Explanation
1. BACKGROUND
This ordinance authorizes the Director of the Department of Public Utilities to enter into a contract modification with Stantec Consulting Services Inc., for construction administration/inspection services for Department of Public Utilities construction projects bid during the calendar years 2023 through 2025 as part of the Construction Administration/Construction Inspection Services 2023-2025 contracts.
Stantec Consulting Services Inc. will be assigned construction projects as tasks on their contract and will ensure the work is performed to City of Columbus construction standards and specifications. As projects are added to the contract, the contract will be modified to authorize Stantec Consulting Services Inc., to perform the work and to add funding to pay for the work.
This modification is for Stantec Consulting Services Inc., to perform construction administration/inspection services for the CIP #650902-100001 Clinton Sewer District Number 3, OSU Carmenton District Sewer Extension project in an amount up to $521,560.00.
This project is located in Planning Area - 44-University District
1.1. Amount of additional funds to be expended: $521,560.00
Cost summary:
Original Contract: $453,854.08 (ORD 0956-2023; PO387786, PO387804, PO387812)
Modification #1: $48,351.00 (ORD 1440-2023; PO407688)
Modification #2: $1,607,074.22 (ORD 3042-2023; PO425235, PO425237)
Modification #3: $320,534.69 (ORD 0450-2024; PO444538)
Modification #4: $542,076.68 (ORD 1320-2024; PO460584)
Modification #5: $130,000.00 (ORD 0276-2025; PO TBD)
Modification #6: $494,528.30 (ORD 0628-2025; PO TBD)
Modification #7: $349,988.32 (ORD 1183-2025 PO TBD)
Modification #8: $521,560.00 (Current ordinance)
Total: $4,467,967.29
1.2. Reasons additional goods/services could not be foreseen:
This is a three-year contract for fiscal years 2023 - 2025 for which modifications were anticipated pursuant to the original authorizing legislation under Ordinance 0956-2023 to account for future construction projects being assigned to Stantec Consulting Services Inc. for inspection services. Those future construction projects were not known when the contract was put into place.
1.3. Reason other procurement processes are not used:
This is a multi-year contract that will be modified as required to provide construction administration/inspection services for future construction projects that bid during the three-year (2023-2025) time frame. Those future construction projects were not known when the contract was put into place.
1.4. How cost of modification was determined:
The cost of this modification was determined by negotiations between Stantec Consulting Services Inc. and Department of Public Utilities project staff based upon the existing contract labor titles, maximum labor rates, allowable contract expenses, and the time estimated to be needed to perform contract tasks.
2. ECONOMIC IMPACT/ADVANTAGES; COMMUNITY OUTREACH; PROJECT DEVELOPMENT; ENVIRONMENTAL FACTORS/ADVANTAGES OF PROJECT
This project will construct a 30” sanitary sewer from the intersection of Coffey Rd & Woody Hayes Dr to the intersection of Kenny Rd & Woody Hayes Dr within a lane of the Woody Hayes roadway to serve the Innovation District and vicinity.
3. CONTRACT COMPLIANCE INFORMATION
Stantec Consulting Services contract compliance number is CC-000462 and expires 7/26/2025.
4. MINORITY AND WOMAN OWNED BUSINESS ENTERPRISE & SMALL LOCAL BUSINESS ENTERPRISE PROGRAM
This contract opportunity was submitted to the City’s Office of Diversity and Inclusion (ODI) for review and assignment of an MBE/WBE goal prior to bidding. ODI determined there was not an opportunity for MBE/WBE participation in this contract and did not assign a goal. This contract was not bid with a City of Columbus MBE/WBE Program goal and the requirements of the City’s MBE/WBE Program are not applicable to this contract. Stantec Consulting Services is classified as a majority owned company by ODI. The subcontractor Stantec Consulting Services proposes to use for this contract is DHDC. DHDC is classified by ODI as a City-certified MBE company and is projected to perform 5.75% of the work on this contract modification.
Company Name City/State ODI Certification Status
DHDC, Inc. Columbus, Ohio MBE
Stantec Consulting Services and all subcontractors were in good standing at the time of this contract modification.
5. FISCAL IMPACT
Funding for this contract will be obtained with a loan from the Water Pollution Control Loan Fund (WPCLF), a program jointly administered by the Ohio EPA's Division of Environmental and Financial Assistance and the Ohio Water Development Authority (OWDA). City Council authorized this loan application and acceptance of funding via Ordinance 2720-2024, passed by Council on 10/28/24. The loan is expected to be approved in June, 2025. Funds will need to be certified against the Sanitary Sewer Reserve Fund, Fund 6102, to proceed with this project until the loan has been approved.
Funds will need to be appropriated within the Sanitary Sewer Reserve Fund, Fund 6102, transferred to the Sanitary Revolving Loan Fund, Fund 6111, and then appropriated in the Sanitary Revolving Loan Fund, Fund 6111, in order to fund this expenditure. This transaction is a temporary measure that is required until such time as the division is able to execute a loan with the WPCLF and reimburse the Sanitary Sewer Reserve Fund. An amendment to the 2024 Capital Improvement Budget is needed to reflect the loan funding for this project.
