Galesburg Reporter

City of Knoxville City Council met April 4.

Here is the agenda provided by the council:

PUBLIC HEARING

Project Summary and Preliminary Environmental Impacts Determination

The following project summary and environmental assessment has been prepared by the IEPA to assist the loan applicant in complying with the public notice requirements. This report is based on information submitted to the IEPA by the City of Knoxville. Sources of information include the following documents: Project P1anning Report for Lead Water Service Line Replacement - City of Knoxville, prepared by Bruner, Cooper & Zuck, Inc., dated March 2021; and additional documentation obtained from loan application documents and other correspondence compiled by the IEPA.

Part I - Project Information Project Name: Lead Water Service Replacement

Project Number: LI 76000

Loan Applicant: City of Knoxville

Current Population: 2,726

Number Service Connections: 1,236

Project Description:

County: Knox

Future Population (20 year): 2,726

The City of Knoxville is replacing all of its inventoried lead service lines. 145 -service lines will be replaced from the existing water supply mains to the existing residences. The method for replacement will consist of primarily trenchless construction. Most service lines will be replaced by inserting a wire through the existing line into the home, capping the wire with a head that will be connected to the new plastic service line, and then pulling the wire back out which will remove the existing lead service and simultaneously pull the new plastic service to the water main. The few service lines that are unable to be replaced by the above-mentioned method shall be replaced with a new plastic service directional drilled in place. The only excavation for the project will be at the connection to the existing water mains and the removal and replacement of the existing service shut-off valves.

Project Location: Various locations throughout the City; affected properties will be notified prior to construction

Project Justification:

The City of Knoxville intends to remove lead service lines from its water system as a preventative measure against lead exposure.

Estimated Construction Start: Summer 2022

Estimated Completion Date: Winter/Spring 2023

Part II - Project Affordability for Residents and Utility Customers

The City of Knoxville is proposing to finance the projects loans from the Public Water Supply Loan Program (PWSLP). A $1,200,000 loan with an estimated interest rate of 1.11% for a twenty

(20) year period would have an annual repayment of approximately $66,934. The interest rate adjusts annually on July 1st. All loans are subject to the interest rate in effect at the time a loan agreement is issued.

The loan program rules include provisions for incentives such as reduced interest rates, partial principal forgiveness, and extended repayment periods for qualifying applicants. The criteria used to determine incentive qualification are found in Sections 662.210 and 662.250 of the Procedures for Issuing Loans from the PWSLP which is available on the Agency's website. The final decision for incentive qualification will be determined at the time a loan agreement is issued using updated Census Bureau and Department of Labor data. Using current data, the applicant is eligible for the small community rate and the environmental discount reduction in the interest rate. The Agency adjusts qualifying criteria annually on July 1st.

In addition, the city qualifies for principal forgiveness for lead service line replacement. For FY2022, the maximum amount is $4 million.

Source of Loan Repayment:

This project qualifies for full principal forgiveness under the Lead Service Line Replacement program. However, should LSLR principal forgiveness be unavailable, and the City elected to proceed with replacing the services with a conventional loan, the source of funds for loan repayment would be from user fees.

Current Average Monthly Residential Water Use: 3,292 gallons Current Average Monthly Residential Cost of Service: $21.17

Projected Average Monthly Residential Cost of Service: $21.17

How is the monthly residential rate/cost of service calculated?

For the average residential user residing within corporate limits, the user charge system consists of a flat $16.00 rate for the first 2,000 gallons of water used and a $4.00 per 1,000 gallons beyond the initial 2,000 gallons.

Median Household Income (MHI): $57,350

Financial Evaluation of the proposed project:

In order to evaluate the cost of the proposed project on the community, a percentage comparison of the MHI to the annual cost for services is utilized. According to the most recent census information, the MHI for Knoxville is $57,350. The projected total annual service cost of$254.04 is 0.44 percent of the MHI for the area. The percentage is for comparison only and has no impact on whether a project qualifies for funding from the IEPA. The percentage comparison and MHI are two of several criteria used to determine whether a loan project qualifies for interest rate reductions or principal forgiveness.

Part III- Environmental Issues Associated with the Project construction impacts:

Temporary adverse environmental impacts such as construction-associated noise, blowing dust, air emissions, soil erosion, and minor traffic disruptions will likely occur during construction. These temporary impacts will be minimized through provisions defined in the plans (i.e., implementation of soil erosion controls, proper traffic control, set construction hours).

Illinois Department of Natural Resources:

The loan applicant submitted project information to the Illinois Department of Natural Resources (IDNR), State Historic Preservation Office (SHPO), for consultation under Section 106 of the National Historic Preservation Act of 1966. The Department has concluded that adverse effects are unlikely.

The loan applicant submitted project information to the IDNR Division of Ecosystems and Environment to determine compliance with the Illinois Endangere9 Species Act, Illinois_ Natural Areas Preservation Act, the Illinois Wetlands Act, and Title i7 Ill. Adm. Code Parts 1075 and 1090. The Department has concluded that adverse effects are unlikely.

U.S. Army Corps of Engineers (USACE):

The City of Knoxville submitted project information to the USACE to determine USACE jurisdiction. The USACE determined that the proposed project does not require a Department of the Army Section 404 permit, nor does it impact a potential Waters of the United States (WOTUS).

Public comments are invited on the proposed project. For further information, contact:

Chris Covert, Project Manager

Infrastructure Financial Assistance Section

Illinois Environmental Protection Agency

Bureau of Water

1021 North Grand Avenue East

P.O. Box 19276

Springfield, Illinois 62794-9276

(217)782-2027

Detailed information on the project together with the Illinois Environmental Protection Agency’s Preliminary Environmental Impacts Determination documents will be available for public inspection at City Hall, 33 North Public Square, Knoxville, Illinois 61448. Persons and /organizations wishing to make a statement on the proposed project will be asked to identify themselves and their respective interest at the public hearing. Written statements regarding the subject of the public hearing will be accepted until ten (10) days after the hearings and should be addressed to the Illinois Environmental Protect Agency as indicated in the Preliminary Environmental Impacts Determination document.

https://kville.org/city-council-agenda/