Explanation
1. BACKGROUND: The Ohio EPA requires this legislation which authorizes the Director of Public Utilities to apply for and execute a Water Supply Revolving Loan Account (WSRLA) and a Water Pollution Control Loan Fund (WPCLF) loan agreements totaling approximately $16 million dollars for the construction of the Acton Road Area Water Line Improvements Project and the Blueprint Clintonville GI Part 1, Blenheim/Glencoe Project as identified in Section 1., under the direction of the Division of Water (DOW) and the Division of Sewerage and Drainage (DOSD). These loan programs are jointly administered by the Ohio EPA's Division of Environmental and Financial Assistance, and the Ohio Water Development Authority (OWDA). Both the WSRLA and the WPCLF programs provide below-market interest rate loans for municipal water and sewer system improvements.
Ordinance 1128-2016 was passed May 6, 2016 authorizing the Director to enter into a WSRLA Loan Agreement for the Acton Road Project and Ordinance 2229-2016 was passed September 26, 2016 for the Blueprint Clintonville GI Part 1 Blenheim/Glencoe Project, however, the bids for the now combined project, which were opened on May 17, 2017, came in above the combined "not to exceed" amount originally calculated at $11.8 million. For this reason Council's Authority is needed in order to proceed with the financing of the two projects at an amount not to exceed $16 million dollars.
2. EMERGENCY DESIGNATION: Bids have been opened and evaluated for this project. This authorizing legislation is a requirement for loan approval and must be submitted to the Ohio EPA as a part of the loan process prior to consideration by the Ohio Water Development Authority (OWDA) board for loan award. For the purpose of keeping this combined project on schedule, therefore, Emergency Designation is requested.
3. FISCAL IMPACT: These loans will be paid off over a 20-year period from water and sewer system rates (dedicated source of repay...
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