Title
Pertaining to the Issuance of Grant Anticipation Notes for Lead Pipe Replacement Projects.
Body
Resolution Requesting the City of Saint Paul, Minnesota to Issue Grant Anticipation Notes in an Aggregate Principal Amount of up to $7,500,000 for Various Lead Pipe Replacement Projects; Expressing the Intent of the Board of Water Commissioners to Reimburse Itself from the Proceeds of Such Grant Anticipation Notes; and Authorizing Board of Water Commissioners Staff to Take Certain Actions with Respect to the Sale of Such Grant Anticipation Notes
WHEREAS, Saint Paul Regional Water Services (the “Utility”) provides safe drinking water to the residents of the City of Saint Paul, Minnesota (the “City”) and the surrounding municipalities; and
WHEREAS, at its March 8, 2022 meeting, the Board of Water Commissioners directed staff to initiate a 10-year enhanced lead service line replacement plan (“Lead Free SPRWS”); and
WHEREAS, at its April 11, 2023 meeting, the Board directed staff to apply for funding from the Minnesota Public Facilities Authority (MNPFA) to finance the replacement of approximately 1,100 lead services, as certified by the Minnesota Department of Health; and
WHEREAS, in September 12, 2023, the Board accepted funding from the MNPFA totaling $15,000,000 for the Lead Pipe Replacement Projects, pending the execution of a Master Loan and Grant Agreement, with funding allocated for both private side replacement costs covered by grants and a loan portion applied exclusively to public side replacement costs; and
WHEREAS, the Utility and the City are working on a lead pipe replacement program that will require the incurrence of a grant anticipation note or other debt obligation for funding of a portion of such lead pipe replacement projects (the “Lead Pipe Replacement Projects”), including the planning, design, inspection, project implementation, and construction costs that are not funded by one or more grants from the State of Minnesota (the “State”);...
Click here for full text