Explanation
Background: The Public Service Department, Transportation Division, routinely administers dozens of capital improvement projects and grants that are funded from a myriad of different funding sources. The proper and consistent accounting of these projects and grants is of paramount importance.
Accounting adjustments are needed within several projects as a result of inadvertent errors. These adjustments must be effected as soon as possible. These actions are being taken with the full knowledge, support and insistence of the City Auditor's Office.
Adjustment #1. City Council passed Ordinance 0733-2003 authorizing a $880,814.08 contract with Columbus Asphalt Paving Company for the I-71/Morse Road Interchange Enhancement project from the Federal-State Highway Engineering Fund on May 12, 2003. This contract was modified and increased by $53,310.00 (Ordinance 1786-2003, passed by City Council on July 21, 2003) and by $50,000.00 (Ordinance 1206-2004, passed by Council on July 19, 2004), both of which authorized expenditures from the 1995, 1999 Voted Streets and Highways Fund. These latter expenditures should have been authorized from the Federal-State Highway Engineering Fund. This ordinance makes this adjustment.
Adjustment #2. Ordinance 1051-2004 passed by City Council July 19, 2004 transferred $1,860,000.00 to and appropriated these funds within the Federal State Highway Engineering Fund and authorized the City Attorney's Office Real Estate Division to pursue land acquisition for the Hard Road Phase C Improvement project. As a City/State/Federal project, the City needed to contribute twenty percent of the total $7,101,000.00 acquisition expense or $1,420,200.00. The difference between $1,860,000.00 and $1,420,200.00, $439,800.00, can be transferred out of this project and (with Council's approval) used for other street/bridge capital improvement projects. This adjustment ordinance provides for the transfer of excess local monies to the Streets and Highways Improvement Project. It also increases the Hard Road Phase C Improvement project appropriation authority within the Federal State Highway Engineering Fund by $7,101,000.00 to match the amount required for land acquisition purposes.
Adjustments #3, 4 and 5. Three closed projects within the State Issue Two Street Projects Fund have cash variances. The Steltzer Road grant has a positive variance of $163,870.18 while the James Road and ADA Curb Ramps grants have negative variances of $20,221.82 and $86,663.92, respectively. Again, these variances are due to city matching monies not having been properly transferred to this Fund, the grants under/overspending their available cash prior to being closed (they should not have been closed since cash variances existed). This adjustment ordinance transfers cash between projects to eliminate the surplus and the deficits, with the remaining cash ($56,984.44) being transferred to the Fund's unallocated balance and subsequently to the Streets and Highways Improvement Fund.
Adjustment #6. Ordinance 0716-2004 passed by City Council June 21, 2004 authorized the appropriation of $202,000.00 within the Special Income Tax Fund and its subsequent transfer and appropriation within the 1995, 1999 Voted Streets and Highways Fund to make funding available to the Sewerage and Drainage Division for Cassady Avenue pavement renovation work as part of that division's larger Cassady Avenue project. This expenditure was authorized from the Resurfacing project (530282) within the Transportation Division's capital improvement fund. The July bond sale deposited a like amount for this purpose into the Cassady Avenue project (590128) within that same Transportation capital improvement fund. This adjustment ordinance specifies that the Sewerage and Drainage expenditure take place from the correct project (590128 instead of 530282). No additional funding is required.
Fiscal Impact: For the first needed adjustment, Ordinance 1786-2003 and Ordinance 1206-2004 authorized the expenditure of $103,310.00 from the 1995, 1999 Voted Streets and Highways Fund. This adjustment ordinance goes further by transferring these monies to the Federal-State Highway Engineering Fund, appropriating them there and authorizing their expenditure from the Federal-State Highway Engineering Fund to be consistent with the original legislation, Ordinance 0733-2003.
For the second needed adjustment, $439,800.00 will be transferred from the Federal State Highway Engineering Fund to the Streets and Highways Improvement Fund where it will be available for other capital spending needs. Appropriation authority in the Hard Road Phase C Improvement project is adjusted upward by $7,872,000.00 to match the actual amount needed within this project for land acquisition purposes.
For the third, fourth and fifth adjustments, the cash surplus in one grant and cash deficits in two others will be eliminated with the unallocated balance in the State Issue Two Street Projects Fund increasing by $56,984.44. This amount plus the existing $133,261.86 already in the Unallocated Balance project are transferred to the Streets and Highways Improvement Fund where it is available for other street/bridge capital improvement purposes.
There is no fiscal impact for the sixth adjustment, however failure to make the adjustment will ultimately shortchange the funds budgeted for resurfacing purposes.
Emergency action is requested to effect these accounting adjustments as soon as possible.
