract provided for the removal of the existing sludge dewatering membrane filter press process equipment, and installation of new sludge dewatering centrifuges. The work includes installation of centrifuge process ancillary equipment, sludge conveyance systems, water heating boilers and electrical distribution equipment.
The original Contract amount of $11,427,150.00 included a 5% contingency amount of $544,150.00. Currently, $536,904.00 of the contingency amount has been committed to additional work (change orders), resulting in a current contract work amount of $11,419,904.00. The value of contract work completed is $11,312,237.00, or 99% of the current contract work amount.
d. Proposed Modification:
Modification No. 1: $500.000.00
The amount requested under this ordinance is $500,000.00; an amount that is approximately 4.6% of the original construction cost.
Additional items of work have been identified as necessary, the cost of which will be greater than the remaining contract contingency amount. The additional funding requested by this ordinance is an amount estimated to be sufficient for the cost of known additional work, plus an additional contingency amount to allow for possible costs of work that may occur due to yet unforeseen conditions.
e. Specific Work Beyond Current Funding (RFP-Request for Proposals)
RFP-14| Miscellaneous Building Improvements (proposed)| $66,952.00
RFP-20| Potable water supply to centrifuge & hydraulic packs; other miscellaneous items for time and material| $80,000.00
RFP-21| Polymer system pressure assemblies & Human/machine interface changes| $50,000.00
Total Estimated Needs: $196,952.00
Summary:
$ 544,150 - Original Contract Contingency Amount
$ 536,904 - Approved and Pending Change Orders (through C.O. #7)
$ 7,246 - Remainder
$ 196,952 - Estimate of Additional Needs
($189,706) - Projected Shortfall
$ 310,294 - Additional contingency for any possible unforeseen problems
$ 500,000 - Requested Modification No. 1 Amount
f. Future Needs: None is planned or anticipated.
g. Updated Timeline for Contract Completion: The Contract Notice to Proceed was
issued February 11, 2003. Substantial Completion of construction, defined as
completely operational building and process systems, was originally scheduled for
January 1, 2005, and is now projected to occur June 10, 2005. Final Completion of
construction, defined as all work being complete, was originally scheduled for March,
2005, but is now projected to occur on August 9, 2005. Extension of the duration of
the contract has been primarily caused by revisions in work caused by inaccuracies in
the design, necessary additional work realized to be needed during construction, and
problems with purchase and delivery of equipment.
h. Why the Work Was Not Anticipated: In any construction project, especially a
project for renovation of existing facilities, changes to contract work are expected.
Some reasons for additional work include: details of equipment and systems specified
to be provided are reviewed and sometimes refined during construction in order to
provide a facility that is optimally configured for operation and safety; components of
the existing facility are concealed and conditions cannot be accurately determined
prior to contract work; latent errors or omissions may exist in the design.
i. Why the Work of This Modification Cannot Be Bid: It is not deemed either feasible or reasonable to suspend work with the entity currently under contract, and undertake
continuation of the work under a new procurement. The process for initiating a new procurement would likely cause an additional and lengthy delay in project completion at additional cost, with no benefit to the City.
j. CONTRACT COST SUMMARY
Original Contract $11,427,150.00
Modification No. 1 $ 500,000.00
Future Anticipated Needs $ 0.00
CONTRACT TOTAL $11,927,150.00
3. PROFESSIONAL ENGINEERING SERVICES CONTRACT MODIFICATION:
a. Name, Location, and Status of Firms Submitting an RFSQ and Proposal for the
Original Contract:
The following companies responded to the Request for Statement of Qualification:
Dodson-Stilson| Columbus Ohio| Majority Firm
BBS Corporation| Columbus Ohio| Majority Firm
Burgess & Niple, Ltd.| Columbus Ohio| Majority Firm
Beling Consultants| Columbus Ohio| Majority Firm
Black & Veatch Ltd. of Ohio| Columbus Ohio| Majority Firm
Metcalf & Eddy| Columbus Ohio| Majority Firm
Three companies were selected to submit, and did submit, a Technical Proposal for
the Project:
BBS Corporation
Dodson-Stilson
Burgess & Niple, Ltd.
