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Home My Public Portal About05-08-2012 Loan Order ToWN OF 10 1630 WATERTOWN Office of the Torun Manager #r` Administration Building 149 Main Street Watertown, MA02472 Phone:617-972-6465 Michael J. Driscoll I'm 617-972-6404 Town Manager wwwmatertowu-nta.gov towumer(altva tertow n-ma.eov To: Honorable Town Council From: Michael J. Driscoll, Town Manager Date: May 2, 2012 RE: Agenda Item—Proposed Loan Order Enclosed please find correspondence from Gerald S. Mee, Jr., Superintendent of Public Works regarding the Town's application for participation in the Massachusetts Water Resources Authority's (MWRA) Inflow and Infiltration (I/I) Local Financial Assistance Program. The cost of the proposed project is $540,000. Funding from this MWRA Program consists of a $243,000 grant (45%) and a$297,000 Interest Free loan(55%),payable over five years. I recommend pursuing the $540,000 from the MWRA's III Local Financial Assistance Program. As stated in the Fiscal Year 2013 Budget Message, all work to the water, sewer and drain systems directly impacts the Water and Sewer Rates. Interest free loans and outright grants will enable the Town to perform necessary work with little or minimal impact on the rate payers. Therefore, I respectfully request the attached Proposed Loan Order be placed on the May 8, 2012 Town Council Agenda as a First Reading. Thank you for your consideration in this matter. cc: Gerald S. Mee, Jr., Superintendent of Public Works Steven Magoon, Director of Community Development and Planning Phyllis L. Marshall, Town Treasurer/Collector Thomas J. Tracy,Town Auditor ED)tARDSEDWARDS WILDMAN PALMER UP 111 HUNTINGTON AVENUE MD N 81 617 2 MA 20 tax +i 617 239 0100 main +I 6 i 7 227 4420(ax edwnrdnviIdman.Com Kara K. Adams +L 617 239 0387 fax+l 866 644 8575 kadarns@ edwardsw!Mom).con) May 2, 2012 Peter B.Frazier, Senior Vice President First Southwest Company Municipal Advisory Group 54 Canal Street, Suite 320 Boston,Massachusetts 02114 Dear Peter: (Town of Watertown— Sewer Bonds) As requested I suggest the following form of revised loan order: Ordered: that the following amount is appropriated for the following purposes: Amount Purpose $540,000 reconstruction of surface drains, sewers and sewer systems, and for the payment of all other costs incidental and related thereto and that to meet this appropriation the Town Treasurer, with the approval of the Town Manager, is authorized to borrow $540,000 under Chapter 44 of the General Laws or any other enabling authority, that the Treasurer with the approval of the Town Manager is authorized to borrow all or a portion of such amount from the Massachusetts Water Resources Authority and in connection therewith to enter into loan agreements and financial assistance agreements with the Authority with respect to such loan; that the Town Manager, Treasurer and the Superintendent of Public Works ate authorized to contract for and expend any federal, state or other aid available for the projects, including any grants related to such projects from the Authority; and that the Town Manager, Treasurer and the Superintendent of Public Works ate authorized to take any other action necessary or convenient to carry out this project, provided that the amount of the authorized borrowing shall be reduced by the amount of such aid received for the associated project prior to the issuance of bonds or notes under this order, BOSTON - CHICAGO FT LAUDERDALE - HARTFORD I LONDON r LOS ANGELES I MADISON NJ, NEW YORK� NEWPORT REACH PROVIDENCE STAMFORD I TOKYO,WASHINGTON DC - WEST PALM BEACH , HONG KONG(omdoled offfcG) E AR IL N Peter B. Frazier, Senior Vice President May 2, 2012 Page 2 The order must be published at least 5 days prior to the holding of a public hearing with respect to the order and its final passage and require at least a two-thirds vote, as in the case of any other loan order for bonds. Please call me if there are any questions about the suggested proceedings. Yours finNfidly, I ara K. Adams KKA BOS 11 112697104.2 1s�e TOWN OF W,4TERTOWN DEPARTMENT OF PUBLIC WORKS th1{ � 124 ORCHARD STREET WATERTOWN, MASSACHUSETTS 02472 Tel: 617-972-6420 Fax: 617-972-6402 TO: Michael J. Driscoll Town Manager All FROM: Gerald S. Mee, Jr. Superintendent of Public Works DATE: May 1, 2012 RE: MWRA Local Inflow and Infiltration Financial Assistance Program The Town is filing an application for funding under the MWRA Inflow and Infiltration (1/1) Local Financial Assistance Program. The program provides funds for eligible work to reduce Infiltration and Inflow (1/1) into the sewer system. Backaround Infiltration and inflow consists of extraneous groundwater and stormwater that enters the sanitary sewer through various means such as aging pipes and manholes and sump pumps. 1/1 reduces the capacity of sewers to carry designated flows and drives up the annual sewer use charges paid by the Town to the MWRA. 1/1 also contribute to surcharging of the system during severe weather events, which can result in flooding of streets and residential backups. Proiect Description The project will include sewer replacement of 1,342 linear feet of 10-inch gravity sewer on Hovey Street. The sewer is 15 to 20 feet deep for approximately 950 linear feet and the remaining 400 linear feet is B to 15 feet deep. Work also includes replacement of four (4) sewer manholes and thirty (30) sewer services. The project could also include some storm drain reconstruction work. A 12-inch drain runs parallel to the existing sewer. Depending on the condition of the existing drain, some drain replacement work may be required. Funding Funding is $ 540,000 and includes a $243,000 grant portion and a $297,000 loan portion. K:\Town Manager\MWRA\MWRA I&I Summary May 2012.Doc Sianificance As stated regarding previous applications, this program affords the Town several excellent opportunities. • As an enterprise system, all work performed on our sewer and drain systems directly impacts the rate. Interest free loans and out right grants enable the Town to perform necessary work with little or minimal impact on the rate payers. • Removal of 1/1 reduces charges to the Town from the MWRA. It is my hope you will support this important endeavor. Please let me know if you need any additional information. KATown Manager\MWRA\MWRA I&I Summary May 2012.Doc