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Saint Peter council approves applications for lead‑line replacement and wastewater upgrades
Summary
The council authorized applications to the Minnesota Public Facilities Authority for drinking‑water funding to replace lead service lines and for clean‑water funding to upgrade the wastewater treatment plant; staff gave preliminary cost estimates and explained likely phased borrowing and reimbursement.
St. Peter — The city council voted March 23 to approve staff submittal of two separate funding applications to the Minnesota Public Facilities Authority: one to the drinking‑water revolving fund for the city’s lead service line replacement program and one to the clean‑water revolving fund for wastewater treatment plant upgrades.
Curtis, the city’s water resources superintendent, asked the council to approve the drinking‑water application and the required certification forms. He told the council that the work would be paid from the water fund and reimbursed by grant funds once the project is complete. “With this application… the money will come out of our water fund and then at the completion of the project, will be reimbursed with the grant funds,” Curtis said.
On the clean‑water application for wastewater improvements, staff described the estimate history and likely financing approach. Curtis said earlier paperwork showed a $49,000,000 loan amount, but the city’s current construction estimate with the construction manager‑at‑risk is about $16,500,000 for construction plus roughly $3,500,000 for engineering and administration — yielding an estimated total near $20,000,000; Curtis added that some application documents may show $24,500,000 pending a guaranteed maximum price negotiation.
City administrator Todd explained how the PFA and similar programs work, saying the typical process begins with a pre‑application, then an award contingent on completing the full application and associated engineering. He described likely use of phased temporary debt issuance to cover upfront cash needs and reduce interest costs, with reimbursements from the loan or grant later. “Think of it more like a line of credit as we move that forward,” Todd said.
The council approved both resolutions by roll call. For the drinking‑water application, council also authorized the city administrator’s signature on required certification forms. For the clean‑water application, staff said the next steps include further engineering, a guaranteed maximum price with the construction manager and continuing application work with the PFA.
Council members asked clarifying questions at the meeting about project scope, construction management and financing; staff said they will return with additional details as the process advances.
