3. Memo - Point Source Implementation Grant Update 3-19-2022Page 1 of 1
City of Scandia
14727 209th St. N. PO Box 128, Scandia, Minnesota 55073
Phone (651) 433-2274 Fax (651) 433-5112 http://www.ci.scandia.mn.us
MEMORANDUM
DATE: March 19, 2022
TO: Wastewater Advisory Committee
FROM: Ken Cammilleri, City Administrator
RE: Point Source Implementation Grant Program
I can now confirm that Scandia is going to be placed on the State’s 2023 Project Priority List
(PPL) for Point Source Implementation Grant (PSIG) program. The Bliss project scored 50
points which meets the eligibility criteria for funding for 80%. It generally takes two years to
reach the ranking necessary for funding. In order to continue to advance towards meeting
the criteria for a full award, the City must complete a near-full facility plan. That particularly
means making some final adjustments to the permit report and preparing the specs and
design.
There is currently 9 million dollars in the PSIG fund and the MPCA is requesting 75 million
which would fund 100% of the 2022 list. We need to apply in July for PSIG and order plans
and specs in time for submission. I will be requesting a quote to complete this final work
from Bolton & Menk in order for the Committee and the City Council to consider the next
options to move forward in this process.
The PSIG program also provides access to the State’s revolving loan fund, should we need
to obtain gap financing. However, in order to qualify, we must have a complete full facilities
plan with an environmental assessment. The cost of this prep work may outweigh the cost
set savings that the revolving loan may be able to offer, according to Bill Dunn at MPA.
(We will be investigating this cost.) This likely means that we may need to obtaining bond
financing and potentially delay rehab of the Bliss’ main lift station, #2.
Our direct state bond grant effort remains the most highly desirable alternative to any of
these borrowing options since it is eligible to serve as matching funds towards PSIG. In
theory, that means 100% could be funded by the State, which is the ideal scenario for our
utility.
The City Council has approved the hiring of the Libby Law Offices, represented by Bill
Strusinski and Les Heen, to push our state bonding proposal. The estimated cost of this
work will be around $18,000. This means that we will need to consider a possible
amendment to support this cost and the test well replacement that must be completed this
year as part of the State Operators Permit for the Bliss Waste Water Treatment Plant
(WWTP).
Please let me know if you have any questions.