Explanation
1. BACKGROUND
To be eligible for financing, The Ohio Water Development Authority (OWDA) requires this legislation which authorizes the Director of Public Utilities to apply for and enter into a Cooperative Loan Agreement totaling $25 million, for the Sewerage & Drainage Division Southerly Wastewater Treatment Plant Primary Clarifiers and Aeration Tanks Improvements project, CIP No. 650367. This project is being partially financed with Bond money and partially financed through OWDA's Master Program: Fresh Water Group. With interest rate discounts, and other advantages, this loan program will benefit the City and its sewerage rate payers by lowering the overall cost of these CIP projects and thereby reducing the sanitary sewerage rates.
EMERGENCY DESIGNATION: In order to obtain OWDA board approval of the cooperative agreement in January 2008, a certified copy of this authorizing legislation must be submitted to the OWDA as a part of each loan application and prior to the OWDA board meeting on January 31, 2008. 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 OWDA loan program requirements and thereby expediting the construction project initiation.
3. FISCAL IMPACT
Budgeted Amount: This loan-which will include the OWDA application fees in the total loan amount-will be paid off over a 20-year period from sewerage system fees. Sewerage fee 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 Cooperative Loan Agreement during the year 2008 between the City of Columbus and the Ohio Water Development Authority, for the construction, maintenance and operation of the Southerly Wastewater Treatment Plant Primary...
Click here for full text