Explanation
1. BACKGROUND:
This legislation authorizes the Director of Public Utilities to execute a planned contract modification to the Sewer System Engineering Section's Construction Administration and Construction Inspection Services Agreement with Prime Engineering & Architecture, Inc. The funding for this modification will come from three sources: the Sanitary Sewer Reserve Fund, the Storm Sewer Bond Fund, and the Water System Reserve Fund.
This contract was originally procured to provide construction administration and construction inspection services for combined sanitary, storm water, and water projects during the fiscal years of 2008-2010. The funds approved within this legislation will provide for payment of additional services that were needed to conclude ongoing construction projects.
This modification (Mod #1) will increase the funding of the contract by an additional $915,000.00 for construction administration - construction inspection services. The projects involved in this specific modification are two sanitary projects: (1) Short Street Demolition and Remediation and (2) NW Alum Creek Wet Weather Renovations; one stormwater project: Williams Rd Pump Station; and one Water Works project: Mound / Harrisburg Pike.
1.1. Amount of additional funds to be expended: $ 915,000.00
Original Contract Amount: $ 540,000.00
Modification 1 (current) $ 915,000.00
Total (Orig. + Mod 1) $1,455,000.00
1.2. Reasons additional goods/services could not be foreseen:
The modification was anticipated and explained in the original legislation. This is a continuation of the anticipated process.
1.3. Reason other procurement processes are not used:
The original contract selected three firms to provide construction administration services for projects in 2008, 2009, and 2010.
1.4. How cost of modification was determined:
A cost proposal was provided by Prime Eng & Arch. Inc., and reviewed by the Division of Power and Water and the Division of Sewerage and Drainage and was deemed acceptable.
2. MULTI-YEAR CONTRACT:
This ordinance will authorize the expenditure of $190,000.00 for two sanitary sewer projects, plus $125,000.00 for one storm water project, and $600,000 for one water works project. The Department anticipates requesting additional appropriations to this contract for 2009 and 2010 fiscal years, through planned contract modifications duly authorized by City Council. Under the terms of this contract, the City has the right to contract for additional services to fulfill emergency capital improvements related needs subject to the approval of a contract modification by City Council. The rates schedules established within this contract will remain in force throughout the life of the contract.
3. FISCAL IMPACT:
The funding for this modification will come from three sources: the Sanitary Sewer Reserve Fund, the Storm Sewer Bond Fund, and the Water System Reserve Fund. This legislation includes a transfer of funds from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund, the transfer of funds within the Storm Water Bonds Fund, and the transfer of funds from the Water System Reserve Fund to the Water Works Enlargement Voted Bond Fund as well as an amendment to the 2008 Capital Improvements Budget, and to allow for sufficient cash and authority to be in the proper account for these projects. Monies for this contract from the Sanitary Sewer Reserve Fund and the Water System Reserve Fund will be provided from an upcoming Bond Sale via the transfer detailed in this Ordinance.
4. CONTRACT COMPLIANCE INFO: 31-1373357 (FBE) (Expires 04/08/2010)
5. EMERGENCY DESIGNATION:
The Department of Public Utilities is requesting that this ordinance be made an emergency measure in order to expedite the establishment of the contract services that are necessary to ensure that the Sanitary, Storm, and Water systems are being rehabilitated and/or replaced to ensure the continued operation of this vital infrastructure.
