2024-24 Ordinance Authorizing the City of Decatur of Macon County, Illinois to Borrow Funds from the Public Water Supply Loan Program

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2/29/24,10:18 AM Item Coversheet ordinance will be signed by the City Manager and the loan activated. The contractor will then be given a notice to proceed. Construction Engineering Services The IEPA requires that projects being supported by the Public Water Supply Loan Program be provided with project oversight by qualified resident engineers that are familiar with the water treatment work being proposed.A construction engineering agreement will be brought to the Mayor and Council at the same time that a construction contract is to be awarded. LEGAL REVIEW:_The Ordinance was sent to Legal for review and was approved by Corporation Counsel on February 15,2024. SCHEDULE: The anticipated schedule is as follows: Plans and Specifications Submitted to the IEPA June 2024 Advertise for Bid September 2024 Bids Opened by the City October 2024 City Council Approves Bids Contingent on IEPA Funding November 2024 The Loan is Authorized by the IEPA November 2024 Notice to Proceed is Issued to the Contractor December 2024 Project Completion June 2026 PRIOR COUNCIL ACTION: 1.July 12,2022—Study session in which the Mayor and City Council were briefed on the Water Utility Long Term Sustainability Plan,which recommended replacement of aging electrical equipment at the South Water Treatment Plant. 2.July 18,2022—Approval of a consulting services agreement with Crawford,Murphy and Tilly(CMT)to design four improvement projects identified in the Water Utility Long Term Sustainability Plan,including the South Water Treatment Plan Electrical Improvements,Project No. 2022-18. 3. October 17,2022—Approval of a resolution authorizing the City Manager to sign loan documents to initiate a State Revolving Fund loan from the Public Water Supply Loan program for engineering and construction costs associated with the South Water Treatment Plan Electrical Improvements,Project No. 2022-18. 4. September 25,2023—Study session in which the Mayor and City Council received a tour of the South Water Treatment Plant and observed some of the 35-year old electrical equipment,which is nearing the end of its useful service life. POTENTIAL OBJECTIONS: None INPUT FROM OTHER SOURCES: The City's adviser on water finances and policy,Ms.Lisa Bonnett,has reviewed the proposed IEPA loan package and recommends approval. The attachments were primarily the work of CMT.The Finance Department has reviewed the loan ordinance. STAFF REFERENCE: Matt Newell,Public Works Director,Paul Caswell,City Engineer,and Robert Weil,Assistant City Engineer.The memo was written by Robert Weil.Matt Newell will attend the City Council meeting to answer any questions of the Council on this item. BUDGET/TIME IMPLICATIONS: Budget Impact: Water utility revenues are sufficient to fund the debt service for this improvement. A review of the water utility finances is currently being conducted. In addition,the Public Works Department recently obtained no- cost technical assistance through the USEPA,which is being provided by the US Water Alliance,a highly respected think tank for the water industry.The US Water Alliance will work with City staff to evaluate long term strategies to finance needed capital improvements while keeping rates affordable. Staff Impact: Current approved staffing levels should be sufficient to accomplish the project. hfps://decatur.novusagenda.com/agendaweb/CoverSheet.aspx?ItemID=4875 2/3