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ARDEN HILLS CITY COUNCIL—January 31, 2011 8 9.A. Valentine Park Improvement Process (continued) Councilmember Tamble asked if Staff had given any consideration to grant money that may be available because of the drainage issues in this area. Public Works Director Maurer stated Staff had talked to Rice Creek Watershed and there is no money available for the drainage improvements and he was not aware of any park improvement money that was available at this time. MOTION: Councilmember Holmes moved and Councilmember Werner seconded a motion to Direct Staff to Proceed with the Improvements Process as Presented in the January 31 2011 Memo to the Cijy Council. The motion carried unanimously (4-0). B. Metropolitan Council Environmental Services Municipal Inflow and Infiltration Grant Public Works Director Maurer stated Metro Cities (Association of Metropolitan Municipalities) championed the inclusion of a $3 million grant program in the 2010 bonding bill for the purpose of providing grants to municipalities for capital improvements to public infrastructure to reduce the amount of inflow and infiltration (I&I) to the Metropolitan Council Environmental Services (MCES) metropolitan sanitary sewer disposal system. In December, the City Council adopted Resolution 2010-069, supporting the Application for Metropolitan Council Environmental Services Municipal Infiltration/Inflow Grant Program. As the City Council requested, the grant application included additional eligible work beyond the planned 2011 CIP in an effort to maximize the grant amount. In early January, Staff was notified by MCES that the preliminary allocation, based on the City's application, is $182,090. The grant application indicates that Arden Hills is planning on lining a series of sewer lines ranging in size from 8" to 15" in diameter, together with rehabilitation of a number of manholes. The grant application also claimed credit for some of the sewer lining that was completed in the 2010 project as permitted by the grant rules. The grant application rules indicate that 25% of the sewer lining cost and 50% of the manhole rehabilitation cost can be funded by the grant. The remaining construction and overhead costs are the City's responsibility. If the City accepts the entire grant allocation, the -- City's financial responsibility is approximately $407,000 of construction costs plus overhead. Overhead is assumed to be 10% of the total construction cost, or approximately another $60,000. Included in the 2011 CIP are $100,000 for sewer lining and $100,100 for I&I mitigation. To maximize the MCES grant, about $267,000 would have to be added to the 2011 CIP amounts. The grant amount is still preliminary because the cities have until February 15, 2011 to "opt out" or withdraw their application. After that date, MCES will finalize the grant amounts and send the cities formal agreements to enter into, committing to the completion of all the work indicated in the grant application by July 2012. Staff is recommending the City Council consider accepting the total MCES grant amount of $182,090, understanding an additional $267,000 needs to be added to the 2011 CIP. Mayor Grant asked if the Metropolitan Council was still charging the City on an annual basis. Public Works Director Maurer clarified the City had been assessed a $500,500 penalty for Inflow&Infiltration and the City was allowed to spend$100,100 per year for five years towards