HomeMy WebLinkAbout5L Accept Grant w MN Public Facilities for Mushtown, et al ORtge?i~u /714646 Dakota Street SE
Prior Lake,MN 55372
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CITY COUNCIL AGENDA REPORT
MEETING DATE: MAY 26, 2015
AGENDA#: 5L
PREPARED BY: SENG THONGVANH, PROJECT ENGINEER
PRESENTED BY: SENG THONGVANH
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION ACCEPTING A GRANT AND AU-
THORIZING THE MAYOR AND CITY MANAGER TO EXECUTE A PROJECT
GRANT AGREEMENT WITH THE MINNESOTA PUBLIC FACILITIES AUTHOR-
ITY FOR THE MAPLE LANE, MUSHTOWN ROAD, PANAMA AVENUE IM-
PROVEMENT PROJECT (#TRN14-000001)
DISCUSSION: Introduction
The Minnesota Public Facilities Authority has awarded a Maximum Daily Load
Grant for the Maple Lane, Mushtown Road, Panama Avenue Improvement Pro-
ject. Execution of a grant agreement is necessary to administer the grant.
History
On April 14, 2014, the City Council approved resolution #14-051 authorizing staff
to submit a Total Maximum Daily Load (TMDL) grant application to the Minnesota
Public Facilities Authority (PFA).
On February 9, 2015, the City Council approved resolution #15-023 accepting the
bids for the project and awarding the construction contract to Chard Tiling and Ex-
cavating. With the award of the construction contract, the construction project has
started and is anticipated to be substantially completed in October 2015.
The City has been approved to receive the grant dollars from the Minnesota Public
Facilities Authority for the Maple Lane, Mushtown Road, Panama Avenue Im-
provement Project. The assessment costs were calculated accordingly.
Current Circumstances
The primary purpose for proceeding with this project is to improve the water quality
of Crystal Lake and Upper Prior Lake by connecting these properties to the City
sanitary sewer system. Since Upper Prior Lake is an impaired water body, the
City is eligible for grant funding from the Minnesota Public Facilities Authority
through the Clean Water Land and Legacy Amendment. The grant program pro-
vides 50% funding up to $3,000,000 to assist with the cost of wastewater treat-
ment. The eligible costs are reserved for only the sanitary sewer components of
the project. For the Maple Lane, Mushtown Road, Panama Avenue Project, those
costs are computed to be $573,503.
Conclusion
City staff have worked closely with the Minnesota Public Facilities Authority and
the Minnesota Pollution Control Agency to maximize the grant amount for this pro-
ject. City staff recommend accepting the grant and for the Maple Lane, Mushtown
Road, and Panama Avenue Improvement project.
ISSUES: The City was successful in obtaining approval for the grant from MPCA and PFA.
Originally, the grant application submitted by the City was for the amount of
$249,930 per the feasibility report. After bids were received for the improvement
project and completion of property acquisition, the eligible amount submitted to the
MPCA was determined to be $286,752.
After further review by the MPCA and PFA, the final amount eligible for the grant is
$255,742. Although this amount is less than the amount applied for, it is still a little
more than the original amount of$249,930. These dollars would reduce city costs
and assessment rates on the project. If the City chooses not to accept the grant,
higher assessments would be needed to cover these costs.
FINANCIAL The grant brings $255,742 towards the Maple Lane, Mushtown Road, Panama Av-
IMPACT: enue Improvement Project. These dollars offset City cost and assessments. Per
MN Statutes Section 446A.074, subdivision 5, an administrative fee equal to one-
half of one percent of the grant amount must be paid to the Minnesota Public Fa-
cilities Authority. This fee amounts to $1,278.71.
ALTERNATIVES: 1. Approve a resolution accepting the grant and authorizing the Mayor and City
Manager to execute a grant agreement on behalf of the City of Prior Lake for
the Maple Lane, Mushtown Road, Panama Avenue Improvement Project.
2. Deny this item for a specific reason and provide staff with direction.
3. Table this item until some date in the future.
RECOMMENDED Motion and second as part of the consent agenda for approval of alternative #1.
MOTION:
2
O� PIt104
4646 Dakota Street SE
4' soll` Prior Lake,MN 55372
RESOLUTION 15-xxx
A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE A GRANT
AGREEMENT ON BEHALF OF THE CITY OF PRIOR LAKE FOR THE MAPLE LANE, MUSHTOWN
ROAD, PANAMA AVENUE IMPROVEMENT PROJECT
(TRN14-000001)
Motion By: Second By:
WHEREAS, The City of Prior Lake is planning to extend City sewer and watermain to Maple Lane,
Mushtown Road, and Panama Avenue in 2015 as shown in the City's 5 year Capital
Improvement Program; and
WHEREAS, Under the provisions contained in Minnesota Statutes 446A.073, the TMDL grant program
was created and funds appropriated; and
WHEREAS, A TMDL study has been approved by the US Environmental Protection Agency and the
Minnesota Pollution Control Agency; and
WHEREAS, The Maple Lane, Mushtown Road, Panama Avenue Improvement Project are necessary to
meet the waste load reductions required by the TMDL.
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 of Prior Lake has the legal authority to apply for the grant, and the financial, technical, and
managerial capacity to ensure proper construction, operation, and maintenance of the project for its
design life.
3. The Mayor and City Manager are hereby authorized to execute such agreements and amendments
thereto, as are necessary to implement the project on behalf of the City.
4. Upon approval of such agreement by the PFA, the City of Prior Lake certifies that it will comply with all
applicable laws and regulations stated in all contract agreements described in the Compliance listing of
the grant application.
PASSED AND ADOPTED THIS 26th DAY OF MAY 2015.
VOTE Hedberg Keeney McGuire Morton Thompson
Aye ❑ ❑ 0 0 0
Nay 0 0 0 0 0
Abstain 0 0 0 0 ❑
Absent ❑ 0 ❑ 0 ❑
Frank Boyles, City Manager