Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Water Treatment topic
No spam. Unsubscribe anytime.
City hears progress report on water treatment plant design, told PFA loan looks unlikely
Summary
Consultants told the council design work is underway and recommended planning on traditional financing after the Public Facilities Authority flagged the project as growth-related and unlikely to qualify for PFA funds; staff outlined schedule, design choices and next steps for bids and rates.
Consultants updated the Minnetrista City Council on progress toward a new water treatment plant and urged the council to plan for traditional financing after the Public Facilities Authority indicated the project would likely be deemed "growth related" and therefore ineligible for PFA funding.
"We've kicked off design," the consultant said, adding that staff and the design team completed tours of four regional plants and have begun preliminary layout discussions. The team recommended concrete gravity filters instead of the city's existing steel filters, citing lower cost, greater layout flexibility and reduced long-term maintenance needs.
Consultants also outlined chemical-storage changes, proposing one-ton chlorine cylinders with scrubber systems and gas-detection equipment to simplify operator handling and reduce supply interruptions. Council members asked about safety; a staff member noted the city already uses chlorine with detectors and notifies police and fire in the event of a leak.
On funding, the consultant said the Public Facilities Authority found the current PFA application unlikely to be eligible because the overall package — wells plus the plant — appears growth related under state revolving-fund rules. "It's unlikely we'll be able to change their mind," the consultant said, and recommended pursuing traditional financing while staff attempts an appeal for the current funding cycle.
The project schedule calls for 30% design by the end of the third quarter, intermediate design in Q4, state reviews (Minnesota Department of Health and the Department of Labor and Industry) at the end of Q1 next year, advertising in early Q2 and construction start in May–June 2026 if traditional financing proceeds. Consultants estimated the facility could supply water in mid-2027 but cautioned that PFA pathways could add 12–24 months.
Cost planning will follow standard steps: a 30% estimate with roughly 20% contingency that will be tightened at subsequent milestones. Staff warned the council that debt service could add about $1 million per year in bond payments and that the city will need to consider rate-study results and options to phase rate increases across 2025–2026 to generate required revenue.
Council direction: staff asked for feedback on financing strategy and whether to proceed to bid under traditional financing assumptions. Several council members said they prefer pursuing traditional financing now while pursuing any available state bonding or grant opportunities; staff will return with more refined cost estimates at the 30% deliverable and a rate-study-informed set of options.
