Explanation
1. BACKGROUND
Need: The Ohio EPA requires this legislation which authorizes the Director of Public Utilities to apply for and execute up to ten (10) Ohio Water Pollution Control Loan Fund (WPCLF) loan agreements totaling up to approximately $40 million, for construction of ten Sanitary projects as identified in Section 1., under the direction of the Division of Sewerage and Drainage. 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 Loan Fund program provides below-market interest rate loans for municipal wastewater treatment improvements.
2. EMERGENCY DESIGNATION: WPCLF loan applications are now being drafted for these projects. This authorizing legislation is a requirement for loan approval and must be submitted to the Ohio EPA as a part of each loan application prior to consideration by the Ohio Water Development Authority (OWDA) board for loan award. For the purpose of keeping projects on schedule, therefore, emergency designation is needed.
3. FISCAL IMPACT
Budgeted Amount: There is sufficient budget authority in the 2012 Sewer Systems Operating Funds for application fee expenditures. These loans will be paid off over a 20-year period from sewerage system fees (dedicated source of repayment). Sewerage system fee increases have been projected and planned in anticipation of these projects and loans.
Title
To authorize the Director of Public Utilities to apply for, accept, and enter into up to ten (10) Ohio Water Pollution Control Loan Fund Agreements with the Ohio Water Development Authority and the Ohio Environmental Protection Agency, for the financing of up to ten Division of Sewerage and Drainage Division construction projects; to designate a dedicated source of repayment for the loans; and to declare an emergency.
Body
WHEREAS, in 2012 the Department of Public Utilities is scheduled to prepare loan applications for up to $40 million in financing, for submittal to the Ohio EPA under the Ohio Water Pollution Control Loan Fund (WPCLF) program to finance, through below-market interest rate loans, the construction of up to ten Capital Improvements Projects under the Division of Sewerage and Drainage, which said financial assistance will be of help in reducing total project costs to the City's sewerage customers; and
WHEREAS, prior to WPLCF loan agreement approval by the Ohio Water Development Authority, the WPCLF loan application and loan agreement documents require the City to submit to the Ohio EPA a certified copy of the approved City Council legislation authorizing the Director of the Public Utilities Department to apply for and subsequently execute said WPCLF agreements, and to authorize a dedicated source of loan repayment for the loans; and
WHEREAS, this legislation must be approved and a certified copy must be submitted to the Ohio EPA prior to the OWDA board's consideration for approval as part of the loan application and loan agreement approval process, therefore 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 apply for, accept, and enter into to up to ten (10) WPCLF Loan Agreements with the State of Ohio 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 apply for, accept, and enter into up to ten (10) Water Pollution Control Loan Fund Loan Agreements with the Ohio Water Development Authority and the Ohio Environmental Protection Agency, for the financing of up to ten Division of Sewerage and Drainage projects as described with the "not to exceed" construction project costs in parenthesis, below:
1. JPWWTP Corrosion Prevention & Protective Coating Systems, CIP No. 650259-100001, WPCLF Loan No. CS390274-0152; ($1,200,000.00).
2. WWTP's Ash Lagoons Improvements, CIP No. 650333-100000, WPCLF Loan No. CS390274-0153; ($20,200,000.00).
3. CSO Rectuction Improvements at WWTP's, CIP No. 650347-100001, WPCLF Loan No. CS390274-0161; ($2,600,000.00)
4. SWWTP Sludge Thickening Improvements & Additional Renovations, CIP No. 650359-100000, WPCLF Loan No. CS390274-0154; ($1,600,000.00).
5. SWWTP Corrosion Prevention & Protective Coatings Systems, CIP No. 650368-100000, WPCLF Loan No. CS390274-0155; ($3,400,000.00).
6. Cherry & 4th St. Combined Sewer Separation, CIP No. 650707-100000, WPCLF Loan No. CS390274-0156; ($1,200,000.00).
7. Mound e/o I-71 Sewer Separation, CIP No. 650709-100000, WPCLF Loan No. CS390274-0157; ($2,300,000.00).
8. Town St. & 4th St. Inflow Redirection, CIP No. 650712-100000, WPCLF Loan No. CS390274-0158; ($1,200,000.00).
9. Richards/Granden/Torrence Area Sanitary Relief Sewer, CIP No. 650714-100000, WPCLF Loan No. CS390274-0159; ($2,300,000.00).
10. Berliner Park Sewer Improvements/Pump Station, CIP No. 650742-100004, WPCLF Loan No. CS390274-0160; ($3,600,000.00).
Section 2. That Sewerage System Service Charges is hereby authorized to be the dedicated source of repayment for the Water Pollution Control Loan Fund Loans.
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.