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7/8/24, 1:40 PM Item Coversheet <br /> Public Works <br /> DATE: 7/5/2024 <br /> MEMO: 2024-103 <br /> TO: Honorable Mayor Moore Wolfe and City Council Members <br /> FROM: Tim Gleason,City Manager <br /> Matt Newell,P.E.,Public Works Director <br /> Robert Weil,P.E.,Water Production Manager <br /> SUBJECT: <br /> Resolution authorizing the City Manager to sign loan documents for the Public Water Supply Loan Program for the South <br /> Water Treatment Plant Electrical Improvements,Project Number 2022-18. <br /> SUMMARY RECOMMENDATION: <br /> It is recommended that the City Council adopt the attached resolution authorizing the City Manager to sign loan documents for the <br /> Public Water Supply Loan Program for the South Water Treatment Plant Electrical Improvements,Project Number 2022-18. The <br /> pending$21,000,000 loan will cover engineering and construction costs associated with needed electrical improvements to the <br /> South Water Treatment Plant. <br /> BACKGROUND: <br /> Illinois Environmental Protection Agency(IEPA)State Revolving Loan Program <br /> The IEPA Wastewater and Drinking Water loan programs provide low-interest loans through the State Revolving Fund(SRF). The <br /> SRF includes two loan programs: the Water Pollution Control Loan Program(WPCLP)which funds both wastewater and storm <br /> water projects,and the Public Water Supply Loan Program(PWSLP)for drinking water projects. The current year loan interest <br /> rate is 1.81%. <br /> Project Funding through the Public Water Supply Loan Program <br /> The draft FY2025 Intended Use Plan for the Public Water Supply Loan Program was released to the public on June 3,2024,and <br /> the City of Decatur's requested$21,000,000 loan was near the top of the list of projects(4th out of 40 submitted projects)to <br /> receive the requested funding.The project scored highly because of the need as well as sustainability features designed into the <br /> project and the City's adopted Watershed Protection Plan. <br /> The resolution is a normal procedural matter for all IEPA loans.The signatory official is required to be authorized by name to sign <br /> documents. <br /> LEGAL REVIEW: The resolution is consistent with the loan ordinance previously approved by the Corporation Counsel. <br /> PRIOR COUNCIL ACTION: <br /> 1.July 12,2022—Study session in which the Mayor and City Council were briefed on the Water Utility Long Term <br /> Sustainability Plan,which recommended replacement of aging electrical equipment at the South Water Treatment Plant. <br /> 2.July 18,2022—Approval of a consulting services agreement with Crawford,Murphy and Tilly(CMT)to design four <br /> improvement projects identified in the Water Utility Long Term Sustainability Plan,including the South Water Treatment <br /> Plan Electrical Improvements,Project No.2022-18. <br /> 3. October 17,2022—Approval of a resolution authorizing the City Manager to sign loan documents to initiate a State <br /> Revolving Fund loan from the Public Water Supply Loan program for engineering and construction costs associated with the <br /> South Water Treatment Plan Electrical Improvements,Project No.2022-18. <br /> https://decatur.novusagenda.com/agendaweb/CoverSheet.aspx?ItemI D=5104 1/2 <br />