Explanation
BACKGROUND: This legislation is needed in order for the City to pay the requisite Ohio Water Development Authority (OWDA) loan fees for two Division of Sewerage and Drainage capital projects receiving funding through the Ohio Environmental Protection Agency’s Water Pollution Control Loan Fund (WPCLF) which is administered by OWDA. The loan fees have been invoiced for the following projects which were awarded loan funding at the May 26, 2016 Ohio Water Development Authority Board meeting:
BWARI Biofilter project (CIP# 650490-100002); Loan amount: $3,606,900.00; Loan Fee: $12,624.00
Blueprint Hilltop Lining (CIP# 650875-100002); Loan amount: $6,719,744.52; Loan Fee: $23,519.00
These Sanitary System Engineering Section projects (identified in Section 1) have been approved for financing through the Ohio Water Pollution Control Loan Fund (WPCLF) and authorized via Ordinances 2516-2013, passed December 19, 2013 and 2241-2015, passed October 19, 2015, respectively.
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 both of these loans loan is 1.77%.
FISCAL IMPACT: There is sufficient budget authority in the 2016 Sewer System Operating Fund 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 loan fees upon the execution of the loan agreements. These loan agreements were approved by the OWDA on May 26, 2016 and the executed loan agreements along with the loan fee invoices have been generated for payment by the City. Loan Fund Payment Requests for the construction work for these projects cannot be processed until the application fees are paid.
Title
To authorize the Director of Public Utilities to pay the Water Pollution Control Loan Fund Loan Fees to the Ohio Water Development Authority for the Big Walnut Augmentation / Rickenbacker Interceptor Biofilter Project, CIP 650490-100002, and the Blueprint Hilltop Lining project, CIP 650875-100002; to authorize the expenditure of $36,143.00; and to declare an emergency. ($36,143.00)
Body
WHEREAS, two Division of Sewerage and Drainage projects have been approved for financing through two Ohio Water Pollution Control Loan Fund loan agreements approved on May 26, 2016 through which financial assistance will help to reduce the total project costs to the City's sewerage customers; and
WHEREAS, it is necessary to authorize the Director of Public Utilities to pay the requisite Loan Fees to the Ohio Water Development Authority payable upon the delivery of the executed loan agreements; 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 fees 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 Loan Fees to the Ohio Water Development Authority, for the Division of Sewerage and Drainage project entitled BWARI Biofilter Project, CIP No. 650490-100002, WPCLF No. CS390274-0185 and the project entitled Blueprint Hilltop Lining, CIP No. 650875-100002, WPCLF No. CS390274-0216.
SECTION 2. That the expenditure of $36,143.00 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 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 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.