Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Service to enter into reimbursement agreements with OhioHealth Corporation (the “Developer”) in an amount of up to $3,877,000.00 for costs associated with the design and construction of the OhioHealth public infrastructure improvement projects (the “Projects”).
The Developer is building an $89 million administrative operations facility in the northwest area of Columbus in the vicinity of State Route 315, West North Broadway, and Olentangy River Road. In support of the new facility, the City and the Developer entered into an Economic Development Agreement on March 20, 2017, pursuant to Ordinance No. 2237-2016, by which the parties agreed to coordinate the funding, design and construction of the Projects.
The purpose of this legislation is to provide for the reimbursement of up to $3,877,000.00 to the Developer for costs relative to the design and construction of the Projects.
2. CONTRACT COMPLIANCE
OhioHealth Corporation will be required to become contract compliant before entering into agreement with the City.
3. FISCAL IMPACT
Funds in the amount of $3,877,000.00 are available for this project in the Streets and Highways Bond Fund within the Department of Public Service. An amendment to the 2017 Capital Improvements Budget is necessary for the purpose of providing sufficient spending authority for the aforementioned project expenditure.
4. EMERGENCY DESIGNATION
Emergency action is requested to allow for the timely execution of the requisite reimbursement agreements between the Director of Public Service and the Developer necessary to facilitate the proposed improvements in order to maintain the project schedule and to meet community commitments.
Title
To amend the 2017 Capital Improvements Budget; to authorize the Director of Public Service to enter into reimbursement agreements with OhioHealth Corporation in connection with the OhioHealth public infrastructure improvement projects; to authorize the City Auditor to transfer cash and appropriation between projects in the Streets and Highway Bonds Fund; to authorize the expenditure of $3,877,000.00 within the Streets and Highways Bond Fund; and to declare an emergency. ($3,877,000.00)
Body
WHEREAS, OhioHealth Corporation (the “Developer”) is building an $89 million administrative operations facility in the northwest area of Columbus in the vicinity of State Route 315, West North Broadway and Olentangy River Road; and
WHEREAS, in support of the new facility, the City and the Developer are engaged in a Public-Private Partnership (3P) to coordinate the funding, design and construction of a series of public Infrastructure improvements in the area; and
WHEREAS, the City has committed $3,877,000.00 toward reimbursing the Developer for eligible costs associated with professional services contracts relative to the public infrastructure improvements; and
WHEREAS, this ordinance authorizes the Director of Public Service to enter into reimbursement agreements with the Developer in a total amount of up to $3,877,000.00 for costs associated with the design and construction of the OhioHealth public infrastructure improvement projects; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Service in that it is immediately necessary to authorize the execution of said reimbursement agreements and the expenditure of said funds so as to maintain the project schedule and to 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 2017 Capital Improvements Budget authorized by Ordinance 1124-2017 be amended as follows to establish sufficient authority for this project:
Fund / Project / Project Name / Current / Change /Amended
7704 / P590417-100001 / Project Diagnosis - Roadways (Voted 2016 Debt SIT Supported) / $4,939,252.00 / ($3,877,000.00) / $1,062,252.00
7704 / P441759-100003 / Ohio Health - Design (Voted 2016 Debt SIT Supported) / $0.00 / $3,877,000.00 / $3,877,000.00
SECTION 2. That the Director of Public Service be and hereby is authorized to enter into reimbursement agreements with OhioHealth Corporation, 180 East Broad Street, 34th Floor, Columbus, Ohio 43215, pursuant to Section 186 of the Columbus City Charter, to design the OhioHealth public infrastructure improvement projects in an amount of up to $3,877,000.00.
SECTION 3. That the transfer of $3,877,000.00, or so much thereof as may be needed, is hereby authorized in Fund 7704 (Streets and Highways Bond Fund), from Dept-Div 59-12 (Division of Design and Construction), Project P590417-100001 (Project Diagnosis - Roadways), Object Class 06 (Capital Outlay), to Dept-Div 59-12 (Division of Design and Construction), Project P441759-100003 (Ohio Health - Design), Object Class 06 (Capital Outlay), per the accounting codes in the attachment to this ordinance.
SECTION 4. That the expenditure of $3,877,000.00, or so much thereof as may be needed, is hereby authorized in Fund 7704 (Streets and Highways Bond Fund), Dept-Div 59-12 (Division of Design and Construction), Project P441759-100003 (Ohio Health - Design), in Object Class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 5. 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 6. 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 7. 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 8. 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.