Explanation
1. BACKGROUND: The Ohio EPA requires this legislation which authorizes the Director of Public Utilities to execute a Water Pollution Control Loan Fund (WPCLF) loan agreement totaling approximately $4 million, for construction of the BWARI Biofilter Project as identified in Section 1., under the direction of the Division 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 WSRLA program provides below-market interest rate loans for municipal sewer system improvements.
Ordinance 2516-2013 was passed December 2, 2013 authorizing the Director to enter into a WPCLF Loan Agreement for this project. As required by OEPA and OWDA that authorizing legislation set a “not to exceed” amount (of $3.5 million) for the loan for this project. The bids for the project, however, have been opened and they exceed the original “not to exceed” amount that was authorized in Ordinance 2516-2013. For this reason Council's Authority is needed to increase the authorization in order to proceed with the financing at an amount not to exceed $4 million.
3. FISCAL IMPACT: This loan will be paid off over a 20-year period from sewer system rates (the dedicated source of repayment for the loan). Sewer system rate 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 Water Pollution Control Loan Fund (WPCLF) Loan Agreement with the Ohio Water Development Authority and the Ohio Environmental Protection Agency for the financing of the BWARI Biofilter Project for the Division of Sewerage and Drainage (DOSD); and to designate a dedicated source of repayment for the loan.
Body
WHEREAS, in 2016 the Department of Public Utilities is scheduled to execute a loan agreement for up to $4 million in financing, for...
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