Explanation
1. BACKGROUND:
A. Need. This legislation authorizes the Director of Public Utilities to enter into a professional design services agreement modification with CH2M Hill, Inc., for the Asset Management 2010 - Phase 2: 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.
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.
The Department wants to proceed with the asset management program development in phases, with each phase (up to five) lasting approximately one year. The Consultant is now being asked to perform Phase 2 over a follow-on year, with up to three more one year phases anticipated. Completed in Phase 1 were:
A department-wide asset management needs assessment was completed,
A preparation of 10 business case evaluations (BCEs) and BCE Guidelines were established,
Explicit levels of service (LOS), enhancement of DPU's computerized maintenance management system (CMMS) were developed,
And an Enterprise Asset Management (EAM) Philosophy and Framework, and EAM Roadmap was prepared.
Phase 2 work will include continuing enhancements to CMMS, development of more detailed performance measures in support of identified LOS, preparation of significantly more BCEs, and numerous other of the 16 Roadmap Improvement Initiatives.
This modification (Mod #1) will increase the funding of the contract by an additional $1,900,000.00 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: $ 1,900,000.00
Original Contract Amount: $1,958,000.00
Modification 1 (current) $1,900,000.00
Total (Orig. + Mod 1) $3,858,000.00
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 CH2M Hill as the consulting firm to provide asset management services over a multi-year agreement.
1.4. How cost of modification was determined:
The original costs were determined by an RFP process with Phase 2 being slightly less, and future phases (up to 3 more) of equal or lesser value are anticipated and will be awarded by contract modifications, provided satisfactory performance of the Consultant. Decreasing contract values are anticipated as asset management concepts and knowledge are transferred from the Consultant to Department staff and asset management business practices become incorporated into the Department's standard operations.
MULTI-YEAR AGREEMENT:
This ordinance authorizes the expenditure of $1,900,000.00 for the Asset Management 2010 - Phase 2 (Mod. 1): Program Development Project. The Department anticipates requesting additional appropriations to this agreement for Phases 3, 4, and 5 for the fiscal years 2011, 2012, and 2013 respectively, through planned modifications duly authorized by City Council. Under the terms and conditions of this agreement, 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.
B. Procurement Information: The original method of selection for the chosen professional engineering services firm was completed via: The Division advertised a Request for Proposals (RFP's) for the subject services in the City Bulletin in accordance with the provisions of Section 329.14 of Columbus City Codes. The Division of Sewerage and Drainage received technical proposals on July 11, 2008 from two organizations. These proposals were reviewed and ranked by a Professional Engineering Services Selection Committee in order to determine the consultant best qualified to provide the services for this project. The committee ranked the proposals on quality and feasibility. After careful consideration, the committee provided its recommendation to the Director, and CH2M Hill, Inc. was selected to provide the engineering services.
C. Contract Compliance No.: 59-0918189 | Expires: 5/15/2010 | MAJ
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 B.A.B.s (Build America Bonds) Fund, the Water Works Enlargement Voted Bonds Fund and the Water B.A.B.s (Build America Bonds) Fund, to expend a total of $1,900,000, and to the amend the 2009 Capital Improvements Budget.
Title
To authorize the Director of Public Utilities to enter into an engineering services agreement modification with CH2M Hill, Inc., for the Asset Management 2010 - Phase 2 (Mod. 1): Program Development Project; to authorize the transfer within and expenditure of $950,000.00 in funds from the Sanitary B.A.B.s (Build America Bonds) Fund, for the Division of Sewerage and Drainage; to authorize the transfer within and expenditure of $213,512.16 in funds from the Water Works Enlargement Voted Bonds Fund; to authorize the transfer within and expenditure of $736,487.84 in funds from the Water B.A.B.s (Build America Bonds) Fund, and to amend the 2009 Capital Improvements Budget; for the Divisions of Sewerage and Drainage and Power and Water. ($1,900,000.00)
Body
WHEREAS, Contract EL009027 was authorized by Ordinance No. 1729-2008, as passed by Columbus City Council on November 24, 2008, executed on January 8, 2009, and approved by the City Attorney January 23, 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, the procurement was conducted in accordance with the Request For Proposals (RFP) process set forth in Section 329.14, Columbus City Codes, 1959: two proposals were received and the Division's Evaluation Committee recommendation and subsequent review by the Director resulted in the selection of CH2M Hill, Inc., between the firms; and
WHEREAS, the Divisions of Sewerage and Drainage and 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 2010 - Phase 2 (Mod 1): Program Development Project; and
WHEREAS, it is necessary for this Council authorize the transfer within and expenditure of funds from the Sanitary B.A.B.s (Build America Bonds) 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 Works Enlargement Voted Bonds Fund and 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 2009 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 2010 - Phase 2: Program Development Project; for the immediate 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 EL009027 with CH2M Hill, Inc., 1103 Schrock Rd., Suite 400, Columbus, OH 43229-1179, for professional engineering services in connection with the Asset Management 2010 - Phase 2 (Mod. 1) : 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 $950,000.00 within the Department of Public Utilities, Division of Sewerage and Drainage, Dept/Div. No. 60-05, Sewerage and Drainage Sanitary B.A.B.s (Build America Bonds) Fund, Fund No. 668, Object Level Three 6676, as follows:
From:
Project No. | Project Name | OCA Code | Change
650360-100001 | WWTF Upgrade General Program | 664360 | (-$950,000.00)
To:
Project No. | Project Name | OCA Code | Change
650728-100000 | Asset Management Phase II | 668728 | (+$950,000.00)
SECTION 3. That the City Auditor is hereby authorized to increase the appropriation of Project No. 690236-100000 (carryover), in the amount of $66,607.79, and that amount is hereby appropriated in Dept/Div. No. 60-09, Water Works Enlargement Voted Bonds Fund, Fund No. 606, Object Level Three 6676.
