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HomeMy WebLinkAbout070-O-22 Authorizing the City to Borrow Funds from the Illinois Environmental Protection Agency Public Water Supply Loan Program07/11 /2022 70-0-22 AN ORDINANCE Authorizing the City to Borrow Funds from the Illinois Environmental Protection Agency Public Water Supply Loan Program WHEREAS, the City of Evanston, in the County of Cook, Illinois (the "City") operates its public water supply system ("the System") and in accordance with the provisions of the provisions of Section 6(a) of Article VII of the 1970 Constitution of the State of Illinois and the Local Government Debt Reform Act, 30 ILCS 350/1 et seq. (collectively "the Act"); and WHEREAS, the Mayor and City Council of the City (the "Corporate Authorities") have determined that it is advisable, necessary, and in the best interest of the public health, safety and welfare to improve the System including the following: Replace an existing 1909 intake in Lake Michigan that supplies raw water to the Evanston Water Plant, which involves abandoning the existing 1909 intake structure and pipeline, construction of a new replacement intake structure and pipeline, construction of new onshore facilities, and modifications to existing facilities to incorporate the new intake into the water treatment process at the Evanston Water Plant together with any land or rights in land and all electrical, mechanical or other services necessary, useful or advisable to the construction and installation (the "Project"), all in accordance with the plans and specifications prepared by the consulting engineers of the City, which Project has a useful life of 100 years; and WHEREAS, the estimated cost of constructing and installing the Project, including engineering, legal, financial, and other related expenses is Fifty Five Million d© Page of Doc ID: 31304e2a90130bbf44c944116b21cdc6673c4111 70-0-22 Six Hundred Sixty Five Thousand Nine Hundred Thirty Nine dollars ($55,665,939) and there are insufficient funds on hand and lawfully available to pay such costs; and WHEREAS, the loan shall bear an interest rate as defined by 35 III. Adm. Code 662, which does not exceed the maximum rate authorized by the Bond Authorization Act, as amended, 30 ILCS 305/0.01 et seq., at the time of the issuance of the loan; and WHEREAS, the principal and interest payment shall be payable semi- annually and the loan shall mature in twenty (20) years, which is within the period of useful life of the Project; and WHEREAS, the costs are expected to be paid for with a loan to the City from the Public Water Supply Loan Program through the Illinois Environmental Protection Agency, the loan to be repaid from revenues from the System and the loan is authorized to be accepted at this time pursuant to the Act; and WHEREAS, in accordance with the provisions of the Act, the City is authorized to borrow funds from the Public Waters Supply Loan Program in the aggregate principal amount of Thirty Five Million Two Hundred Seventy Nine Thousand Nine Hundred Thirty Nine dollars ($35,279,939) to provide funds to pay the costs of the Project and; WHEREAS, the loan to the City shall be made pursuant to a Loan Agreement, including certain terms and conditions between the City and the Illinois Environmental Protection Agency; -2- Page 2 of Doc ID: 31304e2a90130bbf44c944116b21cdc6673c4111 70-0-22 NOW THEREFORE, BE IT ORDAINED BY THE CORPORATE AUTHORITIES OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS AS FOLLOWS: SECTION 1: The Corporate Authorities hereby find that the recitals contained in the preambles are true and correct, and incorporate them into this Ordinance by this reference. SECTION 2: It is necessary and in the best interests of the City to construct the Project for the public health, safety and welfare, in accordance with the plans and specifications, as described; that the System continues to be operated in accordance with the provisions of the Illinois Environmental Protection Act, 415 ILCS 5/1 et seq.; and that for the purpose of constructing the Project, it is hereby authorized that funds be borrowed by the City in the aggregate principal amount (which can include construction period interest financed over the term of the loan) not to exceed Thirty Five Million Two Hundred Seventy Nine Thousand Nine Hundred Thirty Nine dollars ($35,279,939). SECTION 3: The Corporate Authorities may adopt additional ordinances or proceedings supplementing or amending this Ordinance, providing for entering into the Loan Agreement with the Illinois Environmental Protection Agency, prescribing all the details of the Loan Agreement, and providing for the collection, segregation and distribution of the revenues of the System, so long as the maximum amount of the Loan Agreement as set forth in this Ordinance is not exceeded and there is no material change in the project or purposes described herein. Any additional ordinances or proceedings shall in all instances become effective in accordance with the Act or other -3- Page 3 of Doc ID: 31304e2a90130bbf44c944116b21cdc6673c4111 70-0-22 applicable laws. This Ordinance, together with such additional ordinances or proceedings, shall constitute complete authority for entering into the Loan Agreement under applicable law. However, notwithstanding the above, the City may not adopt additional ordinances or amendments which provide for any substantive or material change in the scope and intent of this Ordinance, including but not limited to interest rate, preference or priority of any other ordinance with this Ordinance, parity of any other ordinance with this Ordinance, or otherwise alter or impair the obligation of the City to pay the principal and interest due to the Public Water Supply Loan Program without the written consent of the Illinois Environmental Protection Agency. SECTION 4: Repayment of the loan to the Illinois Environmental Protection Agency by the City pursuant to this Ordinance is to be solely from the revenue derived from revenues of the System, and the loan does not constitute an indebtedness of the City within the meaning of any constitutional or statutory limitation. SECTION 5: The City Manager is hereby authorized to make an application to the Illinois Environmental Protection Agency for a loan through the Public Water Supply Loan Program, in accordance with the loan requirements set out in 35 III. Is toZ.Twool:w SECTION 6: The Corporate Authorities hereby authorize acceptance of the offer of a loan through the Public Water Supply Loan Program, including all terms and conditions of the Loan Agreement as well as all special conditions contained therein and made a part thereof by reference. The Corporate Authorities further agree that the loan funds awarded shall be used solely for the purposes of the project as approved by Page 4 of Doc ID: 31304e2a90130bbf44c944116b21cdc6673c4111 70-0-22 the Illinois Environmental Protection Agency in accordance with the terms and conditions of the Loan Agreement. SECTION 7: The City has outstanding bonds, payable from revenues of the system, that are senior to the loan authorized by this Ordinance, and the City establishes an account, coverage, and reserves equivalent to the account(s), coverage(s) and reserve(s) as the senior lien holders in accordance with 35 III. Adm. Code 662.350(a)(9)(C)(PWS). SECTION 8: The Mayor is hereby authorized and directed to execute the Loan Agreement with the Illinois Environmental Protection Agency. The Corporate Authorities may authorize by resolution a person other than the Mayor for the sole purpose of authorizing or executing any documents associated with payment requests or reimbursements from the Illinois Environmental Protection Agency in connection with this loan. SECTION 9: If any section, paragraph, clause or provision of this Ordinance is held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Ordinance. SECTION 10: All ordinances, resolutions, orders, or parts thereof, which conflict with the provisions of this Ordinance, to the extent of such conflict, are hereby repealed. -5- Page 5 of Doc ID: 31304e2a90130bbf44c944116b21cdc6673c4111 70-0-22 Introduced: July 11 , 2022 Approved: Adopted: July 25 , 2022 August 1 2022 lsan d' 16tai Daniel Biss, Mayor Attest: Approved as to form: Stephanie Mendoza, City Clerk Derke Price, Interim Corporation Counsel Page 6 of Doc ID: 31304e2a90130bbf44c944116b21cdc6673c4111 Project Location Map LEGEND Proposed Intake Structure Proposed 60" Intake Pipeline Existing 36"142" Intake Structure - To Be Abandoned - - I Existing 36"142" Intake Pipeline - To Be Abandoned ❑ Shore -Side Connections Water Treatment Plant Project Location Map.mxd 091301,2021 This map is provided "as is" without