Title
RESOLUTION AUTHORIZING APPLICATION TO THE MINNESOTA PUBLIC FACILITIES AUTHORITY (MPFA) FOR A FORGIVABLE LOAN FROM THE DRINKING WATER REVOLVING FUND FOR CONSTRUCTION OF THE "LEAD SERVICE LINE REPLACEMENT - LINCOLN PARK 3" PROJECT (PFA PROJECT 1690011-19, CITY PROJECT 2214) AS DESCRIBED IN THE LOAN APPLICATION.
Body
CITY PROPOSAL:
RESOLVED, that the City of Duluth is hereby applying to the 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 $7,854,920 or the total as-bid cost of the project plus 10% contingency.
BE IT FURTHER RESOLVED, that the City of Duluth has the legal authority to apply for the forgivable 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 submission of the attached loan application to the Minnesota Public Facilities Authority to fund the "Lead Service Line Replacement - Lincoln Park 3" project. The City is seeking funding from the Minnesota Public Facilities Authority which is distributing State and Federal funds designated for lead service line replacement projects. The MPFA program requires application for a loan for a portion of the Federal funds. This loan principal is paid in full by the State of Minnesota funds. The loan for the project is for funding tracking purposes only. No interest will be accrued, and the principal amount of the loan will be forgiven by the MPFA, contingent upon ...
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