Title
To authorize the City Auditor to make any and all appropriate accounting adjustments to properly account for capital project fund transfers, appropriations and expenditures for several capital improvement projects for the Transportation Division as detailed within the body of this ordinance, and to declare an emergency. ($8,143,242.04)
Body
WHEREAS, the Public Service Department, Transportation Division, routinely and simultaneously administers dozens of capital improvement projects and grants that are funded from a myriad of different funding sources; and
WHEREAS, the proper and consistent accounting of these projects and grants is of paramount importance; and
WHEREAS, City Council passed Ordinance 0733-2003 authorizing a $880,814.08 contract with Columbus Asphalt Paving Company for the I-71/Morse Road Interchange Enhancement project from the Federal-State Highway Engineering Fund on May 12, 2003; and
WHEREAS, this contract was modified and increased by $53,310.00 by a subsequent ordinance, Ordinance 1786-2003, passed by City Council on July 21, 2003, which authorized an expenditure from the 1995, 1999 Voted Streets and Highways Fund; and
WHEREAS, this contract was modified and increased by $50,000.00 by a subsequent ordinance, Ordinance 1206-2004, passed by City Council on July 19, 2004, which authorized an expenditure from the 1995, 1999 Voted Streets and Highways Fund; and
WHEREAS, this latter expenditures should have been authorized from the Federal-State Highway Engineering Fund; and
WHEREAS, too much local match funding was transferred to but not enough appropriation authority authorized within the Federal State Highway Engineering Fund for the Hard Road Phase C Improvement project by Ordinance 1051-2004 passed by City Council on July 19, 2004; and
WHEREAS, this ordinance transfers these excess monies to the Streets and Highways Improvement Fund and increases appropriation authority in the Federal State Highway Engineering Fund; and
WHEREAS, three closed projects within the State Issue Two Street Projects Fund have cash variances; and
WHEREAS, this adjustment ordinance transfers cash between projects within this Fund to eliminate the surplus and the deficits; and
WHEREAS, Ordinance 0716-2004 made funding available to the Sewerage and Drainage Division for Cassady Avenue pavement renovation work and authorized this expenditure from the Transportation Division's Resurfacing project; and
WHEREAS, the July bond sale deposited $202,000.00 for this purpose into the Cassady Avenue project instead of the Resurfacing project; and
WHEREAS, an adjustment is needed to reflect this expenditure from the Cassady Avenue project; and
WHEREAS, an emergency exists in the usual daily operation of the Public Service Department, Transportation Division, in that it is immediately necessary to effect these accounting adjustments as soon as possible, thereby preserving 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 City Auditor be and hereby is authorized to transfer $103,310.00 between projects within Fund 704, the 1995, 1999 Voted Streets and Highways Fund, Department No. 59-09, Transportation Division, as follows:
TRANSFER FROM:
Fund / Project # / Project / O.L. 01/O.L. 03 Codes / OCA Code / Amount
704 / 530052 / Morse Road Area Investment / 06/6631 / 644385 / $103,310.00
Total transfer from: $103,310.00
TRANSFER TO:
Fund / Project # / Project / O.L. 01/O.L. 03 Codes / OCA Code / Amount
704 / 530052/ Morse Road Area Investment / 10/5501 / 644385 / $103,310.00
Total transfer to: $103,310.00
SECTION 2. That monies be transferred between funds as follows:
TRANSFER FROM:
Fund / Project # / Project / O.L. 01/O.L. 03 Codes / OCA Code / Amount
704 / 530052/ Morse Road Area Investment / 10/5501 / 644385 / $103,310.00
Total transfer from: $103,310.00
TRANSFER TO:
Fund / Grant # / Grant / O.L. 01/O.L. 03 Codes / OCA Code / Amount
765 / 530152 / Morse Road Area Investment / 80/0886 / 530052 / $103,310.00
Total transfer to: $103,310.00
SECTION 3. That the sum of $103,310.00 be and hereby is appropriated from the unappropriated balance of the Federal-State Highway Engineering Fund, Fund 765, 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, 2004, to Department No. 59-09, Transportation Division, Object Level One Code 06, Object Level Three Code 6631, OCA Code 530152 and Grant 530152.
SECTION 4. That the monies appropriated within the foregoing Section 3 shall be paid upon order of the Public Service Director 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 5. That the Public Service Director be and hereby is authorized to modify and increase contract EA005152-001 with Columbus Asphalt Paving Company, 1196 Technology Drive, Columbus, Ohio 43230, for the construction of the I-71/Morse Road Interchange Enhancement project in the amount of $103,310.00 for the Transportation Division in accordance with the specifications and plans on file in the office of the Public Service Director, which are hereby approved.
SECTION 6. That for the purpose of paying the cost of the contract modifications the sum of $103,310.00 or so much thereof as may be needed is hereby authorized to be expended from the Federal-State Highway Engineering Fund, Fund 765, Transportation Division, Department No. 59-09, Object Level One Code 06, Object Level Three Code 6631, OCA Code 530052 and Grant 530152.
SECTION 7. That the sum of $7,101,000.00 be and hereby is appropriated from the unappropriated balance of Fund 765, the Federal State Highway Engineering 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, 2004, to Department No. 59-09, Transportation Division, Object Level One Code 06, Object Level Three Code 6601, OCA Code 561101 and Grant 561101 to coincide with the amount actually needed within this project for land acquisition purposes.
