HomeMy WebLinkAboutX-E-01 PFAS Update
City Council Memorandum
To: Mayor Fasbender & City Councilmembers
From: City Administrator Dan Wietecha
Date: June 3, 2024
Item: PFAS Update
Council Action Requested:
Informational memo, no action requested at this time.
Background Information
Hastings has PFAS contamination all six of our municipal wells (specifically PFOA in all six
wells and PFOS in two wells). The City has completed a Feasibility Study to consider
alternatives to mitigate the PFAS. The study recommended construction of three decentralized
water treatment plants for PFAS and Nitrates. The construction cost estimate is $68.9M, and the
City has been exploring and pursuing multiple opportunities to offset this “budget buster”
expense.
Key Updates
State Capital Budget: The City has submitted PFAS Treatment & Raw Water Lines for
consideration in the State’s 2024 Capital Budget due to the budget-busting expense, the fact that
the treatment is to remove contamination/pollution caused by others, and the suddenness of new
regulations preventing financial planning. Sen. Seeberger and Rep. Hudella have indicated
support and introduced SF 3161 and HF 3115.
The legislative session ended May 20 without passage of a bonding bill. We will need to weigh
options either to proceed at ratepayers expense without state assistance or to delay the project in
hopes of other funds coming through. In either case, we will continue to seek assistance (several
exampled are listed below) as well as renew our State Capital Budget Request for next session.
Congressionally Directed Spending: On April 26 and 29, we submitted requests of Senator
Klobuchar, Senator Smith, and Representative Craig for $10.3M (50%) of the first phase of the
project. This amount is higher than typically funded.
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Conversations with staff for Senator Klobuchar and Congresswoman Craig have been
supportive. A decision on Congressionally Directed Spending (also known as Community
Project Funding) could occur between summer and October.
PPL/IUP: In 2023, the City submitted the project for the State’s Drinking Water Revolving
Fund Project Priority List (PPL). On May 1, 2024, we re-submitted to correct errors which will
result in our ranking at or near the top of the list. Additionally, we will submit the first two
phases of the project for the Intended Use Plan (IUP) in early June. Although the Drinking Water
Revolving Fund is not our preferred funding source, it has the possibility of a $3M Emerging
Contaminants Grant for each phase.
Water Rates: As we begin budget planning for 2025 (including a workshop on June 3), we will
need to discuss potential water rate increases, phasing, and timing.
Financial Impact:
Not applicable
Committee Discussion:
Not applicable
Attachments:
Not applicable
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