Explanation
BACKGROUND: In January 2005 City Council authorized the redevelopment of the Whittier Peninsula for use as a park and nature center by Franklin County Metro Parks, in cooperation with Audubon Ohio (Ord. # 0074-2005). The redevelopment necessitated relocation of the City's Parking Violations Bureau and the Police Impound Lot to a new site.
In December 2007 City Council authorized the Director of Finance and Management (Ord. # 2045-2007) to execute those documents necessary to purchase as improved, a 53.598 acre unimproved tract of real property (part of a larger tract) and commonly known as 399 Frank Road, Columbus, Ohio 43207, from Columbus Limestone, Inc.; to accept a perpetual easement for access to the site; to waive the competitive bidding provisions of the Columbus City Code; and to expend $3,995,000.00 for costs relevant to acquisition.
After execution of the original Conveyance of Real Estate Agreement (Agreement), final engineering of the project and the plan review process necessitated revisions to the size of the site, the Constructed Improvements scope of work, and the associated costs. In addition, in order to speed the permitting, construction and inspection process, Columbus Limestone, Inc., agreed to pay on the City's behalf, subject to reimbursement at Closing, the City permit, service, and inspection fees associated with the Constructed Improvements that are the City's responsibility under the Conveyance of Real Estate Agreement. The Agreement therefore requires an amendment to reflect the referenced revisions. The City concurs with these revisions and desires to amend the Agreement. As well, the Division of Power and Water requested enhanced water infrastructure along Castle Road in order to better serve adjacent properties.
This ordinance authorizes the Director of Finance and Management to execute an amendment to the Conveyance of Real Estate Agreement, dated January 25, 2008, to correct the legal description to describe a 54.187 acre tract to be conveyed; to amend the Constructed Improvements scope of work and the associated costs; and to allow reimbursement to Columbus Limestone, Inc. at Closing, of the permit, service, and inspection fees associated with the Constructed Improvements.
Fiscal Impact: The 2009 Capital Improvements Budget identifies the amount of $336,000.00 for the Impound Lot project. This legislation includes a transfer of funds from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund as a temporary measure until such time as the proceeds from a bond sale can be made available and amends the 2009 Capital Improvements Budget.
Emergency Justification: Emergency action is requested to allow this conveyance to proceed to closing as planned.
Title
To authorize the Director of Finance and Management to amend a Conveyance of Real Estate Agreement, dated January 25, 2008 for the property located at 399 Frank Road, Columbus, Ohio 43207; to authorize and direct the City Auditor to transfer $335,464.00 from the Special Income Tax Fund to the Construction Management Capital Improvement Fund; to authorize the expenditure of $335,464.00 from the Construction Management Capital Improvement Fund; to authorize the appropriation, transfer and expenditure of $119,000.00 from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund; and to authorize the expenditure of $119,000.00 from the Water Works Enlargement Voted Bonds Fund; for the Division of Power and Water; to amend the 2009 Capital Improvements Budget; and to declare an emergency.
Body
WHEREAS, City Council, by Ordinance 0074-2005, passed January 26, 2005, authorized Franklin County Metro Parks to develop a park and nature center in conjunction with Audubon Ohio on a portion of the Whittier Peninsula; and
WHEREAS, the development of the park, nature center and other potential development projects necessitate that the City operations of the Parking Violations Bureau and the Impound Lot be relocated to a new site; and
WHEREAS, City Council, by Ordinance 2045-2007, passed December 10, 2007, authorized the Director of Finance and Management to enter into an agreement to purchase a 53.598 acre tract of real property, as improved, and currently part of the larger tract commonly known as 399 Frank Road, Columbus, Ohio 43207, for use in City operations being moved from Whittier Peninsula in connection with its redevelopment; and
WHEREAS, the final engineering of the project and the plan review process necessitated revision to the site size; the scope of work for the Constructed Improvements and the associated cost; and
WHEREAS, to speed the permitting, construction and inspection process, Columbus Limestone, Inc., agreed to pay on the City's behalf, subject to reimbursement at Closing, the permit, service, and inspection fees associated with the Constructed Improvements; and
WHEREAS, a need exists to amend said agreement to the scope of work for the Constructed Improvements and the associated cost: and