b. Firm Awarded the Contract: Contract Number:
BBS Corporation, EL000206 (March 24, 2000)
c. Work Performed to Date:
This Contract provides engineering services for the Southerly Wastewater Treatment
Plant Sludge Dewatering and Miscellaneous Improvements, Project 650349. The
project will provide for removing existing sludge dewatering membrane filter press
process equipment, and installing new sludge dewatering centrifuge process
equipment.
ORIGINAL CONTRACT: $756,113.00 (EL000206 - March 24, 2000)
Establish the contract and provide funding for performance of project preliminary
design work and development of a detailed design for removal of filter press process
equipment.
An investigation of the existing process equipment and building was performed. This
information was then used to develop a general plan for removal of existing process
equipment, and installation of the new process equipment, documented in a report for
the City's review and determination of direction. The effort continued with
development of detailed written specifications and engineering drawings for removal
of the existing equipment.
MODIFICATION NO. 1: $1,795,089.00 (EL001052/EL003803 - January 30, 2001)
This modification provided funding for development of a detailed design for the
installation of sludge dewatering centrifuges and ancillary systems.
Development of written specifications and engineering drawings for installation of the
new sludge dewatering centrifuge process equipment was accomplished. The work
included assistance with bid solicitation for a single construction contract for both
demolition work and new process installation, and evaluation of bids received.
MODIFICATION NO. 2: $968,325.00 (EL003162 - February 6, 2003)
Performance of technical and field services during construction. The work includes
providing interpretations and clarifications of the construction documents,
responding to contractor's inquiries, reviewing and approving the contractor's
submitted documentation, designing and documenting needed changes to the
construction work, observing and verifying construction work, providing evaluations
and recommendations on the acceptability of the contractor's work, observing facility
testing and startup, providing manuals for facility operation, and preparing record
drawings of the work as actually constructed.
PROPOSED MODIFICATION NO. 3: $219,452.00
This Modification provides: 1) funding for extending technical and field services
during construction through a 5 to 6 month period beyond the original construction
completion date of March 2, 2005; 2) funding for classroom training of plant
operations personnel on the project installed process operation and its coordination
with other plant processes; 3) funding for services as the lead entity in the equipment
and systems start-up and operational demonstration; 4) funding for engineering to
address issues of sump pump replacement, grease incineration, and odor control at
the gravity sludge thickeners.
d. Work to Be Performed During any Future Phasing of the Contract:
Development of a second construction contract for bidding is planned under this
project. Several issues that arose during the first phase of construction are to be
addressed and resolved in this second phase.
The estimated future funding needs for engineering services are $135,000 for the
detailed design work for the second construction contract, and $106,000 for
performance of technical and field services during construction, based upon an
estimated amount of $475,000 for construction. Professional construction
management services will also be needed for the second phase of construction,
however, it is not known at this time whether BBS or another entity will be performing
those services.
e. Updated Timeline for Contract Completion:
The Contract Notice to Proceed for the Preliminary Design work was issued March 31,
2000. BBS proceeded with work to investigate existing conditions and develop a
general plan for the project improvements. A draft Detailed Design Memorandum
(DDM) documenting the investigative efforts, alternatives, general plan and
recommendations for project improvements was submitted to the City for review on
October 30, 2000. On March 2, 2001 the final version of the DDM was submitted that
included all revisions resulting from the City's reviews. The detailed design work then
began for production of specifications and drawings for bidding project construction.
