06-10-1996 Council Agenda - Laserfiche WebLink

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matching local share. Each community that receives a loan will be required on the anniversary date of the project completion to provide to the MCES a certification stating that the project has continued to be successful in reducing I/I from the system. For each year that the project can be certified as performing in its intended purpose of I/I reduction, repayment of the loan funds will be forgiven. In the event that during the first five -year period after the completion of the project, the community cannot certify that the project has continued its intended purpose of I/I reduction, then the community has to either; 1. immediately (within 3 months upon discovery) initiate a follow -up project using community funds to repair the original project or, 2. repay a portion of the loan distribution plus interest, until either the original project is repaired and the I/I eliminated, or continue to repay the loan distribution amount plus interest annually until the end of the 5 year period after the original project completion date. Exact terms of loan repayment schedules and amounts will be included in each individual agreement between the MCES and loan recipient The goal of this loan offer is to assist communities to implement I/I control improvements which provide a metropolitan benefit in addition to a local benefit. Because the funds are limited for this loan offer, the MCES places a greater priority on physical improvements over desk -top studies. Studies to identify, quantify and locate sources of I/I can receive monetary assistance under the grant portion of this program offer. Communities that already have an understanding of where problems exist and how they can be corrected will be in a better position to justify their proposal for the loan offered under this program. The MCES also intends that the administration of these loan agreements be streamlined to coincide in nature with the limited loan amount and the infrequent offering of loan and grant monies. Loan and Grant money will not be made available for projects or studies that have been started prior to the date of the agreement. Projects pertaining to the separation of sewers (Storm vs Sanitary) will not be eligible for either the loan or grant monies. The intent of this loan /grant offer is to help communities initiate projects which are not funded by other outside sources. II. GENERAL CRITERIA FOR FUNDING PRIORITIES (LOANS) Proposed projects will be evaluated by MCES staff who will make a recommendation on the priority classification of the project. MCES staff will prepare a recommended priority list for consideration by the members of the Metropolitan Council. Page 3 Page 23