11/18/2019 BOARD OF SELECTMEN Agenda Packet

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*DRAFT SELECTMEN MINUTES 10-28-2019* 3 Board of Selectmen Minutes October 28, 2019 Presentation on Selection and Finance Process for State Revolving Fund: Nate Keenan—Mass Clean Water Trust; Maria Pinaud—Mass DEP• (continued) On average, the State Revolving Fund finances 50-70 clean water projects per year. Each project is capped at$15 million per year. Once a plan is approved financing is continued each year at$15 million until the project is complete. This is dependent upon the project cost and the capacity of the program. Under the $15 million cap, $5 in. could be financed for 3 projects. Fixed low-interest rates are established by law and offer a stable planning tool for communities. Most loans provided by SRF have a 2% interest rate. Projects that address nitrogen qualify for 0% interest loans if state requirements within the statute are met. The maximum financing term is 30 years with a 0.15% administrative fee. With treatment facilities there is a requirement regarding compliance. Since Mashpee does not have an existing municipal system this is not applicable at this time. In considering the use of Joint Base Cape Cod (JBCC), it was noted that each of the participating towns could respectively borrow $15 million, and work collectively to fund wastewater. Regional support is encouraged in the ranking system. It is cost effective and would represent and gain more efficiency with more users. Currently, the regionalization is considered for the four Upper Cape towns and with the Town of Barnstable. Different areas within the Cape have been working together, but there has not been a proposal for the entire Cape. With regards to JBCC as it relates to ownership and operations if district legislation is established a wastewater treatment plant publically owned, but privately managed would likely receive financing. If the facility is privately owned it is most likely the project would not receive SRF funding. Collection systems a town may deliver to JBCC may have the ability to be funded. However statutes would be required to be reviewed to ensure qualification with regards to the referenced scenarios of discussion. Qualifications required for funding include fiscal stability and an approved Comprehensive Wastewater Management Plan (CWMP). A major component of the process is the readiness to proceed. Loan forgiveness is a part of the program. Under the Federal statute this is required under the affordability aspect. The Town of Mashpee ranks within Tier 1 in 2019,. and would receive the least amount of principal forgiveness; 3.33%. The maximum is 9.9%. It is recommended to not include the principal forgiveness in the fiscal projection as it changes from year to year. The Town of Mashpee is a Housing Choice Community and would receive a reduction for this category. Reductions would also be realized with potential Cape Cod Trust Fund monies. The financing process is estimated to encompass two years from the initial solicitation to financing; June 2019—Project Solicitation January 2020—Final Intended Use Plan (IUP) publication June 30, 2020—Town Meeting vote October 15, 2020—Loan application to DEP December 31, 2020 —MassDEP to issue a PAC 6 Months after Issuance—Project award, notice to proceed January 1-June 30, 2021 —Project bidding June 30, 2021 —Loan forgiveness on executed construction contracts Loan Repayment—Approximately 1-2 years after the start of construction, first payment interest only.