Explanation
BACKGROUND: The Department of Public Utilities, Division of Water is currently constructing an Upground Reservoir off the Scioto River north of the O'Shaughnessy Dam (Upground Reservoir - Site No. 2). Prior to construction the Division of Water deposited surety funds in the amount of $530,000.00 into the State of Ohio's State Treasury Asset Reserve of Ohio (Star Ohio) program, as a means of obtaining the construction permit. These funds were legislated under Ordinance No. 0318-2011. That surety bond covered the construction period from initiation through construction inspection approval (by Ohio Department of Natural Resources {ODNR}).
Ordinance No. 0318-2011 also stated that an additional deposit would be needed after ODNR's construction inspection approval. Therefore, this Ordinance is establishing the $500,000.00 surety deposit to cover the period between ODNR's construction inspection approval and final acceptance after filling of the reservoir.
Both deposits remain in the Star Ohio account through ODNR's final acceptance, projected between 2014 and 2015.
STAR Ohio FID#: 31-6402047/232
ODNR FID#: 31-1334820
FISCAL IMPACT: The expenditure for the surety bond will be taken directly from the Water System Reserve Fund, Fund No. 603.
Title
To authorizes the City Auditor to deposit funds in the amount of $500,000.00 into the State Treasury Asset Reserve of Ohio (Star Ohio) program for the Division of Water; for surety funds required for the Columbus Upground Reservoir - Reservoir Site No. 2 Project; to authorize the appropriation and expenditure of $500,000.00 from the Water System Reserve Fund. ($500,000.00)
Body
WHEREAS, the Department of Public Utilities needs to deposit additional surety funds into the State of Ohio's State Treasury Asset Reserve of Ohio (Star Ohio) program for the Upground Reservoir - Reservoir Site No. 2 Project, and
WHEREAS, the surety bond covers the period between the Ohio Department of Natural Resources's (ODNR) construction inspection approval and final acceptance after filling of the reservoir; and
WHEREAS, the surety funds remain deposited in the Star Ohio account through ODNR's final acceptance, projected between 2014 and 2015; and
WHEREAS, the Director of the Department of Public Utilities authorizes and directs the City Auditor to deposit funds into the Star Ohio program; and
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, 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 has become necessary in the usual daily operation of the Department of Public Utilities, Division of Water, to authorize and direct the City Auditor to deposit surety funds into the Star Ohio program for the Columbus Upground Reservoirs - Reservoir Site No. 2 Project; to authorize the appropriation and expenditure of funds from the Water System Reserve Fund, for the 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 surety 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 Reservoir - Reservoir Site No. 2 Project; in the amount of $500,000.00.
SECTION 2. That the appropriation and expenditure of $500,000.00 is hereby authorized for the surety bonds required for the Columbus Upground Reservoir - Reservoir Site No. 2 Project within the Water System Reserve Fund, Fund No. 603, Division 60-09, Object Level Three 6621, Project No. 690606-100000, OCA Code 690606.
SECTION 3. 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 4. 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 5. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 6. 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 7. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.