Explanation
BACKGROUND: The Department of Public Utilities, Division of Power and Water will be constructing an Upground Reservoir off the Scioto River north of the O'Shaughnessy Dam. This reservoir will produce an additional 40 million gallons per day safe yield as recommended in the Water Beyond 2000 Phase II Report.
Prior to building the reservoir, an Ohio Department of Natural Resources (ODNR) construction permit must be obtained. Prior to obtaining the permit, a surety bond must be submitted and accepted by the state. The Division of Power and Water will deposit the surety funds into the State of Ohio's State Treasury Asset Reserve of Ohio (Star Ohio) program. Star Ohio allows all Ohio governmental subdivisions to deposit their funds for investment purposes into a highly rated public investment pool offering safety, liquidity, and generally higher yields.
Formal bids for the Columbus Upground Reservoirs - Reservoir Site No. 2 Project, Project No. 690370, were opened on January 26, 2011. The total amount of this legislation is $1,310,016.65. Of this amount, $780,016.65 is for the construction permit fee that will be paid directly to ODNR. The surety bond required for the construction period from initiation of construction through construction inspection approval (by ODNR), is in the amount of $530,000.00, to be deposited into the Star Ohio account. This amount must remain deposited in the Star Ohio account through ODNR's final acceptance, projected between 2014 and 2016.
MULTI-PHASE DESIGNATION: Additional legislation for surety bond funds will be required by ODNR in the future, after construction of Upground Reservoir - Part I has been completed and after ODNR's construction inspection approval. It is anticipated that these additional funds will be $500,000.00 and will cover the period between ODNR's construction inspection approval and their final acceptance (btwn. 2014 -2016).
EMERGENCY DESIGNATION: It is requested that this Ordinance be handled in an emergency manner as this Ordinance must accompany Ordinance No. 0249-2011, which is also an emergency. Ordinance No. 0249-2011 is submitted as emergency legislation to take advantage of prime construction season and to maximize the work that can be completed before construction must be halted for the winter months. The ODNR will not issue a construction permit allowing the contractor to start work until the surety bond has been secured and the construction permit fees have been paid.
STAR Ohio FID#: 31-6402047/232
ODNR FID#: 31-1334820
FISCAL IMPACT: The expenditure for the construction permit fee will come from the Water Build America Bonds Fund and will require a transfer of funds and an amendment to the 2011 Capital Improvements Budget. The expenditure for the surety bond will be taken directly from the Water System Reserve Fund.
Title
To authorize the Director of the Department of Public Utilities to direct the City Auditor to deposit surety funds in the amount of $530,000.00 into the State Treasury Asset Reserve of Ohio (Star Ohio) program required for the Columbus Upground Reservoirs - Reservoir Site No. 2 Project; to authorize the Director to make a payment in the amount of $780,016.65 to the Ohio Department of Natural Resources for a construction permit fee for said project; to authorize the appropriation and expenditure of $530,000.00 from the Water System Reserve Fund; to authorize a transfer and expenditure of $780,016.65 within the Water Build America Bonds Fund; to amend the 2011 Capital Improvements Budget; for the Division of Power and Water; and to declare an emergency. ($1,310,016.55)
Body
WHEREAS, the Director of the Department of Public Utilities authorizes and directs the City Auditor to deposit surety funds into the State of Ohio's State Treasury Asset Reserve of Ohio (Star Ohio) as required from the Ohio Department of Natural Resources for the Columbus Upground Reservoirs - Reservoir Site No. 2 Project; and
WHEREAS, the Director of the Department of Public Utilities authorizes payment to the Ohio Department of Natural Resources for a construction permit fee for the Columbus Upground Reservoirs - Reservoir Site No. 2 Project; and
WHEREAS, the surety bond covers the construction period from initiation of construction through construction inspection approval (by ODNR). This amount must remain deposited in the Star Ohio account through ODNR's final acceptance, projected between 2014 and 2016; and
WHEREAS, an additional deposit for surety bond funds will be required by ODNR in the future and will cover the period between ODNR's construction inspection approval and their final acceptance.
