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HomeMy WebLinkAbout20250407 - CC Workshop Minutes Hastings, Minnesota City Council Workshop April 7, 2025 The City Council of the City of Hastings, Minnesota met in a workshop on Monday, April 7, 2025, at 5:30 p.m. in the Volunteer Room at the Hastings City Hall, 101 East 4th Street, Hastings, Minnesota. Members Present: Mayor Fasbender, Councilmembers Beck, Lawrence, Leifeld, and Pemble Members Remote: Councilmember Haus Members Absent: None Staff Present: City Administrator Dan Wietecha Assistant City Administrator Kelly Murtaugh Public Works Director Ryan Stempski Mayor Fasbender called the workshop to order at 5:32 pm and welcomed staff and councilmembers to the workshop about PFAS funding. Wietecha opened the meeting with an overview of the agenda: Method of Financing, Addressing Nitrates, and Impact on Water Rates. Wietecha provided an overview of the cost estimates. The cost estimate is $30.8 M for the Central Water Treatment Plant. Much of the cost is covered through a MPCA Planning & Design grant, 3M Settlement funds, Emerging Contaminants Grant, and water rate increase implemented in January 2025. The remaining uncovered amount of the estimate is $6.1M. Options for Financing the remaining portion of the project: • Public Facilities Authority Loan: low interest with a savings of almost $1M, 20-year repayment term, coordinates with requirements of the Emerging Contaminants Grant, repaid through water rates, potential concern with cash flow. This is the recommended option. • Bonding: potential 25-year repayment term, could be repaid through water rates or general fund (taxes). Council discussion clarifying terms, impacts to the city and residents, and differences between the options. Council discussion on the repayment through water rate increases versus property tax increases. Council recommendation that though water rates will increase, the loan through the Public Facilities Authority is a better direction because the impact will be shared among all users of water in the City and the low interest rate saves some of the interest expense over time. Stempski provided an overview of the plans for building the footprint for full treatment of nitrates at the Central Water Treatment Plant. Stempski indicated that putting in the nitrate footprint during construction, has less cost for construction than adding it in the future while waiting on the treatment equipment would cost the same in the future. The current nitrate treatment plant can continue to be utilized to partially treat the area wells (3 & 5) until the full