City Plans To Apply For $ 4 Million Loan To Fund Leona Mitchell Water Line Replacement And Other Improvements | News

ENID, Oklahoma. – The city hopes to apply for a loan to finance the replacement of the aging water pipe that runs through Enid’s Southern Heights neighborhood.

City commissioners will consider moving forward on Tuesday with a request for a loan of up to $ 4 million with an immediate 25% discount from the Oklahoma Water Resources Board.

City manager Jerald Gilbert said funds for the new Leona Mitchell Boulevard water line had already been earmarked in the city’s fiscal year budget, but the 75% discount was the main motivation for seeking a ready instead.

“It makes it a really good deal for us,” Gilbert said on Saturday. “So basically, it allows us to do more projects than what was already planned. “

He said other infrastructure projects using the city’s initial funds had not yet been identified.

“(But) there is a lot of street work that needs to be done, and obviously a lot of other infrastructure that needs to be addressed as well,” Gilbert said.

In previous study sessions, city engineers had estimated the Leona Mitchell project to cost around $ 1.5 million, with the intention of using the city’s COVID relief funds to cover the project.

On Tuesday, commissioners will first need five votes to approve the emergency resolution approving the action to be taken authorizing the issuance, sale and delivery of the Enid Municipal Authority series 2022 promissory note for the State revolving fund for drinking water. A separate emergency motion is also required.

As the EMA’s voting body, the commissioners would vote again to move forward by allowing legal counsel to sign a loan agreement with the OWRB, as well as a tax revenue agreement to repay funds. The EMA would also agree to retain the services of a legal advisor for bond services, to pay a fixed rate of 1% of the loan amount.

An interest rate of 3% or less per year would be determined once the OWRB meets almost next year to review the loan, Gilbert said.

The commissioners will meet at 6.30 p.m. on Tuesday in the council chamber of the city’s administrative building.

This particular OWRB loan is unrelated to the city’s Kaw Lake pipeline project, which was largely funded by five major OWRB loans that closed between 2016 and 2020.

With the city’s engineering designs on the waterline already completed, Gilbert said the project is expected to go to tender soon.

Construction of the 12-inch pipeline, from Garriott to Steele, is expected to begin in early spring 2022, he said.

Workers would then transfer around 200 indoor lines on residential streets to the new main. City engineers said about half of the lines did not need to be replaced because they were installed in the 1980s.

A new water line would bring a much larger volume of water to the Southern Heights area to improve it for fire protection and future development, Gilbert said.

During a study session in February, the Enid Fire Marshal identified three Enid neighborhoods whose substandard fires from hydrants needed to be addressed for better property protection, the joint additions of Southern Heights / Garfield being the first priority.

Residents had also complained to city officials at several committee meetings about poor water quality in the Van Buren neighborhoods in 7th and Garriott in Steele, including discolored water and low water flow. ‘water. City utility workers have since attempted to fix these issues with a flush every two weeks, while tests have shown the water is still safe to drink.


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