The construction contract was advertised for bids, and bids were received on July 10,
2002. The construction contract was awarded and the Notice to Proceed was issued
on February 11, 2003. Final Completion of construction was originally scheduled to
occur in March, 2005, but is now estimated to occur in August, 2005. BBS
Corporation services continue beyond completion of construction to provide
"as-built" record drawings of the constructed facilities within 60 days of completion,
and also to provide reporting on the status of operation of the constructed facilities
one year after completion.
A contract modification to provide funding for the design of the second
construction phase is expected to be forwarded to City Council for approval in the
near future. Completion of the design work is estimated to require six weeks.
Completion of the bidding and approval process for a construction contract is
expected to require 7 months, and completion of construction is estimated to require 9
months.
f. Why the Work Was Not Anticipated:
This modification provides funding for work that was realized to be necessary
during construction. In any construction project, especially a project for renovation
of existing facilities, changes to contract work are expected. In general, reasons for
additional work include: details of equipment and systems specified to be provided
are reviewed and sometimes refined during construction in order to provide a facility
that is optimally configured for operation and safety; components of the existing
facility are concealed and conditions cannot be accurately determined prior to
contract work; latent errors or omissions may exist in the design. In this project:
1. Continuation of services through the extended period of construction (5 to 6 month
period) is necessary for proper project completion. The extension of construction
duration is primarily due to City directed revisions, delayed availability of equipment,
and latent errors or omissions in the design.
2. Reliable and continuous sludge disposal processes are essential for successful
plant operation. Treatment plant operations personnel have requested training for its
staff on the sludge centrifuge process operation and coordination with other plant
processes. This type of training has not typically been provided for other plant
improvements projects, and is in addition to the usual equipment training.
3. The Division has attempted to reduce professional consultant costs in recent years
by funding only part-time on-site presence of the design professional during
construction and startup of the project improvement. Due to the nature of the
process improvements of this project, it is deemed necessary to provide funding for
full-time participation in the process start-up and optimization.
4. Issues arose during construction concerning the condition of sump
pumps, disposal of grease, and corrosive gasses at the gravity sludge thickeners.
These items were not originally included in the scope of this project improvement,
but were deemed sufficiently important to provide funding for engineering to study
the conditions and possible resolutions.
g. Why the work of this modification cannot be bid
The funding provided by this contract modification is for continuation of the existing
work of the contract. It is not deemed either feasible or reasonable to suspend work
with the entity currently under contract, and undertake continuation of the work
under a new procurement. The lengthy process for initiating a new procurement, and
for a new entity to gain understanding of the project, would likely cause an
unacceptable project delay and additional cost.
h. Contract Cost Summary
Original Contract $ 756,113
Modification No. 1 $1,795,089
Modification No. 2 $ 968,325
Proposed Modification No. 3 $ 219,452
CURRENT PROPOSED TOTAL $3,738,979
Future Modification No. 4 $ 135,000 (estimate for design services)
Future Modification No. 5 $ 106,000 (estimate for services during const.)
