Explanation
BACKGROUND: This ordinance authorizes the City of Columbus, Department of Development to accept and execute a reimbursable grant up to $7,650,000.00 from the Lead Hazard Reduction Demonstration (LHRD) Program with the Office of Lead Hazard Control and Healthy Homes of the U.S. Department of Housing and Urban Development (HUD) to fund the City’s Lead Safe Columbus Program (Program); requests that Columbus City Council waive the provisions in Columbus City Codes Sections 111.14, 329.18, and 329.09 pursuant to Columbus City Codes Section 329.15 for the Program; authorizes the Director of the Department of Development to enter into Program grant agreements with property owners if the grant amount is greater than $5,000.00, to approve purchase orders with Program contractors that may be greater than $50,000.00, and to modify a Program grant agreement with a property owner or purchase order with a contractor to carry out the purpose of the Program, all without having to return to City Council for each project for the Program.
Grant funds will be utilized by the Department of Development and Columbus Public Health. This ordinance also authorizes the appropriation and expenditure of the grant by the director of the Department of Development and the Health Commissioner in Columbus Public Health; authorizes the expenditure of the grant funds effective the first day of the grant; and authorizes the transfer and expenditure of up to $770,000.00 in Development Affordable Housing bond funds as a local match for the grant.
This ordinance also authorizes the Auditor’s Office to re-appropriate funds from cancelled grant-funded encumbrances (e.g., ACPO, PO, etc.); establish new grant-funded encumbrances from cancelled funds (e.g., ACPO, PO, etc.); move grant funds between object classes if the amount is greater than $100,000.00; move funds between the Department of Development and Columbus Public Health; and to appropriate any rebates, refunds, program income, or similar received, all upon the request of the department’s Fiscal Manager, or Director designee, and all without having to return to City Council for each of these financial and budget management transactions.
Total funding for this Program including the local match is $8,420,000.00.
This is the fifth time the department has been a recipient of this grant from HUD. These funds
- grant and match funds - will allow the Lead Safe Columbus Program to continue to provide property owners with grants for lead safe, healthier, affordable housing for families with low and moderate income under HUD guidelines. The Program provides lead abatement and healthy homes activities in accordance with HUD guidelines, including but not limited to, lead paint level testing, risk assessments, lead hazard control and healthy homes interventions and clearance tests, as well as outreach, education, and training.
In order to effectively and efficiently manage the projects funded with grant funds, this ordinance requests the waiver of the provisions in Columbus City Codes (CCC) Section 111.14 which states, that “All programs which award loans or grants of more than five thousand dollars ($5,000.00) must submit legislation for approval to city council”; CCC 329.18 states, “No contract greater than $50,000.00 awarded under this section shall be effective until approved by ordinance of city council”; and CCC 329.09 states, “After agreeing upon the terms of a modification, the city agency shall submit legislation to city council requesting approval of the modification….”
Waiving of CCC 111.14, 329.18, and 329.09 will authorize the Director of Development to expeditiously enter into grant agreements with property owners if the grant amount is greater than $5,000.00, to create a purchase order in the name of the contractor and to do so if the amount is greater than $50,000.00, and to modify a grant agreement as needed to carry out the purposes of the grant program, without having to return to Council for each project This authorization allows the department to expend the grant funds in a timely manner and provides program flexibility in the event of unforeseen conditions.
The cost of remediation work in a residence is typically under $50,000.00. However, there may be instances where the cost is greater than $50,000.00. Remediation includes removal of mold, lead, and other similar toxins. The department has a list of prequalified contractors who, through a bid rotation system, bid on the work under the Program. After a bidder is chosen from the public bidding process, the department enters into a grant agreement with the homeowner for the work and creates a purchase order in the name of the contractor to pay the contractor directly.
In order to effectively and efficiently manage the grant funds, this ordinance authorizes the department’s Fiscal Manager, or Director designee, to work directly with the Auditor’s Office to have cancelled funds reappropriated and immediately available for encumbrance; to move funds between object classes or between Development and Public Health if needed; and to appropriate any rebates, refunds, program income, or similar, so the funds are immediately available for encumbrance. This authorization allows the department to manage and expend the grant funds in a timely manner.
EMERGENCY DESIGNATION: Emergency action is requested to allow for the immediate acceptance and execution of the grant in order to continue to fund the Lead Safe Columbus Program and to allow the Program’s activities to begin the day the grant is effective.
FISCAL IMPACT: This legislation requests the appropriation of $7,650,000.00 from the grant and the expenditure of $4,486,500.00 from the General Government Grant Fund (Fund 2220) and $770,000.00 from the Department of Development Affordable Housing Bond Fund (Fund 7779).
