Explanation
1. BACKGROUND
Need: The Ohio EPA requires this legislation which authorizes the Director of Public Utilities to execute twelve (12) Water Supply Revolving Loan Account (WSRLA) loan agreements totaling approximately $194.5 million, for construction of twelve water system projects as identified in Section 1, under the direction of the Division of Power and Water (Water Section). These Capital Improvements Projects are being financed through the Water Supply Revolving Loan Account (WSRLA) program. This loan program is jointly administered by the Ohio EPA's Division of Drinking and Ground Waters, and the Ohio Water Development Authority (OWDA). The WSRLA program provides below-market interest rate loans for municipal water system improvements.
2. FISCAL IMPACT
Budgeted Amount: There is sufficient budget authority in the 2009 Water System Operating Fund for application fee expenditures. These loans will be paid off over a 20-year period from water service rate fees (as dedicated source of repayment). Water service rate fee 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 twelve (12) Water Supply Revolving Loan Account Agreements with the Ohio Water Development Authority and the Ohio Environmental Protection Agency, during the year 2009, for the construction of water distribution system improvements; and to designate a repayment source for the loans.
Body
WHEREAS, in 2009 the Department of Public Utilities is scheduled to prepare loan applications for submittal to the Ohio EPA under the Water Supply Revolving Loan Account (WSRLA) program to finance the construction of twelve Capital Improvement Projects under the Division of Power and Water (Water Section) the financial assistance for which will be of help in reducing total project costs to the City's water rate payers; and
WHEREAS, the low-interest loans will be applied for based upon the availability of funds through the Ohio EPA's WSRLA program and executed upon approval of the loan applications by Ohio EPA; and
WHEREAS, the WSRLA loan application and loan agreement documents require the City to submit to the Ohio EPA a certified copy of the approved City Council legislation which authorizes the Director of the Public Utilities Department to apply for and subsequently execute the WSRLA agreement; Now Therefore:
Section 1. That the Director of Public Utilities be, and hereby is, authorized to apply for, accept, and enter into twelve (12) Water Supply Revolving Loan Account Agreements with the Ohio Water Development Authority and the Ohio Environmental Protection Agency for the financing twelve (12) Division of Power and Water (Water Section) projects, based upon the availability of funds through the Ohio EPA's Water Supply Revolving Loan Account (WSRLA) program and the agency's approval, as described, with the "not to exceed" construction project costs in parenthesis, as follows:
1. Columbus Upground Reservoirs - Reservoir Site No. 2; CIP No. 690370 Part 1; ($127,200,000.00)
2. Columbus Upground Reservoirs - Reservoir Site No. 2; CIP No. 690370 Part 2; ($27,600,000.00)
3. Columbus Upground Reservoirs - Reservoir Site No. 2; CIP No. 690370 Part 3; ($21,600,000.00)
4. River South Phase 2; CIP No. 690236; ($2,100,000.00)
5. Alton-Darby Rd. Water Line Improvements, Phase 2; CIP No. 690236 (Contract No. 1147); ($492,000.00)
6. Second Street Area Water Line Improvements; CIP No. 690236 ($1,380,000.00)
7. Canyon Drive Area Water Line Improvements; CIP No. 690236 (Contract No. 1107); ($3,120,000.00)
8. Doherty Rd. Water Line Improvements; CIP No. 690236 (Contract No. 996); ($2,100,000.00)
9. Markison Avenue Area Water Main Improvements; CIP No. 690236 (Contract No. 1109); ($2,640,000.00)
10. Main Street Water Main Cleaning and Lining; CIP No. 690402; ($2,760,000.00)
11. Mount Vernon Water Main Improvements; CIP No. 690236 (Contract 1139); ($1,410,000.00)
12. Long Street Water Main Cleaning and Lining; CIP No. 690368; ($2,070,000.00)
Section 2. That water rates are hereby authorized to be the source of repayment for the Water Supply Revolving Loan Account Agreement.
Section 3. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.