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Mayor Gamec asked if the payment would come at the completion of the project. <br /> <br />Civil Engineer II Linton replied the payment would be spread out in monthly payments once <br />construction begins. He explained the purpose for tonight is not to ask for approval to begin this. <br />The schedule worked up by Bolton and Menk included review and approval being in place by <br />December' of 2005 with construction to begin in January of 2006. <br /> <br />Mayor Gamec asked if the funds can be used for plans and land purchased in addition to the <br />construction costs. <br /> <br />Civil Engineer II Linton replied land purchases are included in the total amount in the CIP. <br /> <br />Councilmember Pearson asked if this would be a one-time grant, or if the City would be eligible <br />for another treatment plant. <br /> <br />Civil Engineer II Linton replied there are some limitations. The funds cannot be used purely for <br />economic development growth. If the City-were to have another project an application could be <br />submitted again and it would be ranked. <br /> <br />Councilmember Strommen asked if this project would include both iron and magnesium <br />removal, as well as water treatment from the river. <br /> <br />Civil Engineer II Linton replied the application would be to get a plant with sufficient capacity to <br />meet the City's daily needs, with the goal that the wells the City already has would be used for <br />back up and to supplement for peak summer demands. They have not proceeded to the design <br />stage to determine everything that would be included. There would likely be the raw water from <br />the wells piped over, so there would be some treatment. The function of this plant would be for <br />surface water treatment. <br /> <br />Assistant Public Works Director Olson explained the plant would have the ability to treat <br />deepwater aquifer wells, as well as surface water. <br /> <br />Councilmember Olson asked if the ranking determines the amount that would be distributed. <br /> <br />Civil Engineer II Linton responded in the affirmative. He indicated staff would apply for the full <br />amount, and would likely receive between 5 and 15 million dollars in funding. <br /> <br />Councilmember Elvig clarified this would be a loan, not a grant. <br /> <br />Civil Engineer II Linton replied that is correct. The interest rate would typically be between 1.5 <br />and 3 percent. <br /> <br />Counci!member Elvig clarified much of the construction costs would be paid down as the project <br />proceeds, so it would not be necessary to take out a bond first. <br /> <br />-12- <br /> <br />City Council Work Session/April 26, 2005 <br /> Page 2 of 6 <br /> <br /> <br />