WHEREAS, a need exists to amend said agreement to correct the legal description of the tract to be split and conveyed to describe 54.187 acres; and
WHEREAS, a need exists to amend said agreement to modify the terms to allow reimbursement at Closing to Columbus Limestone, Inc. of the cost of permit, service, and inspection fees associated with the Constructed Improvements; and
WHEREAS, the 2009 Capital Improvements Budget is amended; and
WHEREAS, it is necessary for this Council to authorize the City Auditor to transfer funds from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund; 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 $335,464.00; 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"), and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus, that it is immediately necessary to authorize the Director Finance and Management to execute those documents necessary to amend a Conveyance of Real Estate Agreement, dated January 25, 2008, as approved by the Department of Law, Real Estate Division, necessary for the acquisition of a 54.187 acre tract split of that real property commonly known as 399 Frank Road, Columbus, Ohio 43207, from Columbus Limestone, Inc. to allow the purchase of the property to be completed as planned, 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 Director of Finance and Management be and is hereby authorized and directed to execute an amendment to the Conveyance of Real Estate Agreement, dated January 25, 2008, as approved by the Department of Law, Real Estate Division, necessary to amend the price of the Constructed Improvements to Four Million One Hundred Fourteen Thousand Two Hundred Forty-Eight Dollars and Fifty Cents ($4,114,248.50); to correct the legal description of the parcel to be conveyed to reflect a 54.187 acre tract; amend the terms to reimburse Owner at the time of Closing; and make those changes as are necessary, that do not adversely affect the City. In all other aspects, this contract shall remain unchanged.
SECTION 2. That the sum of $335,464.00 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, 2009 to the City Auditor, Department 22-01, Object Level One 10, OCA Code 902023, Object Level Three 5502.
SECTION 3. That the City Auditor is hereby authorized to transfer said funds to the Construction Management Capital Improvement Fund 733, at such time as is deemed necessary by the City Auditor, and to expend said funds, or so much thereof as may be necessary.
SECTION 4. That the amount of $335,464.00 is hereby transferred and appropriated to the Office of Construction Management, 45-50, Construction Management Capital Improvement Fund, Fund 733, Impound Lot 570034, Object Level One 06, Object Level Three Code 6601, OCA Code 457733.
SECTION 5. That upon obtaining other funds for the amendment to the Conveyance of Real Estate Agreement for the 54.187 acre tract at 399 Frank Road, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 3, above, and said funds are hereby deemed appropriated for such purpose.
SECTION 6. 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.
SECTION 7. 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 $335,464.00 (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 the 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 8. That from the unappropriated monies in the Water System Reserve Fund 603, 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 $119,000.00, is hereby appropriated to the Division of Power and Water, Division 60-09, Object level One 10, Object level Three 5502, OCA 695056.
SECTION 9. That the City Auditor is hereby authorized and directed to transfer $119,000.00 from the Water System Reserve Fund to the Water Works Enlargement Voted Bonds Fund, Fund No. 606, into the appropriate project account as specified within Section 10 herein, at such time as deemed necessary by him, and to expend said funds, or so much thereof as may be necessary.
SECTION 10. That the appropriation and expenditure of $119,000.00 is hereby authorized for the Miscellaneous Water Facilities Project, a water line from the intersection of South High Street and Castle Road, as follows: Division of Power and Water, Fund No. 606, Division 60-09, Water Works Enlargement Voted Bonds Fund, Project No. 690026, Object Level Three 6601, OCA Code 642900.
SECTION 11. That the expenditure of $454,464.00, or so much thereof as may be necessary, be and is hereby authorized as follows:
Dept/Div: 45-50
Fund: 733
Project: 570034-100001
OCA Code: 457733
OL1: 06
OL3: 6601
Amount: $335,464.00
Dept/Div: 60-09
Fund: 606
Project: 690026
OCA Code: 642900
OL1: 06
OL3: 6601
Amount: $119,000.00
SECTION 12. That the 2009 Capital Improvements Budget Ordinance No. 0806-2009 is hereby amended as follows, to create and provide sufficient budget authority for the award of the agreement stated herein.
Project No. | Project Name | Current Authority | Revised Authority | (Change)
690026-100000 | Misc. Water Facilities Improvements | $2,010,815 | $2,129,815 | (+$119,000)
SECTION 13. That for 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.