6. EMERGENCY DESIGNATION
Emergency designation is requested in order to begin construction as soon as possible this summer to ensure the active work zone is situated farther from the stadium during this fall’s football season. This will help minimize safety risks associated with pedestrian traffic near the stadium during football games.
Title
To authorize the Director of the Department of Public Utilities to enter into a contract modification with Stantec Consulting Services Inc. for the Construction Administration/Construction Inspection Services 2023-2025 contract; to authorize the appropriation and transfer of funds from the Sanitary Sewer Reserve Fund to the Sanitary Revolving Loan Fund; to authorize the appropriation of funds within the Sanitary Revolving Loan Fund; to amend the 2024 Capital Improvement Budget; to expend up to $521,560.00 from the Sanitary Revolving Loan Fund;, and to declare an emergency. ($521,560.00)
Body
WHEREAS, the Department of Public Utilities advertised a Request for Proposals for Construction Administration/Construction Inspection Services; and
WHEREAS, Stantec Consulting Services Inc. was one of six firms selected by the evaluation committee to provide these services; and
WHEREAS, Ordinance 0956-2023 authorized the contract with Stantec Consulting Services Inc. for these services and assigned the first task to be performed; and
WHEREAS, additional construction inspection/administration tasks needs to be performed; and
WHEREAS, the contract with Stantec Consulting Services Inc. will need to be modified to add these tasks to the contract and to add funding to pay for the tasks; and
WHEREAS, it is necessary to appropriate funds in the Sanitary Revolving Loan Fund, Fund 6111, for this expenditure; and
WHEREAS, Ordinance 2720-2024 authorized this project to be funded by a loan to be obtained through the Water Pollution Control Loan Fund (WPCLF) Loan Account; and
WHEREAS, the 2024 Capital Improvement Budget must be modified to align budget authority with the proper project; and
WHEREAS, it is necessary to both appropriate funds from the Sanitary Sewer Reserve Fund and to authorize the transfer of said funds into the Sanitary Revolving Loan Fund in order to temporarily fund this expenditure until such time as the City is able to execute a loan for the above stated purpose and reimburse the Sanitary Sewer Reserve Fund; and
WHEREAS, the funds transferred into the Sanitary Revolving Loan Fund must be appropriated; 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 construction of the Project described in this Ordinance (collectively, the “Project”); and
WHEREAS, funds must be expended to pay for the construction administration and inspection services Stantec Consulting Services Inc., provides under the Construction Administration/Construction Inspection Services 2023-2025 contract for this contract modification; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities in that construction needs to begin as soon as possible this summer to ensure that the active work zone is situated farther from the stadium during this fall’s football season to help minimize safety risks associated with pedestrian traffic near the stadium during football games, for the immediate preservatoin of the public health, peace, property, safety, and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the 2024 Capital Improvement 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
6111 / 650902-100001 / Clinton Sewer District Number 3, OSU Carmenton District Sewer Extension (WPCLF Loan) / $0.00 / $521,560.00 / $521,560.00 (To match the loan amount)
SECTION 2. That from the unappropriated monies 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 ended December 31, 2025, the sum of $521,560.00 is appropriated in the Sanitary Reserve Fund, Fund 6102, per the account codes in the attachment to this ordinance.
SECTION 3. That the transfer of $521,560.00, or so much thereof as may be needed, is hereby authorized between the Sanitary Reserve Fund, Fund 6102, and the Sanitary Revolving Loan Fund, Fund 6111, per the account codes in the attachment to this ordinance.
SECTION 4. That from the unappropriated monies 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 ended December 31, 2025, the sum of $521,560.00 is appropriated in the Sanitary Revolving Loan Fund, Fund 6111, per the account codes in the attachment to this ordinance
SECTION 5. That the Director of the Department of Public Utilities is authorized to enter into a contract modification for the Construction Administration/Construction Inspection Services 2023-2025 contract with Stantec Consulting Services Inc., 1500 Lake Shore Drive, Suite 100, Columbus, Ohio, 43204, for construction administration and inspection services for the Clinton Sewer District Number 3, OSU Carmenton District Sewer Extension project in accordance with the terms and conditions as shown in the contract on file with the Department of Public Utilities, in an amount not to exceed $521,560.00.
SECTION 6. That the expenditure of up to $521,560.00 is authorized per the accounting codes in the attachment to this Ordinance.
SECTION 7. That upon obtaining other funds for the purpose of funding sewer system capital improvement work, the City Auditor is hereby authorized to repay the Sanitary System Reserve Fund, Fund 6102, the amount transferred above (Section 3), and said funds are hereby deemed appropriated for such purposes.
SECTION 8. 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 9. 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 10. That the City Auditor is 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 11. 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 obligations to be issued by the City in a principal amount currently estimated to be $521,560.00 (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 12. That for the reasons stated in the preamble hereto, which is made a part hereof, this Ordinance is 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 (10) days after passage if the Mayor neither approves nor vetoes this Ordinance.