Adopt Resolution #24-286 Accepting Special Appropriation Grant Funds and Authorizing Entering into Grant Agreement with Minnesota Public Facilities Authority for Improvement Projects #21-08 and #21-09  

On March 28, 2023, the City Council adopted Resolution #23-061 accepting bids and awarding a contract for construction of Improvement Project #21-09, Centralized Water Treatment Plant, to Magney Construction in the amount of $31,528,500.  As part of this project, the City of Ramsey has solicited outside funding sources and during the 2023 Minnesota Legislative Session, the city was awarded $3.2 million in state bonding proceeds.  A requirement of state bonding proceeds is for the project to pay workers prevailing wages.  The awarded contract did not initially include the prevailing wage requirement due to the fact that at the time of advertisement for bids, the city had not been successful in obtaining state bonding dollars.  On February 13, 2024, the City Council adopted Resolution #24-059 approving change order #1 to the project, which applied prevailing wage requirements to the project satisfying the eligibility requirements for being awarded state bonding proceeds.

On March 12, 2024, Resolution #24-077 was adopted authorizing the Mayor and City Administrator to submit and sign applicable documents to enter into an agreement with the Minnesota Public Facilities Authority (MPFA), which is administering the bond proceeds awarded to the project.  City staff have since been working with MPFA staff to provide the necessary documents for preparation of a Grant Agreement to allow the City to receive the awarded funds.  A copy of this resolution is attached for reference.  

During the 2024 Minnesota Legislative Session, language was added to the bill appropriating $3.2M to the city of Ramsey to incorporate trunk watermain improvements project costs.  The City must therefore adopt Resolution #24-286 authorizing staff to enter into a Grant Agreement with the MPFA based on the amended bill language incorporating the trunk watermain project costs.  This required the following underlined text to be added to the first whereas statement in Resolution #24-077, which appears as the fourth whereas statement in Resolution #24-286.

WHEREAS, under the provisions contained in Laws of Minnesota 2023 chapter 72, article 2, section 10, subd. 12 as amended by Laws of Minnesota chapter 88, article 1, section 43, $3,200,000 was appropriated to the Minnesota Public Facilities Authority (MPFA) “For a grant to the city of Ramsey to construct a new water treatment facility and trunk watermain to remove manganese and iron from the city's water supply.

Following Council adoption of Resolution #24-286, staff will submit a certified copy of the resolution to MPFA staff, along with all remaining requested documentation.  Upon receipt of a final Grant Agreement, which will be reviewed and approved by the City Attorney, the Mayor and City Administrator will execute the Grant Agreement to allow the City to receive the awarded grant funds.    

The funds required to pay for the Water Treatment Plant projects are outlined within attached Resolution #24-286.    

Staff recommends adopting Resolution #24-286 accepting Special Appropriation Grant Funds and authorizing entering into a Grant Agreement with the Minnesota Public Facilities Authority for Improvement Projects #21-08 and #21-09.