Explanation
Background: This ordinance authorizes the Director of the Department of Public Utilities to modify an existing contract with Raftelis Financial Consultants, Inc. for general financial services. The modification amount being authorized by this ordinance is $250,000.00. The original contract was authorized by Ordinance 1230-2023.
The consultant will continue to help with cost of service study updates, cost allocation plans, user fee studies, financial research, and more. The consultant will review all fees and charges and recommend changes based on cost of service results or other calculations, and recommend the implementation of new fees if appropriate. These fees and charges may include, but are not limited to, meter service fees, system capacity fees, backflow fees, tampering/theft fees, front footage connection charges, and other permit fees. The first year of the agreement, the contract was funded in the amount of $185,000.00. The second year of the contract was funded at $185,000.00 per year, authorized by Ord. 0134-2024. The second renewal, year three of the contract, was funded at $250,000.00, authorized by Ord. 3467-2024, for a contract total of $620,000.00. This ordinance, year four of the contract, is requesting additional funding of $250,000.00 and a one year extension to April 30, 2027. If additional funding is needed, a modification will be processed based upon mutual agreement of the parties, approval by City Council, and certification of the funds by the City Auditor.
PROCUREMENT:
The Department of Public Utilities (DPU) solicited competitive bids through the Vendor Services and Bonfire websites from February 15, 2023 to March 17, 2023 for general financial services in accordance with the relevant provisions of Chapter 329 of City Code (RFQ024033). One (1) bid, by a majority vendor, was received. The bid was deemed responsive and was evaluated on March 20, 2023. The committee recommended that Raftelis Financial Consultants, Inc. be awarded the contract. The committee determined their proposal was strong because it demonstrated a full understanding of the scope of work and met the requirements of the RFP, and due to their strong project team with clear roles and responsibilities.
The term of the contract was for one-year with two renewal options, with the original contract authorized by Ordinance 1230-2023. The one-year renewal options were authorized under ordinances 0134-2024 for year two and 3467-2024 for year three of the contract, adding additional funds and extending the contract expiration date to March 31, 2026. The term of this year four contract will add additional funds in the amount of $250,000.00 and extend the contract expiration date to April 30, 2027. For each additional year of the contract, funding is contingent on availability within the budget, mutual agreement between the parties, approval of City Council, and certification of funds by the City Auditor.
This ordinance is being submitted in accordance with the relevant provisions of Chapter 329 of City Code pertaining to contract modifications.
1. Amount of additional funds: The total amount of additional funds needed for this contract modification #1 is $250,000.00. Total contract amount including this modification is $870,000.00.
2. Reason additional funds were not foreseen: The need for additional funds was known at the time of the initial contract. This modification number 1 is to extend time and authorize additional funding to cover a continuation of the consultant’s work.
3. Reason other procurement processes were not used: This modification is a continuation of the original contract, which is expected to be complete in mid 2027.
4. How was cost determined: The renewal is based upon estimated rates established in the existing contract.
Principal Party:
Raftelis Financial Consultants, Inc.
19 Garfield Place, Suite 500
Cincinnati, OH 45202
John Mastracchio, (513) 391-8944
Contract Compliance Number: 011256
Contract Compliance Expiration Date: March 12, 2026
Subcontractor:
One Water Econ LLC
4300 Fernbrook Drive
Loveland, CO 80538
Contract Compliance Number: 044761
Contract Compliance Expiration Date: PENDING
Emergency Justification: This ordinance is being submitted as an emergency in order to allow the continuation of financial services for the Department of Public Utilities. The funding remaining on the current contract will not allow the Department to continue services beyond September 2026, the emergency is necessary to minimize the amount of time services are not available.
FISCAL IMPACT: $250,000.00 is budgeted and available from within the Public Utilities Operating Funds to meet the financial obligations of this contract modification.
$262,207.50 was spent in 2024
$107.792.50 was spent in 2023
Title
To authorize the Director of Public Utilities to modify a contract with Raftelis Financial Consultants, Inc. for general financial services; to authorize the expenditure of $250,000.00 split among the Electricity, Water, Sanitary Sewer, and Stormwater Operating Funds; to waive the competitive bidding provisions of Columbus City Code; and to declare an emergency. ($250,000.00)
Body
WHEREAS, it is necessary to authorize the Director of the Department of Public Utilities to modify an existing contract with Raftelis Financial Consultants, Inc. for general financial services; and
WHEREAS, due to the expected costs and project delays associated with restarting the general financial services bidding process, it is in the best interest of the City to waive the provisions of competitive bidding in Chapter 329 of the Columbus City Codes and modify the contract with Raftelis Financial Consultants, Inc. for general financial services; and
WHEREAS, it is necessary to authorize the expenditure of $250,000.00 from the Public Utilities Operating Fund, split among the Electricity, Water, Sanitary Sewer, and Stormwater Operating Funds; and
WHEREAS, it is necessary to authorize extend the contract expiration date to April 30, 2027; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Public Utilities in that it is immediately necessary to authorize the Director to enter into contract with Raftelis Financial Consultants, Inc. to ensure funds are available to prevent a lapse in services, all for the immediate preservation of the public health, peace, property, safety, and welfare; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Public Utilities be and is hereby authorized to modify an existing contract with Raftelis Financial Consultants, Inc. for general financial services to increase funding and extend the contract expiration date to April 30, 2027. The modification amount being authorized by this ordinance is $250,000.00.
SECTION 2. That this Council finds it in the best interest of the City to waive the competitive bidding provisions of Chapter 329 of the Columbus City Codes for this contract modification with Raftelis Financial Consultants, Inc. and does hereby waive the same.
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. 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 5. That for the purpose stated in Section 1, the expenditure of $250,000.00 or so much thereof as may be necessary to pay the cost thereof, be and is hereby authorized from Public Utilities in object class 03 Services, split among the Electricity, Water, Sanitary Sewer, and Stormwater Operating Funds, per the accounting codes in the attachments to this ordinance.
SECTION 6. 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 if the Mayor neither approves nor vetoes the same.