Explanation
1. BACKGROUND
To be eligible for financing, The Ohio Water Development Authority (OWDA) requires this legislation which authorizes the Director of Public Utilities to execute 15 Cooperative Loan Agreements totaling approximately $190 million, for 15 Sewerage & Drainage Division projects. These Capital Improvements Projects, as identified in Section 1, are being financed through OWDA's Master Program: Fresh Water Group. With interest rate discounts, and other advantages, this loan program will benefit the City and its sewerage rate payers by lowering the overall cost of these CIP projects and thereby reducing the sanitary sewerage rates.
EMERGENCY DESIGNATION: In order to obtain OWDA board approval of the cooperative agreements, a certified copy of this authorizing legislation must be submitted to the OWDA as a part of each loan application and prior to the OWDA board meeting. And, the construction contract legislation cannot be certified by the Auditor until such time as the cooperative agreement is approved and an OWDA loan number is assigned. The earliest effective date of this ordinance insures compliance with the OWDA loan program requirements and thereby expediting the construction project initiation.
3. FISCAL IMPACT
Budgeted Amount: These loans, which will include the OWDA application fees in the loan principal, will be paid off over a 20-year period from sewerage system fees. Sewerage fee increases have been projected and planned in anticipation of these projects and loans.
Title
To authorize the Director of Public Utilities to execute and deliver fifteen (15) Cooperative Loan Agreements during the year 2007, between the City of Columbus and the Ohio Water Development Authority, for the construction, maintenance and operation of fifteen (15) Division of Sewerage and Drainage projects, and to declare an emergency.
Body
WHEREAS, in 2007 the Columbus Department of Public Utilities is scheduled to submit loan applications to the Ohio Water Development Authority (hereinafter referred to as the "OWDA") to finance 15 Division of Sewerage and Drainage projects, which assistance will be of help in reducing total project costs to the City's sewerage customers; and
WHEREAS, to be eligible for financing, the City is required to submit to the OWDA a certified copy of the approved City Council legislation which authorizes the Director of the Public Utilities Department to execute and deliver the OWDA Cooperative Agreements; and
WHEREAS, this legislation must be approved by City Council and a certified copy must be submitted to the OWDA as part of the loan application and loan agreement approval process, so as to expedite the planning, design and construction of these 15 Capital Improvements Projects scheduled for the year 2007, 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 execute these 15 Cooperative Loan Agreements with the OWDA 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 execute fifteen (15) Cooperative Agreements during the year 2007, between the City of Columbus and the Ohio Water Development Authority, for the financing of fifteen (15) Division of Sewerage and Drainage projects, as described with the "not to exceed" construction project costs in parenthesis, as follows:
1. CIP No. 650363.1, Southerly Wastewater Treatment Plant, New Effluent Pump Station Levee, Mass Excavation and Dewatering ($11,727,000)
2. CIP No. 650363.2, Southerly Wastewater Treatment Plant, New Effluent Pump Station and Effluent Conduit ($49,500,000)
3. CIP No. 650366, Southerly Wastewater Treatment Plant, Final Clarifier Additions and Improvements ($68,200,000)
4. CIP No. 650364, Southerly Wastewater Treatment Plant, New Headworks, Phase 2 ($26,100,000)
5. CIP No. 650247, Jackson Pike Wastewater Treatment Plant, A-Plant Wet Weather Hydraulic Improvements ($12,000,000)
6. CIP No. 650404.27, NCR 2 Sewer Separation along High Street from Lane Avenue to Arcadia ($3,850,000)
7. CIP No. 650404.31, Sanitary System Rehabilitation, Gay Street, Combined Sewer Improvements ($1,700,000)
8. CIP No. 650672, Bill Moose Run Area Sanitary Improvements ($2,340,000)
9. CIP No. 650673, Upper Adena Brook Area Sanitary Sewer Improvements ($2,160,000)
10. CIP No. 650674, Broad Meadows Area Sanitary Improvements ($2,220,000)
11. CIP No. 650681, Clintonville Main Rehabilitation ($4,700,000)
12. CIP No. 650684, Deland/Zellar Area Sanitary Improvements ($2,300,000)
13. CIP No. 650685, Como/Milton Area Sanitary Improvements ($4,000,000)
14. CIP No. 650693, West Side Sanitary Sewer Rehabilitation ($2,100,000)
15. CIP No. 650666, Sharon Heights Area Sanitary Improvements ($1,350,000)
Section 2. That the City of Columbus hereby incorporates the construction of the aforesaid 15 projects as described in Section 1. into the 2007 Capital Improvements Plan, in cooperation with the OWDA under the provisions, terms, and conditions set forth in the "Cooperative Agreement for State Construction Project" as set forth in Exhibit A (the "Cooperative Agreement") and hereby authorizes the Director of Public Utilities and the City Auditor to execute 15 Cooperative Agreements with the OWDA, one for each of the above-listed projects, each substantially in the form set forth in Exhibit A.
Section 3. That the City of Columbus hereby agrees to pay the Cooperative Agreement interest rate specified in the Term Sheet for each Cooperative Agreement, whereby said interest rate is calculated quarterly beginning January 1 based on the previous 8 week average of The Bond Buyer 20 Bond Index plus 50 basis points (i.e., one-half of one percent), minus the maximum discount of up to 100 basis points (i.e., one percent) which the City of Columbus is entitled to receive and eligible for under OWDA policies in effect at the time as set forth in Exhibit B-Program Guidelines; and also agrees to pay the OWDA loan administration fee of .35% (.0035) of total project costs for each project or the $400.00 minimum for each project as set forth in Exhibit B.
Section 4. 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.