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16 <br />17 <br />18 <br />awarded in FY2020 for 10 projects related to source water protection. All of the recipient <br />organizations were counties, watershed districts, or conservation districts. <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 Plan. 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 $42.15. 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 $25 million set <br />aside for a water treatment plant project, which was collected from Municipal water users for this <br />specific purpose. The City of Ramsey currently raises its water rates 2.5% per year. If the City <br />were to bond for the remainder of the water treatment plant project costs, the City would need to <br />explore water rate impacts. For instance, if water rates were raised at a rate of 5% per year for 4 <br />years, the resulting minimum quarterly rate in 2025 would be $51.23. This could also pay for <br />additional operation and maintenance 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 March 2020, and in the March -April edition of the Ramsey <br />Resident. <br />• Send information mailers to residents in March 2020 describing the water issues and <br />proposed water treatment plant project. Consider including discussion about municipal <br />scale water softening, the respective costs to the public, and the fact that many people <br />already own in -home water softeners. <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 March 2021 — April 2021 <br />Preparation of Plans May 2021 — September 2021 <br />Ad for Bid October 2021 <br />Bid Opening November 2021 <br />Construction Start December 2021 <br />Construction Complete June 2023 <br />FEASIBILITY STUDY RAMSY 154354 <br />Page 43 <br />