Explanation
1. BACKGROUND:
A. Need. This legislation authorizes the Director of Public Utilities to enter into a contract modification for professional engineering services with CH2M Hill, Inc., for the Asset Management 2011 - Phase 3: Program Development Project for the Division of Sewerage and Drainage and the Division of Power and Water. The Division has determined that these design services cannot be performed by City personnel at this time and has planned for the procurement of these services on a routine basis.
This program will allow the Department of Public Utilities to better define critical assets, allow for enhanced resource allocation, perform business case evaluations to enhance project values and project prioritization, enhance facility equipment reliability to more dependably serve customers, optimize operations at treatment plants to lower operations cost, and minimize our overall life-cycle costs of infrastructure ownership while meeting our customers' expectations. This program will lead the Department of Public Utilities to allocate funds much more efficiently to projects and initiatives that will provide the best value to ratepayers.
The Consultant's emphasis throughout will be on the development of an asset management system, procedures, and a structured plan for future program development. The Consultant will be expected to concentrate on systems design and technology transfer, provide subject matter expertise, and possibly supplement staff in some cases.
Asset Management is being developed in phases, as identified in the Consultant's initial contract. Phase 2 is nearing completion by the Consultant and departmental staff and the Department is prepared to move into Phase 3, with up to two (2) more one (1)-year phases anticipated after Phase 3. Completed in Phase 2 were 20 business case evaluations (BCEs) that represent a long-term cost savings to the department of over $8 million, finalization of BCE process guidelines and reporting requirements, development of explicit level of service (LOS) targets, further enhancement and improvements implementation of the Department of Public Utilities computerized maintenance management system (CMMS), operations optimization recommendations for three water plants, and reliability-centered maintenance implementation at two treatment plants to ensure safer, more reliable, and more cost-effective plant operations and maintenance.
This modification (Mod #2) will increase the funding of the contract by an additional $1,816,507.52 for the continual development of asset management procedures and a structured plan for future program development via facilitation and training.
1.1. Amount of additional funds to be expended: $1,816,507.52
Original Contract Amount: $1,958,000.00
Modification 1 $1,900,000.00
Modification 2 (current) $1,816,507.52
Current Total $5,674,507.52
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 CH2M Hill as the consulting firm to provide asset management services over a multi-year agreement. CH2M Hill has been a tremendous source of information and guidance in regards to establishing the Asset Management program for the Department of Public Utilities and their continued presence is imperative to the success of this endeavor. CH2M Hill has established a working relationship with subcontractors a large portion being minority owned businesses.
1.4. How cost of modification was determined:
The cost of this modification is funded by the Division of Power and Water (Water) and the Division of Sewerage and Drainage. Details in regards to breakdowns and allocations that make up the final cost of this modification can be seen on the appropriate budget attachments associated with this legislation.
MULTI-YEAR AGREEMENT:
This ordinance authorizes the expenditure of $1,816,507.52 for the Asset Management 2011 - Phase 3 (Mod. #2): The Department anticipates requesting additional appropriations to this agreement for Phases 4 and 5 for the fiscal years 2012 and 2013 respectively.
C. Contract Compliance No.: 59-0918189 | MAJ | Expires: 02/22/2013
This company is not debarred according to the Federal Excluded Parties Listing or prohibited from being awarded a contract according to the Auditor of State's Unresolved Findings for recovery search.
D. Emergency Designation: Emergency designation is not requested at this time.
2. FISCAL IMPACT:
This ordinance authorizes the Director of Public Utilities to transfer funds within the Sanitary Sewer General Obligation Fund and the Water B.A.B.s (Build America Bonds) Fund, to expend a total of $1,816,507.52, and to the amend the 2011 Capital Improvements Budget.
