title
AN ORDINANCE AUTHORIZING THE COUNTY OF
DUPAGE WATER AND SEWERAGE SYSTEM TO ENTER
INTO A LOAN AGREEMENT WITH THE ILLINOIS
ENVIRONMENTAL PROTECTION AGENCY TO FUND PUBLIC
IMPROVEMENTS TO THE COUNTY’S
WOODRIDGE-GREENE VALLEY WASTEWATER TREATMENT PLANT
resolution
WHEREAS, the County of DuPage (“COUNTY”) is a body corporate and politic entity duly organized and existing pursuant to the authority conferred upon counties by the Illinois State Constitution and Illinois General Assembly; and
WHEREAS, the Illinois General Assembly has specifically granted counties authority to construct, operate and maintain water supply and distribution systems and wastewater collection and treatment systems and to enter into agreements for purposes related thereto (Illinois Compiled Statutes Chapter 55 paragraphs 5/5-15001 et seq.); and
WHEREAS, pursuant to said authority, the COUNTY has constructed, operates and maintains water supply and distribution systems and wastewater collection and treatment systems throughout the COUNTY’S territory (collectively the “Systems”); and
WHEREAS, the COUNTY has engaged an engineering firm to assess future wastewater capacity needs, water service requirements, aging infrastructure, and current and future regulatory requirements; and
WHEREAS, a comprehensive capital improvement project plan (“CIP Plan”) was developed identifying improvement projects to address future wastewater and water service requirements, the COUNTY’S aging infrastructure and the changing environmental regulations; and
WHEREAS, the CIP Plan identified improvements needed at the Woodridge-Greene Valley Wastewater Treatment Plant to replace aging infrastructure, to reduce the potential for catastrophic equipment failures which could result in SSOs and NPDES permit violations and to reduce energy consumption; and
WHEREAS, the DuPage County Board (“the Corporate Authorities”), with the favorable recommendation of its Public Works Committee, have determined that it is advisable, necessary, and in the best interest of the public health, safety, and welfare of the COUNTY’S residents to address specific improvement needs at the Woodridge-Greene Valley Wastewater Treatment Plant consisting of adding two new mechanically cleaned bar screen and washer compactors in a new building; rehabilitation and reconstruction of the grit removal facilities including vortex grit tanks, grit pumps and classifiers; a new TWAS storage facility; replacement of centrifugal blowers with turbo blowers; and select replacement of air piping and gates; and
WHEREAS, the estimated costs of construction and installation of the above-identified immediate improvements (collectively the “Project”), including engineering, project management, legal, financial and other related expenses are projected to be up to thirty million dollars ($30,000,000.00); and
WHEREAS, the COUNTY’S water supply and distribution systems and wastewater collection and treatment systems rely upon user-generated enterprise revenue to fund any capital expenses and that the COUNTY’S Systems will have sufficient funds to pay only a portion of the Project expenditures; and
WHEREAS, the COUNTY is authorized by state statutes, including the Bond Authorization Act, 30 ILCS 305/, et seq., and the Local Government Debt Reform Act, 30 ILCS 350/, et seq., and the COUNTY’S own ordinances, to fund capital expenditures in excess of funds currently on hand by incurring debt through certain proscribed means; and
WHEREAS, the Corporate Authorities determined that it is advisable, necessary, and in the best interest of the COUNTY and its residents, in particular those residents served by the COUNTY’S water supply and distribution systems and wastewater collection and treatment systems, to enter into a loan agreement with the Illinois Environmental Protection Agency (“IEPA”) to fund the Project; and
WHEREAS, the IEPA loan shall bear an interest rate, as defined by 35 Ill. Adm. Code 662, that does not exceed the maximum rate authorized by the Bond Authorization Act or the Local Government Debt Reform Act at the time of the issuance of the loan; and
WHEREAS, the principal and interest payments under such loan shall be payable semi-annually, and the loan shall mature not more than twenty (20) years from the date of issue, which term is within the useful life of the Project; and
WHEREAS, it is anticipated that majority of Project costs will be paid for with a loan to the COUNTY’S Water and Sewerage System from the IEPA State Revolving Fund (“SRF”) Loan Program, whereby the loan shall be repaid from revenue from the COUNTY’S various waterworks and, or, wastewater systems; and
WHEREAS, in accordance with the provisions of the Bond Authorization Act, and the Local Government Debt Reform Act, the COUNTY’S Water and Sewerage System is authorized to make application for and borrow funds from IEPA SRF Loan Program, or such other loan program having terms consistent with those described above, in the aggregate principal amount not to exceed twenty five million dollars ($25,000,000.00), to provide funds to pay the majority of the costs of the Project; and
WHEREAS, the loan to the COUNTY’S Water and Sewerage System shall be pursuant to a Loan Agreement with the IEPA specifying those terms and conditions of said loan consistent with this authorization; and
NOW THEREFORE, BE IT ORDAINED by the Corporate Authorities of the County of DuPage, Wheaton, Illinois, as follows:
SECTION 1. INCORPORATE OF PREAMBLES
The Corporate Authorities hereby find that the recitals contained in the preambles are true and correct, and incorporate them into this Ordinance by this reference.
