Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Utilities to enter into a Water Resource Restoration Sponsor Program (WRRSP) Agreement with the Appalachia Ohio Alliance (AOA), for their Salt Creek Narrows and Scioto River Flyway Conservation Corridor projects, and the Ohio Department of Natural Resources (ODNR) for their Chagrin River Corridor Preservation project, and to execute those documents necessary to enter into these sponsorship agreements.
The State of Ohio created the Water Pollution Control Loan Fund (WPCLF) to provide financial assistance for water resource protection and improvement actions. This program is jointly administered by the Ohio Environmental Protection Agency (OEPA) and the Ohio Water Development Authority (OWDA). The Department of Public Utilities (DPU), with City Council approval, uses the WPCLF to fund many of its sanitary and storm water projects. The OEPA created the Water Resource Restoration Sponsor Program (“WRRSP”) within the WPCLF for the effective perpetual protection and maintenance of Ohio’s high-quality aquatic ecosystem resources. An applicant applying to the WPCLF for financing of a water quality improvement project may also sponsor a qualifying WRRSP project to be undertaken by itself or by an entity with the ability to implement the WRRSP project. The WRRSP program works by providing funds, through WPCLF loans, to finance the implementation of projects that protect or restore water resources. As loans are repaid to the WPCLF, the repayment goes primarily towards outstanding debt service and other bond obligations as well as returning money to the fund for future loan awards. A very small portion of this loan repayment is designated for use on WRRSP projects. There is no cost to a sponsoring organization such as DPU to sponsor a WRRSP project, and the sponsoring organization receives a reduction in the interest rate charged on their sponsoring WPCLF loan.
The Appalachia Ohio Alliance and the OEPA contacted DPU about sponsoring the Salt Creek Narrows and Scioto River Flyway Conservation Corridor projects. The Salt Creek Narrows project’s purpose, part of Appalachia Ohio Alliance ‘s Greater Hocking Hills Conservation Initiative, is to protect Salt Creek and its main tributaries, especially its Class III, spring-fed tributaries, water quality and aquatic habitat. This project involves the purchase of three properties totaling over 550 acres within the Salt Creek Narrows area. This project will protect over 4 miles of stream corridor (a total of 21,629 linear feet). That number includes 1,350 linear feet of Salt Creek mainstem and 12,581 linear feet (almost 2.4 miles) of Class III spring-fed stream. The project will also protect numerous Class II and ephemeral streams, as well as multiple small, mostly Category 2 riparian and spring seep wetlands. For the Scioto River Flyway Conservation Corridor project, Appalachia Ohio Alliance is proposing to purchase an approximately 145-acre rear portion of the Crites property, which is located on U.S. 23 north of South Bloomfield along the Scioto River. This project will protect and enhance 146 acres of Scioto River 100-Year Floodplain and 6 acres of existing wetland. Within this stretch of the Scioto River are several Ohio threatened and special status species and several Ohio declining species, including 5 state-listed fish and freshwater mussel species. The project cost is paid by the Appalachia Ohio Alliance with WRRSP funds. Appalachia Ohio Alliance will also be administering the project.
ODNR and the OEPA contacted DPU about sponsoring the Chagrin River Corridor Preservation project. The Chagrin River Corridor Preservation project’s purpose is to develop a contiguous protected riparian corridor along the Chagrin River state-designated Scenic River, for the purpose of protecting its high water quality, exceptional biological diversity, natural character and rare and endangered species. This project involves the acquisition of two parcels: the Patricia Pavlish tract (25.96 acres; hereafter, “Pavlish tract”) and Mark Williams tract (19.62 acres; hereafter, “Williams tract”). The Pavlish tract is located in Waite Hill, OH with frontage on the undesignated section of the Chagrin, adjacent to land currently protected by Western Reserve Land Conservancy and the City of Willoughby. The Williams tract is located in Willoughby Hills, OH with frontage on the undesignated section of the Chagrin mainstem, adjacent to the Hach Otis State Nature Preserve (owned by the Cleveland Audubon Society) as well as land protected by the Cleveland Audubon Society directly across the river. Both properties in their entirety would be subject to an environmental covenant with the Ohio Environmental Protection Agency (Ohio EPA). The project cost is paid by ODNR with WRRSP funds. ODNR will also be administering the project.
The WPCLF financed project DPU proposes to use for this sponsorship is the SWWTP Power System Upgrades & Safety Improvements Project, CIP #650357-100101. Bids for this project open 12/10/25. Ordinance 0300-2026 requesting City Council's approval to award the contract and expend funds for construction was passed by City Council on 3/2/26. It is anticipated this project will provide the coverage OEPA requires to be able to sponsor this amount of WRRSP projects and provide the maximum interest rate discount to DPU for sponsoring projects. If not, DPU has additional projects that can be used to provide the required spend ratio.
