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File #: 0859-2024    Version: 1
Type: Ordinance Status: Passed
File created: 3/19/2024 In control: Public Utilities & Sustainability Committee
On agenda: 4/15/2024 Final action: 4/19/2024
Title: To authorize the Director of the Department of Public Utilities to apply for, accept, and enter into Water Supply Revolving Account Loan Agreements with the Ohio Environmental Protection Agency and the Ohio Water Development Authority during Program Year 2025 for the construction of water distribution and supply system improvements; and to designate a repayment source for the loans. ($0.00)

Explanation

1.  BACKGROUND

This ordinance seeks City Council approval for the Director of the Department of Public Utilities (DPU) to execute Water Supply Revolving Loan Account (WSRLA) loan agreements through a loan program jointly administered by the Ohio EPA’s Division of Environmental and Financial Assistance (DEFA) and the Ohio Water Development Authority (OWDA) for the construction of DPU water distribution and supply system improvements.

 

The WSRLA program provides below-market interest rate loans for municipal water system improvements.  The 35 capital improvement construction projects listed in Section 1 of this ordinance, totaling approximately $555 million, are believed by DPU to qualify for the WSRLA program and have been nominated by DPU for loan funding through the WSRLA in Program Year 2025, which runs from July 1, 2024 through June 30, 2025.  A WSRLA loan application is submitted for each project after the bid results are known.  An ordinance is also submitted for City Council approval to award the bid and to use loan funding to finance the project.  The OWDA Board typically reviews applications and approves loans the month following receipt of the application if all other required information has also been submitted.  The Ohio EPA (OEPA) requires City Council approval of an ordinance authorizing applications to be submitted for the WSRLA loan program.        

 

The Department of Public Utilities anticipates applying for loan funding for the projects listed in Section 1 of this ordinance.  However, it may become necessary to add or subtract from this list of projects depending upon project schedule adjustments, departmental need, or OEPA/OWDA deciding the project is not eligible for WSRLA loan funding. 

 

2.  FISCAL IMPACT

An expenditure is not requested with this ordinance.  All applicable loan administration fees will be rolled into each loan upon execution of the loan agreements.  An ordinance will be submitted seeking City Council approval to award the construction bid for each project, while also seeking City Council approval to loan fund the awarded contract. These WSRLA loans will be paid off over a 20-year period 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 the Department of Public Utilities to apply for, accept, and enter into Water Supply Revolving Account Loan Agreements with the Ohio Environmental Protection Agency and the Ohio Water Development Authority during Program Year 2025 for the construction of water distribution and supply system improvements; and to designate a repayment source for the loans.  ($0.00)

 

Body

WHEREAS, in Program Year 2025 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 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 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 the Department 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 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, for the projects listed below:

 

 

CIP Number

Project Name

1

690236-100102

Aragon Ave. Area WL Improvements

2

690236-100120

Newton/Bedford Area WL Improvements

3

690236-100126

Sawmill Place Blvd. Area WL Improvements

4

690236-100129

Bluefield Drive Area WL Improvements

5

690236-100131

Atlanta Drive WL Improvements

6

690236-100133

Lexington WL Improvements

7

690236-100134

Jermain Dr WL Improvements

8

690236-100135

Heyl Ave WL Improvements

9

690236-100136

Athens Ave & Rumsey Rd Area WL Improvements

10

690236-100137

Kenwick WL Improvements

11

690236-100138

Velma Ave Area WL Improvements

12

690236-100143

Eureka Fremont WL Improvements

13

690236-100144

Kent-Fairwood Area WL Improvements

14

690236-100145

Palmetto Westgate WL Improvements

15

690236-100157

N. Sixth St & Third Ave Area WL Improvements

16

690236-100159

5th Ave by Northwest -Edgehill Meadow Area WL Improvements

17

690236-100175

Lead Service Line Replacement

18

690236-100180

South High Street & I270 Area WL Improvements

19

690278-100010

DRWP Tunnel Repair

20

690291-100009

PAWP Control Room & Laboratory Renovation

21

690502-100001

Fourth Water Plant Transmission Main Mod# 3 Detailed Design

22

690502-100004

Professional Construction Management (PCM) - 4th Water Plant Transmission Main       

23

690502-100005

Morse Rd 48 Inch Transmission Main Lowering

24

690552-100000

Plant Drain & Water System Improvements

25

690552-100001

PAWP Plant Drain & Water System Improvements

26

690567-100000

DRWP Automation Upgrades

27

690578-100000

DRWP Caustic Feed Improvements

28

690580-100000

PAWP Wellfield Development - CW112

29

690587-100004

Professional Construction Management (PCM) - 4th Water Plant

30

690600-100000

Fourth Water Plant Mod# 2 Detailed Design

31

690600-100002

Fourth Water Plant - Site Preparation

32

690600-100003

Fourth Water Plant - Electrical Substation

33

690618-100000

DRWP GAC Improvements

34

690700-100000

Lead Service Line Replacement Pt. 2

35

TBD

Water Quality Assurance Lab Equipment (WQAL) LC/MS/MS Emerging Contaminants

 

SECTION 2.  That City Council understands and agrees that the list of projects in Section 1 of this ordinance are the projects the Department of Public Utilities anticipates submitting for Water Supply Revolving Loan Account Loan Agreements; that projects may be added to or subtracted from the list due to schedule changes or department need; and City Council authorizes the Director of the Department of Public Utilities to make changes to the list as the Director of the Department 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.