Title
RESOLUTION AUTHORIZING THE APPLICATION TO THE MINNESOTA PUBLIC FACILITIES AUTHORITY FOR A LOAN FROM THE DRINKING WATER REVOLVING FUND FOR IMPROVEMENTS RELATED TO THE CITY’S HIGH PRIORITY LEAD SERVICE LINE REPLACEMENT PROGRAM (PFA PROJECT 1690011-17) AS DESCRIBED IN THE LOAN APPLICATION.
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CITY PROPOSAL:
RESOLVED, that the city of Duluth is hereby applying to the Minnesota Public Facilities Authority (MPFA) for a loan from the Drinking Water Revolving Fund for a lead service line replacement project as described in the loan application.
BE IT FURTHER RESOLVED that the city of Duluth estimates the MPFA-Financed amount to be $3,876,000 or the as-bid cost of the project.
BE IT FURTHER RESOLVED, that the city of Duluth has the legal authority to apply for the loan, and the financial, technical and managerial capacity to repay the loan and ensure proper construction, operation and maintenance of the project for its design life.
BE IT FURTHER RESOLVED, that the city of Duluth hereby expresses its official intent to use the proceeds of this loan to reimburse construction expenditures made prior to the issuance of its general obligation bond to the MPFA.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes submittal of the loan application to the Minnesota Public Facilities Authority to fund lead service line replacement related to high priority lead service line replacements (LSLRs). High Priority LSLR project types include, but are not limited to, replacement of existing leaking LSLs; LSL replacements performed in conjunction with another private service repair (e.g., failed or leaking sanitary service line); standalone LSL replacements necessary for the completion of an unplanned or emergency utility or street repair; or any LSL replacement which, due to its nature or other special circumstances necessitating near-term replacement of the LSL, cannot be accomplished through a standard, planned capital improvement infrastructure project. The city is seeking funding for construction years 2024 and 2025 from the MPFA to take advantage of the available Federal and State funding reimbursement for these LSLR projects.