Title
Pertaining to the acceptance of Minnesota Public Finance Authority funding to partially finance the replacement of lead services for a value of $35,000,000.
Body
WHEREAS, at its March 8, 2022 meeting, the Board of Water Commissioners of the City of Saint Paul (the “Board”) directed staff to initiate a 10-year enhanced lead service line replacement plan (“Lead Free SPRWS”); and
WHEREAS, at its April 16, 2024 meeting, the Board directed staff to apply to the Minnesota Public Facilities Authority (“MNPFA”) for funding in an amount of up to $35M to finance the replacement of approximately 2,500 lead services in the 2025 construction season (“Phase IV Project Order”); and
WHEREAS, Board staff has completed said application and the Minnesota Department of Health (“MDH”) has determined that the application meets the applicable criteria set forth in Title XIV of the Public Health Services Act; and
WHEREAS, per Minnesota Statute 446A.077 Subd. 4. (b), grant funding can be used for 100% of private lead service replacement; and
WHEREAS, the Phase IV Project Order will include approximately $24,370,000 in private service replacement financed via grant funds allocated by the MNPFA; and
WHEREAS, the Phase IV Project Order will also include approximately $10,630,000 in public portion service replacement financed via a grant anticipation note from the MNPFA and such debt service is to be paid via grant from the MNPFA upon substantial completion for the Phase IV Project Order under the Master Grant and Loan Agreement between the Board and the MNPFA; and
WHEREAS, the Board adopted its 2024 budget in September 2023; and
WHEREAS, 2024 Administrative Order No. 6 will result in no increase or decrease to the 2024 adopted spending budget; now, therefore, be it
RESOLVED, that the Board of Water Commissioners of the City of Saint Paul hereby accepts the funding from the MNPFA for the Lead Free SPRWS project known as Minnesota Department of Health Project 1620026-26; and, be it...
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