Explanation
1. BACKGROUND: This legislation authorizes the encumbrance of funds with the Transportation Division of the City of Columbus for inspection, testing, and prevailing wage coordination services in the amount of $289,598.25; to authorize the City Auditor to transfer and appropriate $289,598.25 from the Sanitary Sewer Reserve Fund to the Voted Sanitary Bond Fund; to authorize the expenditure of $289,598.25 from the Voted Sanitary Bond Fund; and to amend the 2009 Capital Improvements Budget; all in connection with the River South Phase II Rich Street Sanitary Redirect Sewer and Front Street, Main Street & Ludlow Street Project.
A. Supplier: NA - City of Columbus - Transportation Division
B. Emergency Designation: Emergency designation is not requested.
2. FISCAL IMPACT: This ordinance authorizes the appropriation of funds from the Sanitary Sewer Reserve Fund for this expenditure. The 2009 Capital Improvements Budget is amended for this expenditure upon passage of this ordinance. Monies for this encumbrance will be provided from an upcoming Bond Sale via the transfer detailed in this ordinance.
Title
To authorize the encumbrance of funds for the Transportation Division of the City of Columbus; to authorize the City Auditor to transfer and appropriate $289,598.25 from the Sanitary Sewer Reserve Fund to the Voted Sanitary Bond Fund; to authorize the expenditure of $289,598.25 from the Voted Sanitary Bond Fund; and to amend the 2009 Capital Improvements Budget, for the inspection, testing, and prevailing wage coordination services for the River South Phase II Rich Street Sanitary Redirect Sewer and Front Street, Main Street & Ludlow Street Project; ($289,598.25).
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WHEREAS, the city anticipates incurring certain cost associated with the City of Columbus's Transportation Division providing inspection, testing, and prevailing wage coordination services for the River South Phase II Rich Street Sanitary Redirect Sewer and Front Street, Main Street & Ludlow Street Project; and
WHEREAS, the aggregate principal amount which the City will issue to finance this phase of the project is presently expected not to exceed $289,598.25; and
WHEREAS, it is necessary to authorize the transfer and appropriation of funds from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund for purposes of providing sufficient funding for this project expenditure; and
WHEREAS, the Division of Sewerage and Drainage, Department of Public Utilities is requesting that this Council authorize the expenditure of necessary funds from the Sanitary Sewer Bond Fund for the River South Phase II Rich Street Sanitary Redirect Sewer and Front Street, Main Street & Ludlow Street Project; to authorize this at the earliest practical date; and
WHEREAS, it is necessary to authorize an amendment to the 2009 Capital Improvements Budget for the purpose of providing sufficient spending authority for the aforementioned project expenditure; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Sanitary Sewer Reserve Fund the amount transferred; 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 is necessary for this Council to authorize the encumbrance and expenditures for inspection, testing, and prevailing wage coordination services for the River South Phase II Rich Street Sanitary Redirect Sewer and Front Street, Main Street & Ludlow Street Project for the immediate preservation of the public health, peace, property, and safety project; 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 encumber funds with the Transportation Division for inspection, testing, and prevailing wage coordination services in the amount of $289,598.25.
Section 2. That from the unappropriated monies in the Sanitary Sewer Reserve Fund No. 654, 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, 2009, the sum of $289,598.25 is hereby appropriated to the Division of Sewerage and Drainage: Division 60-05| OCA Code 655225 | Object Level One 10 | Object Level Three 5502.
Section 3. That the City Auditor is hereby authorized to transfer a total of $289,598.25, from the Sanitary Sewer Reserve Fund to the Voted Sanitary Sewer Bond Fund 664, into the River South Phase II Storm Sewer Improvements Project, 650404.39, at such time as deemed necessary by the Auditor, and to expend said funds, or so much thereof as may be necessary.
Section 4. That the appropriation and expenditure of $289,598.25, or as much thereof as may be needed, is hereby authorized from the Voted Sanitary Sewer Bond Fund No. 664 | Division 60-05 | Project 650404 | OCA Code 664404 | Object Level Three 6630.
Section 5. That the 2009 Capital Improvements Budget, Ordinance No. 0806-2009, is hereby amended as follows, to provide sufficient budget authority for the execution of the contract stated herein:
Proj. No. | Project. Name | Current | Revised | (Change)
650600-100006 | Franklin/Main Interceptor | $300,000| $ 10,401 | (-$289,599)
650404-100039 | River South Phase II Storm Sewer Improvements Project | $479,835 | $769,434 | (+$289,599)
Section 6. That the said firm shall perform the work to the satisfaction of the Director of Public Utilities and the Administrator of the Division of Sewerage and Drainage.
Section 7. That upon obtaining other funds for the purpose of funding sanitary sewer system capital improvement work, the City Auditor is hereby authorized to repay the Sanitary Sewer Reserve Fund the amount transferred above, and said funds are hereby deemed appropriated for such purposes.
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 $289,598.25 (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 Sanitary/Sewer Reserve Fund 654, which is the fund from which the advance for costs of the Project will be made.
Section 9. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
Section 10. 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 11. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.