WHEREAS, it is necessary for this Council to authorize the City Auditor to appropriate and expend funds from the Water System Reserve Fund; and
WHEREAS, it is necessary for this Council to authorize the transfer and expenditure of funds within the Water 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 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 construction of the Project described in this Ordinance (collectively, the "Project"); and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division of Power and Water; in that it is immediately necessary to authorize and direct the City Auditor to deposit funds into the Star Ohio program for a surety bond, as well as making payment to the Ohio Department of Natural Resources for a construction permit fee, both required for the Columbus Upground Reservoirs - Reservoir Site No. 2 Project; in an emergency manner in order to take advantage of prime construction season; to authorize the appropriation and expenditure of funds from the Water System Reserve Fund and the Water Build America Bonds Fund, for the immediate preservation of the public health, peace, property, and safety; 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 direct the City Auditor to deposit funds into the State Treasury Asset Reserve of Ohio (Star Ohio) program in an account designated by the Ohio Department of Natural Resources and to execute such other agreements as may be related to the account pursuant to the State's requirements for a surety bond required for the Columbus Upground Reservoirs - Reservoir Site No. 2 Project; in the amount of $530,000.00.
SECTION 2. That the Director of Public Utilities be and hereby is authorized to make payment to the Ohio Department of Natural Resources pursuant to the State's requirements for a construction permit fee required for the Columbus Upground Reservoirs - Reservoir Site No. 2 Project; in the amount of $780,016.65.
SECTION 3. That the appropriation and expenditure of $530,000.00 is hereby authorized for the surety bonds required for the Columbus Upground Reservoirs - Reservoir Site No. 2 Project within the Water System Reserve Fund, Fund No. 603, Division 60-09, Object Level Three 6621, OCA Code 690606.
SECTION 4. That the City Auditor is hereby authorized to transfer $780,016.65 within the Department of Public Utilities, Division of Power and Water, Water Build America Bonds Fund, Fund No. 609, Dept/Div. No. 60-09, Object Level Three 6621, as follows:
Fund No. | Project No. | Project Name | OCA Code | Change
609 | 690026-100005 (carryover) | Indianola Parking Lot Drainage Imp's | 692605 | -$250,000
609 | 690278-100000 (carryover) | DRWP Misc. Imp's | 609278 | -$200,000
609 | 690286-100000 (carryover) | HCWP Misc. Imp's | 606286 | -$200,000
609 | 690291-100000 (carryover) | PAWP Imp. Facilities | 609291 | -$130,016.65
609 | 690370-100000 (carryover) | Upground Reservoir | 609370 | +$780,016.65
SECTION 5. That the 2011 Capital Improvements Budget is hereby amended as follows:
Fund No. | Proj. No. | Proj. Name | Current Authority | Revised Authority | Change
609 | 690026-100005 (carryover) | Indianola Parking Lot Drainage Imp's | $250,000 | $0 | -$250,000
609 | 690278-100000 (carryover) | DRWP Misc. Imp's | $200,000 | $0 | -$200,000
609 | 690286-100000 (carryover) | HCWP Misc. Imp's | $200,000 | $0 | -$200,000
609 | 690291-100000 (carryover) | PAWP Imp. Facilities | $200,000 | $69,983 | -$130,017
609 | 690370-100000 (carryover) | Upground Reservoir | $92,109,001 | $92,889,018 | +$780,017
SECTION 6. That the expenditure of $780,016.65 is hereby authorized for the construction permit fee, payable to the Ohio Department of Natural Resources, for the Columbus Upground Reservoirs - Reservoir Site No. 2 Project, within the Water Build America Bonds Fund, Fund No. 609, Division 60-09, Project No. 690370-100000 (carryover), Object Level Three 6621, OCA Code 609370.
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 funds necessary for such purpose are hereby deemed to be appropriated, and the City Auditor shall establish such accounting codes as are necessary therefore.
SECTION 9. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this Ordinance is 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 passage if the Mayor neither approves nor vetoes the same.