BY COUNCILOR JOHNSON:
RESOLVED, that the city of Duluth has a long term program to eliminate and manage sanitary sewer overflows which includes construction of storage basins to accommodate peak wet weather flows.
Studies have shown that the city of Duluth must construct multiple storage basins to eliminate sanitary sewer overflows from the Lakeside Interceptor.
The estimated cost of the Lakeside interceptor SSO project is $4,376,000. Fifty percent of the costs will be funded by a grant from the state of Minnesota. The remaining fifty percent of the project costs are the city’s responsibility. The Minnesota public facilities authority (PFA) has loan monies available to finance the city’s share of the project costs. The PFA loan will have a term of fifteen years and carries an annual interest rate of 1.65 percent.
To receive the PFA loan, the city must submit required information and enter into a loan agreement with the Minnesota public facilities authority.
Proper city officials are hereby authorized to enter into a loan agreement with the Minnesota public facilities authority for funding of the Lakeside interceptor sanitary sewer overflow storage facility at Endion pump station as described in the loan application.
The city of Duluth has the legal authority to apply for the loan, and the financial, technical and managerial capacity to ensure proper construction, operation and maintenance of the facility for its design life.
The city of Duluth estimates the loan amount to be $2,188,000 or local share of the as-bid costs of the project.
FURTHER RESOLVED, that the city hereby expresses its official intent to use proceeds of this loan to reimburse engineering and construction expenditures made prior to the issuance of its general obligation bond to the public facilities authority.
STATEMENT OF PURPOSE: This resolution will authorize the submission of an application and entrance into a loan agreement with the Minnesota public facilities authority for the Lakeside interceptor SSO facility at Endion pump station. The PFA loan funds will be the city’s match to the state of Minnesota’s 2005 bonding bill grant funds. The city’s matching funds will be payable from the Sanitary Sewer Fund 0530, Department/Agency 500, Organization 1905, Object 5533.