Adopt Resolution #20-320 Accepting Awarded Grant Funds and Authoring Grant Agreement Execution for Fiscal Year 2021 Source Water Protection Plan Implementation Grant

Purpose:
The purpose of this case is to adopt Resolution #20-320 accepting up to $9,600 in awarded source water protection implementation grant funds and authoring execution of a grant agreement with the Minnesota Department of Health for the purpose of evaluating the casing for municipal water supply Well #1.

Background:
The Clean Water Land and Legacy Amendment to the Minnesota constitution provides funding to the Minnesota Department of Health (MDH) to establish a source water protection (SWP) implementation grant program, which is administered through the MDH Drinking Water Protection Section. The fundamental goal of SWP is to prevent contamination from entering sources of public drinking water at levels that present a risk to people.

On January 31, 2020, the MDH approved the City of Ramsey’s Wellhead Protection Plan (WHPP) Part 2 Amendment. Section 7.7.7 of the WHPP Part 2 Amendment identifies the need to evaluate the well casing for municipal Well #1. In the Part 1 WHPP amendment (MDH, 2018) it was noted that the tritium concentration in a groundwater sample collected from Well #1 in 2017 was higher than the tritium concentration in a sample collected from Well #1 in 2006. The rise in tritium concentration is considered to be an indication of a leak in the well casing. The WHPP plan therefore calls for the City to hire a well contractor to evaluate the condition of the casing during the next scheduled maintenance of Well #1. The estimated cost for this evaluation in 2018 was $10,000 to $15,000, depending on the level of effort required to determine if the casing is compromised.

The total amount of SWP implementation plan grant funding available under this latest notice is $175,000. The minimum amount for any grant is $1,000 and the maximum amount is $10,000. No local cost share is required to receive a SWP implementation grant, but based on estimated costs for this work Staff anticipated the City would need to fund a portion of the work, which was proposed to be taken from water enterprise funds. Staff therefore initially proposed to apply for the maximum grant amount of $10,000.


Upon receiving Council approval to apply for SWP implementation grant funds on August 25th, Staff solicited quotes from two well contractors for evaluating the casing of Well #1.  Staff received one quote in return, which was in the amount of $9,600.  Staff therefore requested SWP grant finding in the amount of $9,600, which was subsequently awarded to the City. The City will therefore not be required to pay for any portion of the work using water enterprise funds. The only expense the City will incur is for required Staff time.

Each grantee must formally enter into a grant agreement. The grant agreement addresses the conditions of the award, including implementation for the project. Once the grant agreement is signed, the grantee is expected to read and comply with all conditions of the grant agreement. A copy of the grant agreement is attached.  All awarded funds must be expended by December 31, 2021. 

Notifications are not required for this case.

Staff recommends adopting Resolution #20-320.   

Adopt Resolution #20-320 accepting up to $9,600 in awarded source water protection implementation grant funds and authoring execution of a grant agreement with the Minnesota Department of Health for the purpose of evaluating the casing for municipal water supply Well #1.