Explanation
1. BACKGROUND
This ordinance is required by Ohio EPA to authorize the Director of Public Utilities to execute Water Supply Revolving Loan Account (WSRLA) Loan Agreements totaling approximately $1.87 billion, for construction of up to twenty-eight (28) water system projects as identified in Section 1, under the direction of the Division of Water (DOW). These Capital Improvements Projects have been nominated and await OEPA’s approval for financing through the Water Supply Revolving Loan Account (WSRLA) program in Program Year 2027, which runs from July 1, 2026 through June 30, 2027. This loan program is jointly administered by the Ohio EPA’s Division of Environmental and Financial Assistance (DEFA) and the Ohio Water Development Authority (OWDA). The WSRLA program provides below-market interest rate loans for municipal water system improvements.
The Department of Public Utilities anticipates applying for loan funding for the projects listed in Section 1. However, it may become necessary to add or subtract from this list of projects depending upon project schedule adjustments, departmental need, or OEPA deciding the project is not eligible for funding. These loans do not have an annual application period. Loans are applied for on an as-needed basis after bids are opened or after professional service contract pricing has been negotiated.
2. FISCAL IMPACT
All applicable Loan Administration Fees will be rolled into each loan upon execution of the Loan Agreements. These WSRLA loans will be paid off from water service fees (the dedicated source of repayment). Water service 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 up to twenty-eight (28) Water Supply Revolving Account Loan Agreements with the Ohio Environmental Protection Agency and the Ohio Water Development Authority, during the Program Year 2027, for the design and/or construction of water distribution and supply system improvements; and to designate a repayment source for the loans. ($0.00)
Body
WHEREAS, in Program Year 2027 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 up to twenty-eight Capital Improvements Projects under the direction of the Division of Water, the financial assistance for which may be of assistance 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 by Ohio EPA of the Loan Applications; and,
WHEREAS, the WSRLA Loan Application and Loan Agreement documents require the City to submit to the Ohio EPA a certified copy of approved City Council legislation authorizing the Director of the Public Utilities Department to apply for and subsequently execute the WSRLA agreement(s); and
WHEREAS, it has become necessary in the usual daily operation of the Department of Public Utilities to authorize the Director to apply for, accept, and enter into up to twenty-eight (28) Water Supply Revolving Account Loan Agreements with the Ohio Environmental Protection Agency and the Ohio Water Development Authority; Now Therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Utilities is authorized to apply for, accept, and enter into Water Supply Revolving Loan Account Loan Agreements with the Ohio Environmental Protection Agency and administered by the Ohio Water Development Authority to finance up to twenty-eight (28) Division of Water 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, as follows:
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|
CIP Number |
Project Name |
|
1 |
690026-100000 |
SWWTP Substation |
|
2 |
690236-100135 |
Heyl Ave WL Imps |
|
3 |
690236-100154 |
Chesapeake Ave WL Imps |
|
4 |
690236-100156 |
Shamrock Dr Area WL Imps |
|
5 |
690236-100162 |
Chittenden WL Imps |
|
6 |
690236-100163 |
Yale Ave WL Imps |
|
7 |
690236-100164 |
Ann St WL Imps |
|
8 |
690236-100165 |
Beechwood WL Imps |
|
9 |
690236-100166 |
Gerbert Rd WL Imps |
|
10 |
690236-100167 |
Oaklawn St WL Imps |
|
11 |
690236-100180 |
S High & I270 WL Imps |
|
12 |
690236-110006 |
Lead Service Line Replacement Pt. 4 |
|
13 |
690236-110007 |
Lead Service Line Replacement Pt. 5 |
|
14 |
690236-110008 |
Lead Service Line Replacement Pt. 6 |
|
15 |
690236-110009 |
Lead Service Line Replacement Pt. 7 |
|
16 |
690236-110010 |
Lead Service Line Replacement Pt. 8 |
|
17 |
690236-110011 |
Lead Service Line Replacement Pt. 9 |
|
18 |
690502-100002 |
Broadview 30-Inch Transmission Main |
|
19 |
690502-100003 |
Hudson St-Arcadia Transmission Main |
|
20 |
690502-100005 |
Morse Rd 48-Inch Transmission Main |
|
21 |
690552-100000 |
HCWP Plant Drains & Water Sys Imp |
|
22 |
690579-100000 |
PAWP Treatment Residuals Disposal Imps |
|
23 |
690592-100000 |
PAWP Filter Console Replace |
|
24 |
690600-100000 |
Home Rd Water Plant |
|
25 |
690618-100000 |
DRWP GAC Imps (Detailed Design) |
|
26 |
691200-100002 |
HCWP Automation Upgrade |
|
27 |
691606-100007 |
Sludge Line Imps 6 |
|
28 |
691800-100002 |
Water Reuse Imps |
SECTION 2. City Council understands and agrees that the list of projects in Section 1 are the anticipated projects; that projects may be added to or subtracted from the list due to schedule changes or department need; that the price are estimates that will change based upon bid results and /or contract negotiations' and City Council authorizes the Director of Public Utilities to make changes to the list as the Director of Public Utilities deems necessary without seeking City Council approval for the changes and without amending this ordinance.
SECTION 3. That city water rate revenues are hereby authorized to be the dedicated source of repayment for the Water Supply Revolving Loan Account loan(s).
SECTION 4. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 5. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this Ordinance.
SECTION 6. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.