Explanation
1. BACKGROUND
A. Need: This legislation is needed for the City to pay the loan application fee for a loan agreement totaling $5,993,700.00, for the OSIS Downtown Odor Control Project, CIP 650691. This Sanitary System Engineering Section project (identified in Section 1.) has been approved for financing through the Ohio Water Pollution Control Loan Fund (WPCLF). This loan program is jointly administered by the Ohio EPA's Division of Environmental and Financial Assistance, and the Ohio Water Development Authority (OWDA). The WPCLF provides below-market interest rate loans for municipal wastewater treatment improvements. The interest rate for this loan is 3.61%.
B. Emergency Designation: The City is required to pay the loan application fee upon the execution of the loan agreement. The loan agreement was approved by the OWDA on February 24, 2011 and the executed loan agreement along with the application fee invoice has been received by the City. Loan Fund Payment Requests cannot be processed until the application fee is paid.
C. Fiscal Impact:
Budgeted Amount: There is sufficient budget authority in the 2011 Sewer System Operating Fund for application fee expenditures.
Title
To authorize the Director of Public Utilities to pay the Water Pollution Control Loan Fund application fee to the Ohio Water Development Authority, for a Division of Sewerage and Drainage project; and to authorize the expenditure of $20,978.00, and to declare an emergency. ($20,978.00)
Body
WHEREAS, a Division of Sewerage and Drainage project has been approved for financing through an Ohio Water Pollution Control Loan Fund agreement approved on February 24, 2011 through which financial assistance will help to reduce the total project costs to the City's sewerage customers; and
WHEREAS, it is necessary to authorize the Director of Public Utilities to pay the requisite loan application fee to the Ohio Water Development Authority payable upon the delivery of the executed loan agreement; and
WHEREAS, an emergency exists in the usual daily operation of the Division of Sewerage and Drainage, Department of Public Utilities, in that it is immediately necessary to authorize the Director of Public Utilities to pay the loan application fee on the earliest practicable date, in order to process fund payment requests for project costs, and for the immediate preservation of the public peace, health, property and safety; now therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Public Utilities be, and hereby is, authorized to pay the Water Pollution Control Loan Fund application fee to the Ohio Water Development Authority, for the Sewerage and Drainage Division project entitled OSIS Downtown Odor Control Project, CIP No. 650691, WPCLF No. CS390274-0137.
Section 2. That the expenditure of $20,978.00 or as much thereof as may be needed, be and the same hereby is authorized from the Sewer System Operating Fund, Fund 650, Division 60-05, OCA Code 651001, Object Level One 03, Object Level Three 3390, to pay the cost of the Water Pollution Control Loan Fund application fee to the Ohio Water Development Authority.
Section 3. That for the reasons stated in the preamble hereto, which is 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.