SECTION 4. That the City Auditor is hereby authorized to transfer $213,512.16 within the Department of Public Utilities, Division of Power and Water, Dept/Div. No. 60-09, Water Works Enlargement Voted Bonds Fund, Fund No. 606, Object Level Three 6676, as follows:
Project No. | Project Name | OCA Code | Change
690236-100000 (carryover) | Water Main Rehab. | 642900 | -$66,607.79
690394-100000 (carryover) | Water Meter Renewal | 606394 | -$2,069.12
690474-100000 (carryover) | Morse Rd. 36" W.M. | 606474 | -$144,835.25
690509-100000 (carryover) | Asset Mgmt. Program | 606509 | +$213,512.16
SECTION 5. That the City Auditor is hereby authorized to transfer $736,487.84 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
690236-100014 (New funding) | Mt. Vernon/King Lincoln (Whitney) | 623614 | -$95,318
690236-100019 (New funding) | Alton-Darby Rd. W.L. | 623619 | -$278,797.23
690236-100028 (New funding) | Project #5 W.M. Repl. | 623628 | -$19,752.59
690379-100000 (New funding) | DRWP Disinfection Imp's | 609379 | -$0.34
690395-100000 (New funding) | Valve Renewal Prgm. | 609395 | -$342,618.00
690473-100003 (New funding) | Smoky Row Booster Sta. | 694733 | -$0.39
690474-100000 (New funding) | Morse Rd. 36" W.M. | 609474 | -$1.29
690509-100000 (New funding) | Asset Mgmt. Program | 609509 | +$736,487.84
SECTION 6. That for the purpose of paying the cost of the Asset Management Phase II professional engineering services agreement, the expenditure of $950,000.00 or as much thereof as may be needed, is hereby authorized from the Sanitary B.A.B.s (Build America Bonds) Fund, Fund No. 668 | Division 60-05 | Project No. 650728-100000 | OCA Code 668728 | Object Level Three 6676.
SECTION 7. That for the purpose of paying the cost of the Asset Management Phase II professional engineering services agreement, the expenditure of $950,000.00 or as much thereof as may be needed, is hereby authorized from Division 60-09, Object Level Three 6676, as follows:
Fund No. Project No. OCA Amount
606 690509-100000 (Carryover) 606509 $213,512.16
609 690509-100000 (New funding) 609509 $736,487.84
$950,000.00
SECTION 8. That the 2009 Capital Improvements Budget Ordinance No. 0806-2009 is hereby amended as follows,
Fund No. | Proj. No. | Proj. Name | Current Authority | Revised Authority | Change
668 | 650360-100001 | WWTF Upgrade General Program | $4,388,000 | $3,438,000 | -$950,000
668 | 650728-100000 | Asset Management Phase II | $0 | $950,000 | +$950,000
SECTION 9. That the 2009 Capital Improvements Budget Ordinance No. 0806-2009 is hereby amended as follows,
Fund No. | Proj. No. | Proj. Name | Current Authority | Revised Authority | Change
606 | 690236-100000 (carryover) | Water Main Rehab. | $999,938 | $1,066,546 | +$66,608 (give authority to cancellation)
606 | 690236-100000 (carryover) | Water Main Rehab. | $1,066,546 | $999,938 | -$66,608
606 | 690394-100000 (carryover) | Water Meter Renewal | $2,070 | $0 | -$2,070
606 | 690474-100000 (carryover) | Morse Rd. 36" W.M. | $0 | $144,836 | +$144,836 (give authority to cancellation)
606 | 690474-100000 (carryover) | Morse Rd. 36" W.M. | $144,836 | $0 | -$144,836
606 | 690509-100000 (carryover) | Asset Mgmt. Program | $0 | $213,514 | +$213,514
609 | 690236-100014 (New funding) | Mt. Vernon/King Lincoln (Whitney) | $95,318 | $0 | -$95,318
609 | 690236-100019 (New funding) | Alton-Darby Rd. W.L. | $410,000 | $131,202 | -$278,798
609 | 690236-100028 (New funding) | Project #5 W.M. Repl. | $200,000 | $180,247 | -$19,753
609 | 690379-100000 (New funding) | DRWP Disinfection Imp's | $1 | $0 | -$1
609 | 690395-100000 (New funding) | Valve Renewal Prgm. | $1,990,000 | $1,647,382 | -$342,618
609 | 690473-100003 (New funding) | Smoky Row Booster Sta. | $1 | $0 | -$1
609 | 690474-100000 (New funding) | Morse Rd. 36" W.M. | $2 | $0 | -$2
609 | 690509-100000 (New funding) | Asset Mgmt. Program | $0 | $736,491 | +$736,491
SECTION 10. 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 11. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 12. 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 13. 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 14. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.