5C, Metropolitan Council I/I Grant Agreement

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lt EN HILLS MEMORANDUM DATE: January 28,2013 TO: Honorable Mayor and City Councilmembers Patrick Klaers, City Administrator FROM: Terry Maurer, Public Works Director l SUBJECT: Metropolitan Council I/I Grant Agreement i Backlzround In late 2012 the City applied for a grant from the Metropolitan Council for the elimination of inflow and infiltration. The City had previously received and used a similar grant in early 2011. This second round of grants was due to $4.0 million appropriated by the Minnesota Legislature. The City applied for a total of $169,022.50 based on the 25% funding of the lining of sanitary sewers shown on the attached exhibit (both ROW and easement sewers). The maximum grant funding for sewer lining is 25%. The City has been notified that we have been offered a grant total of$161,546.00. In order to officially accept this grant offer, the City has to adopt the attached resolution accepting the grant and authorizing the execution of the agreement. A copy of the agreement has not been included with this memo due to its length of over 50 pages. The agreement is available if the City Council would like to review it. This agreement is very similar to the one entered into in 2011. The agreement has been reviewed by the City Attorney. From a financial standpoint, $500,000.00 was included in the CIP in 2013 anticipating this second round of grant opportunities. This amount combined with the grant of $161,546.00 is expected to be sufficient to line all the sewer segments shown on the attached exhibit. The grant can be used to offset 25% of the construction cost. The agreement gives the City until November 30, 2014 to complete the work. However, it would be staff's intent to proceed to bidding the sewer lining as soon as possible in the City Council Meeting P:\Admin\Council\Agendas&Packet Information\2013\01-28-13-R\Packet\1-28-13 I-I Grant Agreement.doc Page 1 of 2