Explanation
In 2010, the Department of Finance & Management, Fleet Management division was awarded a grant from the United States Department of Energy (DOE) through the local Clean Cities Coalition designee, Clean Fuels Ohio. The funding opportunity was entitled "Clean Cities FY09 Petroleum Reduction Technologies Projects for the Transportation Sector," Area of Interest 4, and was created through the American Recovery and Reinvestment Act of 2009 to fund cost-shared projects that expand the use of alternative fueled vehicles and advanced technology vehicles as well as the installation or acquisition of infrastructure necessary to directly support an alternative fueled vehicle or advanced technology vehicle.
Ordinance 0540-2010, authorized the Finance and Management Director to enter into contract with Clean Fuels Ohio to accept this $1.2 million grant award from the United States Department of Energy, administered through Clean Fuels Ohio.
In March 2015, Clean Fuels Ohio submitted a letter to the Department of Finance & Management indicating that the Department of Energy had disallowed a portion of a local grant partner's grant award due to the decommissioning of its compressed natural gas (CNG) vehicle. According to Clean Fuels Ohio, the Mid-Ohio Foodbank had used grant funds to convert one of its food delivery vehicles to CNG using an ESI conversion system. This ESI conversion system was flawed upon installation which resulted in the vehicle not functioning properly and the Mid-Ohio Foodbank was unable to deliver food to those in need in central Ohio. The engine manufacturer ESI ceased operations, making the required repairs to this truck nearly impossible to complete. Therefore, the Mid-Ohio Foodbank decided to decommission the vehicle and rent a replacement truck.
Given these extenuating circumstances, the Department of Energy gave Clean Fuels Ohio two options for removing the partner from the project:
1. Mid-Ohio Foodbank could pay back the DOE the $40,732 that they were reimbursed for their project (not a preferred option, given that Mid-Ohio Foodbank is a non-profit organization operating under a tight budget).
2. Clean Fuels Ohio could use costs associated with another partner's project that were never allocated to the grant, but were incurred during the project's performance period (costs that were actual project expenses, but never submitted for federal funding or cost share/match) and count that as funding to offset the partner that needs to be removed.
The preferred course of action is option two above, whereby the City of Columbus provides Clean Fuels Ohio with an invoice for non-construction professional services for the Groves Road CNG project that was paid after the City of Columbus submitted its final invoice to Clean Fuels Ohio for the Recovery Act grant. This invoice would need to be at least $52,732, which would provide grant project coverage for the $40,732 Mid-Ohio Foodbank liability, as well as provide an additional $12,000 in grant proceeds to the City of Columbus.
This would prevent a valued community partner (Mid-Ohio Foodbank) from paying the $40,732 grant liability, thus freeing up additional dollars to serve some of the community's most vulnerable residents.
Fiscal Impact: The ordinance will require no expenses on the part of the City. The Finance & Management Department will provide an invoice for non-construction professional services for the Groves Road CNG project that was paid after the City of Columbus submitted its final invoice to Clean Fuels Ohio for the Recovery Act grant. In consideration for this, the Mid-Ohio Foodbank's grant liability will be completely offset and the City will receive an additional $12,000 in grant proceeds.
Emergency action is requested so that the agreement can be entered into prior to the April 30, 2015 grant cutoff deadline.
Title
To authorize the Finance and Management Director to modify a contract with Clean Fuels Ohio to provide additional grant-eligible expenditure data and receive additional grant proceeds ($12,000.00) from the United States Department of Energy, through Clean Fuels Ohio, for the program titled "Clean Cities FY09 Petroleum Reduction Technologies Projects for the Transportation Sector"; and to declare an emergency. ($0.00)
Body
WHEREAS, the City was awarded a grant in the amount of $1,273,250 from the United States Department of Energy, through Clean Fuels Ohio, for the program titled "Clean Cities FY09 Petroleum Reduction Technologies Projects for the Transportation Sector"; and
WHEREAS, this grant agreement was entered into by the City pursuant to City Council authorization via Ordinance 0540-2010; and
WHEREAS, it is necessary to modify this grant agreement to provide additional grant-eligible expenditure data to assist a local non-profit organization; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance and Management in that it is immediately necessary to modify this grant agreement with Clean Fuels Ohio to provide the necessary expenditure data prior to the grant cutoff date of April 30, 2015 in order to assist a local non-profit organization thus 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 Finance and Management Director is hereby authorized and directed to modify a contract with Clean Fuels Ohio in order to provide and allocate grant-eligible expenditure data to assist a local non-profit organization.
SECTION 2. That the City Auditor is authorized to receive $52,732, deposit $12,000, and assign $40,732 to the Mid-Ohio Foodbank in additional grant proceeds into the General Government Grant Fund 220, Grant 451035, OCA 451035. No cash will change hands between the City and the Mid-Ohio Foodbank; however, the Auditor's Office will post a journal entry to record the transaction.
SECTION 3. 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.