Explanation
1. BACKGROUND
On August 29, 2008 the City entered into the Columbus Coated Fabrics Economic Development Agreement (EDA) with Wagenbrenner Development, Inc., authorized by ordinance 1456-2007, to address the redevelopment of the Columbus Coated Fabrics site with housing, green space and improved roadways. The City has committed to funding the design and construction of street and utility improvements up to $12.85 million. The cost of design is $1,060,000.00. The cost of roadway improvements, including utility upgrades and inspection, will be up to $11,790,000.
On July 17, 2009 the City entered into the Columbus Coated Fabrics Design Agreement with Wagenbrenner Development, Inc. for the design of public roadway and infrastructure improvements on and around the site, authorized by ordinance 0043-2009.
Ordinance 1565-2009, authorized the City to enter into the Guaranteed Maximum Reimbursement Agreement for Phase 1 improvements.
Ordinance 0615-2011 authorized the Director of Public Service to enter into a guaranteed maximum cost agreement with Wagenbrenner Development in the amount of $908,353.02 for the Phase 2A and 2B improvements and to provide for construction inspection and administration by City staff in the amount of $85,979.63.
This ordinance authorizes the Director of Public Service to enter into a guaranteed maximum cost agreement with Wagenbrenner and to expend $1,454,119.65 for phase 2C improvements and to provide for construction inspection and administration by City staff in the amount of $139,895.11.
Phase 2C includes the milling and overlay of 0.35 miles of Sixth Street from Fifth Avenue to Eighth Avenue. Full depth reconstruction will be performed to Sixth Avenue, Seventh Avenue, and Eighth Avenue from Sixth Street to Grant Avenue. The alleys between Fifth Avenue and Sixth Avenue will be milled and overlaid with asphalt. A new alley will be constructed from Sixth Avenue to Eighth Avenue. All streets will include new sidewalks, street lighting, landscaping, and necessary traffic control items.
Subsequent legislation will authorize the remaining construction of public improvements on the site.
2. CONTRACT COMPLIANCE INFORMATION
The contract compliance number for Wagenbrenner Development Inc. is 26-3039980 and expires September 15, 2011.
3. FISCAL IMPACT: The maximum amount of the reimbursement provided within the guaranteed maximum cost agreement authorized to be expended by this ordinance is $1,454,119.65.
The Department of Development will contribute $1,594,014.76 for Construction and inspection and other project expenses. This ordinance also authorizes the City Auditor to execute a partial cancellation of AC030562-002 in the amount of $825,596.39 to establish part of the funding for this agreement. Additional Funding in the amount of $28,523.26 is available within the Northland and Other Acquisitions Fund. The remaining funds in the amount of $600,000.00 can be accommodated by appropriating and transferring funds needed in the amount of $600,000.00 from the Special Income Tax Fund. Bonds have yet to be sold for the whole project, necessitating a certification of $600,000.00 against the Special Income Tax Fund. Upon sale of bonds, this will be reimbursed. These Funds will then be transferred to the Streets and Highways G.O. Bonds Fund, appropriated and authorized to be expended.
This ordinance also authorizes Auditor's Certificate AC030562-003 to be utilized for construction inspection costs for this project up to $139,895.11. This Auditor's certificate was previously established for construction of Phase 1 of this project, but sufficient funds remain for inspection costs for phase 2C.
An amendment to the 2011 Capital Improvements Budget will be necessary to establish authority in the correct project for this Phase of the project.
4. EMERGENCY DESIGNATION
The Department of Public Service is requesting this ordinance to be considered an emergency measure in order to allow for immediate execution of this agreement which is necessary to facilitate the cooperative construction of public right-of-way improvements in the area known as the Columbus Coated Fabrics site.
Title
To authorize the Director of Public Service to enter into a guaranteed maximum cost agreement with Wagenbrenner Development, Inc., for public infrastructure improvements to be constructed in connection with the Miscellaneous Economic Development - Columbus Coated Fabrics Sixth Street Area Roadways Phase 2C project in the amount of $1,454,119.65 and to provide for construction inspection in the amount of $139,895.11; to amend the 2011 Capital Improvement Budget; to authorize the City Auditor to execute a partial cancellation of an existing Auditor's Certificate; to authorize the transfer of funds within the Northland and Other Acquisitions Fund; to authorize and direct the City Auditor to transfer $600,000.00 from the Special Income Tax Fund to the Streets and Highways G.O. Bonds Fund; to authorize the City Auditor to appropriate $600,000.00 within the Streets and Highways G.O. Bonds Fund; to authorize the Director of Public Service to expend $1,454,119.65 from the Streets and Highways G.O. Bonds Fund, Build America Bonds Fund and Northland and Other Acquisitions Fund; to utilize an existing Auditor's Certificate for inspection costs in the amount of $139,895.11; and to declare an emergency. ($1,594,014.76)
Body
WHEREAS, the Department of Public Service is currently undertaking utility and roadway improvements in the area known as the Columbus Coated Fabrics Site; and
WHEREAS, the City of Columbus, Department of Public Service has determined that the need exists and it is in the City's best interest to enter into a guaranteed maximum cost agreement with Wagenbrenner Development, Inc. for purposes of constructing improvements to the infrastructure surrounding the Columbus Coated Fabrics Site; and
WHEREAS, on August 29, 2008 the City entered into the Columbus Coated Fabrics Economic Development Agreement (EDA) with Wagenbrenner Development, Inc., authorized by ordinance 1456-2007, to address the redevelopment of the site with housing, green space and improved roadways; and
WHEREAS, on July 17, 2009 the City entered into the Columbus Coated Fabrics Design Agreement with Wagenbrenner Development, Inc. for the design of public roadway and infrastructure improvements on and around the site, authorized by ordinance 0043-2009; and
WHEREAS, ordinance 1565-2009, authorized the City to enter into the Guaranteed Maximum Reimbursement Agreement for Phase 1 improvements; and
WHEREAS, ordinance 0615-2011 authorized the Director of Public Service to enter into a guaranteed maximum cost agreement with Wagenbrenner Development in the amount of $908,353.02 for the Phase 2A and 2B improvements and to provide for construction inspection and administration by City staff in the amount of $85,979.63.
