The URL can be used to link to this page

Home My WebLink AboutX-E-02 (a,b) 2026 State Bonding RequestCity Council Memorandum To:Mayor Fasbender & City Councilmembers From:City Administrator Dan Wietecha Date:June 2, 2025 Item:State Bonding Request –PFAS & Nitrates Treatment, Eastern and Western WTP Council Action Requested: Approve resolutions applying for state bonding request for the eastern and western Water Treatment Plants 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. Legislators strongly advised breaking the project into distinct phases and requesting funding one phase at a time. Accordingly, we submitted the eastern WTP for state bonding in 2025. At the time of writing (5/29/2025), the legislature as not yet decided its capital budget. Minnesota Management and Budget (MMB) has set June 13 as deadline for any local project applications for the 2026 capital budget. The state bonding application requests a City Council resolution of support. I recommend submitting both the eastern and western WTPs for state bonding in 2026 in order to keep our options open. If in the next couple weeks we receive funds for the eastern WTP, then we can pull that application and continue with the western WTP. On the other hand, if we do not receive funding, we can then decide whether to pull one or the other. MMB requests the City’s ranking of the priority order of multiple applications. I propose the eastern WTP as the preferred project. The eastern WTP is ranked #2 on the state’s current Project Priority List (PPL). I am updating the eastern WTP estimate at $23M, this reflects $20.6M for the plant, $1.7M for the Veterans X-E-02 (a,b) Home interconnect, and $700K investment the City has already made for raw water lines.This project has received $1M through the MPCA Planning and Design Grant and is “funded” $3M through the Emerging Contaminants Grant. We also continue to seek connection for East Metro 3M Settlement eligibility. The western WTP is estimated at $21.6M. This project has received $1M through the MPCA Planning and Design Grant. We have submitted applications for Emerging Contaminants Grant and Congressionally Directed Spending. We also continue to see connection for East Metro 3M Settlement eligibility. Financial Impact: Requesting $18.3M state bonding for the eastern WTP and $20.6M for the western WTP Committee Discussion: City Council Legislative Priorities Workshop 11/18/2024 City Council PFAS Workshop 4/7/2025 City Council Budget Workshop 6/2/2025 Attachments: •Resolution in Support of Application for State Bonding for Eastern Water Treatment Plant for PFAS & Nitrates Removal •Resolution in Support of Application for State Bonding for We stern Water Treatment Plant for PFAS & Nitrates Removal X-E-02 (a,b) 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 current 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 $23Million; 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 and $3 Million in Emerging Contaminants Grant support for the Eastern WTP; and WHEREAS,to date, the Eastern WTP has not been included in the State’s East Metro 3M Settlement; and X-E-02 (a,b) WHEREAS,the City of Hastings plans would enable connection of the private water system that serves the Minnesota Veterans Home in this project; and WHEREAS, the Eastern Water Treatment Plant is ranked #2 on the Public Facilities Authority’s draft Project Priority List; and WHEREAS,during the 2024 and 2025 Legislative Sessions, 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 clean drinking water its top legislative priority; 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 as its #1 priority request. Adopted this 2nd day of June, 2025. _______________________________ Mary Fasbender, Mayor Attest: _______________________________ Kelly Murtaugh, City Clerk X-E-02 (a,b) CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION NO. ________ RESOLUTION IN SUPPORT OF APPLICATION FOR STATE BONDING FOR WESTERN 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 current 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 Western Water Treatment Plan is estimated to cost $21.6 Million; and WHEREAS,the City of Hastings has invested in feasibility and siting studies 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 Western WTP; and WHEREAS,to date, the Western WTP has not been included in the State’s East Metro 3M Settlement; and WHEREAS,during the 2024 and 2025 Legislative Sessions, bills were introduced in the Senate and the House to include funding for this project in the State Capital Budget; X-E-02 (a,b) AND, WHEREAS,the City of Hastings deems clean drinking water its top legislative priority; 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 Western Treatment Plant for PFAS & Nitrates Removal as its #2 priority request. Adopted this 2nd day of June, 2025. _______________________________ Mary Fasbender, Mayor Attest: _______________________________ Kelly Murtaugh, City Clerk X-E-02 (a,b)