Explanation
BACKGROUND: The Department of Public Utilities would like to modify and increase contract number EL003668 for the Dublin Road Water Plant (DRWP) Treatment Capacity Increase Study & Evaluation Project for a consultant name change and for additional funding. The original contract was established with Metcalf & Eddy, Inc., whom now goes by their parent name, AECOM USA, Inc.
As per the recommendations of the Water beyond 2000 project, the original contract provided for a production study to evaluate the feasibility and changes required to increase the current design capacity of the Dublin Road Water Plant from 65 MGD to 90 MGD, while maintaining water quality and compliance with existing and future regulatory requirements. Full scale and pilot scale demonstrations required by the Ohio EPA for approval were to be authorized by a planned future modification (as anticipated in the original legislation). Contract Modification No. 1 provided for the design, bidding services, construction assistance, plant operation, data analysis and reporting for the Pilot Plant Study. This proposed contract modification (Contract Modification No. 2) will cover the cost relating to additional construction services, additional startup and operation services, and analysis of additional alternatives proposed by the Comprehensive Master Planning Team (CMPT), that have varied from the initial concept and beyond the original scope of the contract. No future phases of this project are anticipated.
1. Amount of additional funds to be expended: $926,888.00
Original Contract Amount: $485,125.00
Amount of Modification #1: $3,380,238.00
Amount of original contract and two modifications: $4,792,251.00
2. Reasons additional goods/services could not be foreseen:
At the time Contract Modification No. 1 was proposed (October 25, 2005) and approved (February 14, 2006), the scope was outlined and estimated on the basis of the extent of detail described in the Study and Evaluation Report. All that was known at that time concerning construction details was what appeared on the Process Schematic and Concept Floor Space Plan for the Pilot Plant. The permanent building design was based on the concept that the building would be a pre-engineered structure requiring little input from the process engineer. The complexities of the actual building configuration, soils conditions and resulting foundation requirements, and site / utility routes and interferences were not identified at the time the contract modification was proposed. The pilot system design was based on the 3 basic process trains shown on the concept schematic being essentially delivered as vendor-furnished skids and control systems that would be interconnected in the field. The complexities of piping and controls, and the addition of equalization and recirculation of waste flows back through the pilot processes, were not yet identified at the time of the contract modification estimate. The following items from the Contract Task 3 scope substantiate that the detail process scheme was not developed at the time of the contract modification proposal. Due to the untraditional nature of this project, in that it is comprised of multiple vendor-supplied equipment and control systems and also requires a commitment of ongoing responsibility throughout pilot operation and ultimate system demolition, the contractor has had more questions and more need for coordination than anticipated in a traditional project. This is not even a typical pilot project because of its size and the multiple process trains. Just as the design fee could not be accurately estimated until the study and conceptual design were completed, the extent of construction assistance could not be accurately predicted until the detail design was complete. In October 2005, Contract Modification No.1 was proposed to carry the DRWP Increase Evaluation and Study through the piloting phase in order to lead the City to a selected technology for the future water plant expansion. A typical 2-week period was included for plant startup. The operation of the pilot plant was based solely on a preliminary process schematic and a preliminary building footprint available at the time of the Modification negotiation. Just as the construction assistance was difficult to estimate without a detail design, the operational requirements for the pilot plant were estimated without the benefit of a detail design. During the course of design, additional thought has evolved with respect to the specific personnel assignments for startup and operation of the pilot plant, particularly with the addition of quality assurance testing and sampling for additional parameters.
3. Reason other procurement processes are not used:
The process of selecting and contracting with a new consultant team at this time would further delay the project. This modification keeps the construction project on schedule to finalize the Dublin Road Water Plant Pilot Study. The contract was well under way when these design decisions were made. The consultant team is very familiar with the details of the project, the approving agencies and the bid documents. The additional cost and time associated with bidding out this work would well exceed any benefit.
4. How cost of modification was determined:
The Consultant prepared a detailed estimate of cost per task for remaining scope of work. City Project management staff reviewed and approved these cost summaries.
Contract Compliance Information: 22-2581306, expires 5/28/10, Majority
FISCAL IMPACT: This legislation includes a transfer of funds within the Water Works Enlargement Voted Bonds Fund and a transfer of funds from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund as a temporary measure until such time as the proceeds from a bond sale can be made available. An amendment to the 2009 Capital Improvements Budget is also necessary.
