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TO: <br />FROM: <br />DATE: <br />Ron Moorse, City Administrator <br />John R. Gerhardson, Public Works Director <br />July 22. 1993 <br />SUBJECT: Stubbs Bav Sewer Connection Grant Program <br />% <br />\h <br /><3^(5^ <br />% <br />% <br />During the allocation of funds for the Community Development Block Grant (CDBG) program, <br />it was determined by Council to designate $16,300 tor qualifying residents to connect to the <br />sanitary sewer main. The questions asked by Council were: <br />1. Who would administer the program.^ <br />2. Would there be an established amount to pay toward the cost of the connection <br />or would the entire amount be paid with CDBG funds? <br />The answer to Question 1 is that Hennepin County and the City of Orono would <br />administer the program. <br />Hennepin County would verify income eligibility and the City would review and approve <br />the lowest responsible bidder and perform the inspection. <br />The answer to Question 2 is the City can set a maximum amount to help pay for <br />connection instead of paying for the entire amount. <br />An e.xample would be if the cost for a connection is $2,300. The city could set an <br />amount not to e.xceed and the resident would pay the difference. <br />In the response from Hennepin County (attached), they have also tequested that we <br />respond to two concerns that they have: <br />1.Setting the income guidelines 50% ard or 80% of the median income (see <br />attached sheet). <br />They are suggesting a repayment program iluit requires repayment ot the full <br />amount if conditions change w iihin a ten year period. That is being done now in <br />the Housing Rehabilitation Program and they recommend having a repayment <br />program. If u grant is approved, a claim is filed in the chain of title and if things <br />change on the prop^.ty within the ten year period, the full amount ot the grant <br />is paid back and placed in an ongoing project such as Housing Rehabilitation.