08-01-2022 Council Work Session Packet

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WS-3 WORK SESSION STAFF REPORT Work Session Item No. 3 Date: August 1, 2022 To: City Council From: Michael Grochala, Community Development Director Re: Water Treatment Plant Next Steps Background At the April 4, 2022 work session the City Council directed staff to work with WSB to prepare a proposal to prepare plans and specifications for the Water Treatment Plant. WSB and Associates have submitted a proposal for Design, Bidding and Construction for the amount of $1,447,730 (6.89% of preliminary estimated construction cost) as follows: Design: $696,940 Bidding: $19,021 Construction Admin, Const. Observation and Plant Startup: $731,769 Total 1 447 730 The design fee includes engineering, architectural, mechanical and electric design on the plant and treatment system as well as design of new raw water mains to connect wells, 1, 3, 5, 6 to the site. The bidding, construction admin and plant startup components came be authorized at a future date, should the City move forward with construction. Funding for the design will come from the City's Trunk Unit and Area Fund. Staff has submitted application to be included on the State's Public Facility Authority (PFA) Intended Use Plan that provides low interest loans for eligible public infrastructure projects. Additionally, the City may be eligible for grant funding in the $1 to $2 million dollar range from PFA administered federal funding for emerging contaminants (manganese). Staff will continue to pursue all options including seeking state bonding funds in next year's legislative session. One issue that staff continues to be concerned with is the status of the White Bear Lake related water appropriation permit conditions. The restriction on new wells, potential appropriation reduction and continued discussion on conversion to surface water for some communities does have potential implications on our system. While we don't anticipate any short term resolution to the issue the City needs to be mindful of these discussions when making this sizable of an investment it's water system.