Explanation
1. BACKGROUND: This legislation authorizes the Director of Public Utilities to modify (Mod 1) a professional engineering agreement with Stantec Consulting Services, Inc. for the Big Walnut Trunk Extension Phase 2 project, CIP number 650033-100002. This project will design the final extension of the Big Walnut Sanitary Trunk Sewer north of Central College Road and east of Hoover Reservoir. This project will provide sanitary sewer service for the rapidly developing area between Hoover Reservoir and New Albany, north of State Route 161.
The purpose of this project is to provide the detailed design, specifications, contract documents, Geotechnical Baseline Report (GBR) and other reports required for the construction of the Big Walnut Trunk Sewer Extension Phase 2 from its existing 72-inch terminus. It is anticipated that the project will begin upstream of the existing Shaft #4 and proceed generally in a northerly direction towards Lee Road and then in an easterly direction along Walnut Street to the vicinity of Harlem Road as shown on Exhibit E from the Big Walnut Sanitary Trunk Extension Part 6F1, Final Design Report version 3.0 as prepared September 2000 by Dodson Stilson. The design contract will be broken into multiple phases and will be modified for each phase. There will also be a future modification for engineering services during construction.
1.1 Modification Information: Amount of additional funds: $1,071,635.19
Original Contract: $1,241,262.13
Design Modification #1 (Current) $1,071,635.19
Design Modification #2 $2,839,941.17
Construction Services Mod #1 $1,000,000.00
Construction Services Mod #2 $1,000,000.00
TOTAL $7,152,838.49
1.2 Reasons additional goods/services could not be foreseen:
This is a planned modification.
1.3 Reason other procurement processes are not used:
This Modification is a yearly extension of the original contract, as originally planned.
1.4 How cost of modification was determined:
The cost was determined by using the best knowledge about anticipated work during the time period covered by this Modification.
2. THE PROJECT TIMELINE: Detailed design is expected to take 3 years to complete. There will be at least 4 contract modifications during the course of the design. Once design is completed it is anticipated that construction will take approximately 2 years to complete.
3. EMERGENCY DESIGNATION: Emergency legislation is not being requested at this time.
4. CONTRACT COMPLIANCE NO: 11-2167170 | MAJ | 11/06/2015
5. ECONOMIC IMPACT: This project will extend the reach of the Big Walnut Trunk to its full build out capacity and will allow the City of Columbus to extend its service area thus creating additional utility and tax base. It will also allow for future developments and extensions of sanitary sewers into new or existing neighborhoods that would have previously had to utilize a home sewage treatment system. This will increase runoff and ground water quality for the region.
6. FISCAL IMPACT: This ordinance authorizes the appropriation and transfer of $1,071,635.19 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund, Fund 664; to authorize the creation of sufficient budget authority; to authorize the expenditure of up to $1,071,635.19 from the G.O. Bond Fund, Fund 664. Monies for this contract from the Sanitary Sewer Reserve Fund will be provided from a future Bond Sale via the transfer detailed in this ordinance.
Title
To authorize the Director of Public Utilities to modify a professional engineering services agreement with Stantec Consulting Services, Inc. for the Division of Sewerage and Drainage for the Big Walnut Trunk Extension Phase 2 project; to authorize the appropriation and transfer of $1,071,635.19 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund and to authorize the expenditure of up to $1,071,635.19 from the Sanitary Sewer General Obligation (G.O.) Bond Fund. ($1,071,635.19)
Body
WHEREAS, it is necessary to authorize the Department of Public Utilities to enter into a planned modification (Mod 1) for the Big Walnut Trunk Extension Phase 2 project with Stantec Consulting Services, Inc.; and
WHEREAS, Contract No. EL016486 was authorized by Ordinance No. 1976-2014, as passed by the Columbus City Council on October 20, 2014; executed by the Director on December 04, 2014; approved by the City Attorney on December 9, 2014 in the amount of $1,071,635.19; and
WHEREAS, it is necessary to authorize the appropriation and transfer of funds from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund; and
WHEREAS, it is necessary to transfer funds from the Sanitary Sewer Reserve Fund in the amount $1,071,635.19 for this project; and
WHEREAS, it is necessary for City Council to authorize the expenditure of up to $1,071,635.19 from the Sanitary Sewer System GO Bond Fund, Fund 664; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Sanitary Reserve 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 project described in this ordinance (the “Project”); and
WHEREAS, the Division of Sewerage and Drainage, Department of Public Utilities is requesting that this Council authorize the Director of Public Utilities to enter into a planned contract modification (Mod #1) professional engineering services agreement with Stantec Consulting Services, Inc. for the Big Walnut Trunk Extension Phase 2 project, 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 (Mod #1) the professional engineering services agreement with Stantec Consulting Services, Inc., 1500 Lake Shore Drive, Suite 500, Columbus, Ohio, 43204, for the Big Walnut Trunk Extension Phase 2 project, in accordance with the terms and conditions of the Contract on file in the office of the Division of Sewerage and Drainage.
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, 2015, the sum of $1,071,635.19 is hereby appropriated to the Division of Sewerage and Drainage: Division 60-05 | OCA Code 655225 | Object Level One 10 | Object Level Three 5502.
SECTION 3. That the City Auditor is hereby authorized to transfer and appropriate a total $1,071,635.19 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer Bond Fund, Fund 664, into the Big Walnut Trunk Extension Phase 2, CIP 650033-100002, at such time as deemed necessary by the Auditor, or so much thereof as may be necessary in the following manner: Division 60-05 | 643302 | Object Level 06 | Object Level Three 6676.
SECTION 4. That the Director of Public Utilities be and hereby is authorized to expend up to $1,071,635.19 from the Sanitary Sewer General Obligation and the Sanitary Sewer Revenue Bond Funds for the General Engineering Services Project Div. 60-05 | Object Level Three 6676
Fund No. | Project No. | Project Name | OCA Code | change
664 | 650033-100002 | Big Walnut Trunk Extension Ph2 | 643302 | $1,071,635.19
SECTION 5. That the said firm, Stantec Consulting Services, Inc., shall perform the work to the satisfaction of the Director of Public Utilities and the Administrator of the Division of Sewerage and Drainage.
SECTION 6. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 7. 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 8. That the Director of Public Utilities 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 upon obtaining other funds for the purpose of funding sanitary sewer system capital improvement work, the City Auditor is hereby authorized to repay the Sanitary Sewer Reserve Fund the amount transferred above (Section 3), and said funds are hereby deemed appropriated for such purposes.
SECTION 11. 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 $1,071,635.19 (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 12. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.