Title
To authorize the Director of Public Utilities to execute a planned contract modification of the construction administration and construction inspection services agreement with Prime Engineering & Architecture, Inc., for a total of four projects: two sanitary projects: Short Street Demolition and Remediation and NW Alum Creek Wet Weather Renovations; to authorize the transfer and appropriate $190,000.00 from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund; to authorize the expenditure of $190,000.00 from within the Voted Sanitary Sewer Bond Fund; one stormwater project: Williams Rd Pump Station, to authorize the transfer and expenditure of $125,000.00 within the Storm Sewer Bond Fund; and one water works project: Mound / Harrisburg Pike Station to authorize the transfer and appropriate $600,000.00 from the Water System Reserve Fund to the Voted Water Works Enlargement Bond Fund; to authorize the expenditure of $600,000.00 from within the Voted Water Works Enlargement Bond Fund; to authorize an amendment to the 2008 Capital Improvements Budget for the Division of Sewerage and Drainage; and to declare an emergency ($915,000.00)
Body
WHEREAS, it is necessary to modify the construction administration and construction inspection services contract with Prime Engineering & Architecture, Inc., for two Sanitary projects: (1) Short Street Demolition and Remediation and (2) NW Alum Creek Wet Weather Renovations; one Stormwater project: Williams Rd Pump Station; and one Water Works project: Mound / Harrisburg Pike; in order to provide additional monies to cover the cost of needed additions to the contract work in accordance with the Department's design requirements in order to ensure the continued operation of its Sanitary, Stormwater, and Water infrastructures; and
WHEREAS, City Auditor Contract No. EL008273, for $540,000 was executed on June 25, 2008, as authorized by ORD 0846-2008, as passed by City Council June 09, 2008, for purposes of providing construction administration and construction inspection services necessary to ensure the successful completion of many of the Divisions Sanitary, Stormwater, and Water improvement projects; and
WHEREAS, the original contract was based upon an evaluation of the twelve proposals received for the three construction administration and inspection contracts to be awarded for the years of 2008-2010, utilizing a predetermined criteria, a selection committee submitted the rankings to the Director of Public Utilities who determined that DLZ Ohio, Inc., Prime Engineering & Architects, Inc., and Stantec Consulting Services, Inc. (formerly R.D. Zande) were the highest ranking firms capable of providing the required services; and
WHEREAS, it is necessary to authorize the transfer and appropriation of funds from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund for purposes of providing sufficient funding for the Short Street Demolition and Remediation and NW Alum Creek Wet Weather Renovations for this Sanitary expenditure; and
WHEREAS, it is necessary to authorize the transfer and expenditure of funds within the Voted Sanitary Sewer Bond Fund for purposes of providing sufficient funding for the Short Street Demolition and Remediation and NW Alum Creek Wet Weather Renovations project; and
WHEREAS, it is necessary to authorize the transfer, appropriate, and expenditure of funds within the Storm Sewer Bond Fund for purposes of providing sufficient funding for the Williams Rd Pump Station project; and
WHEREAS, it is necessary to authorize the transfer and appropriation of funds from the Water System Reserve Fund to the Voted Water Works Enlargement Bond Fund for purposes of providing sufficient funding for the Mound / Harrisburg Pike project for this Water expenditure; and
WHEREAS, it is necessary to authorize the transfer and expenditure of funds within the Voted Water Works Enlargement Bond Fund for purposes of providing sufficient funding for the Mound / Harrisburg Pike project; and
WHEREAS, it is necessary to authorize an amendment the 2008 Amend Capital Improvement Budget for purposes of creating and providing sufficient budget authority for the aforementioned expenditure; 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").
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division of Sewerage and Drainage, that the Department request that this Council authorize the Director of Public Utilities to modify the construction administration and construction inspection services contract with Prime Engineering & Architecture, Inc., for two sanitary projects: (1) Short Street Demolition and Remediation project and (2) NW Alum Creek Wet Weather Renovations project; one stormwater project: Williams Rd Pump Station project; and one Water Works project: Mound / Harrisburg Pike project to ensure the continued operation of vital Sanitary, Stormwater, and Water infrastructure for the City; and for the preservation of the public health, peace, property, and safety 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 Prime Engineering & Architecture, Inc., 3000 Corporate Exchange Dr., Suite 600, Columbus, Ohio 43231 that will continue to provide construction administration and inspection services for Sanitary, Stormwater, and Water improvement projects in accordance with the terms and conditions of the Contract on file in the office of the Division of Sewerage and Drainage's Sewer System Engineering Section.
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, 2009, the sum of $190,000.00 is hereby appropriated to the Division of Sewerage and Drainage: Division 60-05 | OCA Code 901654 | Object Level One 10 | Object Level Three 5502.
