Request for Committee Action
A briefing memo explaining the purpose, background, and impact of the requested action.
2025 Lead Service Line Replacement Project Orders Acceptance (RCA-2025-00621)
ORIGINATING DEPARTMENT
To Committee(s)
| # | Committee Name | Meeting Date |
|---|---|---|
| 1 | Climate & Infrastructure Committee | June 12, 2025 |
Action Item(s)
| # | File Type | Subcategory | Item Description |
|---|---|---|---|
| 1 | Resolution | Contract/Agreement | Passage of Resolution accepting Lead Service Line Replacement Project Orders and authorizing their execution. |
| 2 | Resolution | Appropriation | Passage of Resolution approving appropriation of funds to the Public Works Water Enterprise fund. |
Ward / Neighborhood / Address
| # | Ward | Neighborhood | Address |
|---|---|---|---|
| 1. | All Wards |
Background Analysis
Public Water Systems can apply for grant funding to replace lead service lines through the Minnesota Drinking Water Revolving Fund program. The process is to first apply to the Minnesota Department of Health (MDH) to have projects listed on the state’s Priority Project List. Upon MDH approval, water systems then request those approved projects be included on the Minnesota Public Facilities Authority’s Intended Use Plan. Once on the Intended Use Plan, each Minneapolis Lead Service Line Replacement project is executed under the provisions of the Lead Service Line Replacement Program Master Grant Agreement Minneapolis_LSLR_00 with the Minnesota Public Facilities Authority (COM0008641). This Master Agreement is in effect until June 30, 2033.
Under the Master Agreement, the Authority issues individual Project Orders to encumber grant dollar amounts for projects. Each Project Order has a discrete scope with budget and property addresses where lead service lines (LSLs) will be replaced.
Minneapolis has three Project Orders for 2025:
- $3,356,344 for replacement of LSLs in the Northside and Southside Green zones (IUP Project 12700024-19). An estimated 2,030 properties in the Northside and Southside Green Zones have private lead service lines. The goal of the 2025 project is to replace LSLs for 268 homes in the Northside and 131 homes in the Southside zone.
- $3,584,055 for replacement of LSLs associated with street renewal projects (IUP Project 1270024-15). These LSL replacement projects will be delivered in conjunction with other Public Works projects to enable cost-savings related to pavement restoration. In 2025, LSL replacements are planned within the 1st Avenue S., Franklin Avenue, and Lowry Avenue reconstruction project areas, for three Surface Water & Sewers projects within the Cleveland, Lynnhurst, and Ericsson neighborhoods, and the mill and overlay projects in the Fulton and Wenonah-Morris Park neighborhoods.
- $3,520,000 for replacement of leaking LSLs over two years (IUP Project 1270024-24). An estimated 200 private service lines throughout Minneapolis develop leaks and must be replaced annually. Nearly all of these are lead service lines eligible for grant funding.
LSL replacement project expenses are paid as they are incurred from the Water Enterprise Fund 07400, Department 6900960. Once expenses are submitted to the PFA for reimbursement, the corresponding expense amount is transferred to the city's Grants Special Revenue Fund 01300, Department 6900960. The reimbursement monies received from the PFA are then coded directly as revenue into the Grants Special Revenue Fund 01300, Department 6900960. This process results in no net increase or decrease to either the Water Enterprise fund or Grants Special Revenue fund.
The action requested is to accept each Project Order and authorize its execution and to appropriate the grant reimbursement funds.