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Public Works Memorandum <br /> NO. 2009-96 <br /> DATE: September 28,2009 <br /> TO: Honorable Mayor McElroy and City Council <br /> FROM: Ryan P. McCrady, City Manager Y' <br /> Richard G. Marley, P.E.,Director of Public Works �f <br /> Keith D.Alexander,Director of Water Management <br /> SUBJECT: Ordinance Authorizing Loan Agreement to Borrow Funds from the Public <br /> Water Supply Loan Program for Engineering and Construction Costs <br /> Associated with the Construction of the South Elevated Water Storage Tank, <br /> Booster Pump Station, and the Water Distribution Main from the SWTP to the <br /> Elevated Tanks , City Projects 06-17 and 03-23 <br /> SUMMARY RECOMMENDATION: <br /> Staff recommends that the City Council approve the attached ordinance authorizing a loan <br /> agreement to borrow up to $14,000,000 from the Public Water Supply Loan Program which is <br /> administered by the Illinois Environmental Protection Agency(I-EPA). The proposed loan will <br /> cover engineering and construction costs associated with the construction of the South Elevated <br /> Water Storage Tank, Booster Pump Station, and the Water Distribution Main from the South Water <br /> Treatment Plant(SWTP)to the City's elevated water tanks on East Garfield and West Division. <br /> PRIOR COUNCIL ACTION: <br /> April 2,2001 to December 15,2008 - Council took eight actions on this project. Please refer to <br /> Appendix A for a description of prior actions. <br /> July 6, 2009 - Council approved Resolutions R2009-109 and R2009-110, which authorized <br /> agreements with BGM to provide construction engineering and resident inspection services for <br /> construction of the South Elevated Water Storage Tank, Booster Pump Station, and the Water <br /> Distribution Main from the South Water Treatment Plant(SWTP)to the City's elevated water tanks <br /> on East Garfield Avenue and West Division Street. The agreements were for a total of$700,000. <br /> Council was informed that the City was applying for a low interest loan through the I-EPA to cover <br /> this work and that American Reinvestment and Recovery Act(ARRA) funds may be available to <br /> cover a portion of the work. <br /> BACKGROUND: <br /> A history of the water projects is attached as Appendix B. <br /> Page I 1 <br />