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distribution plus interest, until either the original project is repaired and the I/1 eliminated, or <br />continue to repay the loan distribution amount plus interest annually until the end of the 5 year <br />period after the original project completion date. Exact terms of loan repayment schedules and <br />amounts will be included in each individual agreement between the MCES and loan recipient <br />The goal of this loan offer is to assist communities to implement I/I control improvements which <br />provide a metropolitan benefit in addition to a local benefit. Because the funds are limited for this <br />loan offer, the MCES places a greater priority on physical improvements over desk -top studies. <br />Studies to identify, quantify and locate sources of 1/I can receive monetary assistance under the <br />grant portion of this program offer. Communities that already have an understanding of where <br />problems exist and how they can be corrected will be in a better position to justify their proposal <br />for the loan offered under this program. The MCES also intends that the administration of these <br />loan agreements be streamlined to coincide in nature with the limited loan amount and the <br />infrequent offering of loan and grant monies. <br />Loan and Grant money will not be made available for projects or studies that have been started <br />prior to the date of the agreement, or as pre - authorized by the MCES. <br />Projects pertaining to the separation of sewers (Storm vs. Sanitary) will not be eligible for either <br />the loan or grant monies. The intent of this loan/grant offer is to help communities initiate <br />projects which are not funded by other outside sources. <br />II. GENERAL CRITERIA FOR FUNDING PRIORITIES (LOANS) <br />Proposed projects will be evaluated by MCES staff who will make a recommendation on the <br />priority classification of the project. MCES staff will prepare a recommended priority list for <br />consideration by the members of the Metropolitan Council. <br />Projects targeted to produce a metropolitan benefit will receive higher priority than those where a <br />metropolitan benefit is unlikely. Removal of I/I which previously resulted in sewage bypasses <br />would be an example of a project with metropolitan benefit, in that loading to the conveyance and <br />treatment facilities would be lessened and a potential public health hazard would be eliminated. A <br />project to increase the capacity of the local system for the above example would not however be <br />considered an example of a metropolitan benefit. If a project is submitted that cites an elimination <br />of historic bypasses, the application must include a copy of a "MPCA Report Form(s)" which <br />documents the bypass(es). Another example of metropolitan benefit is a project designed to <br />reduce high peak flow rates, resulting from I/1. If a community received a specific I/1 goal as part <br />of the December 1996 Systems Statement, or if the 1992 "Systemwide Infiltration/Inflow <br />Evaluation" by the former MWCC identified your community as having high peak flow rates then <br />that community's proposed loan project may have a metropolitan benefit. <br />Since the aforementioned report did not include information regarding estimated Rain Derived I/1 <br />(RDI/I) or Groundwater Infiltration (GWI) for the cities of Minneapolis, St. Paul or South St. <br />Paul, applications from these communities will need to include documentation of their RDI/I and <br />Page 3 <br />