Explanation
1. BACKGROUND: Ohio EPA requires this legislation which authorizes the Director of Public Utilities to execute up to sixteen (16) Water Supply Revolving Loan Account (WSRLA) Loan Agreements totaling approximately $100 million, for construction of up to sixteen (16) 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 2017 which runs from July 1, 2016 through June 30, 2017. 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.
2. FISCAL IMPACT: All Loan Administration Fees will be rolled into each loan upon execution of the Loan Agreements. These WSRLA loans will be paid off over a 20-year period from water service rates (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 sixteen (16) Water Supply Revolving Loan Account Loan Agreements with the Ohio Environmental Protection Agency and the Ohio Water Development Authority, during Program Year 2017, for the construction of water distribution and supply system improvements; and to designate a repayment source for the loans.
Body
WHEREAS, in Program Year 2017 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 sixteen Capital Improvement Projects under the direction of the Division of Water, the financial assistance for which may 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 approved City Council legislation authorizing the Director of the Public Utilities Department to apply for and subsequently execute the WSRLA agreement(s); Now Therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Utilities be, and hereby is, authorized to apply for, accept, and enter into up to sixteen (16) Water Supply Revolving Loan Account Loan Agreements with the Ohio Environmental Protection Agency and administered by the Ohio Water Development Authority for the financing of up to sixteen (16) 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, with the "not to exceed" construction costs in parenthesis, as follows:
1. CIP# 690236-100061 - Acton Rd. Area Water Line Imps; ($4,000,000)
2. CIP# 690236-100067 - Lamont Ave Area Water Line Imps; ($3,500,000)
3. CIP# 690236-100068 - Silver Drive Area Water Line Imps; ($5,000,000)
4. CIP# 690236-100069 - Arcadia Ave. Area Water Line Imps; ($4,500,000)
5. CIP# 690236-100070 - S. Broadleigh Rd. Area Water Line Imps; ($5,500,000)
6. CIP# 690236-100071 - Maize Rd. Area Water Line Imps; ($4,300,000)
7. CIP# 690236-100072 - Shattuck Area Water Line Imps; ($4,500,000)
8. CIP# 690236-100075 - Argyle Drive Area Water Line Imps; ($4,100,000)
9. CIP# 690236-100076 - Scottwood Rd. Area Water Line Imps; ($4,500,000)
10. CIP# 690236-100077 - Dewberry Rd. Area Water Line Imps; ($5,300,000)
11. CIP# 690236-100078 - Noe Bixby Rd. Area Water Line Imps; ($5,200,000)
12. CIP# 690236-100079 - Sale Rd. Area Water Line Imps; ($4,500,000)
13. CIP# 690236-100080 - Stephen Drive Area Water Line Imps; ($4,000,000)
14. CIP# 690519-100000 - Hap Cremean Water Plant Standby Power; ($13,500,000)
15. CIP# 690520-100000 - Dublin Rd. Water Plant Standby Power; ($11,500,000)
16. CIP# 690536-100000 - Hap Cremean Water Plant UV Disinfection; ($17,000,000)
SECTION 2. 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 3. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 4. 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 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.