Explanation
1. BACKGROUND: The Ohio EPA requires this legislation which authorizes the Director of Public Utilities to apply for and execute two Water Supply Revolving Loan Account (WSRLA) loan agreements totaling approximately $30 Million, for the construction of the Hap Cremean Water Plant Standby Power Project and the Dublin Road Water Plant Standby Power Project as identified in Section 1., under the direction of the Division of Water (DOW). 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 water system improvements.
Ordinance 1128-2016 which passed May 16, 2016 authorized the Director of Public Utilities to enter into WSRLA Loan Agreements for these projects, however, the project’s costs have since been revised and the combined "not to exceed" amount originally designated at approximately $22.7 Million is now $30 Million. For this reason Council's authorization is needed in order to proceed with the financing at an amount not to exceed $30 Million.
2. FISCAL IMPACT: These loans will be paid off over a 20-year period from water system rates (dedicated source of repayment). Water system rate increases have been projected and planned in anticipation of these projects and loans.
Title
To authorize the Director of Public Utilities to apply for, accept, and enter into a Water Supply Revolving Loan Account (WSRLA) Loan Agreement with the Ohio Water Development Authority and the Ohio Environmental Protection Agency for the financing of the Hap Cremean Water Plant Standby Power and the Dublin Road Water Plant Standby Power Projects for the Division of Water (DOW); and to designate a dedicated source of repayment for the loan.
Body
WHEREAS, in 2016 the Department of Public Utilities has prepared loan applications for up to $30 Million in financing, for subm...
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