The loan for the SWWTP Power System Upgrades& Safety Improvements Project is expected to be approved at the OWDA April Board meeting. DPU will need to provide OEPA a letter of intent to sponsor the Salt Creek Narrows, Scioto River Flyway Conservation Corridor, and Chagrin River Corridor Preservation projects and execute a sponsorship agreement with the Appalachia Ohio Alliance and ODNR for the project. DPU staff will review invoices the Appalachia Ohio Alliance and ODNR submits for payment on this project to ensure they are for project qualifying expenses, and these invoices are then sent to OEPA for review before being submitted to OWDA for payment.
2. FISCAL IMPACT
There is no cost to the City or to the Department of Public Utilities (DPU) to sponsor the Salt Creek Narrows, Scioto River Flyway Conservation Corridor, and Chagrin River Corridor Preservation projects. DPU expects to receive a 0.10 interest rate discount on the 20-year loan that will fund the construction cost of the SWWTP Power System Upgrades& Safety Improvements Project, CIP #650357-100101.
3. EMERGENCY DESIGNATION
Emergency designation is requested as this ordinance must be effective prior to 4/1/26 so sponsorship documents can be executed in time to allow processing prior to the Ohio Water Development Authority's April Board meeting, which is when the loan for the SWWTP Power System Upgrades & Safety Improvements Project is expected to be approved, so the Department of Public Utilities will receive the interest rate discount for the 20-year loan for this project.
Title
To authorize the Director of the Department of Public Utilities to enter into Water Resource Restoration Sponsor Program agreements with the Appalachia Ohio Alliance for their Salt Creek Narrows and Scioto River Flyway Conservation Corridor projects and with the Ohio Department of Natural Resources for the Chagrin River Corridor Preservation project; to execute documents necessary to enter into these sponsorship agreements; and to declare an emergency. ($0.00)
Body
WHEREAS, the Department of Public Utilities seeks to construct the SWWTP Power System Upgrades & Safety Improvements Project, CIP #650357-100101; and
WHEREAS, the Department of Public Utilities intends to apply for Water Pollution Control Loan Fund (WPCLF) funding for the construction of the SWWTP Power System Upgrades& Safety Improvements Project, CIP #650357-100101; and
WHEREAS, the Department of Public Utilities and the City of Columbus Council recognizes the importance of and supports the conservation and enhancement of natural resources such as the water way and wetland conservation and the protection of native fauna and organisms, Salt Creek Narrows, Scioto River Flyway Conservation Corridor, and Chagrin River Corridor Preservation projects will protect through the Water Resource Restoration Sponsor Program (WRRSP) Project; and
WHEREAS, the Appalachia Ohio Alliance has proposed acquiring and protecting valuable water resources through the Salt Creek Narrows and Scioto River Flyway Conservation Corridor projects WRRSP Project; and
WHEREAS, the Department of Public Utilities intends to participate in the WRRSP in association with the WPCLF to assist the Appalachia Ohio Alliance in the acquisition and protection of the Salt Creek Narrows and Scioto River Flyway Conservation Corridor Project; and
WHEREAS, the Department of Public Utilities intends to participate in the WRRSP in association with the WPCLF to assist the ODNR in the acquisition and protection of the Chagrin River Corridor Preservation Project; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities in that this ordinance must be effective prior to 4/1/26 so sponsorship documents can be executed in time to allow processing prior to the Ohio Water Development Authority's April Board meeting, which is when the loan for the SWWTP Power System Upgrades & Safety Improvements Project is expected to be approved, so the Department of Public Utilities will receive the interest rate discount for the 20-year loan for this project, thereby preserving the public health, peace, property, safety, and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That City Council authorizes the Director of the Department of Public Utilities to participate in the Water Resource Restoration Sponsor Program in association with the Water Pollution Control Loan Fund for Salt Creek Narrows, Scioto River Flyway Conservation Corridor, and Chagrin River Corridor Preservation projects and to execute those documents needed to participate in the sponsorship program for the Salt Creek Narrows, Scioto River Flyway Conservation Corridor, and Chagrin River Corridor Preservation projects.
SECTION 2. This City of Columbus Council hereby finds and determines that all formal actions relative to the passage of this resolution were taken in an open meeting of this Council, and that all deliberations of this Council and of its committees, if any, which resulted in formal action, were taken in meetings open to the public, in full compliance with applicable legal requirements, including Section 121.22 of the Ohio Revised Code.
SECTION 3. That for the reasons stated in the preamble hereto, which is made a part hereof, this Ordinance is declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten (10) days after passage if the Mayor neither approves nor vetoes this Ordinance.