Explanation
BACKGROUND: This legislation is needed for the City to pay the loan fee of $365,705.00 to the Ohio Water Development Authority for a loan agreement totaling $108,974,000.00, for the Blacklick Creek Sanitary Interceptor Sewer Project, CIP 650034-100006. 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 0261-2015, passed February 9, 2015. This 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 1.85%.
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 loan fee upon the execution of the loan agreement. The loan agreement was approved by the OWDA on February 25, 2016 and the executed loan agreement along with the loan fee invoice has been received by the City. Loan Fund Payment Requests cannot be processed until the application fee is paid.
FISCAL IMPACT: There is sufficient budget authority in the 2016 Sewer System Operating Fund for Loan Fee expenditures. A transfer between Object Classes is necessary to align the budgeted funds with the expenditure.
Title
To authorize the Director of Public Utilities to pay the Water Pollution Control Loan Fund Loan Fee to the Ohio Water Development Authority for the Blacklick Creek Sanitary Interceptor Sewer Project, CIP 650034-100006; to transfer funds within the Sanitary Sewer Operating Fund 6100; to authorize the expenditure of $365,705.00; and to declare an emergency. ($365,705.00)
Body
WHEREAS, a Division of Sewerage and Drainage project has been approved for financing through an Ohio Water Pollution Control Loan Fund loan agreement approved on February 9, 2016 through which financial assistance will help to reduce the total project costs to the City's sewerage customers; and
WHEREAS, the Division of Sewerage and Drainage has a need to transfer $437,500.00 between Object Class 3 and Object Class 7 in the 2016 Sewer System Operating Fund Budget in order to align the budgeted funds with the planned expenditure for this and subsequent Water Pollution Control Loan Fund Fees; 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 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 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 is hereby authorized to pay the Water Pollution Control Loan Fund Fee to the Ohio Water Development Authority, for the Sewerage and Drainage Division project entitled Blacklick Creek Sanitary Interceptor Sewer Project, CIP No. 650034-100006, WPCLF No. CS390274-0183.
SECTION 2. That the City Auditor is hereby authorized and directed to transfer $437,500.00 between object levels within the 2016 Sanitary Sewer Operating Fund Budget as indicated on the attached funding template.
SECTION 3. That the expenditure of $365,705.00 or as much thereof as may be needed, is hereby authorized from the Sewer System Operating Fund, Fund 6100 per the accounting codes in the attachment to this ordinance.
SECTION 4. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 5. 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 6. 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.