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Chippewa wastewater project designated BABA; $2.6M price increase offset by lower interest rate, county staff say
Summary
Sanitary Engineer Jeremy Sinko told the commissioners the Chippewa Wastewater Treatment Plant was designated a Build America, Buy America project by the Ohio EPA, adding $2.6 million to the contract price but lowering the loan interest from 3.25% to 2.25%, yielding estimated savings of about $400,000 a year and $8 million over the life of the loan; a change order will be presented next week.
Sanitary Engineer Jeremy Sinko reported May 5 that the Chippewa Wastewater Treatment Plant project has been designated a Build America, Buy America (BABA) project by the Ohio Environmental Protection Agency. Meeting the BABA compliance requirements increased the contract price by $2,600,000, Sinko said, but the Ohio EPA reduced the project’s loan interest rate from 3.25% to 2.25%, producing estimated savings of approximately $400,000 per year in annual loan payments and roughly $8,000,000 over the life of the loan.
Sinko said he would present a change order for Board consideration at the following week’s meeting and characterized the outcome as "a net financial benefit to the county." Commissioner Aaron M. Harrison also noted the day was Election Day and encouraged the public to vote.
The change order will adjust contract documents to reflect BABA-compliant materials and associated cost changes; Sinko framed the net effect as positive due to the lower financing rate, while noting the county must address the immediate increase in contract price through the formal change-order process.