Section 3. That the City Auditor be and hereby is authorized and directed to transfer a total of $190,000 from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund, Fund 664 into the following projects: Short Street Demolition and Remediation project, Project No. 650691-100000; the amount of $150,000 and the NW Alum Creek Wet Weather Renovations project, Project No. 650726-100000; the amount of $40,000, at such time as deemed necessary by the Auditor, and expend said funds, or so much thereof as may be necessary.
Section 4. That the $190,000.00 is hereby appropriated for the (1) Short Street Demolition and Remediation and (2) NW Alum Creek Wet Weather Renovations, within the Voted Sanitary Sewer Bond Fund as follows:
Fund 664 | Division 60-05 | Project 650691-100000 | OCA Code 664691 | Object Level Three 6686 | $150,000.00
Fund 664 | Division 60-05 | Project 650726-100000 | OCA Code 664726 | Object Level Three 6686 | $40,000.00
Section 5. That the 2008 Capital Improvements Budget Ordinance No. 0690-2008 is hereby amended as follows, to provide sufficient budget authority for the execution of the cost agreement increase stated herein:
Proj. No. | Proj. Name | Current Authority | Revised Authority | (Change)
650709-100000 | Mound East of I-71 Sewer Separation | $200,000 | $50,000 | (-$150,000)
650691-100000 | Short Street Demolition & Remediation | $2,470,000 | $2,620,000 | (+$150,000)
650491-100000 | Big Walnut Aug/Rickenbacker Interceptor-Lockbourne Subtrunk | $31,107,559 | $31,067,559 | (-$40,000)
650726-100000 | NW Alum Creek Wet Weather Renovations | $143,700 | $183,700 | (+$40,000)
Section 6. That the expenditure of $190,000.00, or as much thereof as may be needed, is hereby authorized from the Voted Sanitary Sewer Bond Fund:
Fund 664 | Division 60-05 | Project 650691-100000 | OCA Code 664691 | Object Level Three 6686 | $150,000.00
Fund 664 | Division 60-05 | Project 650726-100000 | OCA Code 664726 | Object Level Three 6686 | $40,000.00
Section 7. That the City Auditor is hereby authorized and directed to appropriate and transfer a total of $125,000.00 from within Division of Sewerage and Drainage | Dept./Div. 60-15 | Storm Sewer Bond Fund No. 685 | Object Level One 06 | Object Level Three 6686:
From:
Proj. 610960 | Bexvie Ave. Drainage | OCA 685960 | -$125,000.00
To:
Proj. 610711 | Williams Rd. Pump Station | OCA 685711 | +$125,000.00
Section 8. That the expenditure of $125,000.00, or as much thereof as may be needed, is hereby authorized from the Storm Sewer Bond Fund:
Fund 685 | Division 60-15 | Project 610711 | OCA Code 685711 | Object Level Three 6686.
Section 9. That from the unappropriated monies in the Water System Reserve Fund, 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, 2009, the sum of $600,000.00, is hereby appropriated to the Division of Power and Water, Division 60-09 | Object level One 10 | Object level Three 5502 | OCA 695056.
Section 10. That the City Auditor is hereby authorized and directed to transfer $600,000.00, from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund, Fund No. 606, into the project account as specified within Section 11 herein, at such time as deemed necessary by him, and to expend said funds, or so much thereof as may be necessary.
Section 11. That the expenditure of $600,000.00 for the Mound / Harrisburg Pike Project is hereby appropriated as follows: Division of Power and Water, Dept./Div. No. 60-09, Water Works Enlargement Voted Bonds Fund, Fund No. 606 | Project 690407 | OCA Code 606407 | Object Level One 06 | Object Level Three 6686.
Section 12. That upon obtaining other funds for the purpose of funding sanitary sewer system and water works capital improvement projects, the City Auditor is hereby authorized to repay the Sanitary Sewer Reserve Fund the amount of $190,000.00 and the Water System Reserve Fund the amount of $600,000.00, and said funds are hereby deemed appropriated for such purposes.
Section 13. 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 Projects from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be $790,000.00 (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 14. That the City Auditor is hereby authorized and directed 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 account by monies from more than one source.
Section 15. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
Section 16. 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 17. That for the reasons stated in the preamble hereto, 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 its passage if the Mayor neither approves not vetoes the same.