$7,557,550.00 of the grant is appropriated within the Department of Development, of which $2,140,401.66 is appropriated for personnel costs and $5,417,148.34 is appropriated and to be expended for goods and services. Of the $7,557,550.00, $4,486,500.00 shall be put on an auditor’s certificate with the remainder available in the budget.
$92,450.00 of the grant is appropriated within Columbus Public Health, all for goods and services.
Local Match funds in the amount of $770,000.00 are available within fund 7779 and will be placed on an auditor’s certificate for use by the Department of Development for project costs. An amendment to the 2024 Capital Improvement budget and a transfer of cash is necessary to align spending with the proper project.
Title
To authorize the City of Columbus, Department of Development to accept and execute a reimbursable grant up to $7,650,000.00 from the LHRD Program with HUD; to waive the provisions in Columbus City Codes Sections 111.14, 329.18, and 329.09 pursuant to CCC Section 329.15; to authorize the Director Development to enter into Program grant agreements over $5,000.00 with property owners, to approve purchase orders over $50,000.00 with Program contractors, and to modify grant agreements or purchase orders to carry out the purpose of the Program, without returning to City Council; to authorize the appropriation and expenditure of grant funds effective on the first day of the grant by the Director of the Development and the Health Commissioner in Columbus Public Health; to authorize an amendment to the 2024 Capital Improvement Budget; to authorize the transfer and expenditure of up to $770,000.00 in Development bond funds as a local match for the grant; to authorize the Auditor’s Office to re-appropriate funds from cancelled grant-funded encumbrances and establish replacement encumbrances from canceled funds if needed, to appropriate any rebates, refunds, program income, etc. or move funding between object classes at the request of the department’s fiscal manager or designee without having to return to council for each budgetary transaction; and to declare an emergency. ($8,420,000.00)
Body
WHEREAS, the Department of Development seeks to enter into an agreement with the U.S. Department of Housing and Urban Development under the Lead Hazard Reduction Demonstration Program Grant (Lead-24). HUD funding will provide grants for property owners for lead safe, healthy, affordable housing for families with low and moderate income under HUD guidelines. Activities will include, but not be limited to, lead paint level testing, risk assessments, lead hazard control and healthy homes interventions and clearance tests as well as outreach, education, and training; and
WHEREAS, in order to effectively and efficiently manage the projects funded with grant funds, this ordinance requests the waiver of the provisions in Columbus City Codes (CCC) Section 111.14 which states, that “All programs which award loans or grants of more than five thousand dollars ($5,000.00) must submit legislation for approval to city council”; CCC 329.18 states, “No contract greater than $50,000.00 awarded under this section shall be effective until approved by ordinance of city council”; and CCC 329.09 states, “After agreeing upon the terms of a modification, the city agency shall submit legislation to city council requesting approval of the modification….”; and
WHEREAS, waiving of CCC 111.14, 329.18, and 329.09 will authorize the Director of Development to expeditiously enter into grant agreements with property owners if the grant amount is greater than $5,000.00, to create a purchase order in the name of the contractor and to do so if the amount is greater than $50,000.00, and to modify a grant agreement as needed to carry out the purposes of the grant program, without having to return to Council for each project This authorization allows the department to expend the grant funds in a timely manner and provides program flexibility in the event of unforeseen conditions; and
WHEREAS, the cost of remediation work in a residence is typically under $50,000.00. However, there may be instances where the cost is greater than $50,000.00. Remediation includes removal of mold, lead, and other similar toxins. The department has a list of prequalified contractors who, through a bid rotation system, bid on the work under the Program. After a bidder is chosen from the public bidding process, the department enters into a grant agreement with the homeowner for the work and creates a purchase order in the name of the contractor to pay the contractor directly; and
WHEREAS, it is necessary to accept, appropriate, expend the funds, and receive reimbursement for expenditures from the federal agency for the activities in the amount up to $7,650,000.00; and
WHEREAS, it is necessary to amend the 2024 Capital Improvement Budget and to transfer and expend up to $770,000.00 of bond funds as a local match for the grant; and
WHEREAS, in order to effectively and efficiently manage the grant funds, this ordinance authorizes the department’s Fiscal Manager, or Director designee, to work directly with the Auditor’s Office to have cancelled funds reappropriated and immediately available for encumbrance; to move funds between object classes or between Development and Public Health if needed; and to appropriate any rebates, refunds, program income, or similar, so the funds are immediately available for encumbrance. This authorization allows the department to manage and expend the grant funds in a timely manner; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus, Department of Development and Columbus Public Health in that it is immediately necessary to authorize the Director of Development to accept the grant and for the Director and Health Commissioner to appropriate and expend said funds beginning the date the grant is effective, all for the immediate preservation of the public health, property, safety, and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. Authorizes the City of Columbus, Department of Development to accept and execute a reimbursable grant up to $7,650,000.00 from the Lead Hazard Reduction Demonstration Program with the Office of Lead Hazard Control and Healthy Homes of the U.S. Department of Housing and Urban Development (HUD) and authorizes the expenditure of the grant funds effective the first day of the grant.
