Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Utilities to enter into a contract modification with DLZ Ohio, Inc. for construction administration/inspection services for Department of Public Utilities construction projects bid during the calendar years 2026 through 2028 as part of the Construction Administration/Construction Inspection Services 2026-2028 contracts.
DLZ Ohio, Inc. will perform construction administration/inspection services for Department of Public Utilities Capital Improvement Projects that bid during the years 2026, 2027, and 2028. The contract will be modified as needed throughout the 3-year period to include these projects as they go into construction. Projects are located throughout the City of Columbus.
This modification is for DLZ Ohio, Inc. to perform construction administration/ inspection services for SCADA Radio Improvements project, CIP 690522-100002, in an amount up to $976,920.63.
The Community Area for this ordinance will be 99, Citywide.
1.1. Amount of additional funds to be expended: $976,920.63
Original Contract: $ 100,000.00 (ORD 0380-2026, PO557906)
Modification #1: $ 200,000.00 (ORD 0667-2026, PO564337)
Modification #2: $ 1,703,554.30 (ORD 1459-2026, PO TBD)
Modification #3: $ 976,920.63 (current)
Total $2,680,474.93
1.2. Reasons additional goods/services could not be foreseen:
This is a three-year contract for fiscal years 2026 - 2028 for which modifications were anticipated pursuant to the original authorizing legislation under Ordinance 0380-2026 to account for future construction projects being assigned to DLZ Ohio, 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 (2026-2028) 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 DLZ Ohio, Inc. and the 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
Division of Water projects include rehabilitation of existing water lines, repair to existing water lines, construction of new water lines, and construction of green infrastructure. Most of the projects will improve the reliability of existing supply lines thus mitigating leaks and associated down time. Other projects provide improvement to existing water infrastructure to mitigate downtime issues and improve supply.
3. CONTRACT COMPLIANCE INFORMATION
DLZ Ohio, Inc. contract compliance number is CC004939 and expires 7/22/2026. DLZ Ohio, Inc.’s certification was in good standing at the time of contract award.
Searches in the Excluded Party List System (Federal) and the Findings for Recovery list (State) produced no findings against DLZ Ohio, Inc.
As part of their proposal, DLZ Ohio, Inc. has proposed the following subcontractor to perform contract work:
Company Name City/State ODI Certification Status
Smoot Construction of Ohio Columbus, Ohio MBE
4. FISCAL IMPACT
The SCADA Radio Improvements project, CIP 690522-100002, is anticipated to be financed with a loan from the Ohio Water Development Authority (OWDA) Direct Loan Program. City Council authorized these loans via Ordinance 0341-2026, passed by Council on 3/2/2026. This loan is expected to be approved at the OWDA July Board meeting. This ordinance is contingent upon the OWDA Board approving the loan application. The Department of Public Utilities will inform the Auditor’s Office when this loan is approved. Ordinance 0341-2026 also authorized the Director of Public Utilities to add to or subtract from the anticipated loans listed in that ordinance. 690522-100002 was not listed in that ordinance. Even though Ordinance 0341-2026 stated projects can be added to or subtracted from the list without further City Council approval, OWDA requires an ordinance specifically listing Council’s approval for each project. This ordinance will request that approval.
The Ohio Water Development Authority Direct Loan Program is a reimbursement program. Purchase orders will need to be established for DLZ Ohio, Inc. for this contract. Public Utilities will need to pay invoices directly to DLZ Ohio, Inc. and then submit reimbursement requests based upon these paid invoices to OWDA for OWDA to reimburse Public Utilities.
The 2025 Capital Improvement Budget must be amended to align budget authority with the proper project. Funds will need to be appropriated in the Water-Fresh Water Market Rate Fund, Fund 6014 in the amount of $976,920.63.
Title
To authorize the Director of Public Utilities to enter into a contract modification for Construction Administration and Inspection Services with DLZ Ohio, Inc. for the SCADA Radio Improvements project; to amend the 2025 Capital Improvement Budget; to authorize the appropriation and expenditure of up to $976,920.63 from the Water-Fresh Water Market Rate Fund for the contract modification; to authorize the Director of Public Utilities to apply for and accept a loan from the Ohio Water Development Authority for the SCADA Radio Improvements project; and to make this ordinance contingent upon the Ohio Water Development Authority approving loans for the project. ($976,920.63)
Body
WHEREAS, DLZ Ohio, Inc. was awarded a contract through the City’s RFP process to perform construction administration/inspection services for Department of Public Utilities construction projects bid during the calendar years 2026 through 2028 as part of the Construction Administration/Construction Inspection Services 2026-2028 contracts; and
WHEREAS, additional construction inspection/administration tasks need to be performed; and
WHEREAS, the Department of Public Utilities needs to have construction administration/inspection services performed for the SCADA Radio Improvements project, CIP 690522-100002; and
WHEREAS, the contract with DLZ Ohio, Inc. will need to be modified to add these tasks to the contract and to add funding to pay for the tasks; and
WHEREAS, an amendment to the 2025 Capital Improvement Budget is needed to align budget authority with the proper project; and
WHEREAS, Ordinance 0341-2026 authorized loans to be obtained through the Water-Fresh Water Market Rate Fund to fund Department of Public Utilities projects; and
WHEREAS, the SCADA Radio Improvements project, CIP 690522-100002 was not specifically listed as a project to be loan funded on Ordinance 0341-2026 and this ordinance will ask for authorization to loan fund it; and
WHEREAS, the loan funded portions of this ordinance are contingent upon loan approvals by the Ohio Water Development Authority which is anticipated to occur in July of 2026; and
WHEREAS, it is necessary to appropriate and expend funds from the Water-Fresh Water Market Rate Fund, Fund 6014, to pay for the construction administration and inspection services; and
WHEREAS, it is necessary in the daily operation of the Department of Public Utilities to authorize the Director of the Department of Public Utilities to enter into the Construction Administration/Construction Inspection Services 2026-2028 contract modification with DLZ Ohio, Inc., for the SCADA Radio Improvements project, CIP 690522-100002; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the 2025 Capital Improvement Budget authorized by Ordinance 1790-2025 be amended as follows to establish sufficient budget authority for this project:
Fund / Project Number / Project Name (Funding Source) / Current Authority / Revised Authority / Change
6014 / 690552-100002 / SCADA Radio Improvements (OWDA Direct Loan) / $0.00 / $976,921.00 / $976,921.00 (To match loan)
SECTION 2. That the appropriation of $976,920.63, or so much thereof as may be needed, is hereby authorized in the Water-Fresh Water Market Rate Fund, Fund 6014, per the accounting codes in the attachment to this ordinance.
SECTION 3. That the expenditure of $976,920.63, or so much thereof as may be needed, is hereby authorized to pay for this contract modification per the accounting codes in the attachment to this ordinance.
SECTION 4. That the Director of Public Utilities is authorized to enter into a contract modification with DLZ Ohio, Inc., 6121 Huntley Road, Columbus, OH 43219, for construction administration and inspection services, 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 $976,920.63 for the SCADA Radio Improvements project.
SECTION 5. That the Director of the Department of Public Service is authorized to apply for, accept, and execute documents necessary to obtain a loan from the Ohio Water Development Authority for the SCADA Radio Improvements project, CIP 690522-100002.
SECTION 6. That the loan portion of this ordinance is contingent upon the Ohio Water Development Authority approving loans for the SCADA Radio Improvements project, CIP 690522-100002.
SECTION 7. Funds are hereby deemed appropriated and expenditures are authorized to carry out the purposes of this Ordinance and the City Auditor shall establish such accounting codes as necessary.
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 the City Auditor is hereby 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 10. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.