NOTE: The entire agenda is attached at the bottom of this story.

Bluffton council considers second and third readings of three ordinances tonight. These include:
• Licensing and regulations for mobile food providers (2nd reading)
• Establishing ranges of pay for members of the police department (2nd reading)
• Addendum to the Village of Ottawa water contract of Dec. 2, 2005. (3rd reading)

The water ordinance states: “The parties agree that Bluffton has paid Ottawa for water for all contract years before 2017. “

In addition, the follow wordage is part of the ordinance:

The Village of Bluffton owes no other money for water and those payments constitute a full accord and satisfaction of that matter.

The parties also agree that there are no penalties or interest owed for any prior years. The parties also agree that the 2017 rate for water is $2.29/100 cubic feet.”

The following shall be added to Article One Definitions:

1. Capital Purchases: A capital purchase is a purchase of lands, buildings, furniture or equipment with an estimated life of five years of more, and a value of over $500.

Individual purchases are not to be aggregated unless they are a part of one project. The threshold value of a purchase to be considered a Capital Purchase shall correspond with the threshold for Capital Purchases as set by the Auditor of the State of Ohio (Auditor). The threshold shall be indexed up or down according to changes made to the threshold by the Auditor.

As of the time of the signing of this Addendum, the Auditor’s threshold to qualify as a Capital Purchase is $500 with a useful life of 5 years. Purchases below the Auditor’s threshold for Capital Purchases shall be expensed as supplies.

2. Cost To Qualify For Financing: In order to qualify to be classified as a financed project the project cost must exceed $75,000 unless otherwise agreed in writing between Bluffton and Ottawa.

The threshold of $75,000 shall be in effect as of the date of the signing of this Addendum. The threshold of $75,000 shall be adjusted annually starting in 2023, for inflation using the U.S. Department of Labor Bureau of Labor Statistics Consumer Price Index, All Urban Consumers – (CPI- U), U.S., city average, all items. The threshold adjustment shall be made and put into effect and the beginning of each new fiscal year. The adjustments made pursuant to this provision shall not be compounded.

3. Cost: means total cost of an asset or project regardless of the source of funding. Cost would include, but not be limited to cash, grants, loans gifts or donations. If the cost of a Capital Purchase is under the threshold to be considered a Cost to Qualify for Financing, the cost shall be accounted for under the accounting category “Capital Outlay.”

If the cost of a Capital Purchase is over the threshold for a Cost to Qualify for Financing, it shall be accounted for as being financed. If Ottawa chooses not to finance a project over the Cost to Qualify for Financing Threshold, Ottawa may elect to self-finance the Capital Purchase. When a Capital Purchase or project is self-financed by Ottawa, the cost of the Capital Purchase or project shall be amortized over a five year period using an interest rate equal to the 10 year U.S. Treasury not rate (3.2% at June 28, 2013). The annual principle and interest payments will be entered under the “Water Debt Service” section of Exhibit B of the contract.

Bluffton and Ottawa agree to an exception to the preceding paragraph. The exception is for the EPA mandated PAX system which is needed to lower the TTHM’s in the water. A new Exhibit F shall be added to the contract.

The Village of Bluffton and Ottawa agree that the maintenance expenses as summarized therein for the Clearwell, the East Tower and the West Tower shall be included in the “Water Supply” section of Exhibit B for the following amounts and years:

1. 2017  $79,362.00
2. 2018  $79,362.00

No other cost or expense for the PAX system shall be included in Exhibit B of the contract.