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HomeMy WebLinkAbout34. 18-55 JANUARY 23, 2018 18-55 RESOLUTION (CARRIED 7-0 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE AMENDMENT TO 2018 OPERATING BUDGET— LEAD SERVICE LINE REPLACEMENT PROGRAM ($437,948.56) INITIATED BY: DEPARTMENT OF PUBLIC WORKS WHEREAS, on November 28, 2018, the Common Council adopted the 2018 Operating Budget; and WHEREAS,the City has received a$500,000.00 principal forgiveness loan from the Wisconsin Department of Natural Resources through the Safe Drinking Water Loan (SDWL) program in order to facilitate the start of removing private-side lead water service lines; and WHEREAS, $62,051.44 of the $500,000.00 of the 2017 Principal Forgiveness Loan was spent in 2017 and it is necessary to amend the 2018 Operating Budget to allow the Department of Public Works to spend the remaining 2017 SWDL Loan amount.. NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that attached Amendment #2 to the 2018 Operating Budget Amendment is hereby approved. c�ry�of Oshkosh MEMORANDUM TO: Honorable Mayor and Members of the Ct Council FROM: James Rabe, Director of Public Works DATE: January 18, 2018 RE: Approve Amendment to 2018 Operating Budget — Lead Service Line Replacement Program ($437,948.56) BACKGROUND On November 28, 2017, the Common Council adopted the 2018 Operating Budget. This annual operating budget provides the necessary funding for departments' daily operational costs and provides the legal authority for the City to enter into contracts and obligate funds. The City received a $500,000 principal forgiveness loan from the Wisconsin Department of Natural Resources through the Safe Drinking Water Loan (SDWL) program in order to facilitate the start of removing private -side lead water service lines. The City anticipates receiving another $500,000 from the SDWL program in 2018. Per the Financial Assistance Agreement with the State of Wisconsin, the City has three (3) years to spend the SWDL program funds. ANALYSIS The Department of Public Works is managing the private -side Lead Service Line Replacement program. The Department maintains a list of prequalified plumbers and utility contractors for residents to contract directly with to get their lead services replaced. The residents then submit a reimbursement request to Public Works, in accordance with the Lead Service Line Replacement Policy. To date, $62,051.44 of the $500,000 of the 2017 Principal Forgiveness Loan has been spent. This Operating Budget amendment would authorize Public Works to spend money equivalent to the remaining 2017 SDWL Principal Forgiveness Loan. FISCAL IMPACT If approved, the resolution would result in no net fiscal impact to the City of Oshkosh, as the costs are reimbursed through the SDWL program. This program funding is managed through a separate fund within the City budget. RECOMMENDATIONS Staff recommends approval of this resolution. Approved, Mark A. Rohloff City Manager JER/tlt I: \ Engineering\Tracy Taylor\ Memos to Mayor & Common Council\2018\ LSLR Oper Budget Amendment_1-18-18.docx Amendment 2 2018 Budget Amendments General Fund Account Description(s): TOTAL PROPOSED AMENDMENT: Add: APPROVED AMENDMENT: 01.09.18 Res 18-05 Add: Project Expenditures to include rehabilitation and down payment $ - assistance of $800,000.00 $ - Revolving Loan Fund Balance $800,000 $ 800,000 $ 800,000 Senior Center Building Account Account Description(s): $ - CDBG Revolving Loan Fund Account Description(s): Contractual Services TOTAL APPROVED AMENDMENT: 01.09.18 Res 18-05 Add: Project Expenditures to include rehabilitation and down payment assistance of $800,000.00 $ - Revolving Loan Fund Balance $800,000 $ 800,000 $ 800,000 Senior Center Building Account Account Description(s): APPROVED AMENDMENT: 01.09.18 Res 18-05 Permits Other Materials TOTAL Add: Room Renovation $5,000.00 $ - Revolving Loan Fund $5,000 $ 350 $ 4,650 $ 5,000 Add: $ - $ - $ - $ - $ - $ 805,000 Public Works Special Fund Account Description(s): PROPOSED AMENDMENT: 01.23.18 Res 18 -XX Misc Contractual Srvs TOTAL Add: Lead Service Line Replacement Program $ 437,900 $ 437,900 DNR Grant Awarded 2017 $500,000 $ - $ - $ - Add: