Explanation
1. BACKGROUND: This legislation authorizes the Director of Public Utilities to modify the professional engineering services agreement with Hazen and Sawyer for the Jackson Pike Wastewater Treatment Plant (JPWWTP) Biosolids Land Application Improvement Project, Mod #2. Hazen and Sawyer will provide Preliminary Design Services (Step 1), Detailed Design and Bidding Services (Step 2), and Services During Construction (Step 3).
The initial phase of this contract provided Professional Engineering Services for Preliminary Design (Step 1). The second phase provided Professional Engineering Services for Detailed Design and Bidding Services (Step 2) and was funded by Modification No. 1. Modification No. 1 was planned and anticipated. This request for a modification (Modification No. 2) was not planned and will provide additional and previously unanticipated Professional Engineering Services for Detailed Design (Step 2). A future modification is anticipated as the third phase of Professional Engineering Services for Engineering Services During Construction (Step 3).
The scope of work for this project generally includes a new or modified liquid (10%TS) land application load-out facility and the assessment of the solids train to identify potential improvements, additional equipment requirements, and upgrades to meet the City’s solids processing needs, e.g. the existing 14 biosolids tanks, pumping-mixing-piping systems, and other solids related ancillary equipment.
Step 1 of this project, Preliminary Design, included the following five tasks: 1. Gather process information and refine project goals, 2. Conduct a process condition assessment of the land application process, 3. Participate in a Business Case Evaluation (BCE), 4. Generate a Preliminary Design Report (PDR) with preliminary drawings and equipment specifications, 5. Revise and submit the Final PDR.
Upon the City’s approval of the PDR, Step 2, Detailed Design began. Detailed Design will prepare construction contract documents (including specifications and drawings) in accordance with City of Columbus Division of Sewerage and Drainage standards, guidelines, and direction for construction and implementation of the proposed facility. Detailed Design also includes plan and specification review meetings, assisting in negotiations, permitting, and other matters with U.S. EPA, Ohio EPA, and other government agencies as necessary, and bidding services (which includes assisting at the Pre-Bid Conference and bid opening, tabulating bids, making an award recommendation for lowest and best bid, and preparing Conformed to Contract documents.)
This modification (Modification No. 2) will provide funding for previously unplanned, unanticipated, additional Step 2, Detailed Design Services. Detailed Design typically follows the recommendations of the PDR, but, during the course of detailed design, further investigations are conducted and, in some cases, it becomes apparent that some PDR recommendations require revision. Furthermore, as detailed design develops, requirements of building codes or additional design items that become apparent and surface during the course of detailed design require an additional design effort to provide a complete design and fully functional facility. The additional Step 2 tasks include the following: a change in location for the new biosolids load-out facility, a new recirculation pump for Tank D9, new HVAC equipment for Tunnels D, E, and F, an investigation to determine if tank walls can be raised to add additional storage capacity, and a contingency to provide for the design of future unplanned, unforeseen design items.
A future modification will be requested for Step 3, Engineering Services During Construction which will include technical project representation (TPR) duties, construction phase engineering, start-up and commissioning assistance, and record documentation.
Construction Management Services will be performed by others.
Modification Information:
1.1 Amount of additional funds to be expended: $168,310.00
Original Contract $ 298,247.00
Modification No. 1 $1,046,500.00
Modification No. 2 (Current) $ 168,310.00
CURRENT PROPOSED TOTAL $1,513,057.00
1.2 Reasons additional goods/services could not be foreseen.
This Contract Modification was not anticipated. As the design developed, it only then became apparent that an additional detailed design effort, above that initially planned, would be required to address all items required to provide a complete design for a fully functioning facility. The additional detailed design effort that will be performed is a continuation of the services included within the existing contract’s scope of services.
1.3 Reason other procurement processes are not used:
The funding provided by this contract modification is for the continuation of the existing work of the contract. Due to the highly complex and technical nature of this wastewater treatment plant infrastructure, it is not reasonable or cost effective to undertake a new procurement to acquire these services. The lengthy process for initiating a new procurement and for a new entity to gain understanding of the project would cause an unacceptable project delay and additional cost.
1.4 How cost of modification was determined:
A cost proposal was provided by Hazen & Sawyer and reviewed by the Division of Sewerage and Drainage and was deemed acceptable.
2. PROJECT TIMELINE: The Professional Engineering Services agreement was signed on October 17, 2013. It provided Step 1, Preliminary Design Services. The completion of Preliminary Design occurred in February 2015. Modification No. 1 provided funding for Step 2, Detailed Design and it commenced after the PDR was approved. Detailed Design will continue until advertisement for bids, then Bidding Services will commence. It is anticipated that plans and specs will be finalized and ready for advertisement during the first quarter of 2016. Bids will be received in the first quarter of 2016 and it is anticipated that the Notice to Proceed of the construction contract will occur in mid-2016. The anticipated end of the construction contract is mid-2018. The Professional Engineering Services contract will continue beyond completion of construction to provide “as-built” record drawings of the constructed facilities.
