Explanation
This ordinance authorizes the Department of Public Utilities (DPU) to pay M/I Homes of Central Ohio, LLC (M/I) $156,838.50 for costs associated with construction within the Jefferson Water and Sewer District (the District) of sewer facilities to serve The Farms at Jefferson development. The District and M/I have asserted that M/I incurred costs in the amount of $313,677.00 for “oversizing” the sewer facilities in accordance with the sewer service agreement between the city and the District (the Agreement). DPU disputes the characterization of these costs as “oversizing” costs compensable under the Agreement but has agreed to pay $156,838.50, which represents half of the requested amount, in the interest of resolving the matter and avoiding the uncertainties of litigation.
EMERGENCY DESIGNATION: This ordinance is being submitted as an emergency to allow for the prompt resolution of this matter and to avoid the uncertainties of litigation.
FISCAL IMPACT: The City will make payment to M/I Homes of Central Ohio, LLC in the amount of $156,838.50. There is sufficient budget authority available in the 2019 Sanitary Sewer Operating Fund budget to fund this transfer and expenditure.
Title
To authorize the Department of Public Utilities to pay M/I Homes of Central Ohio, LLC $156,838.50 to resolve a dispute related to the sewer service agreement between the city and Jefferson Water and Sewer District and sewer facilities constructed by M/I Homes of Central Ohio, LLC; to authorize the transfer within and expenditure of $156,838.50 from the Sanitary Sewer Operating Fund; and to declare an emergency. ($156,838.50)
Body
WHEREAS, the Department of Public Utilities (DPU), in accordance with a sewer service agreement (the Agreement) with Jefferson Water and Sewer District (the District), may be responsible for payment of “oversizing” sewer facilities built within the District; and
WHEREAS, the District and M/I Homes of Central Ohio, LLC (M/I) have as...
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