HomeMy WebLinkAbout010-O-23 Authorizing the City to Borrow Funds from the Illinois Environmental Protection Agency Public Water Supply Loan Program01/09/23
10-O-23
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:
Rehabilitation of approximately 8,100 linear feet of a 30-inch diameter cast
iron water transmission main and related underground utility work and
surface restoration required for the successful completion of the project.
All improvements are to be constructed in accordance with the plans and
specifications prepared by the City of Evanston’s consulting engineer. All
work herein described shall be referred to as the “Project”.
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 50 years; and
WHEREAS, the estimated cost of constructing and installing the Project,
including engineering, legal, financial, and other related expenses is Thirteen Million
~1~
Page 1 of 7 Doc ID: e1d9581c8a2d828db0341cdb4cb8e36a15c4e088
10-O-23
Three Hundred dollars ($13,300,000) 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 Ill. 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 Water Supply Loan Program in the
aggregate principal amount of Twelve Million Five Hundred Thousand dollars
($12,500,000) 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;
NOW THEREFORE, BE IT ORDAINED BY THE CORPORATE
AUTHORITIES OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS AS
FOLLOWS:
~2~
Page 2 of 7 Doc ID: e1d9581c8a2d828db0341cdb4cb8e36a15c4e088
10-O-23
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 Twelve
Million Five Hundred Thousand dollars ($12,500,000).
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
applicable laws. This Ordinance, together with such additional ordinances or
proceedings, shall constitute complete authority for entering into the Loan Agreement
under applicable law.
~3~
Page 3 of 7 Doc ID: e1d9581c8a2d828db0341cdb4cb8e36a15c4e088
10-O-23
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 Ill.
Adm. Code 662.
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
the Illinois Environmental Protection Agency in accordance with the terms and
conditions of the Loan Agreement.
~4~
Page 4 of 7 Doc ID: e1d9581c8a2d828db0341cdb4cb8e36a15c4e088
10-O-23
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 Ill. Adm.
Code 662.350(a)(9)(C)(PWS).
SECTION 8: The City Manager is hereby authorized and directed to
execute the Loan Agreement with the Illinois Environmental Protection Agency. The
City Manager is hereby authorized to execute 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~
Introduced: _________________, 2023
Adopted: ___________________, 2023
Approved:
__________________________, 2023
_______________________________
Daniel Biss, Mayor
Attest:
_______________________________
Stephanie Mendoza, City Clerk
Approved as to form:
______________________________
Nicholas E. Cummings, Corporation Counsel
January 9
January 9
Page 5 of 7 Doc ID: e1d9581c8a2d828db0341cdb4cb8e36a15c4e088
January 11
City of Evanston
30-Inch Transmission Main Rehabilitation
Page 6 of 7 Doc ID: e1d9581c8a2d828db0341cdb4cb8e36a15c4e088
CITY of EVANSTON
Five Year Projection of Revenues, Operations, Maintenance, and Debt Service
Operating Revenues
User charge (system) revenue
Wholesale Revenue (Skokie, Northwest Water Commission, Morton
Grove/Niles, Lincolnwood)
Misc. Fees and Revenue
Total Operating Revenues
Operating Expenses
Salaries & Wages
Benefits
Engineering fees (Studies)
Utilities
Repairs and maintenance
Supplies
Miscellaneous
Total Operating Expenses
TOTAL OPERATING INCOME
Non Operating Revenues (Expenses)
Debt Service (Princial and Interest) - Existing prior to this loan, GO Bonds
and IEPA SRF Debt Service
Transfers (Other Fund, General Fund, Insurance Fund)
Minor Capital Outlay
Interest Income
New GO Bonds
WIFIA Proceeds - 36"/42" Intake Replacement
IEPA SRF - Loan Proceeds
36"/42" Intake Replacement
