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Home My WebLink AboutX-E-01 (a-c) State Bonding - Civic Arena Refrigeration and Roof, PFAS Treatment and Raw Water Piping, Highway 61 Improvements City Council Memorandum To: Mayor Fasbender & City Councilmembers From: City Administrator Dan Wietecha Date: June 5, 2023 Item: State Bonding Requests Council Action Requested: Approve three resolutions required for applications for state bonding projects. Background Information: The process is underway for cities and other local governments to have projects considered by the governor to be part of the proposed 2024 capital budget for the State of Minnesota. The deadline for local governments to submit their project information is June 16. Although it may be difficult for a project to meet all the priority criteria, the state has indicated the following priorities for bonding projects: • Address life and safety issues. • Preserve existing infrastructure and repair existing facilities before starting new projects. • Provide at least a 50% match. • Are proposed following community engagement. • Have a local resolution of support from the governing body. • Integrate climate preparedness and/or clean energy. • Address and undo historical and systematic disparities and inequities, including those based on race, gender, veterans’ status, geography, and economic status. Acknowledging that our Capital Improvement and Capital Equipment Plans (CIP/CEP) have identified project expenses greater than readily available revenues, it is important that we seek alternate funds where available. The Management Team has reviewed our CIP/CEP and major projects anticipated in the next few years and recommends consideration of the following projects for application for state bonding assistance, in order of recommended ranking: • Arena Refrigeration System & West Rink Roof – City Council provided direction to staff to move forward with replacing the refrigeration system and the West Rink roof with solar array as a 2024 project at its May 15th regular meeting. The City has submitted this for consideration in the State’s 2022 and 2023 capital budget, and it has been on the X-E-01 (a-c) Governor’s recommended list the past two years. Current cost estimate is $4.5M; the request is for state bonding to cover 50%. • PFAS Treatment & Raw Water Lines – At its April 3rd meeting, the City Council hired WSB & Associates for a feasibility study to develop a recommended solution to address PFAS in our drinking water. The preliminary cost estimates id $61.7M. Sen. Seeberger and Rep. Hudella have proposed to carry legislation to fund this project in the next session and suggested that also entering it into the bonding requests would help with introducing the bill. We are not proposing a local match for this project. • Highway 61 – We have been working with MNDOT to plan for reconstruction of Highway 61 in 2027. From prior experience, a project may need to be applied several times before approval for state bonding, thus submitting this project now ahead of scheduled construction. Current cost estimate is $30M, including the highway and the City’s water and sanitary sewer utilities underneath it. MNDOT has $10M allocated toward the project, leaving a gap of $20M to be covered. We intend to pursue a variety of federal and state funding to cover this. Financial Impact: We propose a 50% local match (which would occur in future budget years) for the Civic Arena project. These projects are identified in the Capital Improvement Plan. Committee Discussion: Not applicable Attachments: • Resolution – Hastings Civic Arena Improvements • Resolution – PFAS Treatment of Municipal Water System • Resolution – Trunk Highway 61 Improvements X-E-01 (a-c) CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION NO. ________ RESOLUTION IN SUPPORT OF APPLICATION FOR STATE BONDING FOR HASTINGS CIVIC ARENA IMPROVEMENTS WHEREAS, the Hastings Civic Arena ice arena is among the top arenas to play in within the State of Minnesota for its history and vintage style; WHEREAS, the Hastings Civic Arena is used by area residents for youth and adult recreational skating, Hastings High School boys and girls hockey teams, figure skating lessons, and regional hockey tournaments; WHEREAS, the US Environmental Protection Agency (EPA) is phasing out use of R-22 refrigerant, which is currently used for the Hastings Civic Arena’s ice refrigeration; WHEREAS, in in February 2017, the City conducted an energy efficiency study regarding alternatives to the R-22 refrigeration system and adding 160 kW roof-top solar array; WHEREAS, conversion to an ammonia-based refrigeration system will require building modifications; WHEREAS, a modified built-up roof is required for the solar installation; WHEREAS, conversion to an ammonia-based refrigeration system, replacement of the west rink roof, and installation of roof-top solar panels would enable the continued maintenance and use of the existing