WHEREAS, this ordinance authorizes the Director of Public Service to enter into a guaranteed maximum cost agreement with Wagenbrenner Development in the amount of $1,454,119.65 for the Phase 2C improvements; and
WHEREAS, it is necessary to provide funding in the amount of $139,895.11 for City staff to inspect the project; 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 project expenditure; and
WHEREAS, this ordinance authorizes the City Auditor to execute a partial cancellation of AC030562-002 in the amount of $825,596.39 for the purpose of funding a portion of this agreement; and
WHEREAS, it is necessary to transfer funds within the Northland and Other Acqusitions Fund to fund a portion of this project; 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 $600,000.00; 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, an emergency exists in the usual daily operation of the Public Service Department, Division of Design and Construction, in that it is immediately necessary to authorize said guaranteed maximum cost reimbursement agreement and the expenditure of such funds to maintain the project schedule and meet community commitments; thereby immediately 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 Public Service be and hereby is authorized to enter into a guaranteed maximum cost agreement pursuant to Section 186 of the Columbus City Charter with Wagenbrenner Development Inc., 575 West First Avenue #100, Columbus, Ohio 43215, for public infrastructure improvements to be constructed in connection with the Miscellaneous Economic Development - Columbus Coated Fabrics Sixth Street Area Roadways Phase 2C project at a cost not to exceed $1,454,119.65 and to provide funding for construction inspection in the amount of $139,895.11.
SECTION 2. That the 2011 Capital Improvement Budget authorized by ordinance 0266-2011 be amended as follows due to
the partial cancellation of an Auditor's Certificate from a previous phase of this project:
Fund No. / Project No. / Project Name / Current Authority / Change /Revised Authority
746 / 440104-100002 / Misc Economic Development-Cols Coated Fabric (Carryover) / $504,086.00 / $825,597.00 / $1,329,683.00
and cancellation of encumbrance from completed project
Fund No. / Project No. / Project Name / Current Authority / Change /Revised Authority
735 / 441744-100000 / Easton Square Place (Carryover) / $0.00 (Carryover) / $387,250.00 (Carryover) / $387,250.00 (Carryover)
SECTION 3. That the 2011 Capital Improvement Budget authorized by ordinance 0266-2011 be amended as follows to provide sufficient authority for this project:
Fund No. / Project No. / Project Name / Current Authority / Change /Revised Authority
735 / 441744-100000 / Easton Square Place / $387,250.00 (Carryover) / ( $28,524.00) (Carryover) / $358,726 (Carryover)
735 / 440104-100002 / Misc Economic Development-Cols Coated Fabric (Carryover) / $0.00 (Carryover) / $28,524.00 (Carryover) / $28,524.00 (Carryover)
SECTION 4. That the City Auditor is authorized to execute a partial cancellation of AC030562-002 in the amount of $825,596.39 for the purpose of providing funding for a portion of Phase 2C of this agreement for the Department of Public Service.
SECTION 5. That the transfer of funds within the Northland and Other Acquisition Fund, number 735 be authorized as follows:
Transfer From:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
735 / 441744-100000 / Easton Square Place / 06-6600 / 441744 / $28,523.26
Transfer to:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
735 / 440104-100002 / Miscellaneous Economic Development - Columbus Coated Fabrics / 06-6600 / 750402 / $28,523.26
SECTION 6. The sum of $600,000.00 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 7. That the City Auditor is hereby authorized to transfer said funds to the Streets and Highways G.O. Bonds Fund, No. 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 8. That $600,000.00 is hereby appropriated within Fund 704, the Streets and Highways G.O. Bonds Fund, Dept-Div. 59-12, Division of Design and Construction as follows:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
704 / 440104-100002 / Miscellaneous Economic Development - Columbus Coated Fabrics / 06-6600 / 592104 / $600,000.00.
SECTION 9. That the monies appropriated in the foregoing Section 8 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 10. 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 7 above.
SECTION 11. 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 7, above.
SECTION 12. 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 $600,000.00 (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 13. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
SECTION 14. That the sum of $1,454,119.65 is authorized to be expended for this agreement as follows:
Fund / Dept-Div / Project / Project Name / O.L. 01-03 Codes / OCA Code / Amount
704 / 59-12 / 440104-100002 / Misc Economic Development-Cols Coated Fabric / 06-6631 / 592104 / $600,000.00
746 / 59-12 / 440104-100002 / Misc Economic Development-Cols Coated Fabric / 06-6631 / 746104 / $825,596.39
735 / 44-01 / 440104-100002 / Miscellaneous Economic Development - Columbus Coated Fabrics / 06-6600 / 750402 / $28,523.26
SECTION 15. That Auditor's Certificate AC030562-003 previously established in ordinance 1565-2009 for Phase 1 of the Columbus Coated Fabrics Project be authorized to be utilized for construction inspection of phase 3 in the amount of $139,895.11.
SECTION 16. 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 17. That for the 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.