04-0121R

RESOLUTION AUTHORIZING APPLICATION TO THE MINNESOTA PUBLIC FACILITIES AUTHORITY DRINKING WATER REVOLVING FUND FOR MORGAN PARK WATER DISTRIBUTION IMPROVEMENTS - PHASE II.

BY COUNCILOR STOVER:

WHEREAS, the water system in the Morgan Park Neighborhood has shown signs of surpassing its useful life; and

WHEREAS, based on a preliminary utility assessment study, an area-wide repair/replacement of water lines is needed; and

WHEREAS, the city has completed an evaluation of the water system, retained a consulting engineer to undertake design of the Phase II improvements and defined the second phase of the Morgan Park utility improvements.

NOW, THEREFORE, BE IT RESOLVED, by the city council of the city of Duluth, Minnesota, as follows:
(a) The city is hereby authorized to apply to the Minnesota public facilities authority for a loan from the drinking water revolving fund Morgan Park's drinking water system improvements - Phase II, as described in the loan application, the form of which is on file in the office of the city clerk as Public Document No. ____________;
(b) The city estimates the loan amount to be $1,956,000 or the as-bid cost of the projects;
(c) 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;
(d) 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 bond to the public facilities authority.


STATEMENT OF PURPOSE: The water distribution system in the Morgan Park neighborhood show signs of surpassing its useful life. Based on a preliminary utility assessment study, an area wide repair/replacement of water distribution lines is needed. This resolution will authorize the submission of an application to the public facilities authority for loan funds under the drinking water revolving loan fund. The funding sought will be for the replacement of water distribution lines in Morgan Park and cover the area identified as Phase II of the project.