SECTION 2. Authorizes the Director of Development to accept Healthy Homes and Lead Hazard Control reimbursements from the Lead Hazard Reduction Demonstration Program with the Office of Lead Hazard Control and Healthy Homes of the U.S. Department of Housing and Urban Development (HUD) of up to $7,650,000.00 as reimbursement for expenses related to providing grants to property owners for lead safe, affordable housing for families with low and moderate income under HUD guidelines.
SECTION 3. That from the unappropriated monies in Fund 2220 (General Government Grant Fund) and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the grant period, the sum of $7,557,550.00 is appropriated upon receipt of an executed grant agreement in Fund 2220 (General Government Grant Fund), Dept-Div 44-10 (Housing), TBD, per the accounting codes attached to this ordinance.
SECTION 4. That from the unappropriated monies in Fund 2220 (General Government Grant Fund) and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the grant period, the sum of $92,450.00 is appropriated upon receipt of an executed grant agreement in Fund 2220 (General Government Grant Fund), Dept-Div 50-01 (Health), TBD, per the accounting codes attached to this ordinance.
SECTION 5. That the expenditure of $4,486,500.00 or so much thereof as may be needed, is hereby authorized in Fund 2220 (General Government Grant Fund), Dept-Div 44-10 (Housing), TBD (Lead Hazard Reduction Demonstration 2024 Grant), per the accounting codes in the attachment to this ordinance.
SECTION 6. At the end of the grant period, any repayment of unencumbered balances required by the grantor is hereby authorized and any unused City match monies may be transferred back to the City fund from which they originated in accordance with all applicable grant agreements.
SECTION 7. That the 2024 Capital Improvements Budget be amended as follows to establish sufficient authority for this project:
Fund / Project / Project Name / Current / Change / CIB as Amended
7779 / P782012-100000 / Affordable Housing Funds (voted carryover)/ $18,238,598 / $(770,000) / $17,468,598
7779 / P782051-100000 / Lead Hazard Match (voted carryover) / $0 / $770,000 / $770,000
SECTION 8. That the transfer of $770,000.00 or so much thereof as may be needed, is hereby authorized within Fund 7779 (Affordable Housing Fund); from Dept-Div 44-10 (Housing); Projects P782012-100000 (Affordable Housing Funds), object class 06 (Capital Outlay) to Dept-Div 44-10 (Housing), Project P782051-100000 (Lead Hazard Match), object class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 9. That the expenditure of $770,000.00 or so much thereof as may be needed, is hereby authorized in Fund 7779 (Affordable Housing Fund), Dept-Div 44-10 (Housing), Project P782051-100000 (Lead Hazard Match), object class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 10. That this Council finds that is in the best interest of the City to waive the provisions in Columbus City Codes Sections 111.14, 329.18, and 329.09 pursuant to Columbus City Codes Section 329.15.
SECTION 11. That waiving of CCC 111.14, 329.18, and 329.09 pursuant to Columbus City Codes Section 329.15 will allow and authorize the Director of Development to expeditiously enter into grant agreements with property owners if the grant amount is greater than $5,000.00, to create a purchase order in the name of the contractor and to do so if the amount is greater than $50,000.00, and to modify a grant agreement as needed to carry out the purposes of the grant program, without having to return to Council for each project This authorization allows the department to expend the grant funds in a timely manner and provides program flexibility in the event of unforeseen conditions
SECTION 12. That in order to effectively and efficiently manage the grant funds, this ordinance authorizes the department’s Fiscal Manager, or Director designee, to work directly with the Auditor’s Office to have cancelled funds reappropriated and immediately available for encumbrance; to move funds between object classes or between Development and Public Health if needed; and to appropriate any rebates, refunds, program income, or similar, so the funds are immediately available for encumbrance. This authorization allows the department to manage and expend the grant funds in a timely manner.
SECTION 13. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account 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 are no longer required for said project.
SECTION 14. Funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 15. 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 16. 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 passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.