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HomeMy WebLinkAboutItem 06.jDate: 10 October 2012 Item No. RESOLUTION AUTHORIZING THE APPLICATION FOR METROPOLITAN COUNCIL MUNICIPAL PUBLICALLY OWNED INFRASTRUCTURE INFLOW /INFILTRATION GRANT PROGRAM Proposed Action Staff recommends adoption of the following motion: Move to approve a resolution authorizing the application for Metropolitan Council Municipal Publically Owned Infrastructure Inflow /Infiltration Grant Program. Overview The Minnesota State Legislature appropriated $4,000,000 to the Metropolitan Council for the purpose of providing grants to municipalities for capital improvements to public municipal wastewater collection systems to reduce the amount of inflow and infiltration to the Council's metropolitan sanitary sewer disposal system ( "1 /1 Municipal Grant Program "). On August 23, 2012, the Metropolitan Council Environmental Services (MCES) sent letters to all municipalities that have been a part of the sanitary sewer surcharge program and are thus eligible to apply for the grant program. Lakeville is one such municipality, and as such, qualifies for the grant program to complete additional infrastructure improvements to address I/1 issues. Staff has evaluated potential I/I areas in the City and is preparing a proposal to obtain grant monies for I/I improvements within the City's 2013 Street Reconstruction Project area, which includes portions of Valley Park and Clay's Acres. Primary Issues to Consider What sanitary sewer improvements are eligible for the grant program? Eligible activities include pipeline rehabilitation and repair, structure repairs (manholes), flood mitigation, cross connection elimination. Staff has identified several areas for pipeline rehabilitation and repair and structure repairs. Supporting Information . Metropolitan Coun ' gust 23, 2012 request for proposal and preliminary program ristophe r Public Wo ree s Director Financial Impact: TBD Related Documents (CIP, ERP, etc.): Notes: Budgeted: Yes Source: Sanitary Sewer Operating Fund ATTEST: Charlene Friedges, City Clerk CITY OF LAKEVILLE RESOLUTION NO: RESOLUTION AUTHORIZING THE APPLICATION FOR METROPOLITAN COUNCIL MUNICIPAL PUBLICALLY OWNED INFRASTRUCTURE INFLOW /INFILTRATION GRANT PROGRAM WHEREAS, The Minnesota Legislature has appropriated to the Metropolitan Council in the 2012 Session Laws Chapter 293, Section 7, subdivision 3, $4,000,000 for a grant program to be administered by the Metropolitan Council Environmental Services (MCES) for the purpose of providing grants to municipalities for capital improvements to public municipal wastewater collection systems to reduce the amount of inflow and infiltration to the Council's metropolitan sanitary sewer disposal system ( "I /I Municipal Grant Program "), and WHEREAS, The MCES has identified the City of Lakeville as a contributor of excessive inflow and infiltration to the MCES metropolitan sanitary sewer disposal system and an eligible applicant for grant funds under the I/I Municipal Grant Program WHEREAS, grant monies will be awarded to pre- approved municipalities for a pre- determined amount up to 50% of eligible improvements completed between May 12, 2012 and June 30, 2014. NOW, THEREFORE, BE IT RESOLVED, by the Lakeville City Council that: 1. The Council authorizes the application for grant monies from the Metropolitan Council of Environmental Services I/I Grant Program 2. WSB & Associates, Inc., consulting engineers for the City of Lakeville, are hereby designated as the party responsible for receiving and responding to all communication regarding matters related to the I/I Municipal Grant Program, except for those actions that must be approved by the City Council. APPROVED AND ADOPTED this 15 day of October, 2012. CITY OF LAKEVILLE Mark Bellows, Mayor 1 t Metropolitan Council August 23, 2012 TO: City Finance & Public Works Officials RE: 2012 Inflow /Infiltration (111) Grant Program Request for Proposal This letter is to notify eligible Cities and to solicit grant proposals. Championed by Metro Cities, the 2012 Minnesota Legislature appropriated $4 million of state bond funds for another 1/1 cost share grant program for metropolitan cities to mitigate inflow and infiltration into sanitary sewer collections systems. Similar to the 2010 1/1 grant program that was funded for $3 million from the 2010 state bonding bill and is ongoing, the Metropolitan Council Environmental Services (MCES) Division administers the program. After meeting with eligible cities and holding a public meeting for the purpose of gathering public input, the Council approved process, guideline and suggested schedule changes. Along with both State and Council requirements, the process, guidelines and schedule can be found at the following link: http: / /www. metrocounci I.orq /environment/ProjectTeams/ documents / 2012 %20Municipal %20Grant %20Re quirements% 20and %20Approved %20Guidelines.pdf In addition, the grant agreement that must be submitted can be found at the following Zink: http: / /www. metrocounci I.org /environment/ProiectTeams/ documents /GO %202012 %20Bond %20Constructi on %20G rant %20Ag reement %20FI NAL %20 %208 -21 -2012. pdf Of special note for this new round of grants is the legislative mandate and Minnesota Management and Budget requirement to report on project funding and job creation /retention resulting from participating in this program. These requirements are outlined under Section 7.04 Records Keeping and Reporting of the agreement; please review them carefully. We look forward to your submission and to continue to work with you to mitigate inflow and infiltration issues for the betterment of the entire system. In that regard, please be mindful of the schedule as outlined below. Please contact me if you have any questions or concerns. John Atkins MCES Budget Manager 651- 602 -1020 John.Atkins(metc.state.mn.us cc: Jason Willett, Kyle Colvin www.metrocouncil.org Environmental Services 390 Robert Street North • St. Paul, MN 55101 -1805 • (651) 602 -1005 • Fax (651) 602 -1477 • TTY (651) 291 -0904 An Equal Opportunity Employer Approved Calendar: Grant proposals due from cities Met Council notifies cities of their assigned preliminary allocation Cities' withdrawal opportunity Final allocation, grant agreement distributed Signed grant agreements due October 26, 2012 November 21, 2012 Through December 21, 2012 December 31, 2012 March 1, 2013 Metsopolstan Council METRO CITIES INFILTRATION AND INFLOW (IB,I) GRANT PROGRAM DESIGN League of Minnesota Cities, June 19, 2012 Bonding Bill Language $4 million appropriated to Council Grants for capital improvements to reduce I &I into municipal wastewater collection systems City must be on MCES excessive I &I list Grant funding up to 50% of I &I portion of project cost Timetable for project construction required Pursuant to guidelines established by Council Key State Requirements Non- public benefit must be 5% or less (facility must be owned by City) Must extend useful life or substantially increase value of fixed asset Cannot be operating or overhead expense M.S.16A.695 restricts sale, lease and management contracts: • Includes MMB Commissioner's Order Ileitupaikisr Lam. - corn +oanE,..n MAInae 6/19/2012 1 Key Council Guidelines (2010, updated) Cities are eligible if on an excessive I &I list Qualified spending between 7/1/12 and 6/30/14 s Only construction costs qualify E, Disbursement(s) paid on quarterly reimbursement basis Each city will receive: • Part 1 • Lesser of $50,000 or half of eligible expenses submitted, plus • Part 2: an allocation proportional to communities' remaining maximum grant after Part 1 ... akazAn941Lan co • ".:i Key Council Guidelines, continued Cities will have one -time option to either: • Withdraw from grant program • Revise grant request to lesser amount Funds from withdrawn costs will be re- allocated proportionally (Le. Part 2 redone) Grant money un- awarded when program ends Cities cannot change projects once grant agreement is signed ; . MMcu ew1,«« ems. Eligible I&I Work Municipal pipeline rehabilitation and repair • 50% eligible = lining, replacement; 100% = joint sealing Municipal maintenance structures • 50% eligible = lining, replacement; 100% eligible = sealing (joints, castings, covers, chimney seals) Flood mitigation • 10% eligible = surface drainage improvements (surface grading, ditch cleaning, storm system and culvert improvements) • Cross connection elimination • 100% eligible = storm /sanitary cross connects, catch basins and area drains 6/19/2012 a. 2 Non - Eligible l &I Work Studies, investigations or inspections • Any improvements to privately owned infrastructure • Any part of service line serving individual parcel 'A Nrtmpfanan [+u,01 Qualifying Cities (47) Arden Hills Greenwood Minnetonka Shoreview Bayport Hopkins Minnetonka Beach South St. Paul Bloomington Lakeville Mound St. Anthony Chanhassen Lauderville New Brighton St Bonifacius Chaska Lilydale New Hope St. Louis Park Columbia Heights Long Lake Newport St. Paul Eagan Maple Plain Oakdale Stillwater Eden Prairie Maplewood Orono Tonka Bay Edina Medicine Lake Osseo VadnaisHeights Excelsior Medina Plymouth Waconia Farmington Mendota Roseville West St Paul Golden Valley Minneapolis Savage Allocation Example Qualified Expenses Part 1 Part 2 Total City Proposed" Allocation Allocation Award % A 1,200,000 50,000 361,000 411,000 34.2 B 80,000 40,000 0 40,000 50.0 C 10,000,000 50,000 3,246,000 3,296 000 33.0 D 720,000 50,000 203,000 253,000 352 TOTAL 12,000,000 190,000 3,810,000 4,000,000 33.3 Part 1 = Lesser of $50K or 50% of qualified expenses proposed Part 2 = Proportional to communities' remaining maximum grant after Part 1 Includes only the 18I mitigation part(s) of project rru 6/19/2012 3 Tentative Program Calendar • June 12 Env. Comm direction to hold public meeting <.June 19 Metro Cities I &I grant discussion • July 10 Public meeting ^ July 24 Environment Committee recommendation Aug 15 Council approval of guidelines • Sept 1 Final program guidelines sent to cities • Nov 15 Grant proposals due from cities • Dec 1 Cities notified of initial grant allocation Dec 15 Deadline for cities' withdrawal opportunity • Jan 1, '13 Grant agreements distributed; cities notified of final grant allocations ..., deimaalllu Gnuscll Questions ex. Cam acrl 6/19/2012 4