warranties of any kind. See www.citvofevanston.orolmaodisclaimers. html for more information. Page 7 of 8 Doc ID: 31304e2a90130bbf44c944116b21cdc6673c4111 City of Evanston 1909 7H2fake Replacement Project Financing Five -Year Water Fund Analysis current Year i Estimated - Next 5 Years 2021 2022 2023 2024 2025 2026 ProV&'ed Rate Increases 0.0% Operating Revenues llsercharge (system) revenue 8,771,787 Who-91NII neVtnue (Skokie, ,wi',. oeyL -ate. Commission,. Morton 11,718,608 Grove/Niles, Lincolnwood) 9.5% 9,607,738 0.096 OA% 9.9% 3.6% 9,607,739 13,414, 962 13,799,378 9,607,738 30,551r218 10,931,062 14,089,432 14,348,421 17,901,940 Misc. Fees and Revenue 1,165,468 682,650 693,573 704,981 716,898 729,346 Total O mtIn Revenues 2I,655,863 23,705,250 24,1W,588 24,402,151 25,616,537 29,562,3M 4aera4g 4VW,,# �9110110Awages 4,5�93; 4,734,$9p 4,4�3,272 4,974,604 5,098,969 5,226,443 B'Ppq%i 1, w4p 1,361,522 1i22,994 1,497,396 1,S54C69 1,625,563 j v' w' L:y lg`tudlesi 49j W y09,800 176,581 381,161 62r571 394,159 utilities 1{085,300 1,088,600 1¢21,258 1,154,896 1r189.543 1,225,229 nepa„ s c,m, i,o,d�e' W. 364,109 380,329 391,739 403,491 41%,596 428,053 Supplies 1,482r717 1/492,344 1,488,612 1,514,634 1i54F301 1,568,630 Miscellaneous 1,351,620 1,062,726 1,057,35Z 1,085,003 1,113,473 1,142,797 Total O rain Expenses 10,664,509 11,030220 I0,711,9I8 11,001,1M I1,541,319 11,6I0,884 TOTAL OPERATING INCOME 10 991,354 12,675,030 13,388,870 13 400 968 14,075 218 17 951 4" Nan Coeratiniz Revenues Ex enses Grant Debt Service (PrinclaI and Interest) - Existing prior to this loan, GO (2,134,492) 13,699,168) (3,700,807) Bands and IFPf S$fflRht�P7X) P Transfers (Other Fund, General Fund, Insurance Fundl (51589,212) (5r6W,Dgp (5,7;W�W Minor Capital Outlay �203,000) • (425,400) (600,330) Interestlncome 5,922 5,144 3,547 New GO Bands - 6,410,000 4,750,000 WIFIAProceeds -19091nta 1 _ 8,558,000 1EPA SRF - Loan Proceeds Plant 11e1010I ity ) L17-51P,7) Treated Water Storage Replacement (LI7.5108) 2,143,029 1909_Intake Re lacemem-SRF 3,721,000 31,559,DW Medium 3,700,000 East Filter Plant Reliability Water Transm ission Main Rehabilitation (1.27-5106) 11,405,000 LSLR Pilot 1Cc nstructionj 3,210,000 Small Diameter Water Main Lining {L17.5393) 1,300,000 (3,870,627) (3,868,1391 (3,870,723) (51;KPI a} (§.79PP,499) (61P)105) (438,788) (317,537) (325,582) Z,491 2,048 1,755 4,740,000 5,423,000 5,234,000 11,928,000 3,700,000 9,200,000 - NfLtyRe�)} prydrn-(3PQpjj 0 IS1i,081) (889,907) (1,267,7361 New Debt Service - W IFIA -1909 ffflaKe KC0zaLem4hi {917,060} New Debt Service - SRF Treated Water Storage Replacement(L37-5108) (120,956) 1120,856) (120,856) 1120,85fi1 (120,856) 1909 Intake Replacement (2,030,741) (2,03_0,741) MediA Vbria-gec,er(l#J0anpswrtcrtgear (430,100) 1430,1DO) East Filter Plant Reliability f 539,880) Water Transmission Main Rehabilitation {1.27-5196) (643,182) j6431182) (643,18Z) ("31182) LSLR Pilot 1Construction) )181,027) (181,027) (181,027) (181,027) Small Diameter Water Main Li ningJ, Ll7-5393) 173,3131 73,313 f 73,311) 73,313) Largi PjA rrnL;$,rWgiff y@)Lt19 Ing 97,80S� f97,805) 97�805) eapltdlPt6)t!ct;Fyprj0_kf)P.[ash {3,339,745) )6,8661000 (5,375,000) (1,8951000) 1635,000) (945,000) &)31tal Pra)ects Funded illbl UJ Ub„ds 0 16,410,000 (41750,0W) f4,7401000) (5,423,0001 15,234,000) 1909 Intake Replacement Funded with WIFIA Loan {8,558,000) 111,828,000} lrdtritc, i, Funded with 5RF Loans Plant ill14th d Cy), a r-') 101 Treated Water Storage Replace ment I U 7-5108) (2,143,029) 19091ntake Replacement (2,940,000) {31,559.000} Medium Voltage Generator and Switchp,ear (3,7DO,000) )3,700,000) East Filter Plant Reliability {8,700r000) V..• to Main Rehabllitation (L17-5106} I11,000,000) LS LR PI lot jSu/ I�.:.... ''r� 11hLlniIAtLl1-5393; (3,210,000) SmAdLfrelnCymh Water (1,300,000) La rge Diameter Water Main Linin (1,700,000) Total Capital Items 5,482,774 1`311846X5) 57.171,459 24,168,90 I9,602,759 f12,9I3,0N) NET CHANGE IN POSITION 269173 2.845,255 3,545,619 675,806 1.097369 75,805 rogmif.. q, , ... Fund Reserve $ 11,992,202 $ 11,713,029 $ 9,967,774 $ 5,322,095 $ 4,646,289 $ 3,548,920 Ending Water Fund Reserve $ 11,713,029 § 8,967,774 $ S,322,095 $ 4,646,299 $ 3,S48,920 $ 3,473,115 , av",. 4i u.a, .•+.nd Reserve S 3.500.000 S 3.500.000 S 3.500.000 $ 3,500, 000 S 3.500.OW S 3-SOO.000 Page 8 of Doc ID: 31304e2a90130bbf44c944116b21cdc6673c4111