Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO SUBMIT AN APPLICATION TO THE OHIO ENVIRONMENTAL PROTECTION AGENCY (EPA) FOR A PRINCIPAL FORGIVENESS LOAN FOR LEAD SERVICE LINE REPLACEMENTS AS PART OF THE NORTH OVIATT STREET WATERLINE REPLACEMENT PROJECT; AND DECLARING AN EMERGENCY.
Brief Description: This is a request to submit an application to the Ohio EPA for a principal forgiveness loan for the replacement of the lead service lines to the homes within the project area of the N. Oviatt Street Waterline Replacement Project.
Body
Legislative History
Res No. 21-19 - Permission to Bid and Award the N. Oviatt Street Waterline Replacement Project
Purpose & Explanation
The N. Oviatt Street Waterline Replacement Project includes replacement of the water main along N. Oviatt Street from E. Streetsboro Street to Aurora Street. The project also includes the replacement of water services within the right-of-way between the main line and the sidewalk. Construction of the project is anticipated this summer.
The Ohio EPA has notified cities throughout the state that when public water service (PWS) providers are planning a water main replacement project within an area that may have lead service lines, they must comply with Ohio Administrative Code 3745-81-84: Lead Service Line (LSL) Requirements. The rule requires that the PWS must first provide the private side owner a prior notice of the work to be performed and offer to replace the private side of the service line. The EPA does not dictate who must pay for the replacement. If the owner declines to have their water service replaced, the PWS must collect a water sample and provide testing following the main replacement. The PWS must also offer a drinking water filter certified to remove lead. The replacement program is voluntary for owners.
Staff is requesting permission to apply to the Ohio EPA for a principal forgiveness loan which would pay for both the public portion and private portion of identified lead service connections. The principal forgiveness loan is like grant funding, in that the full loan amount does not need to be paid back to the EPA. The amount of the principal forgiveness loan for the service connections is estimated at $200,000.
The Ohio EPA also offers low interest loans to help cities pay for mainline replacement projects. City staff anticipates applying to the Ohio EPA for a Water Supply Revolving Loan Account (WSRLA) Loan in the amount of $570,000 for the mainline waterline replacement project along N. Oviatt Street. The interest on the loan is currently 0.43%.
The total anticipated loan request amount is $770,000 ($570,00 + $200,000 = $770,000). If either loan is awarded, staff will return to Council for authority to enter into agreement with the Ohio EPA for the principal forgiveness loan and/or WRSLA loan.
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04:
Competitively bid and advertised for three consecutive weeks; bid tab attached: [Yes/No/NA])
Joint or Cooperative Purchase Program
Professional Services
X Other
Fiscal Impact
Currently Budgeted (Account #, $)
Supplemental Appropriation Required (Account #, $)
X Appropriation Not Required.
Does this legislation require use of an emergency clause?
X Yes - Staff requests emergency language in order to submit the application in early April 2021.
No
Recommendation
Suggested Action
Staff recommends that City Council approve this Resolution authorizing the City Manager to submit an application to the Ohio EPA for a principal forgiveness loan for lead service line replacement for the N. Oviatt Street Waterline Replacement Project.
Submitted by,
Jane Howington, City Manager
Frank Comeriato, Assistant City Manager - Operations
Kevin Powell, Assistant Public Works Director