Title
Amending the Regional Water Services 2023 financing and spending budget to include an additional $1.5 Million in ARP funding for Lead Service Line Replacements.
Body
WHEREAS, the Board of Water Commissioners of the City of Saint Paul (the “Board”) asserts per Minnesota state law that the replacement of water service lines comprised of lead is a public benefit; and
WHEREAS, the Board authorized and directed staff to initiate a 10-year enhanced lead service line replacement plan as presented to the Board at its February 8, 2022 meeting; and
WHEREAS, the City of Saint Paul (the “City”) received American Rescue Plan grant funding (“Funds”) from the United States Department of Treasury; and
WHEREAS, the City has identified the importance of using a portion of those Funds for the replacement of lead pipes within the city of Saint Paul; and
WHEREAS, the City passed RES 22-448 authorizing $4M of Funds to SPRWS for Lead Water Pipe Replacement (“Project”); and
WEHERAS, the City passed RES 22-1022 authorizing and additional $10.5M of Funds to SPRWS for the Project; and
WHEREAS, the City intends to allocate up to an additional $1.5M in Funds to SPRWS for the Project; and
WHEREAS, SPRWS wishes to budget said additional Funds and to amend the financing and spending plan for said Project; and
WHEREAS, SPRWS will use the funds to replace lead water pipes in the city of Saint Paul; and
WHEREAS, SPRWS will be treated as a subrecipient of the City and the City will disperse the Funds to SPRWS on a reimbursement basis; and
WHEREAS, a subrecipient agreement has been executed between the City and SPRWS; and
WHEREAS, it may be necessary to amend the subrecipient agreement to include up to an additional $1.5M in funds for a total not to exceed $16M; and
WHEREAS, the Board of Water Commissioners approved RES 23-1192 at the Water Board Meeting on August 8, 2023, amending the 2023 budget; now, therefore, be it
RESOLVED, that the City Council of the City of Saint Paul, upon recommendation of the Mayor does hereby recommend amendment to its 2023 budget, resulting in an increase of spending and financing in the amount of $1.5M in ARP funding, the details of such are attached.
Financial Analysis
See Attachment.