City Council Meeting Date: March 12, 2024
To: Mayor and City Council
City Administrator
From: Sean Simonson, Engineering Manager
David E. Bennett, PE - Public Works Director/City Engineer
Subject:
TITLE
Consider Resolution Authorizing Submittal of Application to the Minnesota Drinking Water Revolving Fund (DWRF).
BODY
Action Requested:
The Northfield City Council approves the attached Resolution (Attachment 1) Approving the application to the Minnesota Drinking Water Revolving Fund (DWRF).
Summary Report:
The Infrastructure Investment and Jobs Act has pledged $40 Million each year for 5 years, in conjunction with a $240 Million investment from the state of Minnesota dedicated to lead service line replacement. Thanks to these federal and state funds, lead service line (LSL) replacements within the College Street and Water Street Areas Reconstruction Project will be completed at no cost to the resident or homeowner. The funding will provide a 100% grant for the privately-owned portion. The publicly owned portion of the LSL will be replaced using a combination of grant funds and zero interest loans. After the work is completed, the owner of the public water system will receive a grant to pay off the loan portion.
At this time of the application process, the City of Northfield would receive the funding from the DWRF program, and would pay for the private portions of the LSL replacements, and there would be no cost to the individual homeowners for the LSL replacements.
Alternative Options:
The City Council could decide not to approve application, Staff would not recommend this option.
Financial Impacts:
There is an estimated $335,000 of eligible LSL replacements included in the College Street and Water Street Areas Reconstruction Project.
Tentative Timelines:
Once construction is complete, the City of Northfield will submit all LSL replacement costs for reimbursement.