6.2 West WWTF Financing MPFA Application
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration City Administrator/Finance Director Flaherty March 14, 2022
PRESENTER(s) REVIEWED BY: ITEM #:
Administration AE2S 6.2 – West WWTF
PFA Loan Application
STRATEGIC VISION
MEETS: 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 West Wastewater Treatment Facility Liquid Phase 1 project, which was a
key component of the Wastewater Master Plan (the Plan) supporting long term goals and implementation
phasing to meet growth expectations.
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 March 14, 2022 meeting, the City Council will also consider authorizing solicitation of construction
bids for the project. A bid opening is tentatively scheduled for April 26, 2022, with City Council
consideration of contract award at the first meeting in May.
Concurrent with the bid process, City staff will initiate the project financing to the MPFA for the Clean
Water Revolving Fund. City staff will be completing the application and assembling the necessary materials.
City staff has drafted the attached resolution, upon adoption by the City Council, would authorize City staff
to submit the loan application.
SUPPORTING DOCUMENTS ATTACHED:
• Resolution 2022-29
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Resolution 2022-29 authorizing a Clean Water Revolving Fund loan application to the
Minnesota Public Facilities Authority.
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund 602 – Sanitary Sewer Utility
Yes
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CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2022-29
CLEAN WATER REVOLVING FUND LOAN APPLICATION
TO THE
MINNESOTA PUBLIC FACILITIES AUTHORITY
WHEREAS, the City of Otsego is progressing with the West Wastewater Treatment Facility Liquid Phase 1
project, which was a key component of the Wastewater Master Plan (the Plan) supporting long term goals
and implementation phasing to meet growth expectations; and
WHEREAS, the design phase for the West Wastewater Treatment Facility Liquid Phase 1 project is nearing
completion; and
WHEREAS, the City of Otsego intends to move forward with the construction phase in 2022; 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 $38,607,000.
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.
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ADOPTED by the Otsego City Council this 14th day of March, 2022.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica J. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk