Title
Pertaining to an application to the Minnesota Public Facilities Authority for a loan to partially finance the replacement of lead services for a value of $15,000,000.
Body
WHEREAS, at its March 8, 2022 meeting, the Board of Water Commissioners of the City of Saint Paul directed staff to initiate a 10-year enhanced lead service line replacement plan (“Lead Free SPRWS”); and
WHEREAS, the Board of Water Commissioners wishes to explore financing option for Lead Free SPRWS; and
WHEREAS, the Board has been provided an opportunity to make application to the Minnesota Public Facilities Authority for funding from the Drinking Water Revolving Fund to partially finance the replacement of lead water service lines for a value of $15,000,000; and
WHEREAS, at least 50% of the funding will be a forgivable loan or grant and the remaining amount will be a low interest loan through the PFA; and
WHEREAS, the Board approved $7.5M for debt funding in the 2023 budget for lead service line replacement; now, therefore, be it
RESOLVED, that the Board of Water Commissioners of the City of Saint Paul is hereby applying to the Minnesota Public Facilities Authority for a loan from the Drinking Water Revolving Fund for replacement of lead water services as described in the loan application; and, be it
FURTHER RESOLVED, the Board estimates the total funding amount to be $15,000,000; and, be it
FINALLY RESOLVED, that the Board represents that it has the legal authority to apply for the loan, and the financial, technical, and managerial capacity to administer a program using the funds effectively to provide the highest benefit to the participating property owners.