Explanation
BACKGROUND: Ohio EPA requires this legislation which authorizes the Director of Public Utilities to execute up to thirty-four (34) Water Supply Revolving Loan Account (WSRLA) Loan Agreements totaling approximately $249 million, for construction of up to thirty-four (34) 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 2022 which runs through July 1, 2021 through June 30, 2022. 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.
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 thirty-four (34) Water Supply Revolving Account Loan Agreements with the Ohio Environmental Protection Agency and the Ohio Water Development Authority, during the Program Year 2022, for the construction of water distribution and supply system improvements; and to designate a repayment source for the loans.
Body
WHEREAS, in the Program Year 2022 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 one Capital Improvements 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 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 thirty-four (34) 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 be, and hereby is, authorized to apply for, and enter into up to thirty-four (34) Water Supply Revolving Loan Account Loan Agreements with the Ohio Environmental Protection Agency and administered by the Ohio Water Development Authority for the financing for up to thirty-four (34) 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. 690236-100092 S. Hampton Road Area WL (4,500,000)
2. 690236-100096 Zeigler Ave. Area WL ($5,800,000)
3. 690236-100097 South Weyant Ave. Area WL ($3,200,000)
4. 690236-100098 Chestershire Rd. Area WL ($4,100,000)
5. 690236-100099 Atwood Terrace Area WL ($3,900,000)
6. 690236-100100 Greenway Ave. Area WL ($3,900,000)
7. 690236-100101 Woodland Ave. Area WL ($4,600,000)
8. 690236-100102 Aragon Ave. Area WL ($3,900,000)
9. 690236-100103 Mock Rd. Area WL ($4,500,000)
10. 690236-100104 Edsel Ave. Area WL ($4,500,000)
11. 690236-100105 Homestead Dr. Area WL ($4,900,000)
12. 690236-100106 Varsity Ave. Area WL ($3,900,000)
13. 690236-100107 Roswell Dr. Area WL ($4,100,000)
14. 690236-100113 Manchester Ave. WL ($1,300,000)
15. 690236-100116 E. Franklinton WL Phase 3 ($7,900,000)
16. 690236-100120 Newton/Bedford WL ($700,000)
17. 690236-100121 Brixham Rd. WL ($3,900,000)
18. 690236-100122 Miller Ave. WL ($3,900,000)
19. 690236-100123 Roosevelt Ave. WL ($3,900,000)
20. 690236-100140 Old Beechwold Area WL ($4,600,000)
21. 690236-100143 Eureka/Fremont Area WL ($2,000,000)
22. 690236-100144 Kent/Fairwood Area WL ($1,300,000)
23. 690236-100145 Palmetto/Westgate Area WL ($2,600,000)
24. 690291-100002 PAWP Lime Slaker/Soda Ash Feeder ($10,900,000)
25. 690358-100001 Enhanced Meter Equipment ($38,500,000)
26. 690389-100001 HCWP Basin Concrete Rehab Phase 2 ($30,100,000)
27. 690486-100000 HCWP Hypochlorite Disinfection Improvements ($22,000,000)
28. 690487-100000 PAWP Hypochlorite Disinfection Improvements ($19,500,000)
29. 690502-100000 Dublin Road 30” Water Main ($12,700,000)
30. 690515-100000 Water Quality Assurance Lab Rehab ($15,300,000)
31. 690523-100000 DRWP Laboratory Upgrades ($2,600,000)
32. 690545-100000 HCWP Lime and Soda Ash Dust Collection Improvements ($2,100,000)
33. 690578-100001 DRWP Caustic Feed Improvements ($1,100,000)
34. 690588-100001 Olentangy River Rd. Water Main Phase 2 ($5,200,000)
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.