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CITY COUNCIL AGENDA REPORT
MEETING DATE: FEBRUARY 25, 2013
AGENDA #: 5H
PREPARED BY: JANE KANSIER, ASSISTANT CITY MANAGER
PRESENTED BY: JANE KANSIER
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION APPROVING A GRANT AGREE-
MENT WITH THE STATE OF MINNESOTA FOR A MINNESOTA DEPARTMENT
OF HEALTH SOURCE WATER PROTECTION IMPLEMENTATION GRANT
DISCUSSION: Introduction
The purpose of this agenda is to authorize the City Manager to sign a Grant
Agreement with the State of Minnesota Department of Health for a Source Water
Protection Implementation Grant.
Historv
In August, 2012, City staff submitted an application for a Source Water Protection
Implementation Grant. On February 1, 2013, the Minnesota Department of Health
(MDH) advised staff our application was successful and the funds were now avail-
able to implement our project. The $10,000 grant will be applied towards the cost
of resealing Well #1.
Current Circumstances
Prior Lake Well #1 was originally installed in 1937, and was 10" in diameter and
225' deep. The use of the well was discontinued in 1980 and sealed based on an
understanding of well sealing standards from the Minnesota Department of Health
at that time. However, due to the potential for contamination and a direct conduit
to the water supply, the Minnesota Department of Health has requested that the
City reseal the well to Minnesota Rules, Chapter 4725 which require the well to be
filled with grout. This project is scheduled for Spring/Summer 2013. The total
cost of the project is estimated at $18,000. The $10,000 grant will be used to off-
set this cost.
The attached Grant Agreement outlines the responsibilities of each party (MDH
and the City) in carrying out the scope of work. The City is required to complete
the project by June, 2014. Once the project is complete, we will submit copies of
the paid invoices to the State for reimbursement up to $10,000. �
Conclusion
The staff recommends approval of this grant agreement.
ISSUES: The City Attorney has reviewed the Grant Agreement and has no issues. Normal-
ly, an agreement of this sort would be approved administratively; however, the in-
clusion of the indemnification clause requires City Council approval.
FINANCIAL The City is required to reseal Well #1 due to the potential for ground water con-
IMPACT: tamination. Funding for this project was included in the 2013 budget. The grant
will help offset the cost of this project.
ALTERNATIVES: 1. Adopt a resolution approving a Grant Agreement with the State of Minnesota
for the Minnesota Department of Health Source Water Protection Implementa-
tion Grant.
2. Deny the Grant Agreement with the State of Minnesota for the Minnesota De-
partment of Health Source Water Protection Implementation Grant.
3. Provide staff with additional direction.
RECOMMENDED Alternative 1. A motion and second to adopt a resolution approving a Grant
MOTION: Agreement with the State of Minnesota for the Minnesota Department of Health
Source Water Protection Implementation Grant.
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RESOLUTION 13-xxx
A RESOLUTION APPROVING A GRANT AGREEMENT WITH THE STATE OF MINNESOTA FOR A
MINNESOTA DEPARTMENT OF HEALTH SOURCE WATER PROTECTION IMPLEMENTATION
GRANT
Motion By: Second By:
WHEREAS, The City of Prior Lake applied for a Source Water Protection Implementation Grant from the
Minnesota Department of Health to reseal Well #1; and
WHEREAS, The Minnesota Department of Health awarded the City a$10,000 Source Water
Implementation Grant in February, 2013; and
WHEREAS, A Grant Agreement outlining the responsibilities of each party has been prepared; and
WHEREAS, The Grant Agreement establishes the terms and conditions upon which the Minnesota
Department of Health will reimburse up to $10,000 of the cost of resealing Well #1 to the City
of Prior Lake.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The City Manager is hereby authorized to enter into the Grant Agreement with the Minnesota
Department of Health for a Source Water Protection Implementation Grant.
PASSED AND ADOPTED THIS 25T" DAY OF FEBRUARY 2013.
YES NO
Hedber Hedber
Keene Keene
McGuire McGuire
Morton Morton
Souku Souku
Frank Boyles, City Manager