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Oak Ridge council approves $12M interfund loan, grant applications and consultant contracts; emergency transformer purchase cleared
Summary
Council authorized an interfund capital outlay note up to $12 million to shore up waterworks cash flow, approved a cybersecurity grant application (up to $750,000), authorized airport consultant negotiations and approved an emergency $1.42 million transformer purchase after a catastrophic failure at Substation 700.
Oak Ridge City Council on Tuesday approved several financial and contract actions addressing cash‑flow, infrastructure and project development needs.
To address short‑term cash timing on a major water treatment plant project, council approved an interfund loan from the general fund to the waterworks fund not to exceed $12,000,000 at 4% interest to be repaid over 42 months. Finance staff said the water fund is awaiting roughly $8.5 million from EPA and additional State Revolving Fund reimbursements and that the interfund loan will relieve cash‑flow pressure while reimbursements finalize.
"We're waiting on about 8 and a half million dollars from the EPA," the finance representative said, noting SRF reimbursements total roughly $30 million and that a 42‑month repayment schedule should provide sufficient relief.
Council also authorized staff to accept, if awarded, a cybersecurity grant from the Tennessee Department of Finance & Administration for up to $750,000 (no local match) to install a parallel/duplicate server and supporting infrastructure to improve resiliency and rapid recovery in case of cyber incidents. IT staff explained the backup server arrangement would allow one server to take over if another is attacked or fails.
Separately, council authorized staff to negotiate an initial professional services agreement with Goodwin Mills Cawood LLC for airport site selection and property evaluation work related to the proposed Oak Ridge General Aviation Airport; the initial contract phase will include site selection study updates, land appraisals and evaluation of purchase options. The resolution passed with six ayes and one abstention (a council member abstained due to an airport board role).
In utilities business, council approved a retroactive emergency purchase of a transformer for Substation 700 in the amount of $1,421,784 after a catastrophic failure in July required a rented replacement and created ongoing mobile transformer costs. Chief Solomon said lead times for new transformers are typically three years but staff located a unit with a 45–52 week lead time and that the failed unit has been shipped for insurance evaluation.
Council also accepted a state grant contract to pay fair‑market value ($1.9 million) to remove a deed restriction on an airport tract so the property may be repurposed for the Oaklow project; staff said the state agreed to fund the abrogation.
