Explanation
Background: This ordinance authorizes the Director of the Recreation and Parks Department to enter into contract with the Columbus Museum of Art for the administration and implementation of their roof replacement project. The amount being authorized by this ordinance is $1,000,000.00.
The Columbus Museum of Art requested capital support from the City of Columbus in 2024 to help fund the replacement of their roof. The roof over the Columbus Museum of Art’s primary structure, which houses their art galleries, is past its useful life. Installed over 30 years ago, the roof has allowed water to seep into the Elizabeth M. and Richard M. Ross Building and has resulted in water damage to the internal decorative plaster ceiling, lighting, and floors. Further water damage may potentially impact the works of art themselves.
Replacing the existing roof with a new modern roof will cost approximately $4.5 million. The construction project will include removing the current aluminum roofing structure and replacing it with a combination flat rubber and copper standing seam roof. A copper standing seam roof was selected since the metal was the original material installed on the building in 1931.
To assist with financing the construction project, the Museum was awarded $1 million from the City of Columbus. This public financing request is in addition to financing requested from the State of Ohio ($2 million) and the Franklin County Commissioners ($1 million). The Museum will seek private donations for any portion of the project that does not receive public financing.
Principal Parties:
Columbus Museum of Art
480 East Broad Street
Columbus, Ohio 43215
Non-Profit Organization
Emergency Justification: Emergency action is requested to allow the Columbus Museum of Art to keep construction on schedule, keeping the impact to facility operations to a minimum, and allowing the improvements to be utilized by the community as soon as possible; the funding authorized by this legislation is in addition to funding to be received from other sources needed for the roof replacement that will cost approximately $4.5 million.
Benefits to the Public: These improvements will benefit the community by enhancing the visitor experience, creating a more attractive destination for Central Ohio residents and beyond. The Museum of Art and the surrounding public grounds are an asset to the entire Central Ohio community.
Community Input Issues: Based on research and surveys conducted by the Greater Columbus Arts Council, most Columbus residents think it’s important for the city to financially support the arts and believe the arts greatly enhance the city’s quality of life.
Area(s) Affected: The entire City of Columbus, Central Ohio, and beyond will benefit from these improvements, adding to the quality of life for citizens and creating an attractive environment for industry.
Master Plan Relation: This project supports the mission of the Recreation and Parks by enhancing the quality of life of our citizens. The Master Plan’s focus on creating improved facilities is supported by these improvements.
Fiscal Impact: $1,000,000.00 is budgeted and available from within the Recreation and Parks Voted Bond Fund 7712 to meet the financial obligations of this contract. The funds will not be available to the Recreation and Parks Department until the proceeds of the 2024-2025 bond sale are available at a future date. Therefore, it is necessary to certify the required funds against the General Fund 1000, Income Tax Set Aside Subfund 100099. Upon the sale of bonds, this will be reimbursed.
Title
To authorize and direct the Director of Recreation and Parks to enter into contract with Columbus Museum of Art for the administration and implementation of their roof replacement project in the amount of $1,000,000.00; to authorize the transfer of $1,000,000.00 between the General Fund Income Tax Set Aside Subfund and the Recreation and Parks Bond Fund; to authorize the appropriation of $1,000,000.00 in the Income Tax Set Aside Subfund and Recreation and Parks Voted Bond Fund; to authorize the expenditure of $1,000,000.00 from the Recreation and Parks Voted Bond Fund; and to declare an emergency. ($1,000,000.00)
Body
WHEREAS, it is necessary authorize the Director of Recreation and Parks to enter into contract with the Columbus Museum of Art for the administration and implementation of their roof replacement project; 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 construction of the project described in this ordinance (the "Project"); and
WHEREAS, it is necessary to authorize the transfer of $1,000,000.00 between the General Fund 1000, Income Tax Set Aside Subfund 100099, and the Recreation and Parks Bond Fund, Fund 7712; and
WHEREAS, funds will need to be appropriated within the General Fund 1000, Income Tax Set Aside Subfund 100099 and within the Recreation and Parks Bond Fund, Fund 7712; and
WHEREAS, the City will reimburse the General Fund 1000, Income Tax Set Aside Subfund 100099; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregated principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $1,000,000.00; and
WHEREAS, it is necessary to authorize the expenditure of $1,000,000.00 from the Recreation and Parks Voted Bond Fund 7712; and
WHEREAS, an emergency exists in the usual daily operation of the Recreation and Parks Department in that it is immediately necessary to enter into said contract to allow the City to reimburse the Columbus Museum of Art as soon as possible to keep construction on schedule, keeping the impact to facility operations to a minimum, and allowing the improvements to be utilized by the community as soon as possible; the funding authorized by this legislation is in addition to funding to be received from other sources needed for the roof replacement that will cost approximately $4.5 million, all for the preservation of the public health, peace, property, safety, and welfare; and, NOW, THEREFORE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Recreation and Parks be and is hereby authorized and directed to enter into contract with the Columbus Museum of Art for the administration and implementation of their roof replacement project.
SECTION 2. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 3. 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 4. 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 5. That from the unappropriated monies and from all monies estimated to come into said funds from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2025, the sum of $1,000,000.00 is appropriated in General Fund 1000, Income Tax Set Aside Subfund 100099, in Object Class 10 Transfer Out Operating, and in Fund 7712, Recreation and Parks Bond Fund, in Object Class 06 Capital Outlay per the account codes in the attachment to this ordinance.
SECTION 6. That the transfer of $1,000,000.00 or so much thereof as may be needed, is hereby authorized between the General Fund 1000, Income Tax Set Aside Subfund 100099, and the Recreation and Parks Bond Fund, Fund 7712, per the account codes in the attachment to this ordinance.
SECTION 7. That the City Auditor is hereby authorized to transfer said funds to the Recreation and Parks Voted Bond Fund 7712, 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 8. That upon obtaining other funds from the 2024-2025 Bond Sale for the City of Columbus, the City Auditor is hereby authorized and directed to repay the General Fund 1000, Income Tax Set Aside Subfund 100099 the amount transferred under Section 6.
SECTION 9. That the City intends that this ordinance constitutes 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 $1,000,000.00 (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 10. For the purpose stated in Section 1, the expenditure of $1,000,000.00 or so much thereof as may be necessary to pay the cost thereof, be and is hereby authorized from the Recreation and Parks Voted Bond Fund 7712 in object class 06 Capital Outlay per the accounting codes in the attachments to this ordinance.
SECTION 11. That the monies in the foregoing Section 5 shall be paid upon order of the Director of Recreation and Parks, and that no order shall be drawn or monies paid except by voucher, the form of which shall be approved by the City Auditor.
SECTION 12. 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.