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Council committee authorizes entering loan agreement for lead service line replacement project No. 7
Summary
Newark’s service committee authorized staff to apply for and enter a water supply revolving loan agreement to fund service line replacement project No. 7. Committee discussion said lower-than-expected bid prices will allow the city to replace more services for the same loan amount; motion passed unanimously.
The Newark City Council service committee on April 7 approved a resolution authorizing the city to apply for, accept and enter into a water supply revolving loan account agreement to finance planning, design and/or construction of Service Line Replacement Project No. 7.
Staff reported the project is the seventh of an anticipated 12 such projects. City presenters told committee members that because contractor competitiveness lowered unit costs, the city expects to replace more lead or unknown service lines under the same loan request than originally projected. Staff said an earlier request to the Ohio EPA had been for $3.5 million; with current pricing the city expects to stretch funding to cover about 1,200–1,300 services on this round rather than the 1,000 originally anticipated.
Officials asked residents who may have galvanized or unknown service lines to contact the city; staff said residents can register on the city’s lead service line page at newarkohio.gov by searching for "lead." Motion to authorize the loan agreement was made and seconded in committee and approved 5-0.
Why it matters: Expanding lead service-line replacement reduces exposure to lead in drinking water and is part of a multi-year municipal program. The committee’s action authorizes staff to designate a dedicated repayment source for the loan and move forward with bidding and contracting once financing is in place.
Committee discussion and clarifications
Staff said they will continue door‑to‑door surveys and outreach as contractors work in neighborhoods and that because of competitive bid conditions they expect to accomplish more service-line replacements with the available loan proceeds. Staff estimated that this round could complete approximately 1,200–1,300 services, down from a planned 12 projects across multiple fiscal cycles because the lower per-service cost will allow projects to finish earlier than previously expected.
Votes and motion
- Authorization to apply for and enter into a water supply revolving loan agreement for Service Line Replacement Project No. 7 (designating a dedicated repayment source): Motion by Newley; seconded by Blinds; committee vote 5-0 to approve and forward to full council.
Next steps
Staff will submit loan paperwork, advertise the project for bids (projected bid opening in June), continue resident outreach and return final loan and contract awards to council for approval when available.
