Explanation
1. BACKGROUND: This legislation authorizes the Director of Public Utilities to enter into an engineering agreement with Stantec Consulting Services, Inc. for the Near North & East Large Diameter Assessment Project, CIP 650725-100014. The purpose of the Near North & East large Diameter Assessment is to perform a sewer condition assessment of all combined sewers larger than 36”- Outside of the downtown area and north of I-70 that have not been previously televised to determine the debris accumulation and structure integrity of the pipes. A future modification is anticipated.
2. THE PROJECT TIMELINE: It is anticipated that a notice to proceed will be issued in January of 2016 with a start date of March 2016. It is anticipated that it will take 24 months to complete the assessment.
3. EMERGENCY DESIGNATION: An emergency designation is not requested at this time.
4. CONTRACT COMPLIANCE No.: 11-2617170 | MAJ | Exp. 09/10/2017
5. ENVIRONMENTAL IMPACT: This project will extend the remaining useful life of the most critical sewers within the City by making necessary repairs. It will also lower operation and maintenance costs by increasing the pipe flow efficiency. It will also reduce the risk of collapse which could cause SSO (sewer system overflows) to adjacent water ways or WIB's (water in basements).
6. FISCAL IMPACT: This ordinance authorizes the appropriation and transfer of $1,099,389.44 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund, Fund 664; to authorize the creation of sufficient budget authority; to authorize the expenditure of up to $1,099,389.44 from the G.O. Bond Fund, Fund 664 and to amend the 2015 Capital Improvements Budget to establish sufficient budget authority for this ordinance. Monies for this contract from the Sanitary Sewer Reserve Fund will be provided from a future Bond Sale via the transfer detailed in this ordinance.
Title
To authorize the Director of Public Utilities to enter into a professional engineering services agreement with Stantec Consulting Services, Inc. for the Near North & East Large Diameter Assessment Project; to authorize the appropriation and transfer of $1,099,389.44 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund; to authorize the expenditure of up to $1,099,389.44 from the Sanitary Sewers General Obligation Bond Fund; and to amend the 2015 Capital Improvements Budget. ($1,099,389.44)
Body
WHEREAS, the objective of this project is to perform a sewer condition assessment of all combined sewers larger than 36”- Outside of the downtown area and north of I-70 that have not been previously televised to determine the debris accumulation and structure integrity of the pipes; and
WHEREAS, this project will extend the remaining useful life of the most critical sewers within the City by making necessary repairs; and
WHEREAS, it is necessary to authorize the appropriation and transfer of $1,099,389.44 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer General Obligation (G.O.) Bond Fund; and
WHEREAS, it is necessary to authorize the expenditure of up to $1,099,389.44 from the Sanitary Sewer General Obligation Fund, Fund 664; and
WHEREAS, it is necessary to amend the 2015 Capital Improvements Budget for purposes of creating and providing sufficient budget authority for the aforementioned expenditures; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Sanitary 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 project described in this ordinance (the “Project”); and
WHEREAS, it has become necessary in the usual daily operation of the Department of Public Utilities to authorize the Director to enter into an engineering agreement with Stantec Consulting Services, Inc. for the Near North & East Large Diameter Assessment Project, at the earliest practical date and; 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 enter into an engineering agreement with Stantec Consulting Services, Inc., 1500 Lakeshore Drive, Suite 100, Columbus, Ohio 43215, for the Near North & East Large Diameter Assessment Project in accordance with the terms and conditions as shown in the agreement on file in the office of the Division of Sewerage and Drainage.
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, 2015, the sum of $1,099,389.44 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 and appropriate a total $1,099,389.44 from the Sanitary Sewer Reserve Fund to the Sanitary Sewer Bond Fund, Fund 664, into the Near North & East Large Diameter Assessment Project, CIP 650725-100014, at such time as deemed necessary by the Auditor, or so much thereof as may be necessary in the following manner: Division 60-05 | 672514 | Object Level 06 | Object Level Three 6676.
SECTION 4. That the Director of Public Utilities be and hereby is authorized to expend up to $1,099,389.44 from the Sanitary Sewer General Obligation Bond Fund, Fund 664 | Div. 60-05 | Obj. Level 3 6676 in the following manner:
Fund # | Project No. | Project Name | OCA Code | Amount ($)
664 | 650725-100014 | Near North & East Large Diameter Assessment | 672514 | +$1,099,389.44
SECTION 5. That the 2015 Capital Improvements Budget is hereby amended as follows:
Fund No. | Project No. | Project Name | Current | Revised | (Change)
664 | 650033-100002 | Big Walnut Sanitary Trunk Ext, Ph. 2 | $2,928,365 | $1,828,975 | (-$1,099,390)
664 | 650725-100014 | Near North & East Large Diameter Assessment | $0 | $1,099,390 | (+$1,099,390)
SECTION 6. That the said firm, Stantec Consulting Services, Inc., 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 the City Auditor is hereby authorized and directed to transfer any unencumbered balance in the project account to the unallocated balance within the same fund upon receipt of certification by the Director of the Department administering said project that the project has been completed and the monies no longer required for said project; except that no transfer shall be made from a project account by monies from more than one source.
SECTION 8. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 9. 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 10. 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 in Section 2 and Section 3, and said funds are hereby deemed appropriated for such purposes.
SECTION 11. 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 $1,099,389.44 (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 12. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.