06-10-1996 Council Agenda - Laserfiche WebLink

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METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES DESCRIPTION OF OFFER OF MATCHING LOAN AND GRANT MONIES TO COMMUNITIES FOR INFILTRATION /INFLOW CONTROL PROGRAMS APRIL 1996 I. DESCRIPTION The Metropolitan Council Environmental Services (MCES) is offering a limited number of loans up to $40,000 to communities served by the MCES for community- sponsored projects to reduce excessive infiltration and inflow (I /I) from entering the Metropolitan Disposal System (MDS). Each loan will require that a matching dollar expenditure on the project be made from the recipient community. The first distribution of the loan money will occur upon start up of the project and will consist of 50% of the total loan amount. The remaining 50% of the loan money will be given to the community upon satisfactory completion of the project and 30 days after receipt of documentation of reimbursable project expenses of not less than 200% of the loan amount. The loan eligible work must be completed within 18 months after the date of the agreement. After the completion of the work by the community, the community must provide annual documentation for a period of five years following completion of the I/I project, certifying that the I/I has not returned to the system. For each year that documentation is provided that shows the project to be effective in the reduction of I /I, repayment of the loan for that year (based on a fixed, short term interest rate) will be forgiven. The designated interest rate for any loan repayments will be based on one percent above the Five Year Treasury Bond market rate at closing on the date the agreement is signed by the loan recipient. Interest for any loan repayments will computed from the date of project completion. The MCES will accept as documentation that the project has performed as intended, a certificate from an Engineer licensed in the State of Minnesota, for the first, second and fourth year after project completion. For the third and fifth year, the MCES will require that some type of physical documentation accompany the certification. The MCES is also offering a limited number of grants up to $10,000 to communities served by the MCES for community sponsored studies to identify, locate, quantify and develop an action plan to eliminate excessive I/I sources from entering the MDS. Each Grant will require that a matching dollar expenditure toward the study be made from the recipient community. The grant eligible work must be completed 18 months after the agreement has been signed. Page 1 Page 21