SECTION 8. That the monies appropriated within the foregoing Section 7 shall be paid upon order of the Public Service Director 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 9. That the City Auditor be and hereby is authorized to transfer $439,800.00 between grants within Fund 765, the Federal State Highway Engineering Fund, Department No. 59-09, Transportation Division, as follows:
TRANSFER FROM:
Fund / Grant # / Grant / O.L. 01/O.L. 03 Codes / OCA Code / Amount
765 / 561101 / Hard Road - Phase C / 06/6601 / 561101 / $439,800.00
Total transfer from: $439,800.00
TRANSFER TO:
Fund / Grant # / Grant / O.L. 01/O.L. 03 Codes / OCA Code / Amount
765 / 561101/ Hard Road - Phase C / 10/5501 / 561101 / $439,800.00
Total transfer to: $439,800.00
SECTION 10. That the City Auditor be and hereby is authorized to transfer $439,800.00 between funds as follows:
TRANSFER FROM:
Fund / Grant # / Grant / O.L. 01/O.L. 03 Codes / OCA Code / Amount
765 / 561101/ Hard Road - Phase C / 10/5501 / 561101 / $439,800.00
Total transfer from: $439,800.00
TRANSFER TO:
Fund / Project # / Project / O.L. 01/O.L. 03 Codes / OCA Code / Amount
766 / 766999 / Unallocated Balance / 80/0886 / 642728 / $439,800.00
Total transfer to: $439,800.00
SECTION 11. That the sum of $163,870.18 be and hereby is appropriated from the unappropriated balance of Fund 764, the State Issue Two Street Projects 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, 2004, to Department No. 59-09, Transportation Division, Object Level One Code 06, Object Level Three Code 6600, OCA Code 560004 and Grant 560004.
SECTION 12. That the monies appropriated within the foregoing Section 11 shall be paid upon order of the Public Service Director 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 13. That the City Auditor be and hereby is authorized to transfer $163,870.18 between grants within Fund 764, the State Issue Two Street Projects Fund, Department No. 59-09, Transportation Division, as follows:
TRANSFER FROM:
Fund / Grant # / Grant / O.L. 01/O.L. 03 Codes / OCA Code / Amount
764 / 560004 / Steltzer Road / 06/6600 / 560004 / $163,870.18
Total transfer from: $163,870.18
TRANSFER TO:
Fund / Grant # / Grant / O.L. 01/O.L. 03 Codes / OCA Code / Amount
764 / 568036 / James Road / 06/6600 / 568036 / $20,221.82
764 / 560008 / ADA Curb Ramps / 06/6600 / 560008 / $86,663.92
764 / 764999 / Unallocated Balance / 06/6600 / 764999 / $56,984.44
Total transfer to: $163,870.18
SECTION 14. That the City Auditor be and hereby is authorized to transfer $190,246.30 between grants within Fund 764, the State Issue Two Street Projects Fund, Department No. 59-09, Transportation Division, as follows:
TRANSFER FROM:
Fund / Grant # / Grant / O.L. 01/O.L. 03 Codes / OCA Code / Amount
764 / 764999 / Unallocated Balance / 06/6600 / 764999 / $190,246.30
Total transfer from: $190,246.30
TRANSFER TO:
Fund / Grant # / Grant / O.L. 01/O.L. 03 Codes / OCA Code / Amount
764 / 764999 / Unallocated Balance / 10/5501 / 764999 / $190,246.30
Total transfer to: $190,246.30
SECTION 15. That the City Auditor be and hereby is authorized to transfer $190,246.30 from Fund 764, the State Issue Two Street Projects Fund, to Fund 766, the Streets and Highways Improvement Fund, as follows:
TRANSFER FROM:
Fund / Grant # / Grant / O.L. 01/O.L. 03 Codes / OCA Code / Amount
764 / 764999 / Unallocated Balance / 10/5501 / 764999 / $190,246.30
Total transfer from: $190,246.30
TRANSFER TO:
Fund / Grant # / Grant / O.L. 01/O.L. 03 Codes / OCA Code / Amount
766 / 766999/ Unallocated Balance / 80/0886 / 766999 / $190,246.30
Total transfer to: $190,246.30
SECTION 16. That the expenditure of $202,000.00 for Cassady Avenue pavement renovation work previously authorized within Ordinance 0716-2004 passed by City Council June 21, 2004, from Fund 704, the 1995, 1999 Voted Streets and Highways Fund, project 530282 (Resurfacing) be instead authorized from project 590128 (Cassady Avenue).
SECTION 17. That the City Auditor be and hereby is authorized to make any/all other accounting changes for the transactions discussed within this ordinance that are construed by the City Auditor to be reasonably consistent with the intent of this ordinance.
SECTION 18. 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 nor vetoes the same.