Explanation
1. BACKGROUND
Need: The Ohio EPA requires this legislation which authorizes the Director of Public Utilities to apply for and execute an Ohio Water Pollution Control Loan Fund (WPCLF) loan agreement totaling approximately $125 million, for construction of the Blacklick Creek Sanitary Interceptor Sewer Project as identified in Section 1., under the direction of the Division of Sewerage and Drainage (DOSD). 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 WPCLF Loan Fund program provides below-market interest rate loans for municipal wastewater treatment improvements.
Ordinance 2516-2013 was passed December 2, 2013 authorizing the Direcor to enter into a WPCLF Loan Agreement for this project, however, the project cost has since been revised and the "not to exceed" amount originally designated at $94 million is now $125 million. For this reason we need Council's Authority to proceed with the financing at an amount not to exceed $125 million.
2. EMERGENCY DESIGNATION: WPCLF loan application is now being processed 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 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
Budgeted Amount: There is sufficient budget authority in the 2015 Sewer Systems Operating Funds for the loan application fee expenditure. This loan will be paid off over a 20-year period from sewerage system fees (dedicated source of repayment). Sewerage system 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 an Ohio Water Poll...
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