Title
Resolution Authorizing Publication of Notice of Intent to Issue Revenue Bonds (Water Supply System Revenue Bonds) ($3,400,000.00) (Roll Call Vote)
Memorandum
This memorandum requests approval of a resolution authorizing publication of a Notice of Intent to issue $3,400,000.00 in revenue bonds backed by the Water Supply System.
In June 2017 the Michigan Department of Environmental Quality (MDEQ) notified the City of Ann Arbor that their drinking water supply contained levels of Cryptosporidium (a waterborne parasite) that requires additional protection to comply with the EPA Long-term 2 Enhanced Surface Water Treatment Rule (LT2) drinking-water regulations. MDEQ stated that compliance for treatment was required by June 2020.
On April 15, 2019 Council approved the UV Disinfection System Project (R-19-160) and authorized staff to apply for the State of Michigan Drinking Water Revolving Fund (DWRF) loan. The DWRF funding is desirable because the lower-than market interest, subsidized down to 2%.
Since Council's approval of the project, staff has obtained construction bids and been selected by the State to participate in the FY2020 2nd Quarter Closing. In order to issue the bonds the city is required to publish a Notice of Intent. After a 45 day referendum period is completed, a resolution requesting authorization to issue the bond will be provided for Council consideration.
Budget/Fiscal Impact: This project is included in the Water Supply System Capital Improvement Budget and would be funded by the Michigan Department of Environment, Great Lakes and Energy, (formerly MDEQ) Drinking Water Revolving Fund program.
Staff recommends approval of this resolution
Staff
Prepared by: Tom Crawford, Financial Services Area Administrator and CFO
Reviewed by: Betsy Blake, Senior Assistant City Attorney
Approved by: Howard S. Lazarus, City Administrator
Body
CITY OF ANN ARBOR
County of Washtenaw, State of Michigan
RESOLUTION AUTHORIZING PUBLICATION OF NOTIC...
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