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Department Approval <br />T-) - <br />R,Sy68FaC+E <br />REQUEST FOR COUNCIL ACTION <br />Date: 5/18/09 <br />Item No.: 7.f <br />City Manager Approval <br />Item Description: Resolution for Minnesota Public Facilities Authority Application- Drinking Water <br />Revolving Fund <br />1 BACKGROUND <br />z The American Recovery and Reinvestment Act (ARRA), commonly called the Federal Stimulus Plan, <br />s will be providing money for public water system infrastructure projects. The money will be distributed <br />a through the Minnesota Drinking Water Revolving Fund Program. The State of Minnesota expects to <br />s receive approximately $72 million for clean water infrastructure projects and $35 million for drinking <br />s water infrastructure projects from the recently enacted ARRA of 2009. The Minnesota Public Facilities <br />7 Authority (PFA) will award ARRA funds to eligible projects by following the general eligibility <br />s requirements and funding process for the Clean Water Revolving Fund (CWRF) and Drinking Water <br />s Revolving Fund (DWRF). The funds will be administered by the PFA in coordination with the <br />lo Minnesota Pollution Control Agency (MPCA) for clean water projects and the Minnesota Department of <br />11 Health (MDH) for drinking water projects. <br />12 Federal law provides for both loans and grants to be made from the ARRA funds. The PFA intends to <br />13 provide small base grants to all eligible projects, with additional grant funds potentially available based <br />14 on affordability criteria. For most projects, the majority of project financing will be in the form of low <br />15 interest loans with discounts from market rates as provided in PFA rules. <br />16 Last year, staff obtained bids for a watermain lining project to line a segment of watermain between <br />17 Woodhill Avenue and County Road C -2 between Churchill Street and Oxford Street. The bids came in <br />18 twice as high as expected, and staff explored other alternatives for this project. This main is located <br />19 along the shared lot line of homes and has a history of recent breaks with property damage. These <br />20 single family backyards have fences, sheds, mature trees, lawns, and gardens that would be torn up if we <br />21 pursued a traditional open cut replacement project. Staff recommends constructing new watermain in <br />22 the front boulevard to eliminate the difficult access for future maintenance. The new watermain would <br />23 be installed using directional boring technologies, minimizing the impact of excavation to the street and <br />24 boulevards. <br />25 POLICY OBJECTIVE <br />26 The City of Roseville has constructed a watermain distribution system to serve all properties in the city. <br />27 The city maintains these facilities to ensure reliable service that minimizes the potential for disruption of <br />28 service and potential for property damage. <br />Page 1 of 2 <br />