Explanation
BACKGROUND: This legislation is needed in order for the City to pay the Ohio Water Development Authority (OWDA) loan fee for a Division of Sewerage and Drainage capital project receiving funding through the Ohio Environmental Protection Agency’s Water Pollution Control Loan Fund (WPCLF) which is administered by OWDA. The loan fee has been invoiced for the following construction project which was awarded WPCLF loan financing at the January 25, 2024 Ohio Water Development Authority Board meeting:
Inflow Redirection - Markison project (CIP# 650790-122181); Loan amount: $28,345,080.39; Loan Fee: $99,208.00.
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 2767-2024 which passed October 30, 2023.
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 this loan is 3.08%.
FISCAL IMPACT: $99,208.00 is needed for Loan Fee expenditures. This ordinance is contingent on the passage of the 2024 operating budget, Ordinance 3012-2023.
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 OWDA loan fee upon the execution of the loan agreement. The loan agreement was approved by the OWDA Board on January 25, 2024. The executed loan agreement along with the loan fee invoice has been generated for payment by the City and received January 26, 2024. Loan Fund Payment Requests to pay the contractor for construction work on this project cannot be processed until the loan fee is paid in full. An emer...
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