Hastings Civic Arena facility and utilize clean energy, with the project estimated at $4.5 million; WHERAS, the City of Hastings is authorized under Minnesota Statutes Section 471.345 subd.13, to enter into guaranteed energy savings agreements with a qualified provider not exceeding twenty years for the purpose of implementing comprehensive utility cost-savings measures to improve the energy efficiency of a municipal facility provided the cost of implementing the measures will not exceed the amount to be saved in utility operation and maintenance costs over a twenty year period and the qualified provider provides a written guarantee that the energy or operating cost savings will meet or exceed the cost of the system; WHEREAS, the City of Hastings ranks this request 1 of 3 requests for the 2024 Capital Budget; AND, WHEREAS, the State of Minnesota Capital Budget bonding projects requires a 50% local match; X-E-01 (a-c) NOW, THEREFORE, BE IT HEREBY RESOLVED by the Hastings City Council that it supports applying to the State of Minnesota 2024 Capital Budget for inclusion of the Hastings Civic Arena Improvements to upgrade the refrigeration system. Adopted this 5th day of June, 2023. _______________________________ Mary Fasbender, Mayor Attest: _______________________________ Kelly Murtaugh, City Clerk X-E-01 (a-c) CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION NO. ________ RESOLUTION IN SUPPORT OF APPLICATION FOR STATE BONDING FOR PFAS TREATMENT OF MUNICIPAL WATER SYSTEM WHEREAS, the Minnesota Department of Health (MDH) has detected PFAS in the Hastings raw water supply; and WHEREAS, MDH has established health-based guidance values for six species of PFAS to calculate a Health Risk Index (HRI), which is recommended to be maintained below 1.0; and WHEREAS, all Hastings municipal wells have PFAS in them and four of the six have HRI’s between 0.5 and 1.0; and WHEREAS, recently the Environmental Protection Agency (EPA) proposed guidance that lowers the threshold of certain PFAS elements to detectable levels; and WHEREAS, the EPA and MDH guidance is expected to place all six municipal wells above the HRI, resulting in drinking water advisories issued across all of Hastings as early as 2023; and WHEREAS, it is estimated to cost $62 Million to mitigate PFAS from the Hastings drinking water supply; and WHEREAS, the City of Hastings water rates cannot afford this unforeseen cost to deliver safe drinking water to residents and businesses; and WHEREAS, the City of Hastings has not been included in the East Metro Settlement with 3M to date; and WHEREAS, the City of Hastings has not received funding support from outside sources; and WHEREAS, the City of Hastings is planning to include the private water system that serves the Hastings Veterans Home in its PFAS treatment; and WHEREAS, the City of Hastings has already invested in feasibility study and significant staff resources to understand and manage the impacts of PFAS; and AND, WHEREAS, the City of Hastings ranks this request 2 of 3 requests for the 2024 Capital Budget; X-E-01 (a-c) NOW, THEREFORE, BE IT HEREBY RESOLVED by the Hastings City Council that it supports applying to the State of Minnesota 2024 Capital Budget for inclusion of PFAS Treatment of Municipal Water Supply. Adopted this 5th day of June, 2023. _______________________________ Mary Fasbender, Mayor Attest: _______________________________ Kelly Murtaugh, City Clerk X-E-01 (a-c) CITY OF HASTINGS DAKOTA COUNTY, MINNESOTA RESOLUTION NO. ________ RESOLUTION IN SUPPORT OF APPLICATION FOR STATE BONDING FOR TRUNK HIGHWAY 61 IMPROVEMENTS WHEREAS, Trunk Highway 61 (Vermillion Street) is an important route for vehicle and freight traffic as part of the National Highway System; and WHEREAS, TH 61 is a lower speed urban section in which multimodal mobility and safety are important considerations; and WHEREAS, previous planning efforts were acknowledged, including the Vermillion Street Corridor Study, People Movement Plan, and 2040 Comprehensive Plan; and WHEREAS, a Pre-Scoping Assessment has now been completed by MnDOT and the City of Hastings to refine understanding of needs through stakeholder engagement; and WHEREAS, a recommended alternative concept has collectively addressed the predominant concerns of access, safety, traffic operations, mobility, vehicle speeds, bicycle/pedestrian facilities, and opportunities for community identity/aesthetic improvements; and WHEREAS, the existing public utilities are aged, failing and in need of repair; and AND, WHEREAS, the City of Hastings ranks this request 3 of 3 requests for the 2024 Capital Budget; NOW, THEREFORE, BE IT HEREBY RESOLVED by the Hastings City Council that it supports applying to the State of Minnesota 2024 Capital Budget for inclusion of the Trunk Highway 61 Improvements. Adopted this 5th day of June, 2023. _______________________________ Mary Fasbender, Mayor Attest: _______________________________ Kelly Murtaugh, City Clerk X-E-01 (a-c)