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) loan agreement totaling approximately $6 million, for construction of the Hap Cremean Water Plant Bulk Chemical Building Improvements Project as identified in Section 1., under the direction of the Division Water (DOW). This loan program is jointly administered by the Ohio EPA's Division of Environmental and Financial Assistance, and the Ohio Water Development Authority (OWDA). The WSRLA program provides below-market interest rate loans for municipal water system improvements.
Ordinance 1703-2015 was passed July 27, 2015 authorizing the Director to enter into a WSRLA Loan Agreement for this project, however, the project cost has since been revised and the "not to exceed" amount originally designated at $4.5 million is now $6 million. For this reason Council's Authority is needed in order to proceed with the financing at an amount not to exceed $6 million.
2. EMERGENCY DESIGNATION: The WSRLA loan application process has started 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 application process prior to consideration by the Ohio Water Development Authority (OWDA) board for loan award. For the purpose of keeping this project on schedule, therefore, emergency designation is requested.
3. FISCAL IMPACT: This loan will be paid off over a 20-year period from water system rates (dedicated source of repayment). Water system rate increases have been projected and planned in anticipation of this project and loan.
Title
To authorize the Director of Public Utilities to apply for, accept, and enter into a Water Supply Revolving Loan Account (WSRLA) Loan Agreement with the Ohio Water Development Authority and the Ohio Environmental Protection Agency for the financing of the...
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