Explanation
BACKGROUND: This legislation authorizes the Director of Public Utilities to amend the Sewer and Water service agreements with the City of New Albany and to also authorize the Director to enter into a reimbursement agreement to reimburse the City of New Albany Ohio for a portion of the construction of a water tank. Both actions are necessary to provide utility service to the new revenue/equity sharing area, as provided for in the Economic Development Agreement with New Albany.
The Economic Development Agreement relates to New Albany's annexation of approximately 2,426 acres within Licking County. As a result of this agreement the Sewer and Water agreements with the City of New Albany will need amended to include the increased service area. The Economic Development Agreement between the City of Columbus, Ohio and City of New Albany, Ohio has been approved under Ordinance No. 1547-2011, passed September 26, 2011.
In order to service the new revenue/equity sharing area, the City of New Albany is building a new water tank. As the tank would provide shared benefit, the City of Columbus has agreed, in accordance with the Economic Development Agreement, to enter into a reimbursement agreement to reimburse New Albany for a portion of the cost of construction up to $2,500,000.
FID#: 31-0649470
FISCAL IMPACT: This legislation includes a transfer of funds within the Water Works Enlargement Voted Bonds Fund and an amendment to the 2011 Capital Improvements Budget.
Title
To authorize the Director of Public Utilities to amend the Sewer and Water service agreements with the City of New Albany; to authorize the Director to enter into a reimbursement agreement with the City of New Albany for a portion of the construction of a water tank in accordance with the Economic Development Agreement with the City of New Albany; for the Divisions of Sewerage and Drainage and Power and Water; to authorize a transfer of funds within the Water Works Enlargement Voted Bonds Fund; to authorize an expenditure up to $2,500,000 within the Water Works Enlargement Voted Bonds Fund; and to amend the 2011 Capital Improvements Budget. ($2,500,000.00)
Body
WHEREAS, the City of Columbus has entered into an Economic Development Agreement with the City of New Albany relating to the development of approximately 2,426 acres located along New Albany's eastern boundary within Licking County; and
WHEREAS, in order to service the new revenue/equity sharing area, the City of New Albany is building a new water tank which will have mutual benefit; and
WHEREAS, the City of Columbus has agreed, in accordance with the Economic Development Agreement, to enter into a reimbursement agreement whereby Columbus will reimburse New Albany for a portion of the construction up to $2,500,000 since the tank would provide shared benefit; and
WHEREAS, the Sewer and Water service agreements with the City of New Albany need amended in order to provide service to the new revenue/equity sharing area; and
WHEREAS, it is necessary for this Council to authorize the City Auditor to transfer funds within the Water Works Enlargement Voted Bonds Fund; and
WHEREAS, it is necessary to authorize an amendment to the 2011 Capital Improvements Budget for purposes of providing sufficient funding and expenditure authority for the aforementioned project expenditure; and
WHEREAS, it has become necessary in the usual daily operation of the Division of Power and Water, Department of Public Utilities, to authorize the Director of Public Utilities to reimburse the City of New Albany, Ohio for its share in the construction of a water tank, in accordance with the Economic Development Agreement with New Albany, in an amount up to $2,500,000 of the total cost of construction, for the preservation of the public health, peace, property and safety;
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Utilities is authorized to enter into a new water contract and an amended sewer contract to provide for service of the new revenue/equity sharing area, as provided for in the Economic Development Agreement with New Albany.
SECTION 2. That the Director of Public Utilities is authorized to enter into a reimbursement agreement with the City of New Albany, Ohio for a portion of the construction of a water tank, which reimbursement will occur as costs are incurred by New Albany, in an amount up to $2,500,000.
SECTION 3. That the City Auditor is hereby authorized to transfer $2,500,000 within the Division of Power and Water, Dept/Div. No. 60-09, Water Works Enlargement Voted Bonds Fund, Fund No. 606, Object Level One 06, Object Level Three 6604, as follows:
Fund No. | Project No. | Project Name | OCA Code | change
606 | 690236-100001 (carryover) | Near East Area W.L. Imp's | 663601 | -$1,909,376.65
606 | 690236-100010 (carryover) | German Village Area W.L. Imp's | 663610 | -$590,623.35
606 | 690463-100001 (carryover) | New Albany Water Storage Tank | 664631 | +$2,500,000.00
SECTION 4. That the 2011 Capital Improvements Budget is hereby amended as follows:
Fund No. | Project No. | Project Name | Current Authority | Revised Authority | change
606 | 690236-100001 (carryover) | Near East Area W.L. Imp's | $1,909,376 | $1,909,377 | +$1 (establish authority to match cash)
606 | 690236-100001 (carryover) | Near East Area W.L. Imp's | $1,909,377 | $0 | -$1,909,377
606 | 690236-100010 (carryover) | German Village Area W.L. Imp's | $3,000,000 | $2,409,376 | -$590,624
606 | 690463-100001 (carryover) | New Albany Water Storage Tank | $0 | $2,500,000 | +$2,500,000
SECTION 5. That for the purpose of reimbursing the City of New Albany, Ohio the costs associated with construction of a water tank, an expenditure up to $2,500,000.00 is hereby authorized as follows: Division of Power and Water, Dept./Div. No. 60-09, Water Works Enlargement Voted Bonds Fund, Fund No. 606, Project 690463-100001 (carryover), OCA Code 664631, Object Level One 06, Object Level Three 6604.
SECTION 6. 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 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 this Ordinance shall take effect and be in force from and after the earliest period allowed by law.