2016-30 AUTHORIZING THE CITY TO BORROW FUNDS FROM THE WATER POLLUTION CONTROL REVOLVING LOAN FUND

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Critical Sewer Expected Construction Lake Shore Drive Sewer Completed Summer 2014 Union Street Sewer Completed Summer 2015 7th Ward Sewer Fa112016— Summer 2018 McKinley Avenue Sewers Spring 2018 — Summer 2019 7tn Ward Sewer and 7th Ward Relief Sewer The 7th Ward Sewer was built around 1905 to serve growing industrial, commercial, and residential development. As the name suggests, it hearkens back to the time when the City was divided into wards. The sewer begins near Leafland and Edward Street and flows south and west, passing through Millikin University in what was originally a natural valley that has since been filled in to accommodate the university's expanding needs. The 7th Ward Sewer flows west from Millikin to a junction structure in Fairview Park, and then continues roughly south to the 7th Ward Combined Sewer Overflow facility , owned by the Sanitary District of Decatur, located near the far west end of Sunset Avenue. The original sewer was a combination of monolithic concrete and brick pipe varying from 36" to 56" diameter. The 7th Ward Relief Sewer begins at King and Pine Streets and flows south and west, generally following the alignment of the 7`h Ward Sewer. The Relief Sewer was completed in 1942 and constructed of 60" to 84" diameter reinforced concrete pipe to both increase sewer capacity through the Millikin University area and to help relieve upstream flooding issues. The Relief Sewer and the 7th Ward Sewer connect to the same junction structure in Fairview Park which then travels south to the 7`h Ward Combined Sewer Overflow facility. Both sewers are laid out on the attached drawings. Appendix B contains selected inspection photos detailing the general condition of the 7`h Ward Sewer. Project Funding Through the Water Pollution Control Loan Program The passage of an ordinance authorizing a loan agreement to borrow funds from the Illinois Water Pollution Control Loan Program is one of the final steps in securing an IEPA low interest loan. The loan rate is expected to be 1.86%. The ordinance addresses the funding for the project and assures that the City is able to repay the loan over a 20 year period beginning at the substantial completion of the project. The funds included in the loan request are summarized in the following table: Work Item Project Estimate Design Engineering* $156,500 Construction $12,905,140 Construction Contingency $1,290,520 Construction Engineering $944,000 Total Estimated Project Cost $15,452,660 Total Loan Requested $15,452,660 * The Design engineering costs originally included both McKinley and 7th Ward sewer design. Since the project is now separated, this reflects 1/2 of the authorized $313,000. Page � 3