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 execute 15 Cooperative Loan Agreements totaling approximately $190 million, for 15 Sewerage & Drainage Division projects. These Capital Improvements Projects, as identified in Section 1, are being 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 agreements, 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. 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: These loans, which will include the OWDA application fees in the loan principal, will be paid off over a 20-year period from sewerage system fees. Sewerage fee increases have been projected and planned in anticipation of these projects and loans.
Title
To authorize the Director of Public Utilities to execute and deliver fifteen (15) Cooperative Loan Agreements during the year 2007, between the City of Columbus and the Ohio Water Development Authority, for the construction, maintenance and operation of fifteen (15) Division of Sewerage and Drainage projects, and to declare an emergency.
Body
WHEREAS, in 2007 the Columbus Department of Public Utilities is scheduled to su...
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