Explanation
1. BACKGROUND: The Ohio EPA requires this legislation which authorizes the Director of Public Utilities to apply for and execute a Water Pollution Control Loan Fund (WPCLF) loan agreement totaling approximately $18 Million, for construction of the Facilities and Equipment Upgrades at the Whittier Street Storm Tanks 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 program provides below-market interest rate loans for municipal water and wastewater system improvements.
Ordinance 2241-2015 which passed October 19, 2015 authorized the Director of Public Utilities 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 approximately $13 Million is now $18 million. For this reason Council's authorization is needed in order to proceed with the financing at an amount not to exceed $18 million.
2. FISCAL IMPACT: This loan will be paid off over a 20-year period from sewer system rates (dedicated source of repayment). 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 Agreement with the Ohio Water Development Authority and the Ohio Environmental Protection Agency for the financing of the Facilities and Equipment Upgrades at the Whittier Street Storm Tanks Project for the Division of Sewerage and Drainage; and to designate a dedicated source of repayment for the loan.
Body
WHEREAS, in 2016 the Department of Public Utilities has prepared a loan application for up to $18 million in financing, for submittal to the Ohio EPA under the Water...
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