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 $40 Million for construction of the Compost Facilities Odor Control Improvements Project as identified in Section 1., under the direction of the Division of Sewerage and Drainage (DOSD). The WPCLF 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 2551-2018 was passed October 8, 2018 authorizing the Director to enter into a WPCLF Loan Agreement for this project, however, the project cost estimate has since been revised and the "not to exceed" amount originally designated at $28.9 Million based on 60% plans is now $40 Million. For this reason Council's authorization is needed in order to proceed with the financing at an amount not to exceed $40,000,000.00.
2. FISCAL IMPACT: This loan will be paid off over a 20-year period from Sanitary System rates (dedicated source of repayment). Sanitary 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 Compost Facilities Odor Control Improvements Project for the Division of Sewerage and Drainage (DOSD); and to designate a dedicated source of repayment for the loan.
Body
WHEREAS, Ordinance 2551-2018, which passed October 8, 2018, authorized the Director of Public Utilities to enter into a WPCLF Loan agreement for the Compost Facilities Odor Control Improvem...
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