Explanation
BACKGROUND: Ohio EPA requires this legislation which authorizes the Director of Public Utilities to apply for, accept, and enter into a Water Pollution Control Loan Fund (WPCLF) Loan Agreement for the Southerly WWTP Capacity Evaluation and Expansion/Optimization Study project. This Capital Improvement Project has been nominated and awaits OEPA’s approval for financing through the WPCLF program in 2024. This loan program is jointly administered by the Ohio EPA’s Division of Environmental and Financial Assistance (DEFA) and the Ohio Water Development Authority (OWDA). The WPCLF program provides below-market interest rate loans for municipal sanitary system improvements.
FISCAL IMPACT: There is sufficient budget authority in the 2024 Sanitary Sewer Systems Operating Fund for the loan application fee expenditures. This loan will be paid off over a 20-year period from Sewerage System rates (dedicated source of repayment). Sewerage System rate increases have been projected and planned in anticipation of this project and loan.
Title
To authorize the Director of Public Utilities to apply for, accept, and enter into an Ohio Water Pollution Control Loan Fund Loan Agreement with the Ohio Environmental Protection Agency and the Ohio Water Development Authority for a study to determine the optimal approach for the design of a sanitary system improvements project to address plant capacity needs; and to designate a repayment source for the loan. ($0.00)
Body
WHEREAS, in 2024 the Department of Public Utilities is scheduled to prepare a Loan Application for submittal to the Ohio EPA under the Water Pollution Control Loan Fund (WPCLF) program to finance the completion of the Southerly WWTP Capacity Evaluation and Expansion/Optimization Study Project under the direction of the Division of Sewerage and Drainage, the financial assistance for which may be of help in reducing total project costs to the City’s Sanitary Sewer rate payers; and
WHEREAS, the low-interest loan will be applied for based upon the availability of funds through the Ohio EPA’s WPCLF program and executed upon approval by Ohio EPA of the Loan Application; and,
WHEREAS, the WPCLF Loan Application and Loan Agreement documents require the City to submit to the Ohio EPA a certified copy of approved City Council legislation authorizing the Director of the Department of Public Utilities to apply for and subsequently execute the WPCLF agreement; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Public Utilities to authorize the Director to apply for, accept, and enter this Water Pollution Control Loan Fund Agreement with the Ohio Environmental Protection Agency and the Ohio Water Development Authority; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS
SECTION 1. That the Director of Public Utilities is hereby authorized to apply for, accept, and enter into a Water Pollution Control Loan Fund Loan Agreement, with Ohio Environmental Protection Agency and the Ohio Water Development Authority for the financing necessary to complete the Division of Sewerage and Drainage project, as described below:
1. Southerly WWTP Capacity Evaluation and Expansion/Optimization Study, CIP No. 650380-100002, WPCLF No. CS390274-0497
SECTION 2. That Sanitary Service Fees are hereby authorized to be the dedicated source of repayment for the Water Pollution Control Loan Fund Loan Agreement.
SECTION 3. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 4. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this Ordinance.
SECTION 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.