Title
To authorize the Director of Public Utilities to modify and increase the professional engineering services contract with AECOM USA Inc. (f.k.a. Metcalf & Eddy, Inc.); for the DRWP Treatment Capacity Increase Study & Evaluation Project; to authorize the transfer of $354,386.56 within the Water Works Enlargement Voted Bonds Fund; to authorize the appropriation and transfer of $572,501.44 from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund; and to authorize the expenditure of $926,888.00 from the Water Works Enlargement Voted Bonds Fund; to amend the 2009 Capital Improvements Budget; for the Division of Power and Water. ($926,888.00)
Body
WHEREAS, Contract No. EL003668 was authorized by Ordinance No. 0987-2003, passed July 7, 2003, was executed on August 19, 2003, and was approved by the City Attorney on September 2, 2003; and
WHEREAS, Modification No. 1 EL005793 was authorized by Ordinance No. 1873-2005, passed December 12, 2005, was executed on January 18, 2006, and was approved by the City Attorney on January 26, 2006; and
WHEREAS, the Division of Power and Water would like to modify the contract to change the vendor name from Metcalf & Eddy, Inc. to AECOM USA Inc., and to increase the contract for additional construction services, additional startup and operation services, and analysis of additional alternatives; and
WHEREAS, it is necessary for this Council to authorize the City Auditor to transfer funds within the Water Works Enlargement Voted Bonds Fund; and
WHEREAS, it is necessary for this Council to authorize the City Auditor to transfer funds from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund; 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 construction of the Project described in this Ordinance (collectively, the "Project"); and
WHEREAS, it is necessary to authorize an amendment to the 2009 Capital Improvements Budget for purposes of providing sufficient funding and expenditure authority for the aforementioned project expenditures; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Public Utilities, Division of Power and Water, to authorize the Director of Public Utilities to modify and increase the professional engineering services contract with AECOM USA, Inc. (f.k.a. Metcalf & Eddy, Inc.), for the DRWP Treatment Capacity Increase Study & Evaluation Project, to authorize the appropriation and transfer of funds from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund, 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 is hereby authorized and directed to modify the contract to change the vendor name from Metcalf & Eddy, Inc. to AECOM USA Inc., and to increase the contract for additional construction services, additional startup and operation services, and analysis of additional alternatives, for the DRWP Treatment Capacity Increase Study & Evaluation Project, in the amount of $926,888.00.
SECTION 2. That this contract modification is in compliance with Section 329.16 of Columbus City Codes, 1959.
SECTION 3. That the City Auditor is hereby authorized to transfer $354,386.56 within the Division of Power and Water, Dept/Div. No. 60-09, Water Works Enlargement Voted Bonds Fund, Fund No. 606, Object Level One 06, Object Level Three 6686, as follows:
Project No. | Project Name | OCA Code | change
690236 (carryover) | Water Main Rehab. | 642900 | -$205,012.01
690436 (carryover) | Fisher Booster Station Discharge | 690436 | -$44,054.25
690452 (carryover) | Scioto-Darby Creek Rd. 24" W. M. | 690452 | -$40,616.94
690474 (carryover) | Morse Rd. 36" W.M. | 642900 | -$35,151.00
690480 (carryover) | Morse Hamilton Booster Station | 606480 | -$29,552.36
690428 (carryover) | DRWP Treatment Capacity Increase | 606428 | +$354,386.56
SECTION 4. That the 2009 Capital Improvements Budget is hereby amended as follows:
Project No. | Project Name | Current Authority | Revised Authority | change
690236-100000 (carryover) | Water Main Rehab. | $477,838 | $272,826 | -$205,012
690480-100000 (carryover) | Morse Hamilton Booster Station | $29,553 | $0 | -$29,553
690428-100000 (carryover) | DRWP Treatment Capacity Increase | $0 | $354,387 | +$354,387
SECTION 5. 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 $572,501.44, is hereby appropriated to the Division of Power and Water, Division 60-09, Object level One 10, Object level Three 5502, OCA 695056.
SECTION 6. That the City Auditor is hereby authorized and directed to transfer $572,501.44, from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund, Fund No. 606, into the appropriate project account as specified within Section 7 herein, at such time as deemed necessary by him, and to expend said funds, or so much thereof as may be necessary.
SECTION 7. That the appropriation and expenditure of $926,888.00 is hereby authorized for the DRWP Treatment Capacity Increase Study & Evaluation Project within the Water Works Enlargement Voted Bonds Fund, Fund No. 606, Division 60-09, Project No. 690428, Object Level Three 6686, OCA Code 606428.
SECTION 8. That upon obtaining other funds for the purpose of funding water system capital improvement work, the City Auditor is hereby authorized to repay the Water System Reserve Fund the amount transferred under Section 6 above, and said funds are hereby deemed appropriated for such purpose.
SECTION 9. 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 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 10. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 11. 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 12. 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 $572,501.44 (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 the Water System Reserve Fund 603, which is the fund from which the advance for costs of the Project will be made.
SECTION 13. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.