ITEM 3.4 Clean Water Revolving Fund Loan Application40
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MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Administration
City Administrator/Finance Director Flaherty
March 9, 2020
PRESENTER(s)
REVIEWED BY:
ITEM #:
Consent
3.4
STRATEGIC VISION
MEETS:
I THE CITY OF OTSEGO:
Is a strong organization that is committed to leading the community through innovative
communication.
X
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council adopt a resolution authorizing a loan application to the
Minnesota Public Facilities Authority.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/JUSTIFICATION:
The City is progressing with the East Wastewater Treatment Facility Biosolids Building project, which was a
key component of the Wastewater Master Plan (the Plan), "East Solids Phase 1" supporting long term goals
and implementation phasing to meet growth expectations.
Upon adoption of the Plan, City staff submitted the project to the Minnesota Pollution Control Agency
(MPCA) for inclusion on the Project Priority List (PPL). The City's project scored well enough on the PPL,
that City staff also then requested placement of the project on the Intended Use Plan (IUP) with the
Minnesota Public Facilities Authority (MPFA).
At the February 24, 2020 meeting, the City Council adopted Resolution 2020-14 accepting bids and
awarding a construction contract to Rice Lake Construction Group. The next step will be for City staff to
submit the official loan application to the MPFA for the Clean Water Revolving Fund.
City staff has completed the application, assembled the necessary materials, and has drafted the attached
resolution. Upon adoption by the City Council, City staff will be authorized to submit the loan application.
SUPPORTING DOCUMENTS ATTACHED:
9 Resolution 2020-15
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2020-15
CLEAN WATER REVOLVING FUND LOAN APPLICATION
TO THE
MINNESOTA PUBLIC FACILITIES AUTHORITY
WHEREAS, the City of Otsego has previously requested placement on the 2020 Project Priority List (PPL) for
the East Solids 1(ES1) project for design and construction at the Otsego East Wastewater Treatment Facility
as described in the Otsego Wastewater Master Plan (2018); and
WHEREAS, the design phase for the ES1 project has been completed; and
WHEREAS, the City of Otsego intends to move forward with the construction phase in 2020; and
WHEREAS, the Otsego City Council, adopted Resolution 2020-14 at a meeting on February 24, 2020 to
accept bids and award a construction contract to Rice Lake Construction Group; and
WHEREAS, the City of Otsego will be submitting a complete application package to the Minnesota Public
Facilities Authority.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1. That the City of Otsego is hereby applying to the Minnesota Public Facilities Authority for a loan
from the Clean Water Revolving Fund for improvements to its municipal wastewater treatment
system as described in the loan application.
2. That the City of Otsego estimates the loan amount to be $17,400,600.
3. That the City of Otsego 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.
4. That the City of Otsego 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.
ADOPTED by the Otsego City Council this 9th day of March, 2020.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
Jessica J. Stockamp, Mayor
ATTEST:
Tami M. Loff, City Clerk