00-0538R

RESOLUTION AUTHORIZING THE CITY TO APPLY FOR A LOAN FROM THE MINNESOTA PUBLIC FACILITIES AUTHORITY IN THE APPROXIMATE AMOUNT OF $1,789,722 TO FINANCE THE EXTENSION AND IMPROVEMENTS TO THE MUNICIPAL SEWER UTILITY TO SERVE THE FOND DU LAC NEIGHBORHOOD.

BY COUNCILOR STOVER:

BE IT RESOLVED, by the city council of the city of Duluth, Minnesota, as follows:

(a) The Fond du Lac neighborhood, which borders on the St. Louis River, is not presently served by the city sewer utility. Residents in the neighborhood have individual sewage treatment systems and holding tanks, most of which are failing or noncomplying systems;

(b) The city is hereby authorized to apply to the Minnesota public facilities authority for a loan from the water pollution control revolving fund for improvements to the wastewater collection system in the Fond du Lac neighborhood as described in the loan application, the form of which is on file in the office of the city clerk as Public Document No. ________;

(c) The city estimates the loan amount to be $1,789,722, or the as-bid cost of the projectsl

(d) The city hereby certifies that it has the legal authority to apply for the loan, and the financial, technical and managerial capacity to repay the loan and ensure proper construction, operation and maintenance of the project for its design life;

(e) The city hereby expresses its official intent to use proceeds of this loan to reimburse construction expenditures made prior to the issuance of its general obligation sewer utility revenue bond to the public facilities authority.


STATEMENT OF PURPOSE: The purpose of this resolution is to authorize the city to apply for a loan from the Minnesota public facilities authority to provide funds necessary to finance the extension of the city sewer utility in the Fond du Lac neighborhood.