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 $14 million for construction of the Hap Cremean Water Plant Basin Concrete Rehabilitation Project as identified in Section 1., under the direction of the Division of Water (DOW). The WSRLA 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 and wastewater system improvements.
As required by the WSRLA Program, Ordinance 0687-2019 was passed April 8, 2019 authorizing the Director to enter into a WSRLA Loan Agreement for this project based on a cost estimate designating a “not to exceed” loan amount of $10.9 million. The Division of Water has since received bids for the project providing actual numbers that are higher than the original "not to exceed" estimate. For this reason Council’s authorization is needed in order to increase the authorization to proceed with financing at an amount now not to exceed $14 million.
2. FISCAL IMPACT: This loan will be paid off over a 20-year period from Water service rates (dedicated source of repayment). Water service rate increases have been projected and planned in anticipation of this project and loan.
3. EMERGENCY DESIGNATION: The City is required to provide a copy of Council’s authorization, including a designated “not to exceed” amount for the project being financed, to Ohio EPA upon submission of Bid Package documents for final preparation of the Loan Agreement to finance the project work. Bid Package documents are currently being prepared for this project with the intent of submitting in time to obtain a July loan award so that construction can begin on this necessary project at the earliest possible time. ...
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