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The first distribution of the grant money will occur upon start <br />up of the study and will consist of 50% of the total grant <br />amount. The remaining 50% of the grant will be given to the <br />community upon satisfactory completion of the study. <br />The total amount allocated for loans and grants is a minimum of <br />$400,000. There are currently no funds allocated for <br />continuation of these offers once the $400,000 has been <br />committed. If the number of applications received through the <br />initial offer is insufficient to encumber $400,000, the MCES <br />reserves the right to offer to raise the $40,000 loan and $10,000 <br />grant ceilings to the initial qualifying applicants. <br />The $400,000 will be allocated into two separate funds in which <br />communities can apply for monies for qualifying projects or <br />studies. Of the $400,000, $80,000 will be made available for <br />matching dollar grants up to $10,000 for studies and reports <br />aimed at identifying, locating and proposing solutions to <br />existing I/I problems within the community. Those applicants who <br />receive a grant will be required to submit to the MCES a final <br />report summarizing the findings of the study and outlining the <br />action plan to address identified sources of I /I. <br />The balance of the $400,000, or $320,000, will be reserved for <br />matching dollar loans up to $40,000 for projects aimed at <br />eliminating sources of I/I from the MDS. <br />Each community can submit applications for a maximum of two <br />project loans and a maximum of 1 grant. <br />All communities that are billed for their wastewater directly by <br />the MCES are eligible to apply. Local and regional agencies such <br />as the Metropolitan Airports Commission, University of Minnesota <br />and the State Fairground may apply for either a loan or a grant <br />but must do so by applying thru the local government in which <br />sanitary sewer service is provided. Applications will be <br />reviewed by MCES staff who will make a recommendation to the <br />members of the Metropolitan Council on the priority of the <br />community's proposed project(s) or study. The application <br />procedure and the staff's criteria for priority ranking for I/I <br />Control Projects are outlined herein. The Metropolitan Council <br />will review the staff's recommendations and establish the final <br />list of loan and grant recipients through official member action. <br />Recipient communities will be required to enter into an <br />agreement, with the Council, authorized by resolution of their <br />City Council or Township Board. (The word "City" used hereafter <br />includes eligible Townships.) The City's requirements, under the <br />agreement, will include that the City provide assurances that the <br />funds are applied to the stated purpose, that the project is <br />cost - effective, that costs be accurately accounted, and that a <br />written report be submitted to the MCES upon completion of the <br />work. The agreement will also provide the MCES the right to <br />audit City records pertaining to the loan and grant funds and <br />Page 2 <br />Page 22 <br />