Explanation
1. BACKGROUND:
In the course of effecting roadway improvements, it is sometimes necessary to force the relocation of utilities from privately held easements. These relocations are in areas where the City has previously allowed utilities, but due to this project there is a need to relocate them at the City's expense. Utility relocation estimates are normally included in the budget for each project, but occasionally estimates are insufficient and not always in the city's control. This legislation provides a source of funding for utility relocations yet to be named in order to provide for quick turnaround of these relocations once the utility and project are determined.
City Council recognizes that this ordinance does not identify the contractor(s) to whom the contract(s) will be awarded and understands that its passage will give the Public Service Director the final decision in determination for such contract(s). This Council is satisfied it is in the best interests of the City to delegate this contracting decision.
2. FISCAL IMPACT:
This project is budgeted within the 2011 Capital Improvement Budget. A C.I.B. amendment is necessary to establish authority in the correct project. This expense can be accommodated by appropriating and transferring funds needed in the amount of $100,000.00 from the Special Income Tax Fund. Bonds have yet to be sold for the whole project, necessitating a certification of $100,000.00 against the Special Income Tax Fund. Upon sale of bonds, this will be reimbursed.
Title
To authorize the Director of Public Service to reimburse various utilities for utility relocation costs incurred in conjunction with Public Service capital improvement projects; to amend the 2011 C.I.B; to authorize and direct the City Auditor to appropriate and transfer $100,000.00 from the Special Income Tax Fund to the Streets and Highways G.O. Bonds Fund; to authorize the City Auditor to appropriate $100,000.00 within the Streets and Highways G.O. Bonds Fund; and to authorize the expenditure of $100,000.00 from the Streets and Highways G.O. Bonds Fund. ($100,000.00)
Body
WHEREAS, the City of Columbus is vitally concerned with the use of the various rights-of-way areas in the City as such rights-of-way areas represent a valuable and limited resource that must be utilized to promote the public health, safety and welfare including the economic development of the City; and
WHEREAS, the Department of Public Service requires funding to be available for utility relocation expenses for yet to be determined projects in order to provide for quick turnaround of utility relocation work; 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 $100,000.00; 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").
WHEREAS, this ordinance authorizes funding in the amount of $100,000.00 for that purpose; 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 utility relocation costs to various utilities for Capital Improvement projects to be determined.
SECTION 2. That the 2011 Capital Improvement Budget authorized by ordinance 0266-2011 be amended as follows to establish sufficient authority for this project:
Fund/Project / Project Name / Current / Change / Amended
704 / 530161-100070 / Roadway Improvements - Utility Relocation Reimbursements(Voted 2008) / $100,000.00 (Carryover) / ($100,000.00) (Carryover) / $0.00 (Carryover)
704 / 530161-100000 / Roadway Improvements (Voted 2008) / $75,997.00 / $100,000.00 / $175,997.00
SECTION 3. The sum of $100,000.00 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 4. That the City Auditor is hereby authorized to transfer said funds to the Streets and Highways G.O. Bonds Fund, 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 5. That $100,000.00 is hereby appropriated within Fund 704, the Streets and Highways G.O. Bonds Fund, Dept-Div. 59-12, for The Division of Design and Construction as follows:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
704 / 530161-100000 / Roadway Improvements / 06-6600 / 590046 / $100,000.00
SECTION 6. That the monies appropriated in the foregoing Section 5 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 7. 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 4 above.
SECTION 8. 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 4, above.
SECTION 9. 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 $100,000.00 (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 10. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
SECTION 11. That for the purpose of paying the cost of utility relocation expenses the sum of $100,000.00 or so much thereof as may be needed, is hereby authorized to be expended for the Division of Design and Construction as follows Dept./Div. 59-12:
Fund / Fund Name / Project Number / Grant / Object Level 01/03 Codes / OCA Code / Amount
704 / 530161-100000 / Roadway Improvements - Miscellaneous Right of Way Acquisition / 06-6631 / 590046 / $100,000.00
SECTION 12. City Council recognizes that this ordinance does not identify the contractor(s) to whom the contract(s) will be awarded and understands that its passage will give the Director of Public Service the final decision in determination for such contract(s). This Council is satisfied it is in the best interests of the City to delegate this contracting decision.
SECTION 13. 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 14. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.