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REQUEST FOR COUNCIL ACTION Date: 2/11/13 Item No.: 7.k Department Approval City Manager Approval Item Description: Authorize Acceptance of Metropolitan Council Environmental Services Municipal Inflow and Infiltration Grant Funds Page 1 of 2 B ACKGROUND 1 Metro Cities (Association of Metropolitan Municipalities) championed the inclusion of a 2 grant program in the 2012 bonding bill for the purpose of providing grants to municipalities 3 for capital improvements to public infrastructure to reduce the amount of inflow and 4 infiltration (I/I) to the Metropolitan Council Environmental Service’s (MCES) metropolitan 5 sanitary sewer disposal system. Their efforts were successful and $4 million was approved 6 in the bonding bill. This follows a successful $3 million program that was included in the 7 2010 bonding bill, of which Roseville received $156,662. 8 To be eligible for a grant, a city must be identified by the Metropolitan Council as a 9 contributor of excessive inflow and infiltration. Roseville is eligible for this grant. Grants 10 from this appropriation are for up to 50 percent of the eligible costs to mitigate inflow and 11 infiltration in the publicly owned municipal wastewater collection systems for projects 12 completed between May 12, 2012 and June 30, 2014. The council must award grants based 13 on applications from eligible cities that identify eligible capital costs and include a timeline 14 for inflow and infiltration mitigation construction, pursuant to guidelines established by the 15 council. 16 In October, 2012, the City Council authorized staff to apply for this grant. MCES reviewed 17 the application and awarded $433,136 to the City of Roseville. 18 P OLICY O BJECTIVE 19 It is city policy to keep utility infrastructure in good operating condition, reducing inflow and 20 infiltration to the maximum extent practicable and to seek assistance from outside funding 21 sources when available for rehabilitation projects. 22 F INANCIAL I MPACTS 23 The maximum grant amount allocated to the City is $433,136. Staff has prepared several 24 projects to be completed in 2013, which include sanitary sewer lining, and sanitary manhole 25 rehabilitation and repair. The estimated cost for these projects is approximately $1.2 million. 26 The balance of the project is within the budgeted amount for sanitary sewer maintenance and 27 improvement projects and will be paid for using Sanitary Sewer Infrastructure Funds. The 28 sanitary sewer lining project contract was awarded on January 28, 2013, to SAK 29 Construction LLC for $1,150,835.25. A schedule has not yet been established for this 30 project. 31