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16 <br />17 <br />18 <br />A smaller grant opportunity through the Clean Water Fund is a Source Water Protection grant <br />that is administered through the Minnesota Department of Health. A Source Water Protection <br />Grant is typically tied to a goal in a Community's Wellhead Protection Flan. A Source Water <br />Protection Grant has a maximum value of $10,000. <br />Effect on Water Rates <br />The City of Ramsey currently has a !minimum quarterly water rate of $41.10. This rate covers the <br />first 15,000 gallons of water used per quarter. After the first 15,000, the cost per 1,000 of water <br />used gets progressively more expensive. This is referred to as a conservation water rate <br />because it discourages the use of more water. <br />According to the Ramsey Finance Director, the City of Ramsey has approximately $22-$23 <br />million set aside for a water treatment plant project. The City of Ramsey currently raises its water <br />rates 2% per year. If the City of Ramsey were to bond for $9 million to cover the rest of the water <br />treatment plant project, the City would need to raise water rates at 5% per year for several years. <br />If water rates were raised at a rate of 5% per year for 4 years, the resulting minimum quarterly <br />rate in 2025 would be $50.00_ This would also pay for additional operation and maintenance <br />costs. <br />Public Involvement <br />Having informed and engaged residents is important to the success of a major municipal project. <br />To engage residents, the following public involvement activities are recommended: <br />• Publish information describing the water issues and proposed water treatment plant <br />project on the City's website in September 2020. <br />• Send information mailers to residents in October 2020 describing the water issues and <br />proposed water treatment plant project. Include discussion about municipal scale water <br />softening and the respective costs. <br />Schedule <br />If the City elects to proceed with a water treatment plant project, the proposed project schedule <br />could be as follows: <br />Item Completion Date <br />Public Involvement September 2020 — October 2020 <br />Preparation of Plans November 2020 — March 2021 <br />Ad for Bid April 2021 <br />Bid Opening May 2021 <br />Construction Start June 2021 <br />Construction Complete April 2022 <br />FEASIBILITY STUDY -DRAFT RAMSY 154354 <br />Page 40 <br />