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R-84-24 authorizing the Village Administrator to execute the loan agreement between the Village of Lemont and the Illinois Environmental Protection Agency (IEPA).9'g'q-zq 4 1`3 lklain Street 1 Lemont, 1L_. 60439 TO: Village Board Meeting FROM: Darshana Prakash, Finance THROUGH: George Schafer, Village Administrator SUBJECT: A Resolution authorizing the Village Administrator to execute the loan agreement between the Village of Lemont and the Illinois Environmental Protection Agency (IEPA). DATE: November 25, 2024 SUMMARY/BACKGROUND This agenda item was discussed by the Village Board at the November 18, 2024 Committee of the Whole meeting. The inventory of lead service lines that need to be replaced within the Village was submitted to the Illinois Environmental Protection Agency (IEPA) in April 2024. Of the total, 35 lead service lines will be replaced in late FY25/early FY26 for a total cost of $560,000. Being that this mandate is costly and spans over several years, the IEPA provides funds through its Public Water Supply Loan Program (PWSLP). The loan is at a 0% interest rate for a term of 30 years. Staff recommends availing of this zero interest loan which has a budgetary impact of $19,000 in the first year in the Water Fund. The repayment of the loan will be from water revenues and if necessary from sales tax revenues (as a loan from General Fund). The Board has approved an Ordinance to enter into a loan agreement between the Village and the IEPA for the above mentioned project. In order to facilitate entering into the loan agreement, the Board authorizes the Village Administrator to act on their behalf to execute any documents associated with this loan agreement. ANALYSIS Consistency with Village Policy STAFF RECOMMENDATION Pass the Resolution. BOARD ACTION REQUESTED Pass the Resolution. ATTACHMENTS Resolution to authorize VA.pdf Resolution No. "_ 2 A Resolution Authorizing the Village Administrator to Execute the Loan Agreement between the Village of Lemont and the Illinois Environmental Protection Agency (IEPA) WHEREAS, the Village of Lemont, Cook, DuPage and Will Counties, Illinois (the "Village") operates its combined waterworks and sewerage system (the "System") in accordance with the provisions of the Illinois Municipal Code (65 ILCS 5/11-139) and the Local Government Debt Reform Act of the State of Illinois (the "State"), 30 ILCS 350/1 (collectively, the "Act"), and WHEREAS, the President and the Board of Trustees of the Village (the "Corporate Authorities") have detennined that it is advisable, necessary and in the best interests of public health, safety and welfare of the Village and its residents to make improvements to the System, including, but not limited to, replacement of 35 residential lead water service lines and any and all other System -related projects and improvements in connection thereto, together with any land or rights in land and all electrical, mechanical or other services necessary, useful or advisable to the construction and installation (collectively, the "Project"), all in accordance with the plans and specifications prepared by consulting engineers of the Village, which Project has a useful life of 50 years; and WHEREAS, the estimated cost of construction and installation of the Project, including engineering, legal, financial, and other related expenses is $560,000, and there are insufficient funds on hand and lawfully available to pay these costs; and WHEREAS, It is necessary and in the best interests of the Village to construct the Project for the public health, safety and welfare, in accordance with the plans and specifications, as described; that the System continues to be operated in accordance with the provisions of the Act; and that for the purpose of constructing the Project, it is hereby authorized that fiends be borrowed by the Village in an aggregate principal amount (which can include construction period interest financed over the term of the Loan) in one or more draws not to exceed $568,400. WHEREAS, the Loan to the Village shall be made pursuant to a Loan Agreement, including certain terms and conditions, between the Village and the IEPA; and WHEREAS, The Corporate Authorities hereby authorize and direct the Village Administrator for the sole purpose of authorizing or executing any documents associated with payment requests or reimbursements from the IEPA in connection with the Loan. NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF LEMONT, COUNTIES OF COOK, DUPAGE, AND WILL COUNTIES, ILLINOIS AS FOLLOWS: SECTION ONE: The Village Administrator, in his discretion, is authorized to execute the loan agreement with the IEPA. SECTION TWO: This Resolution shall be in full force and effect from and after its passage and approval as provided by law. 2 ADOPTED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF LEMONT, COUNTIES OF COOK, WILL AND DUPAGE, ILLINOIS on this 25111 DAY OF November 2024. PRESIDENT AND VILLAGE BOARD MEMBERS: AYES NAYS ABSENT ABSTAIN Janelle Kittridge Dave Maher Ken McClafferty Kevin Shaughnessy Rick Sniegowski— Ron Stapleton �.e JOHN EGOFSKE, Village President ATTEST: y 7 CfIARLENE M. SMOLLEN, Village Clerk 3