Title
RESOLUTION AUTHORIZING THE APPLICATION TO THE MINNESOTA PUBLIC FACILITIES AUTHORITY FOR A LOAN FROM THE DRINKING WATER REVOLVING FUND FOR IMPROVEMENTS TO THE GARY NEIGHBORHOOD-WIDE LEAD SERVICE LINE REPLACEMENT PROJECT (PFA PROJECT 1690011-12) 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, attached hereto as Exhibit A.
BE IT FURTHER RESOLVED that the City of Duluth estimates the MPFA-financed amount to be $4,657,238 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 Public Facilities Authority.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes submittal of the loan application to the Minnesota Public Facilities Authority to fund the Gary neighborhood-wide Lead Service Line Replacement (LSLR) project, which includes replacement of residential lead water service lines. The City is seeking funding from the Minnesota Public Facilities Authority to take advantage of the available federal and state funding reimbursement for these LSLR projects. The loan for the project is for funding tracking purposes only. No interest payments will be made and the principal amount of the loan will be forgiven by the PFA.