Explanation
BACKGROUND
The Ohio EPA requires this legislation in order to apply for, accept, and enter into a Water Supply Revolving Loan Account (WSRLA). This will allow the Division of Power and Water to finance the construction of the Taylor Road 2 M.G. elevated storage tank at an estimated cost of $4.5 million. This below market interest rate program will benefit the City and its water rate payers by lowering the overall cost of this CIP project and thereby assisting to reduce the water rates.
EMERGENCY DESIGNATION: As part of the application and loan agreement process, a certified copy of this authorizing legislation must be submitted to the Ohio EPA and Ohio Water Development Authority (OWDA) 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 WSRLA loan program requirements and thereby expediting the construction project initiation.
FISCAL IMPACT
Budgeted Amount: There is sufficient budget authority in the 2007 Water System Operating Fund for application fee expenditures. This loan will be paid off over a 20-year period from water system fees. Water fee increases have been projected and planned in anticipation of this CIP project.
Title
To authorize the Director of Public Utilities to apply for, accept, and enter into a Water Supply Revolving Loan Account on behalf of the City of Columbus for construction of drinking water facilities; to designate the Director as the authorized representative; and to designate a dedicated repayment source for the loan; and to declare an emergency.
Body
WHEREAS, the City of Columbus seeks to upgrade its existing drinking water facilities and intends to apply for a Water Supply Revolving Loan Account (WSRLA) for the construction of the drinking water facilit...
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