3. DESIGNATION: An emergency designation is not requested at this time.
4. CONTRACT COMPLIANCE NO.: 13-2904652 | MAJ | EXP: 03/25/2016
5. ENVIRONMENTAL IMPACT: With the planned increase in and expansion of beneficial re-use of biosolids facilitated by this project, the JPWWTP will have the necessary infrastructure to facilitate the beneficial agricultural use of the plant’s biosolids by land application. With the completion of this project, the need to use the incineration process at JPWWTP will be reduced; so, there will be a corresponding improvement in air quality due to the reduction of the incinerator emissions. Both of these items are beneficial environmental advantages of this project since the City of Columbus’ Green Action Plan specifically calls for expanded reuse of biosolids and reduction of incineration. Land application uses are currently the lowest cost method for biosolids utilization. Expansion of these beneficial uses presents an economic advantage.
Public informational meetings are not anticipated for this project, because all proposed work should be within the boundaries of the wastewater treatment plant. Regulatory agencies will be notified of the proposed work as appropriate.
6. FISCAL IMPACT: This ordinance authorizes appropriation and transfer $168,310.00 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund, Fund 664; to authorize the creation of sufficient budget authority; to authorize the expenditure of up to $168,310.00. Monies for this contract from the Sanitary Sewer Reserve Fund will be provided from a future Bond Sale via the transfer detailed in this ordinance.
Title
To authorize the Director of Public Utilities to modify the professional engineering services agreement with Hazen and Sawyer for the Jackson Pike Wastewater Treatment Plant Biosolids Land Application Improvement Project (Mod #2); to authorize the appropriation and transfer of $168,310.00 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund; to authorize the expenditure of up to $168,310.00 from said funds. ($168,310.00)
Body
WHEREAS, it is necessary to authorize a modification for professional engineering services with Hazen and Sawyer for the Division of Sewerage and Drainage for the Jackson Pike Wastewater Treatment Plant Biosolids Land Application Improvements; and
WHEREAS, Contract No. EL014712 was authorized by Ordinance No. 1033-2013, passed by the Columbus City Council on July 15, 2013, executed by the Director of Public Utilities October 22, 2013, approved by the City Attorney on October 28, 2013, and certified by the City Auditor on October 29, 2013; and
WHEREAS, Contract No. EL016205 was authorized by Ordinance No. 1379-2014, passed by the Columbus City Council on July 21, 2014, executed by the Director of Public Utilities September 10, 2014, approved by the City Attorney on September 15, 2014, and certified by the City Auditor on September 15, 2014; and
WHEREAS, it is necessary to authorize the appropriation and transfer of funds, $168,310.00, from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund; and
WHEREAS, it is necessary to authorize the expenditure of funds, $168,310.00, from the Sanitary Sewer General Obligation (G.O.) Bond Fund; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Sanitary Reserve Fund; 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 has become necessary in the usual daily operation of the Division of Sewerage and Drainage, Department of Public Utilities to authorize the Director of Public Utilities to modify the professional engineering services agreement with Hazen and Sawyer for the JPWWTP Biosolids Land Application Improvement Project (Mod #2) at the earliest practical 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 the professional engineering services agreement with Hazen and Sawyer, 150 E. Campus View Boulevard, Columbus, Ohio 43235, in connection with the JPWWTP Biosolids Land Application Improvement Project (Mod #2), in accordance with the terms and conditions as shown in the agreement 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, 2015, the sum of $168,310.00 is hereby appropriated to the Division of Sewerage and Drainage: Division 60-05 | OCA Code 655225 | Object Level One 10 | Object Level Three 5502.
SECTION 3. That the City Auditor is hereby authorized to transfer and appropriate a total $168,310.00 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer Bond Fund, Fund 664, into the JPWWTP Biosolids Land Application Improvement Project, Mod #2, CIP 650243-100002, at such time as deemed necessary by the Auditor, or so much thereof as may be necessary in the following manner: Division 60-05 | 642432 | Object Level 06 | Object Level Three 6676.
SECTION 4. That the Director of Public Utilities be and hereby is authorized to expend up to $168,310.00 from the Sanitary Sewer General Obligation Bond Fund, Fund 664 | Div. 60-05 | Obj. Level 3 6676 in the following manner:
Fund # | Project No. | Project Name | OCA Code | Amount ($)
664 | 650243-100002 | JPWWTP Biosolids Land Application Improvements | 642432 | +$168,310.00
SECTION 5. That the said firm, Hazen and Sawyer, shall perform the work to the satisfaction of the Director of Public Utilities and the Administrator of the Division of Sewerage and Drainage.
SECTION 6. 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 7. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 8. 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 9. 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 Sanitary Sewer Reserve Fund the amount transferred above (Section 3), and said funds are hereby deemed appropriated for such purposes.
SECTION 10. 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 $168,310.00 (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 Sanitary/Sewer Reserve Fund 654, which is the fund from which the advance for costs of the Project will be made.
SECTION 11. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.