Medium Voltage Generator and Switchgear
EAST Filter Plant Reliability
WEST Filter Plant Modifications
Water Transmission Main Rehabilitation (L17-5106) (2022)
LSLR Pilot (Construction)
Annual Water Main Replacement
Small Diameter Water Main Lining (L17-5393)
Large Diameter Water Main Lining
Total Non-Operating Income (Loss)
Net Change in Position Before Capital Items
Capital Items
New Debt Service - GO Bonds
New Debt Service - WIFIA (Intake)
New Debt Service - IEPA SRF
36"/42" Intake Replacement
Medium Voltage Generator and Switchgear
EAST Filter Plant Reliability
WEST Filter Plant Modifications
Water Transmission Main Rehabilitation (L17-5106)
LSLR Pilot (Construction)
Annual Water Main Replacement
Small Diameter Water Main Lining (L17-5393)
Large Diameter Water Main Lining
Capital Projects Funded with Cash
Capital Projects Funded with GO Bonds
Capital Projects Funded with WIFIA (Intake)
Capital Projects Funded with SRF Loans
36"/42" Intake Replacement
Medium Voltage Generator and Switchgear
EAST Filter Plant Reliability
WEST Filter Plant Modifications
Water Transmission Main Rehabilitation (L17-5106) (2022)
LSLR Pilot (Construction)
Annual Water Main Replacement
Small Diameter Water Main Lining (L17-5393)
Large Diameter Water Main Lining
Total Capital Items
NET CHANGE IN POSITION
Beginning Water Fund Reserve
Ending Water Fund Reserve
Target Water Fund Reserve
2023 2024 2025 2026 2027 2028
5.0% 4.0%9.8% 3.6%0.0% 0.0%
10,120,856 10,525,690 11,559,313 11,975,448 11,975,448 11,975,448
13,298,216 14,204,687 14,479,766 17,909,288 18,725,196 19,206,188
693,573 704,981 1,216,898 729,346 1,092,350 1,105,935
24,112,645 25,435,359 27,255,977 30,614,082 31,792,994 32,287,572
5,428,224 5,562,435 5,700,001 5,841,006 5,985,537 6,133,681
1,368,190 1,429,904 1,494,557 1,562,290 1,633,256 1,707,610
647,000 420,150 697,005 455,962 464,616 473,516
1,082,700 1,115,181 1,148,636 1,183,096 1,218,588 1,255,146
471,900 486,057 500,639 515,658 531,128 547,061
2,181,610 2,130,863 2,166,154 2,202,307 2,239,345 2,277,294
1,048,720 1,076,102 1,104,305 1,133,354 1,163,274 1,194,093
12,228,344 12,220,692 12,811,296 12,893,673 13,235,744 13,588,400
11,884,301 13,214,666 14,444,681 17,720,409 18,557,250 18,699,171
(3,837,019) (4,006,839) (4,004,351) (4,006,935)(4,008,219) (4,007,117)
(5,732,501) (5,868,861) (6,009,200) (6,153,635)(5,302,286) (5,461,354)
(889,400) (622,430) (286,088)(313,010) (413,800) (324,764)
5,227 2,461 1,528 1,203 1,479 1,814
3,498,000 3,178,750 4,387,500 4,022,250 1,457,750 3,954,250
20,386,000
31,131,683
4,300,000 3,150,000
9,200,000
3,210,000
4,061,250 4,162,500 4,266,750 4,373,250 4,482,750
1,300,000
1,700,000
27,385,991 22,730,331 10,601,889 (483,376) (3,891,826) (1,354,421)
39,270,292 35,944,998 25,046,570 17,237,033 14,665,424 17,344,750
(406,794) (685,696) (939,144) (1,288,967)(1,609,669) (1,725,898)
(952,193) (952,193) (952,193)
(1,799,707) (1,799,707) (1,799,707) (1,799,707)
(426,487) (426,487) (426,487)
(526,668) (526,668) (526,668)
(704,934) (704,934) (704,934)(704,934) (704,934) (704,934)
(181,027) (181,027) (181,027)(181,027) (181,027)
(232,493) (476,759) (727,143)(996,602)
(74,421) (74,421) (74,421)(74,421)
(95,871) (95,871)
(9,197,500) (3,336,000) (1,760,000) (551,000)(857,120) (913,362)
(3,498,000) (3,178,750) (4,387,500) (4,022,250)(1,457,750) (3,954,250)
(20,386,000)
(31,131,683)
(4,300,000) (3,150,000)
(9,200,000)
(3,210,000)
(4,061,250) (4,162,500) (4,266,750) (4,373,250)(4,482,750)
(1,300,000)
(1,700,000)
(48,148,911) (38,133,657) (26,591,725) (16,971,163) (13,786,239) (16,834,170)
(8,878,620) (2,188,660) (1,545,155) 265,871 879,186 510,580
14,896,423$ 6,017,803$ 3,829,143$ 2,283,988$ 2,549,859$ 3,429,044$
6,017,803$ 3,829,143$ 2,283,988$ 2,549,859$ 3,429,044$ 3,939,625$
3,500,000$ 3,500,000$ 3,500,000$ 3,500,000$ 3,500,000$ 3,500,000$
Page 7 of 7 Doc ID: e1d9581c8a2d828db0341cdb4cb8e36a15c4e088