Explanation
BACKGROUND: This legislation is needed in order for the City to pay the Ohio Water Development Authority (OWDA) loan fee for a Division of Sewerage and Drainage capital project receiving funding through the Ohio Environmental Protection Agency’s Water Pollution Control Loan Fund (WPCLF) which is administered by OWDA. The loan fee has been invoiced for the following project which was awarded WPCLF loan financing at the July 27, 2023 Ohio Water Development Authority Board meeting:
Near North & East - Iuka Park, Phase 2 (CIP# 650725-100017); Loan amount: $4,937,261.40; Loan Fee: $17,280.00.
This Sanitary System Engineering Section project (identified in Section 1) has been approved for financing through the Ohio Water Pollution Control Loan Fund (WPCLF) and authorized via Ordinance 3120-2022 which passed December 12, 2022.
The Water Pollution Control Loan Fund (WPCLF) loan program is jointly administered by the Ohio EPA 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 2.62%.
FISCAL IMPACT: $17,280.00 is needed for Loan Fee expenditures.
CONTRACT COMPLIANCE: Ohio Water Development Authority (31-6402047-207) is not contract compliant as it is a governmental agency (State of Ohio).
EMERGENCY DESIGNATION: The City is required to pay the OWDA loan fee upon the execution of the loan agreement. The loan agreement was approved by the OWDA Board on July 27, 2023. The executed loan agreement along with the loan fee invoice has been generated for payment by the City and received July 11, 2023. Loan Fund Payment Requests to pay the contractor for construction work on this project cannot be processed until the loan fee is paid in full. An emergency designation is therefore requested in order to meet the payment obligations of the construction contract and to ensure the project does not incur work stoppage and associated costs due to delayed invoice payment.
Title
To authorize the Director of the Department of Public Utilities to pay the Water Pollution Control Loan Fund Loan Fee to the Ohio Water Development Authority for the Near North & East - Iuka Park, Phase 2 Project loan; to authorize the expenditure of $17,280.00 from the Sewerage System Operating Fund for said Loan Fee; and to declare an emergency. ($17,280.00)
Body
WHEREAS, on July 27, 2023 a Division of Sewerage and Drainage project was approved for below market-rate interest financing through an Ohio Water Pollution Control Loan Fund loan through which said financial assistance will help to reduce the total project costs to the City's sewerage customers; and
WHEREAS, Ordinance 3120-2022, adopted by City Council on December 12, 2022, authorized the Director of the Department of Public Utilities to enter into a loan agreement with the Ohio Water Development Authority for said project; and
WHEREAS, it is necessary to authorize the Director of Public Utilities to pay the requisite Loan Fee to the Ohio Water Development Authority payable upon the delivery of the executed loan agreements which were received on August 30, 2023; 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 the Department of Public Utilities to pay the loan fee on the earliest practicable date in order to process fund payment requests for incurred project costs, meet the payment terms of the contract, and to avoid work stoppage and the accrual of associated costs due to delayed payment, all for the immediate preservation of the public health, peace, property, and safety; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Public Utilities is hereby authorized to pay the Water Pollution Control Loan Fund Loan Fee to the Ohio Water Development Authority 480 S. High Street Columbus, OH 43215, for the Division of Sewerage and Drainage project entitled Near North & East - Iuka Park, Phase 2 Project; CIP No. 650725-100017, WPCLF No. CS390274-0367; OWDA No. 10401.
SECTION 2. That the expenditure of $17,280.00 or as much thereof as may be needed, is hereby authorized from in Fund 6100 Sewerage System Operating Fund in object class 07 Interest On City Debt per the accounting codes in the attachment to this ordinance for the purposes described in Section 1 of this ordinance.
SECTION 3. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 4. 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 5. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this Ordinance is 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.