Mound presents water plan as manganese persists; city seeks $40M solution, $30M gap remains
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Summary
City staff reported ongoing manganese contamination in the distribution system, presented an updated estimated turnkey cost of about $40 million for a water treatment plant and associated infrastructure, and described progress and obstacles in securing state and federal funding.
City staff updated the Mound City Council on March 11 about progress toward a full water-treatment solution after manganese notifications began in 2021, saying manganese continues to appear at sampling points across the distribution system and a complete treatment-and-infrastructure solution is currently estimated near $40 million.
"Our focus is to provide the residents of Mound with safe and affordable drinking water," said Ryan, a city staff member who led the presentation. Staff said an initial study and earlier estimates put the total turnkey cost near $36 million; due to inflation and design updates that number is now being modeled at about $40 million.
Staff reported the city has received $10.3 million in a state appropriation and about $900,000 in a federal direct appropriation, leaving an approximate $30 million funding gap against the current estimate. Staff described multiple funding tracks the city is pursuing: applications to the Minnesota drinking-water revolving fund ranking lists (the Intended Use Plan and the Project Priority List), continuing requests for state and federal appropriations, and eligibility for low-interest loans tied to the city’s ranking.
Design and construction work is under way in part, but staff said work has slowed because of a Section 106 cultural-resources review tied to a nearly $1 million congressionally directed federal appropriation. Staff said the Environmental Protection Agency has taken administration of those federal funds and that EPA staffing and process delays have held up site surveys and geotechnical investigations. Ryan said the city is working with EPA and the State to narrow the EPA’s scope (for example by purchasing equipment rather than conducting land-disturbing site investigations) so design work can resume. Ryan said EPA indicated the city could shift roughly $935,000 worth of equipment into the federal package to move the administrative burden away from land-based investigations.
City staff described ongoing sampling around the system intended to track how manganese moves through mains and to measure concentrations at easy-access points (city buildings and other sampling sites). Staff and council members urged residents who rely on residential softeners to have their systems tested, pointing to third-party labs that perform manganese testing; staff said the city does not perform household-level testing.
Public comment at the meeting reinforced resident concern and confusion: several residents said they had not seen the 2021 notification or had not understood the health guidance and urged more outreach and clearer materials for new residents. Helen Kenning, a Beachwood Road resident, said she moved to Mound in October 2021 and was not aware of the water notifications. "There's no way to know that you need to get your water tested," she said.
Council members and staff discussed contingency options if the city does not obtain the full funding package, including staging the project in phases, seeking low-interest loans, refinancing existing debt, pursuing a local financing plan (including bonds or special assessments), and continuing coordinated lobbying with neighboring cities and state legislators. Staff said the city will revisit the issue after the state legislative session and bonding decisions (May–June timeframe) to determine whether to accelerate local financing plans.
No formal decisions were taken at the meeting; staff said they will continue design as feasible, submit monthly reimbursement requests for eligible expenses, and return with financial scenarios if federal or state funding falls short.