Title
To authorize the Director of Public Utilities to enter into enter into a planned contract modification for professional engineering services with CH2M Hill, Inc., for the Asset Management Program Development Project; to authorize the transfer and expenditure of $908,253.76 from the Sanitary Sewer General Obligation Fund and the transfer and expenditure of $908,253.76 from the Water Build America Bonds Fund; and to amend the 2011 Capital Improvements Budget for the Divisions of Sewerage and Drainage and Power and Water. ($1,816,507.52)
Body
WHEREAS, Contracts EL009027 and EL009028 were authorized by Ordinance No. 1729-2008, as passed by Columbus City Council on November 24, 2008, executed on January 8, 2009, and EL009027 was approved by the City Attorney January 23, 2009 and EL009028 was approved by the City Attorney January 20, 2009 for purposes of authorizing the Director of Public Utilities to enter into an engineering services agreement with CH2M Hill, Inc., for the Asset Management 2008 - Phase 1: Program Development Project; and
WHEREAS, Contract EL010401 was authorized by Ordinance No. 0292-2010, as passed by Columbus City Council on April 5, 2010, executed on May 21, 2010, and approved by the City Attorney May 24, 2010 for purposes of authorizing the Director of Public Utilities to enter into an engineering services agreement with CH2M Hill, Inc., for the Asset Management 2010 - Phase 2: Program Development Project; and
WHEREAS, the Divisions of Sewerage and Drainage and the Division Power and Water, Department of Public Utilities, hereby requests this City Council to authorize the Director of Public Utilities to modify a professional engineering service agreement with CH2M Hill, Inc., in connection with the Asset Management 2011 - Phase 3 (Mod 2): Program Development Project; and
WHEREAS, it is necessary for this Council authorize the transfer within and expenditure of funds from the Sanitary Sewer General Obligation Fund, for the Division of Sewerage and Drainage; and
WHEREAS, it is necessary for this Council authorize the transfer within and expenditure of funds from the Water B.A.B.s (Build America Bonds) Fund, for the Division of Power and Water; and
WHEREAS, it is necessary to authorize an amendment to the 2011 Capital Improvements Budget for the purpose of providing sufficient spending authority for the aforementioned project expenditures; and
WHEREAS, the Divisions of Sewerage and Drainage and Power and Water, Department of Public Utilities, are requesting that this Council authorize the Director of Public Utilities to modify the professional engineering service agreement with CH2M Hill, Inc., in connection with the Asset Management 2011 - Phase 3: Program Development Project; at the earlist date for the preservation of the public health, peace, property, safety, and welfare; 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 Contract EL010401 with CH2M Hill, Inc., 1103 Schrock Rd., Suite 400, Columbus, OH 43229-1179, for professional engineering services in connection with the Asset Management 2011 - Phase 3 (Mod. 2): Program Development Project, in accordance with the terms and conditions as shown in the agreement on file in the offices of the Divisions of Sewerage and Drainage and Power and Water.
Section 2. That the City Auditor is hereby authorized to transfer $78,253.76 within the Department of Public Utilities, Division of Sewerage and Drainage, Dept/Div. No. 60-05, Sewerage and Drainage, Sanitary Sewer General Obligation Fund, Fund No. 664, Object Level Three 6676, as follows:
From:
Project No. | Project Name | OCA Code | Change
650620-100000 | Lockbourne Rd. Sanitary Sewer | 650620 | (-$23,587.64)
650672-100000 | Bill Moose Run Sewer Improvements | 664672 | (-$35,727.50)
650676-100000 | Stanton Area Sanitary Improvements | 664676 | (-$18,938.62)
To:
Project No. | Project Name | OCA Code | Change
650728-100000 | Asset Management Program | 664728 | (+$78,253.76)
Section 3. That the City Auditor is hereby authorized to transfer $908,253.76 within the Department of Public Utilities, Division of Power and Water, Dept/Div. No. 60-09, Water B.A.B.s (Build America Bonds) Fund, Fund No. 609, Object Level Three 6676, as follows:
Project No. | Project Name | OCA Code | Change
690359-100002 (carryover) | S. Wellfield Expansion | 693592 | -$908,253.76
690509-100000 (carryover) | Asset Mgmt. Program | 609509 | +$908,253.76
Section 4. That for the purpose of paying the cost of the Asset Management Program Phase 3 professional engineering services agreement, the expenditure of $908,253.76 or as much thereof as may be needed, is hereby authorized from the Sanitary Sewer General Obligation Fund | Fund No. 664 | Division 60-05 | Project No. 650728-100000 | OCA Code 664728 | Object Level Three 6676.
Section 5. That for the purpose of paying the cost of the Asset Management Phase II professional engineering services agreement, the expenditure of $908,253.76 or as much thereof as may be needed, is hereby authorized from the Water B.A.B.s (Build America Bonds) Fund | Fund No. 609 | Division 60-09 | Project No. 690509-100000 (carryover) | OCA Code 609509 | Object Level Three 6676.
Section 6. That the 2011 Capital Improvements Budget Ordinance No. 0266-2011 is hereby amended as follows,
Fund No. | Proj. No. | Proj. Name | Current Authority | Revised Authority | Change
664 | 650620-100000 | Lockbourne Rd. Sanitary Sewer | $23,588 | $0 | (-$23,588)
664 | 650672-100000 | Bill Moose Run Sewer Improvements | $35,728 | $0 | (-$35,728)
664 | 650676-100000 | Stanton Area Sanitary Imprmts | $31,222 | $12,284 | (-$18,938)
664 | 650728-100000 | Asset Management Program | $830,000| $908,254 | +$78,254
609 | 690359-100002 (carryover) | S. Wellfield Expansion | $1,617,500 | $709,246 | -$908,254
609 | 690509-100000 (carryover) | Asset Mgmt. Program | $0 | $908,254 | +$908,254
Section 7. That the said firm shall perform the work to the satisfaction of the Director of Public Utilities and the Administrators of the Divisions of Sewerage and Drainage and Power and Water.
Section 8. 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 9. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
Section 10. 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 11. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.