SECTION 2. DETERMINATION TO BORROW FUNDS
It is necessary and in the best interests of the COUNTY to construct the Project for the public’s health, safety, and welfare, as set forth in the CIP Plan, as described; that the Systems continue to be operated in accordance with the provisions of the Illinois Environmental Protection Act, 415 ILCS 5/1 et seq.; and that for the purpose of constructing the Projects, it is hereby authorized that funds be borrowed by the COUNTY’S Water and Sewerage System not to exceed the aggregate principal amount (which may include construction period interest financed over the term of the loan) of twenty five million dollars ($25,000,000.00).
SECTION 3. ADDITIONAL ORDINANCES
The Corporate Authorities may adopt additional ordinances or proceedings supplementing or amending this Ordinance, providing for entering into the Loan Agreement with the Illinois Environmental Protection Agency, prescribing all the details of the Loan Agreement, and providing for the collection, segregation and distribution of the revenues of the Systems, so long as the maximum amount of the Loan Agreement as set forth in this Ordinance is not exceeded and there is no material change in the Project or purposes described herein. This Ordinance, together with such additional ordinances or proceedings, shall constitute complete authority for entering into the Loan Agreement under applicable law.
However, notwithstanding the above, the Corporate Authorities may not adopt additional ordinances or amendments which provide for any substantive or material change in the scope and intent of this Ordinance, including but not limited to interest rate, preference or priority of any other ordinance with this Ordinance, parity of any other ordinance with this Ordinance, or otherwise alter or impair the obligation of the COUNTY’S Water and Sewer System to pay the principal and interest due to the IEPA SRF Loan Program without the written consent of the Illinois Environmental Protection Agency.
SECTION 4. LOAN NOT INDEBTEDNESS OF COUNTY
Repayment of the loan to the Illinois Environmental Protection Agency by the COUNTY’S Water and Sewerage System pursuant to this Ordinance is to be solely from the revenue derived from the revenues of the Systems, and the loan does not constitute an indebtedness of the COUNTY within the meaning of any constitutional or statutory limitation.
SECTION 5. APPLICATION FOR LOAN
The Chair of the DuPage County Board (“Chair”), and the Superintendent of Public Works (“Superintendent”), are hereby authorized to make application to the Illinois Environmental Protection Agency for a loan through the IEPA SRF Loan Program, in accordance with the loan requirements set out in 35 Ill. Adm. Code 662, and to execute any such other documents as necessary to consummate this loan.
SECTION 6. ACCEPTANCE OF LOAN AGREEMENT
The Corporate Authorities hereby authorize acceptance of the offer of a loan through the IEPA SRF Loan Program, including all terms and conditions of the Loan Agreement as well as all special conditions contained therein and made a part thereof by reference. The Corporate Authorities further agree that the loan funds awarded shall be used solely for the purposes of the Project as approved by the Illinois Environmental Protection Agency in accordance with the terms and conditions of the Loan Agreement.
SECTION 7. OUTSTANDING OBLIGATIONS
The COUNTY’S Water and Sewerage System has no outstanding bonds, payable from revenues of the Systems, that are senior to the loan authorized by this Ordinance. The COUNTY will comply with 35 ILCS 365.350(a)(10)(C).
SECTION 8. AUTHORIZATION OF CHAIR TO EXECUTE LOAN AGREEMENTS
The Chair is hereby authorized and directed to execute the Loan Agreement with the Illinois Environmental Protection Agency. The Corporate Authorities further authorize, by this Ordinance, the Superintendent to execute any additional documents associated with payment requests or reimbursements from the Illinois Environmental Protection Agency in connection with this loan.
SECTION 9. SEVERABILITY
If any section, paragraph, clause or provision of this Ordinance is held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Ordinance.
SECTION 10. REPEALER
All ordinances, resolutions, orders, or parts thereof which conflict with the provisions of this Ordinance, to the extent of such conflict(s), are hereby repealed.
BE IT FURTHER ORDAINED THAT the DuPage County Clerk be hereby directed to transmit certified copies of this Ordinance to: one (1) copy to the Illinois Environmental Protection Agency (IEPA), 1021 N. Grand Ave., P.O. Box 19276, Springfield, IL 62794 ATTN: Jasmine Mallory, one (1) copy to the Revenue Department of the County Clerk’s Office, Auditor’s Office, Nicholas Alfonso/State’s Attorney’s Office and three (3) copies to the Department of Public Works.
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Enacted and approved this 9th day of April, 2024 at Wheaton, Illinois.
________________________________
DEBORAH A. CONROY, CHAIR
DU PAGE COUNTY BOARD
Attest: ___________________________________
JEAN KACZMAREK, COUNTY CLERK