Explanation
1. BACKGROUND: This legislation authorizes the Director of Public Utilities to modify (Mod #1) an existing professional engineering agreement with Burgess & Niple, Inc. for the Southerly Wastewater Treatment Plant Chemically Enhanced Primary Treatment - Disinfection, (SWWTP CEPT - Disinfection) Project. This project is one of three projects to provide Chemically Enhanced Primary Treatment (CEPT) at the Southerly Wastewater Treatment Plant (SWWTP), as approved by the Ohio Environmental Protection Agency. The CEPT facilities provide additional plant capacity to treat wet weather flows in excess of 330 Million Gallons Daily (MGD). This project will focus on upgrades and modifications to provide a new effluent conduit, disinfection chemical feed facilities, post aeration basin, and all associated structures and site work to accommodate these facilities.
This is a contract for professional engineering design services and services during construction (Design Professional, or “DP” services). This phase of this contract will consist of Detailed Design Services for the SWWTP CEPT - Disinfection Project. Preliminary Design has been completed.
(Note: for more information regarding the description of work, please Section 5 of the attached Director’s Information Sheet.)
2. PROJECT MODIFICATION: Amount of additional funds to be expended: $2,245,142.00
2.1 Original Contract $995,604.00
Current Modification # 1 $2,245,142.00
TOTAL $ $3,240,746.00
Estimated Future Modification No. 2 (Budgeted 2016) $ 400,000.00
Estimated Future Modification No. 3 (Budgeted 2017) $1,880,000.00
Current Proposed Future Cost $2,280,000.00
Estimated Total (including current and future): $5,520,746.00
Estimate Future Modification #2 is for the Engineering Services During Construction for the SWWTP CEPT - Site Preparation construction contract. This modification amount is strictly an estimate at this time, and the final amount may change as the project progresses through Detailed Design.
Estimate Future Modification #3 is for the Engineering Services During Construction for the SWWTP CEPT - Disinfection construction contract. This modification amount is strictly an estimate at this time, and the final amount may change as the project progresses through Detailed Design.
2.2 Reasons additional goods/services could not be foreseen:
The contract modification was planned and anticipated, and the final amount was negotiated between B&N and DOSD.
At the inception of the project, it was necessary to estimate the costs for Modification #1 for Detailed Design, however it is difficult to determine and define all the items that will need to be considered during the Detailed Design. Therefore, increase from the original estimated fee for Modification #1 is due to items determined during the Preliminary Design that will improve the overall implementation and effectiveness of the project, but will require additional effort during the Detailed Design.
2.3 Reason other procurement processes are not used:
Given the highly technical nature of the project and the specialized knowledge of the project area required to complete the services, it would be more costly to solicit proposals for completion of the services by other parties.
2.4 How cost of modification was determined:
Estimates were provided by the consultant for the number of hours needed to complete the portions of the work assigned. This cost proposal was provided by Burgess & Niple, Inc. and reviewed by the Division of Sewerage and Drainage and was deemed acceptable.
3. PROJECT TIMELINE: The DP will begin after the notice to proceed is given. It is estimated that the Detailed Design for the project can be completed in the fourth quarter of 2016. At the conclusion of the Detailed Design, the construction contract(s) will be bid and awarded in 2017.
4. This company is not debarred according to the Federal Excluded Parties Listing or the State Auditor's Findings for Recovery Database.
5. CONTRACT COMPLIANCE NO.: 31-0885550 | MAJ | Exp. 02/10/2016
6. Emergency Designation: Emergency designation is not requested.
7. ECONOMIC IMPACT: This project will capture and treat wet weather flows in excess of the current plant capacity. Without this improvement, these wastewater flows would be conveyed, untreated, to the river. The addition of this treatment will remove solids from and disinfect the wastewater, which will provide protection of and benefit to the receiving waters.
Public informational meetings are not anticipated for this project, all proposed work should be within the boundaries of the wastewater treatment facility. Regulatory agencies will be notified of the proposed work as appropriate.
8. FISCAL IMPACT: This ordinance authorizes the appropriation and transfer of funds from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund, Fund 664; it authorizes the expenditure of $2,245,142.00 from the G.O. Bond Fund, Fund 664 sufficient budget authority already exist for this ordinance. 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 an existing professional engineering agreement with Burgess & Niple, Inc. for the SWWTP CEPT - Disinfection Project; to authorize the appropriation and transfer of funds from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund and to authorize the expenditure of $2,245,142.00 from the Sanitary Sewer General Obligation (G.O.) Bond Fund. ($2,245,142.00)
Body
WHEREAS, Contract No. EL015880 with Burgess & Niple, Inc. was authorized by Ordinance No. 0968-2014, passed by the Columbus City Council on June 09, 2014; executed by the Director on July 11, 2014; approved by the City Attorney on July 22, 2014; certified by the City Auditor on July 23, 2014; and
WHEREAS, it is necessary to authorize the Director of the Department of Public Utilities to modify the existing contract; and
WHEREAS, the CEPT facilities provide additional plant capacity to treat wet weather flows in excess of 330 MGD; and
WHEREAS, this CEPT project will focus on upgrades and modifications to provide a new effluent conduit, disinfection chemical feed facilities, post aeration basin, and all associated structures and site work to accommodate these facilities; and
WHEREAS, it is necessary to authorize the appropriation and transfer of funds from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund; and
WHEREAS, it is necessary for City Council to authorize the expenditure of funds from the Sanitary Sewer System GO Bond Fund, Fund 664; and
WHEREAS, the necessary to amend the 2015 Capital Improvements Budget; and
WHEREAS, it is necessary to transfer funds from the Sanitary Sewer Reserve Fund in the amount $2,245,142.00 for this project; 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 aggregate principal amount of obligations which the City will issue to finance this modification is presently expected to not exceed $2,245,142.00; 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 Department of Public Utilities to authorize the Director to modify an existing professional engineering agreement with the Burgess & Niple, Inc. for the SWWTP CEPT - Disinfection Project 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 (Mod #1) an existing engineering agreement with Burgess & Niple, Inc. 5085 Reed Road, Columbus, Ohio 43220 for the SWWTP CEPT - Disinfection Project 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 $2,245,142.00 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 $2,245,142.00 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer Bond Fund, Fund 664, into the SWWTP CEPT - Disinfection Project, 650367-100004, at such time as deemed necessary by the Auditor, or so much thereof as may be necessary in the following manner: Division 60-05 | 643674 | Object Level 06 | Object Level Three 6676
SECTION 4. That the 2015 Capital Improvements Budget is hereby amended as follows:
Project No. | Project Name | Current Authority | Revised Authority | (Change)
650360-100001 | WWTP Upgrade General Program | $3,000,000 | $1,976,858 | (-$1,023,142)
650367-100004 | SWWTP CEPT - Disinfection Project | $1,222,000 | $2,245,142 | (+$1,023,142)
SECTION 5. That the Director of Public Utilities be and hereby is authorized to expend up to $2,245,142.00 for the SWWTP CEPT - Disinfection Project in the following manner for the Div. 60-05 | Obj. Lvl 3 6676:
650367-100004 | SWWTP CEPT - Disinfection Project | 643674 | $2,245,142.00
SECTION 6. That the said firm, Burgess & Niple, Inc., shall perform the work to the satisfaction of the Director of Public Utilities and the Administrator of the Division of Sewerage and Drainage.
SECTION 7. 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 8. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
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 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 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 $2,245,142.00 (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 12. 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 13. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.