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HomeMy WebLinkAboutX-E-02 Application for State Bonding Bill for Eastern WTP City Council Memorandum To: Mayor Fasbender & City Councilmembers From: City Administrator Dan Wietecha Date: December 2, 2024 Item: State Bonding Request – PFAS & Nitrates Treatment, Eastern WTP Council Action Requested: Approve resolution for application for state bonding request for the eastern Water Treatment Plant (WTP 1) for PFAS and Nitrates removal. Background Information: The City 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 indicated support and introduced SF 3161 and HF 3115. The legislative session ended May 20 without passage of a bonding bill. In October, we met with Senator Pappas, Chair of the Senate Capital Investment Committee, to provide an update on our project and funding needs. A new state application as well as new bills will be needed. The state bonding application requests a City Council resolution of support. Clean and safe drinking water was identified as the City Council’s number one legislative priority during its workshop on November 16. During the past legislative session, as well as our meeting with Senator Pappas, we had strong feedback to break our project into distinct phases and request funding one phase at a time. During our Legislative Priorities Workshop in November, the City Council discussed applying for funding for the eastern plant (WTP 1), as it is the next in the construction schedule and has limited outside funding at this time. This WTP is currently estimated at $20.6M and has received $1M through the MPCA Planning and Design Grant. Additionally, we have applications for Congressionally Directed Spending and Emerging Contaminants Grant pending toward this project. We also continue to seek connection for 3M Settlement eligibility. X-E-02 Financial Impact: Requesting $19.6M state bonding Committee Discussion: City Council Legislative Priorities Workshop 11/18/2024 Attachments: Resolution in Support of Application for State Bonding for Eastern Water Treatment Plant for PFAS & Nitrates Removal X-E-02 CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION NO. ________ RESOLUTION IN SUPPORT OF APPLICATION FOR STATE BONDING FOR EASTERN WATER TREATMENT PLANT FOR PFAS & NITRATES REMOVAL WHEREAS, the Minnesota Department of Health (MDH) and US Environmental Protection Agency (EPA) have set limits for PFAS and Nitrates in public drinking water supply; and WHEREAS, the Minnesota Department of Health (MDH) has detected PFAS in the Hastings raw water supply; and WHEREAS, all six Hastings municipal wells have PFOS and PFOA (the two targeted PFAS chemicals identified among the most harmful to health); and WHEREAS, Nitrates need to be mitigated in addition to PFAS for concerns of additivity to common health endpoints; and WHEREAS, EPA’s recent National Drinking Water Regulation requires Hastings to remove PFAS from its drinking water by April 2029; and WHEREAS, it is estimated to cost $68.9 Million to remove PFAS and Nitrates from the Hastings drinking water supply; and WHEREAS, without outside funding, the City’s water rates are projected to double in three years and triple in five years, an unaffordable burden on Hastings residents and businesses; and WHEREAS, the City has broken the project into three phases, and the Eastern Water Treatment Plan is estimated to cost $20.6 Million; and WHEREAS, the Eastern WTP project location is on City-owned land, and the City of Hastings has invested in installation of raw watermains, feasibility study, and significant staff resources to support this project; and WHEREAS, the City of Hastings has received $1 Million in Planning & Design grant support for the Eastern WTP; and WHEREAS, to date, the Eastern WTP has not been included in the State’s 3M East Metro Settlement; and X-E-02 WHEREAS, the City of Hastings plans to include connection of the private water system that serves the Minnesota Veterans Home in this project; and WHEREAS, this project is ranked #2 on the Public Facilities Authority’s draft Project Priority List; and WHEREAS, during the 2024 Legislative Session, bills were introduced in the Senate and the House to include funding for this project in the State Capital Budget; AND, WHEREAS, the City of Hastings deems this its top legislative priority and is submitting only it for the State’s Capital Budget; NOW, THEREFORE, BE IT HEREBY RESOLVED by the Hastings City Council that it supports applying to the State of Minnesota’s Capital Budget for inclusion of the Eastern Treatment Plant for PFAS & Nitrates Removal. Adopted this 2nd day of December, 2024. _______________________________ Mary Fasbender, Mayor Attest: _______________________________ Kelly Murtaugh, City Clerk X-E-02