Explanation
Background: The Public Service Department, Transportation Division, is pursuing a project to reconstruct Roberts Road. This roadway improvement will consist of major reconstruction including widening pavement from 2 to 5 lanes with curb, drainage, sidewalks, and a 10 foot shoulder for a bike lane between the traveled lane of cars and the curb. Project limits extend from Hilliard Rome Road to Westbelt Drive. Project length is 1.8 miles. This project is estimated to be bid by the Ohio Department of Transportation (ODOT) in June, 2007 and the project will begin construction approximately 4 weeks thereafter.
This ordinance repeals ordinance 2205-2006 to revise the amount of the State Infrastructure Bank Loan applied for by the City and provides for additional language as necessary and as supported by the City Attorney's Office. Since ordinance 2205-2006 passed, the amount of the loan increased from the previous amount of up to $6,750,000.00 to the current amount of up to $7,163,732.00 to allow for maximum reimbursement for MORPC.
Fiscal Impact: The amount of the State Infrastructure Bank (S.I.B.) loan has increased to $7,163,732.00 since the passage of the previous ordinance. This ordinance authorizes the expenditure of $128,000.00 for fees and interest associated with this loan from the 1995, 1999, 2004 Voted Streets and Highways Fund in the Arterial Street Rehabilitation project. Auditor's Certificate AC026545 was established in ordinance 2205-2006. This ordinance authorizes the City Auditor to cancel this certificate and reestablishes these funds in this ordinance.
Emergency Action is requested to meet the State's schedule for this project. This project is expected to be sold by ODOT in June and the funding source must be secure prior to that.
Section 55(B) of the City Charter.
Title
To authorize and direct the Public Service Director to enter into a seven-year low interest loan agreement and execute a promissory note in the amount not to exceed $7,163,732.00 with the Ohio Department of Transportation for the purpose of reconstructing Roberts Road; to authorize the City Auditor to cancel AC026545; to amend the 2007 CIB; to authorize the expenditure of $128,000.00 from the 1995, 1999, 2004 Voted Streets and Highways Fund; to repeal ordinance 2205-2006; and to declare an emergency. ($128,000.00)
Body
WHEREAS, the Public Service Director has proposed to enter into a seven-year low interest loan agreement (the "Loan") with the Ohio Department of Transportation (ODOT), administrator of the State Infrastructure Bank, and to execute a promissory note (the "Note") in an amount not to exceed $7,163,732.00 for the reconstruction project of Roberts Road; and
WHEREAS, it is necessary to amend the 2007 Capital Improvement Budget; and
WHEREAS, an emergency exists in the usual daily operation of the Transportation Division in that it is immediately necessary to secure the funding source so that ODOT can sell the project as scheduled, thereby 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 Public Service Director is hereby authorized and directed to negotiate, execute and deliver, in the name and on behalf of the City of Columbus, Ohio (the "Municipality") the Loan and the Notes with the Ohio Department of Transportation.
SECTION 2. That there shall be and is hereby levied annually on all the taxable property in the Municipality, in addition to all other taxes and inside the ten mill limitation, a direct tax (the "Debt Service Levy") for each year during which the Note is outstanding, for the purpose of providing, and in an amount which is sufficient to provide, funds to pay interest upon the Note as and when the same falls due and to provide a fund for the repayment of the principal of the Note at maturity or upon redemption. The Debt Service Levy shall not be less than the interest and sinking fund tax required by Article XII, Section 11 of the Ohio Constitution.
SECTION 3. The Debt Service Levy shall be and is hereby ordered computed, certified, levied and extended upon the tax duplicate and collected by the same officers, in the same manner, and at the same time that taxes for general purposes for each of such years are certified, extended and collected. The Debt Service Levy shall be placed before and in preference to all other items and for the full amount thereof. The funds derived from the Debt Service Levy shall be placed in a separate and distinct fund, which shall be irrevocably pledged for the payment of the premium, if any, and interest on and principal of the Note when and as the same falls due. Notwithstanding the foregoing, if the Municipality determines that funds will be available from other sources for the payment of the Note in any year, the amount of the Debt Service Levy for such year shall be reduced by the amount of funds which will be so available, and the Municipality shall appropriate such funds to the payment of the Note in accordance with law.
SECTION 4. That the City Auditor is authorized and directed to cancel Auditor's Certificate AC026545.
SECTION 5. That the 2007 Capital Improvements Budget established within ordinance 0733-2007 be and hereby is amended due to the cancellation of AC026545 as follows:
Project Number/Project Name/Current CIB Amount/Amended Amount/CIB Amount as Amended
530208 / Federal-State Match (Carryover) / $768,201.00 (Carryover) / $128,000.00 (Carryover) / $896,201.00 (Carryover)
SECTION 6. That the 2007 Capital Improvements Budget established within ordinance 0733-2007 be and hereby is amended as follows:
Project Number/Project Name/Current CIB Amount/Amended Amount/CIB Amount as Amended
530208 / Federal-State Match (Carryover) / $896,201.00 (Carryover) / ($128,000.00) (Carryover) / $768,201.00 (Carryover)
530103 / Arterial Street Rehabilitation (Carryover) / $1,925,278.00 (Carryover) / $128,000.00 (Carryover) / $2,053,278.00 (Carryover)
SECTION 7. That the Transfer of funds within Fund 704 be authorized as follows:
TRANSFER FROM:
Project # / Project Name / Object Level One/Object Level Three Codes / OCA Codes / Amount
530208 / Federal-State Match / 06/6600 / 644385 / $128,000.00
TRANSFER TO:
Project # / Project Name / Object Level One/Object Level Three Codes / OCA Codes / Amount
530103 / Arterial Street Rehabilitation / 06/6600 / 644385 / $128,000.00
SECTION 8. To the extent that moneys are required to pay any of the costs or expenses of negotiating the Loan and Note or to pay the fees and other expenses payable pursuant to the Loan and Note, the sum of $128,000.00, or so much therefore as may be needed, is hereby appropriated and authorized to be expended from Fund 704, the 1995, 1999, 2004 Voted Streets and Highways Fund, Department No. 59-09, Transportation Division, Object Level One Code 06, Object Level Three Code 6621, OCA Code 644385, Project Number 530103 (Arterial Street Rehabilitation).
SECTION 9. This Council hereby authorizes and directs the Public Service Director, or other appropriate officers of the City, to prepare and sign the Loan and Note, and any amendments thereto such that the character of those changes is not substantially adverse to the City, and to prepare and sign all instruments and to take all other actions as may be necessary and appropriate to implement this Ordinance.
SECTION 10. This Council hereby determines that this ordinance shall repeal ordinance 2205-2006 adopted by this Council on December 13, 2006.
SECTION 11. It is hereby found and determined that all formal actions of this Council concerning and relating to the adoption of this Ordinance were adopted in an open meeting of this Council, and that all deliberations of this Council and of any of its committees that resulted in such formal action, were in meetings open to the public, in compliance with all legal requirements including Section 121.22 of the Ohio Revised Code.
SECTION 12. Pursuant to Section 55(b) of the Columbus City Charter, this is the first ordinance necessary to make and pay for the public improvement referred to herein, and that for the reasons stated in the preamble hereto it is hereby deemed an emergency measure necessary for the immediate preservation of the public health, safety and welfare, and shall take effect and be in force from and immediately after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.