EST. ADD'L NEEDS $ 241,000
EST. CONTRACT TOTAL $ 3,979,979
Title
To authorize the Director of Public Utilities to modify contracts with Kokosing Construction Company, Inc. and BBS Corporation in connection with the Southerly Wastewater Treatment Plant Sludge Dewatering and Miscellaneous Improvements Project; to authorize the appropriation and expenditure of $719,452.00 from the Ohio Water Pollution Control Loan Fund; to amend the 2004 Capital Improvements Budget; for the Division of Sewerage and Drainage, and to declare an emergency. ($719,452.00)
Body
WHEREAS, Contract No. EL003060 was authorized by Ordinance No. 1895-02, as passed by Columbus City Council on December 9, 2002 for purposes of authorizing the Director of Public Utilities to enter a construction contract with Kokosing Construction Company, Inc. for the Southerly Wastewater Treatment Plant Sludge Dewatering and Miscellaneous Improvements Project; and
WHEREAS, Contract No. CT19521 was authorized by Ordinance No. 3034-99, as passed by Columbus City Council on December 13, 1999, for purposes of authorizing the Director of Public Utilities to enter a contract with BBS Corporation for engineering services in connection with the aforementioned project; and
WHEREAS, The Division of Sewerage and Drainage engineering personnel have determined it necessary to modify the contract with Kokosing Construction Company, Inc. in order to provide for additional work needed for the successful completion of the sludge dewatering system improvements of the aforementioned wastewater treatment plant capital improvements project; and
WHEREAS, The Division of Sewerage and Drainage engineering personnel have further determined it necessary to modify the professional engineering services contract with BBS Corporation in order to provide the additional engineering services that are needed in connection with the project construction performed under the separate contract with the Kokosing Construction Company, Inc., as referenced above; and
WHEREAS, it is immediately necessary to amend the 2004 Capital Improvements Budget to provide sufficient authority for increasing a capital project account; and
WHEREAS, an emergency exists in the usual daily operation of the Division of Sewerage and Drainage, Department of Public Utilities, in that it is immediately necessary for this Council to authorize the modification of contracts with Kokosing Construction Company, Inc. and BBS Corporation, which is necessary to successfully complete the sludge dewatering centrifuge system improvements at the Southerly Wastewater Treatment Plant, at the earliest practicable date; for the immediate preservation of the public health, peace, property, and safety; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That $719,452.00 is hereby appropriated for the following sanitary sewer system project within the Ohio Water Pollution Control Loan Fund No. 666| Division 60-05| Object Level 6624| Proj. No. 650349| SWWTP Sludge Dewat. & Misc. Improv.| OCA Code 666349| $719,452.00, in accordance with the Ohio Water Development Authority Loan No. 4320 as approved by at the May 26, 2005 OWDA Board Meeting.
Section 2. That the City Auditor is authorized to make any accounting changes to revise the funding source for any contract or contract modification associated with the expenditure of the funds transferred under Section 2., above.
Section 3. That the Director of Public Utilities be, and hereby is, authorized to execute a construction contract modification in the amount of $500,000.00 with Kokosing Construction Company Inc., 886 McKinley Ave, Columbus, Ohio 43222 for construction of the Southerly Wastewater Treatment Plant Sludge Dewatering and Miscellaneous Improvements Project in order to provide for additional work in accordance with the terms and conditions as shown in the Modification on file in the General Engineering Section of the Division of Sewerage and Drainage.
Section 4. That the Director of Public Utilities be and hereby is authorized to execute a contract modification for professional engineering services in the amount of $219,452.00, with BBS Corporation, 1103 Schrock Road, Columbus, Ohio 43229-1179, for the Southerly Wastewater Treatment Plant Sludge Dewatering and Miscellaneous Improvements Project in accordance with the terms and conditions as shown in the modification agreement on file in the General Engineering Section of the Division of sewerage and Drainage.
Section 5. That for the purpose of paying the cost of the construction contract modification and the professional engineering services contract modification, the expenditure of $719,452.00, or as much thereof as may be needed, is hereby authorized as follows from the Ohio Water Pollution Control Loan Fund No. 666| Division No. 60-05| Southerly Wastewater Treatment Plant Sludge Dewatering and Miscellaneous Improvements Project No. 650349| OCA Code 666349:
Kokosing Construction Company, Inc.| Obj. Level 6624| $500,000.00
BBS Corporation| Obj. Level 6676| $219,452.00
Section 6. That the 2004 Capital Improvements Budget Ordinance No. 1059-2004 is hereby amended as follows, to provide sufficient budget authority for the project costs covered within the aforementioned contract modifications:
CURRENT:
Project 650349| SWWTP Sludge Dewatering & Misc. Imp. - $0.00 (OWDA)
AMENDED TO:
Project 650349| SWWTP Sludge Dewatering & Misc. Imp. - $719,452.00
(OWDA)
Section 7. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage is the Mayor neither approves nor vetoes the same.