Explanation
1. Background
The Department of Public Utilities is engaged in the Southerly Stormwater and Floodplain Improvements project (CIP 650377-100000). This ordinance authorizes the acquisition of property in an amount up to $25,000,000.00 needed to build a levee to protect the Southerly Waste Water Treatment Plant from flooding.
The Southerly Waste Water Treatment Plant (SWWTP) is located within a floodplain at 6977 S. High Street, Lockbourne, Ohio. The Southerly Stormwater and Floodplain Improvements project is to create a phased development storm water master plan for the SWWTP to mitigate the threat of flood damage to the plant, then design and construct the needed improvements. One of the identified necessary improvements is to construct a levee to protect the SWWTP from a 500 year flood event. Property has been identified for acquisition next to the SWWTP that is needed to properly locate the levee. The property is currently owned by Kenmore Construction Co., Inc., and they have agreed to sell this property to the City. This ordinance authorizes the Director of the Department of Development and/or the Director of the Department of Public Utilities to execute those documents necessary to acquire this real property.
2. Fiscal Impact
The $25,000,000.00 needed for the land acquisition is to be funded from three sources:
2.1 Storm Bond Funds
A transfer of cash and appropriation in an amount up to $2,500,000.00 is needed within the Storm Bond Fund, Fund 6204, to align cash and appropriation with the proper project.
2.2 Sanitary Bond Funds
A transfer of cash and appropriation in an amount up to $10,633,800.38 is needed within the Sanitary Bond Fund, Fund 6109, to align cash and appropriation with the proper project.
2.3 Certification Against Sanitary Reserves
The balance of the funding needed for the land acquisition is to come from the Sanitary Reserve Fund, Fund 6102. A transfer of funds from the Sanitary Reserve Fund, Fund 6102, to the Sanitary Bond Fund, Fund 6109, in an amount up to $11,866,199.62, is needed to fund construction for this purchase. This transaction is a temporary measure that is required until a bond sale is held and the loan can be repaid with proceeds from the bond sale. The funds will also need to be appropriated to be transferred to Fund 6109 and then appropriated after transfer to the new fund.
Title
To authorize the Director of the Department of Development and/or the Director of the Department of Public Utilities to execute those documents necessary to acquire fee simple title and lesser interests to property located adjacent to the Southerly Waste Water Treatment Plant located at 6977 S. High Street, Lockbourne, Ohio; to authorize the appropriation and transfer of funds from the Sanitary Reserve Fund to the Sanitary Bond Fund; to authorize the appropriation of funds within the Sanitary Bond Fund; to authorize the transfer of cash and appropriation between projects within the Storm Bond Fund and between projects within the Sanitary Bond Fund; and to authorize the expenditure of funds from the Storm Bond Fund and the Sanitary Bond Fund. ($25,000,000.00)
Body
WHEREAS, the Department of Public Utilities is engaged in the Southerly Stormwater and Floodplain Improvements project to protect the Southerly Waste Water Treatment Plant (SWWTP) from flooding; and
WHEREAS, the construction of a levee to protect the SWWTP from a 500 year flood event has been identified as a necessary improvement to be built; and
WHEREAS, property adjacent to the SWWTP will need to be acquired to construct the levee; and
WHEREAS, the SWWTP is located at 6977 S. High Street, Lockbourne, Ohio, and property adjacent to it owned by Kenmore Construction Co., Inc. has been identified for acquisition; and
WHEREAS, Kenmore Construction Co., Inc. has agreed to sell the property to the City; and
WHEREAS, it is necessary to authorize the Director of the Department of Development and/or the Director of the Department of Public Utilities to execute those documents necessary to acquire this real property; and
WHEREAS, it is necessary to both appropriate and transfer funds from the Sanitary Reserve Fund, Fund 6102, to the Sanitary Bond Fund, Fund 6109, in order to temporarily partially fund this expenditure until such time as the City receives bond sale proceeds to repay this transfer; 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 services of the project described in this Ordinance (collectively, the “Project”); and
WHEREAS, it is necessary to appropriate funds within the Sanitary Bond Fund, Fund 6109, to partially fund this acquisition; and
WHEREAS, it is necessary to transfer cash and appropriation between projects within the Storm Bond Fund, Fund 6204, to align cash and appropriation with the proper project; and
WHEREAS, it is necessary to transfer cash and appropriation between projects within the Sanitary Bond Fund, Fund 6109, to align cash and appropriation with the proper project; and
WHEREAS, it is necessary to expend funds from the Storm Bond Fund, Fund 6204, and the Sanitary Bond Fund, Fund 6109, to partially fund this acquisition; now therefore;
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Department of Development Director and/or the Department of Public Utilities Director be and are hereby authorized to execute those documents necessary, as approved by the Department of Law, Division of Real Estate, for the purchase of real property from Kenmore Construction Co., Inc., located adjacent to the Southerly Waste Water Treatment Plant that is located at 6977 S. High Street, Lockbourne, Ohio, 43137, on behalf of the City for use by the Department of Public Utilities.
SECTION 2. That from the unappropriated monies 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, 2025, the sum of $11,866,199.62 is appropriated in the Sanitary Reserve Fund, Fund 6102, per the account codes in the attachment to this ordinance.
SECTION 3. That the transfer of $11,866,199.62, or so much thereof as may be needed, is hereby authorized between the Sanitary Reserve Fund, Fund 6102, and the Sanitary Bond Fund, Fund 6109, per the account codes in the attachment to this ordinance.
SECTION 4. That the appropriation of $11,866,199.62, or so much thereof as may be needed, is hereby authorized in the Sanitary Bond Fund, Fund 6109, per the accounting codes in the attachment to this ordinance.
SECTION 5. That the transfer of cash up to $2,500,000.00 between projects within the Storm Bond Fund, Fund 6204, is hereby authorized per the accounting codes in the attachment to this ordinance.
SECTION 6. That the transfer of cash up to $10,633,800.38 between projects within the Sanitary Bond Fund, Fund 6109, is hereby authorized per the accounting codes in the attachment to this ordinance.
SECTION 7. That an expenditure of $22,500,000.00, or so much thereof as may be needed, is hereby authorized from the Sanitary Bond Fund, Fund 6109, per the accounting codes in the attachment to this ordinance.
SECTION 8. That an expenditure of $2,500,000.00, or so much thereof as may be needed, is hereby authorized from the Storm Bond Fund, Fund 6204, per the accounting codes in the attachment to this ordinance.
SECTION 9. That upon obtaining other funds for the purpose of funding sanitary capital improvement work, the City Auditor is hereby authorized to repay the Sanitary Reserve Fund the amount transferred above (Section 3), and said funds are hereby deemed appropriated for such purposes.
SECTION 10. 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 $11,866,199.62, (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 Sanitary Reserve Fund, Fund 6102, which is the fund from which the advance for costs of the Project will be made.
SECTION 11. 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 12. 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 13. That the City Auditor is 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. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.