HomeMy WebLinkAbout08. 22-254JUNE 28, 2022 22-254 RESOLUTION
(CARRIED___7-0____ LOST _______ LAID OVER _______ WITHDRAWN _______)
PURPOSE: APPROVE SAFE DRINKING WATER LOAN PROGRAM
FINANCIAL ASSISTANCE AGREEMENT WITH THE
WISCONSIN DEPARTMENT OF NATURAL RESOURCES
(WDNR) FOR PROJECT NO. 4874-14
INITIATED BY: DEPARTMENT OF PUBLIC WORKS
WHEREAS, the City of Oshkosh has applied to the Safe Drinking Water Loan
Program (the “SDWLP”) for financial assistance to assist with replacing private private-
side lead water service laterals (identified as WDNR No. 4874-14, the “Project”), in the
form of a loan made by the SDWLP to the Municipality of which all the principal will be
forgiven at the time that loan disbursements are made to the Municipality, pursuant to
the WDNR Financial Assistance Agreement; and
WHEREAS, the SDWLP has determined that it can provide a loan with principal
forgiveness in an amount up to $382,500 that it has identified as being eligible for SDWLP
funding.
NOW, THEREFORE, the City Manager and City Clerk are authorized by and on
behalf of the Municipality to execute an appropriate Financial Assistance Agreement
containing terms and conditions of the SDWLP award for the Project substantially similar
to prior year’s agreements. The proper city officials are hereby authorized to execute and
deliver an agreement in substantially the same form as those from prior years, any
changes in the execution copy being deemed approved by their respective signatures,
and said City officials are authorized and directed to take those steps necessary to
implement the terms and conditions of the Agreement.
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TO: Honorable Mayor and Members of the Common Council
FROM: Steven M. Gohde, Assistant Director of Public Works/Utilities General Director
DATE: June 23, 2022
RE: Approve Safe Drinking Water Loan Program Financial Assistance Agreement
with the Wisconsin Department of Natural Resources (WDNR) for Project
No. 4874-14
BACKGROUND
The WDNR provides financial assistance for communities undertaking water system
improvements through the Safe Drinking Water Loan Program (SDWLP). In 2017, the City
received a Principal Forgiveness Loan (PFL) through the SDWLP in the amount of $500,000 to
assist residents in replacing private-side lead water service laterals. In 2018, the City also
received an additional PFL through the SDWLP in the amount of $300,000. In 2021, the City
also received a third PFL through the SDWLP for $280,000. These first three grants have
allowed the City to assist 438 property owners in replacing their private-side lead water
service. The City has applied for and is in the process of receiving a fourth PFL to assist
residents in replacing private-side lead water service laterals in the amount of $382,500.
At the March 28, 2017 meeting, the Common Council (Council) adopted changes to Chapter
20 of the Municipal Code, which requires the complete replacement of a lead water service
lateral if a repair or partial replacement occurs. A program for private-side lead water service
lateral replacements was also created, which provides funding to property owners for
replacing their private-side lead water service laterals in coordination with construction
projects or in an emergency situation where a repair or partial replacement would have
previously occurred. The funding provided through this program comes from the SDWLP.
ANALYSIS
Approval of this agreement will allow the City to recover costs associated with assisting the
residents with the replacement of their private-side lead water service laterals. Without this
program, the City could not assist residents in replacing their private-side lead water service
laterals.
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The final version of the Financial Assistance Agreement (FAA) has not been received yet.
Staff have been told the agreement will be substantially the same as last year’s agreement.
If there are any significant changes, this item will be brought back to Council for
consideration. Delaying this approval will delay the closing of the loan with the WDNR
and further delay reimbursement to property owners who have already replaced their
lead service lateral.
FISCAL IMPACT
There is no fiscal impact to the City related to this agreement. This SDWLP agreement is
for a Principal Forgiveness Loan, which means there is no repayment. This loan, like last
year’s, requires that the City must complete the public-side relay prior to applying for
reimbursement.
RECOMMENDATIONS
I recommend approval of the Safe Drinking Water Loan Program Financial Assistance
Agreement with the WDNR for Project No. 4874-14.
Approved,
Mark A. Rohloff
City Manager
SMG/tlt