Explanation
1. BACKGROUND
The Department of Public Service, Division of Design and Construction administered the Morse Road Phase 1 project, which was completed August 4, 2008. The project limits were from Indianola Avenue to Karl Road and was designed to promote neighborhood livability, pedestrian friendliness, and business retention and expansion. The roadway improvement featured a landscaped median, sidewalks, and upgraded signals. All overhead utility lines were additionally relocated to single pole lines on both the north and south sides of Morse Road. Since the aerial utilities are being moved for aesthetic purposes, this relocation expense is reimbursable to Columbus Southern Power Company dba American Electric Power (AEP). For reduced construction complications and timely implementation, AEP set new poles throughout the project.
Ordinance 1074-2004 established funding in the amount of $850,000.00 to reimburse private utility companies for relocation due to the project scope. Ordinance 1074-2004 was amended by Ordinance 1295-2005 which also amended the Construction Contract Ordinance 0402-2005 to reallocate $221,527.09 from Ordinance 1074-2004 to Ordinance 0402-2005 to allow the MELP relocations to be included in the Construction Contract. The other private utility relocation invoices have been paid in full:
Wide Open West $ 73,201.84
RE Taxes $ 2,525.18
Canceled $ 2,295.62 (Set up for Real Estate Taxes and not needed.)
MELP $126,819.21
Insight $ 16,880.00
AT&T (SBC) $ 17,791.43
Total Expended $239,513.28
On September 10, 2009 the balance of the encumbrance ($388,959.63) on Ordinance 1074-2004 for private utility relocation costs was cancelled because an invoice from AEP had not been received for the AEP relocation work.
This legislation authorizes the Director of Public Service to reimburse AEP on behalf of the Department of Public Service and to pay the final AEP invoice received December 21, 2009 for the amount of $602,676.97. This amount was higher than expected for this relocation expense and The Department of Public Service has been in discussion with AEP concerning this amount in the period between the time the invoice was received and now. At this time the Department of Public Service is in agreement with this amount.
2. CONTRACT COMPLIANCE
Columbus Southern Power Company dba American Electric Power (AEP) contract compliance number is 31-4154203. The expiration date for their contract compliance is 2/1/12.
3. FISCAL IMPACT
Funding for this purpose is budgeted within the 2011 Capital Improvement Budget. This expense can be accommodated by appropriating and transferring funds needed in the amount of $602,676.97 from the Special Income Tax Fund. Bonds have yet to be sold for the whole project, necessitating a certification of $602,676.97 against the Special Income Tax Fund. Upon sale of bonds, this will be reimbursed.
4. EMERGENCY DESIGNATION
Emergency action is requested to ensure proper accounting practices and to make this payment to American Electric Power at the earliest possible time.
Title
To authorize the Director of Public Service to pay American Electric Power Company for utility relocation costs incurred in conjunction with the Morse Road Phase 1 Project for the Division of Design and Construction; to authorize and direct the City Auditor to transfer $602,676.97 from the Special Income Tax Fund to the Streets and Highways G.O. Bonds Fund; to authorize the City Auditor to appropriate $602,676.97 within the Streets and Highways G.O. Bonds Fund; to authorize the expenditure of $602,676.97 from the Streets and Highways G.O. Bonds Fund; and to declare an emergency. ($602,676.97)
Body
WHEREAS, the City of Columbus, Department of Public Service, Division of Design and Construction, required utility relocation work to be performed by American Electric Power Company for the Morse Road Phase 1 project; and
WHEREAS, funds were previously established for utility relocation expenses for this project; and
WHEREAS, the purchase order for these expenses was canceled due to the lack of an invoice for this work; and
WHEREAS, AEP has since submitted an invoice for these expenses and it is necessary to provide payment for these utility relocation expenses; and
WHEREAS, it is necessary to transfer funds from the Special Income Tax Fund to this project; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Special Income Tax Fund; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregate principal amount of obligations which the city will issue to finance this project is presently expected not to exceed $602,676.97; 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, an emergency exists in the usual daily operation of the Department of Public Service, Division of Division of Design and Construction, in that it is necessary to provide payment to AEP to insure that this payment occurs at the earliest possible time and up to date financial posting procedures are adhered to; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Service be and hereby is authorized to pay American Electric Power Company, P.O Box 24409, Canton, OH, 44701 in the amount of $602,676.97 for utility relocation work performed in connection with the Morse Road Phase 1 project for the Division of Design and Construction.
SECTION 2. The sum of $602,676.97 be and is hereby appropriated from the unappropriated balance of the Special Income Tax Fund, Fund 430, 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, 2011 to the City Auditor, Department 22-01, Object Level One 10, OCA Code 902023, Object Level Three 5502.
SECTION 3. That the City Auditor is hereby authorized to transfer said funds to the Streets and Highways G.O. Bonds Fund, No. 704, at such time as it is deemed necessary by the City Auditor and to expend said funds or so much thereof as may be necessary.
SECTION 4. That $602,676.97 is hereby appropriated within Fund 704, the Streets and Highways G.O. Bonds Fund, Dept-Div. 59-12, Division of Design and Construction as follows:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
704 / 530052-100003 / Morse Road Area Investment - Morse Road Phase 1 / 06-6600 / 745203 / $602,676.97
SECTION 5. That the monies appropriated in the foregoing Section 4 shall be paid upon order of the Director of Public Service and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
SECTION 6. That upon obtaining other funds for this capital improvement, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 3 above.
SECTION 7. That the City Auditor is authorized to establish proper accounting project numbers, and to make any accounting changes to revise the funding source for any contract or contract modification associated with the expenditure of funds transferred in Section 3, above.
SECTION 8. 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 $602,676.97 (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 fund from which the advance for costs of the Project will be made.
SECTION 9. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
SECTION 10. That the sum of $602,676.97 or so much thereof as may be needed is hereby authorized to be expended from the Streets and Highways G.O. Bonds Fund, No. 704, Dept./Div. 59-11 as follows:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
704 / 530052-100003 / Morse Road Area Investment - Morse Road Phase 1 / 06-6621 / 745203 / $602,676.97
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 for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby 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 or vetoes the same.