Explanation
BACKGROUND: The Department of Public Utilities, Division of Power and Water will be constructing improvements to Lagoon No. 1 at the Hap Cremean Water Plant. A portion of this work includes construction of new exterior embankments for the lagoon in which the Ohio Department of Natural Resources (ODNR) has classified as a Class II dam. ODNR requires the City of Columbus to apply for a construction permit. Before a permit can be issued, a surety bond must be submitted and accepted by the state. The bond amount shall meet or exceed one-half the estimated cost of construction including construction inspection of the dam or levee.
This overall project provides for the physical removal of sludge from Lagoon No.'s 1, 2 and 3 at the Hap Cremean Water Plant, and for construction of new exterior embankments and interior baffles in the lagoons. This current phase will provide for construction services for the reconstruction of the exterior lagoon embankment and construction of interior baffles on Lagoon No. 1. These improvements, along with the sludge removal under a previous contract, will allow this lagoon to be put back into service. This will provide additional storage for emergency situations due to loss of pumping capabilities and allow for replacement of portions of the sludge line that extends from HCWP to McKinley Quarry. Repairs to the sludge lagoon embankments are necessary to allow for lagoon utilization for sludge storage. The internal baffles will provide improved decantation of the sludge and will significantly increase the useful storage of the lagoon. External embankment repair along Big Walnut Creek will ensure public health and safety by preventing lime/alum sludge from entering the Big Walnut Creek if there were an embankment failure.
The Division of Power and Water will deposit their 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 Hap Cremean Water Plant Lagoon No. 1 Embankment Improvements Project, Project No. 690331-100001, were opened on April 7, 2010. The amount to be deposited into the Star Ohio fund is $576,062.00, which is fifty percent (50%) of the cost of construction and construction inspection fees for the Class II dam.
This legislation is also amending Ordinance 0543-2009 to change the funding source for the Surety Bond on the Hap Cremean Lagoon 2 Project from Bond Fund 606 to the Water System Reserve Fund, Fund No. 603.
EMERGENCY DESIGNATION: It is requested that this Ordinance be handled in an emergency manner as this Ordinance must accompany Ordinance No. 0605-2010, which is also an emergency. Ordinance No. 0605-2010 is submitted as emergency legislation to take advantage of prime construction season and to allow issuance of a construction Notice to Proceed in late May or early June 2010.
FID#: 31-6402047/232
FISCAL IMPACT: This expenditure will be taken directly from the Water System Reserve Fund.
Title
The Director of the Department of Public Utilities authorizes and directs the City Auditor to deposit funds in the amount of $576,062.00 into the State Treasury Asset Reserve of Ohio (Star Ohio) program; for surety funds required for a construction permit to be issued for the Hap Cremean Water Plant Lagoon No. 1 Embankment Improvements Project; to authorize the appropriation and expenditure of $576,062.00 from the Water System Reserve Fund; to amend Ordinance No. 0543-2009 to change the funding source; for the Division of Power and Water; and to declare an emergency. ($576,062.00)
Body
WHEREAS, the Department of Public Utilities, Division of Power and Water needs to deposit funds into the State of Ohio's State Treasury Asset Reserve of Ohio (Star Ohio) program to receive a construction permit from the Ohio Department of Natural Resources for the Hap Cremean Water Plant Lagoon No. 1 Embankment Improvements Project; and
WHEREAS, the amount of deposit includes fifty percent (50%) of the cost of construction and construction inspection of the Class II dam; 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, 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 construction permit for the Hap Cremean Water Plant Lagoon No. 1 Embankment Improvements Project; in an emergency manner in order to meet the start of construction timeline of June 2010, to authorize the appropriation and expenditure of funds from the Water System Reserve 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 a surety account designated by the Ohio Department of Natural Resources and to execute such other agreements as may be related to the surety account pursuant to the State's requirements to obtain construction permit for the Hap Cremean Water Plant Lagoon No. 1 Embankment Improvements Project; in the amount of $576,062.00.
SECTION 2. That the appropriation and expenditure of $576,062.00 is hereby authorized for the Hap Cremean Water Plant Lagoon No. 1 Embankment Improvements Project within the Water System Reserve Fund, Fund No. 603, Division 60-09, Object Level Three 6623, OCA Code 695056.
SECTION 3. That ordinance 0543-2009 be amended to change the funding source for the Surety Bond on the Hap Cremean Lagoon 2 from Bond Fund 606 Project No. 690331-100000 HCWP Lagoons to Water System Reserve Fund, Fund No. 603, Division 60-09, Object Level Three 6623, OCA Code 695056.
SECTION 4. 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 5. 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 6. 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.