HomeMy WebLinkAbout094-O-21 Authorizing the City to Borrow Funds from the Illinois Environmental Protection Agency Public Water Supply Loan Program09/09/2021
94-O-21
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 Forty-one Million
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Six-hundred-six-thousand Seventy-three dollars ($41,606,073) 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 Waters Supply Loan Program in the
aggregate principal amount of Twenty-one Million Two Hundred Twenty Thousand
Seventy-three dollars ($21,220,073) 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;
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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 Twenty-
one Million Two Hundred Twenty Thousand Seventy-three dollars ($21,220,073).
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
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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 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
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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 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
Corporate Authorities may authorize by resolution a person other than the City Manager
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.
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Introduced: _________________, 2021
Adopted: ___________________, 2021
Approved:
________________________, 2021
_______________________________
Daniel Biss, Mayor
Attest:
_______________________________
Stephanie Mendoza, City Clerk
Approved as to form:
_______________________________
Nicholas E. Cummings, Corporation
Counsel
September 09
October 25 10/26
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Project L oc ation Map
This map is provided "as is" without warranties of any kind. See www.city ofevanst on.org/mapdisclaimers.html for mor e inf orm at ion.
09 /30/2021Project Location M a p.m xd
LEGEN D
!(Prop osed Intak e S tructure
!(Ex isti ng 36 "/42" Intake S tructure - To B e A ban doned
")Sh ore-Si de C onne ctio ns
Prop osed 60" In take P i pelin e
Ex isti ng 36 "/42" Intake P ipeli ne - To Be A bando ned
Water Tre atment Pl ant
I
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Current Year
2021 2022 2023 2024 2025 2026
Proposed Rate Increases 0.0% 9.5% 0.0% 0.0% 9.8% 3.6%
Operating Revenues
User charge (system) revenue 8,771,787 9,607,738 9,607,738 9,607,738 10,551,218 10,931,062
Wholesale Revenue (Skokie, Northwest Water Commission, Morton
Grove/Niles, Lincolnwood)11,718,608 13,414,862 13,799,378 14,089,432 14,348,422 17,056,715
Misc. Fees and Revenue 1,165,468 682,650 693,573 704,981 716,898 729,346
Total Operating Revenues 21,655,863 23,705,250 24,100,688 24,402,151 25,616,538 28,717,123
Operating Expenses
Salaries & Wages 4,555,932 4,734,899 4,853,272 4,974,604 5,098,969 5,226,443
Benefits 1,422,831 1,361,522 1,422,994 1,487,396 1,554,869 1,625,563
Engineering fees (Studies)402,000 909,800 376,581 381,161 627,571 394,159
Utilities 1,085,300 1,088,600 1,121,258 1,154,896 1,189,543 1,225,229
Repairs and maintenance 364,109 380,329 391,739 403,491 415,596 428,063
Supplies 1,482,717 1,492,344 1,488,612 1,514,634 1,541,301 1,568,630
Miscellaneous 1,351,620 1,062,726 1,057,362 1,085,003 1,113,473 1,142,797
Total Operating Expenses 10,664,509 11,030,220 10,711,818 11,001,184 11,541,319 11,610,884
TOTAL OPERATING INCOME 10,991,354 12,675,030 13,388,870 13,400,968 14,075,218 17,106,239
Non Operating Revenues (Expenses)
Grant
Debt Service (Princial and Interest) - Existing prior to this loan, GO
Bonds and IEPA SRF Debt Service (2,134,492) (3,699,168) (3,700,807) (3,870,627) (3,868,139) (3,870,723)
Transfers (Other Fund, General Fund, Insurance Fund)(5,589,212)(5,600,005)(5,732,501)(5,868,861)(6,009,200)(6,153,635)
Minor Capital Outlay (203,000)(425,400)(600,330)(438,788)(317,537)(325,582)
Interest Income 5,922 5,144 3,547 2,491 2,248 1,952
New GO Bonds - 6,410,000 4,750,000 4,740,000 5,423,000 4,534,000
WIFIA Proceeds - 1909 Intake Replacement (49%)13,310,000 7,076,000
IEPA SRF - Loan Proceeds
Plant Reliability (L17-5107)
Treated Water Storage Replacement (L17-5108)2,143,029
1909 Intake Replacement - SRF (51%)8,491,000 12,729,000
Medium Voltage Generator and Switchgear 3,700,000 3,700,000
East Filter Plant Reliability 9,200,000 -
Water Transmission Main Rehabilitation (L17-5106)11,405,000
LSLR Pilot (Construction)3,210,000
Small Diameter Water Main Lining (L17-5393)1,300,000
Large Diameter Water Main Lining 1,700,000
Total Non-Operating Income (Loss)(5,777,752) 21,096,571 26,158,909 5,340,216 4,430,372 (5,813,987)
Net Change in Position Before Capital Items 5,213,601 33,771,601 39,547,780 18,741,183 18,505,590 11,292,251
Capital Items
New Debt Service - GO Bonds 0 (511,081)(889,807)(1,267,736)(1,700,122)
New Debt Service - WIFIA - 1909 Intake Replacement (981,300)
New Debt Service - SRF
Treated Water Storage Replacement (L17-5108)(120,856)(120,856)(120,856)(120,856)(120,856)
1909 Intake Replacement (1,229,920)(1,229,920)
Medium Voltage Generator and Switchgear (431,579)(431,579)
East Filter Plant Reliability (539,880)
Water Transmission Main Rehabilitation (L17-5106)(643,182)(643,182)(643,182)(643,182)
LSLR Pilot (Construction)(181,027)(181,027)(181,027)(181,027)
Small Diameter Water Main Lining (L17-5393)(73,313)(73,313)(73,313)(73,313)
Large Diameter Water Main Lining (97,805)(97,805)(97,805)
Capital Projects Funded with Cash (3,339,745)(6,866,000)(5,375,000)(1,895,000)(635,000)(1,645,000)
Capital Projects Funded with GO Bonds 0 (6,410,000)(4,750,000)(4,740,000)(5,423,000)(4,534,000)
1909 Intake Replacement Funded with WIFIA Loan (13,310,000)(7,076,000)
Capital Projects Funded with SRF Loans
Plant Reliability (L17-5107)
Treated Water Storage Replacement (L17-5108)(2,143,029)
1909 Intake Replacement (7,710,000)(12,729,000)
Medium Voltage Generator and Switchgear (3,700,000)(3,700,000)
East Filter Plant Reliability (8,700,000)
Water Transmission Main Rehabilitation (L17-5106)(11,000,000)
LSLR Pilot (Construction)(3,210,000)
Small Diameter Water Main Lining (L17-5393)(1,300,000)
Large Diameter Water Main Lining (1,700,000)
Total Capital Items (5,482,774) (36,616,856) (43,093,459) (19,416,989) (18,803,417) (12,177,982)
NET CHANGE IN POSITION (269,173) (2,845,255) (3,545,679) (675,806) (297,827) (885,731)
Beginning Water Fund Reserve 11,982,201$ 11,713,028$ 8,867,774$ 5,322,095$ 4,646,289$ 4,348,462$
Ending Water Fund Reserve 11,713,028$ 8,867,774$ 5,322,095$ 4,646,289$ 4,348,462$ 3,462,731$
Target Water Fund Reserve 3,500,000$ 3,500,000$ 3,500,000$ 3,500,000$ 3,500,000$ 3,500,000$
City of Evanston
1909 Intake Replacement Project Financing
Five-Year Water Fund Analysis
Estimated - Next 5 Years
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