City Council - Workshop Meetings

City Council Workshop Meeting Cherry Conference Rooms October 09, 2024 | 5:30 PM This City Council Workshop meeting is taking place virtually and at Woodbury City Hall in the Cherry Conference Rooms. Members of the public may attend the meeting in person and may also join the meeting using a computer, tablet, or smartphone and accessing the virtual meeting link at woodburymn.gov/VirtualMeetings. Watch the Live Meeting Public comments will be accepted during the meeting both in person and virtually. Virtual questions should be submitted via the online Q&A feature within the virtual meeting link. Questions regarding the meeting will be taken between the hours of 8:00 a.m. to 4:30 p.m. at 651-714-3524 or at council@woodburymn.gov. Questions received after 4:30 p.m. will be responded to in the next three to seven business days. Please note that all agenda times are estimates. 5:00 p.m. Dinner – Cherry Conference Room The intent of the workshop session is to provide a forum for City Council and City staff to discuss more in-depth Council items, exchanging viewpoints and visions prior to the item being set for Council action at a regular meeting of the City Council. Workshop sessions are neither a public hearing nor an open microphone session. No formal votes will be taken and any direction from Council will be in consensus format. The workshop session is not recorded, and no official minutes of the workshop session shall be prepared. Workshop Agenda 1. Workshop Discussion Items - 5:30 p.m. 1A. Drinking Water Strategic Initiative: Water Treatment Implementation 24-246 2. Administrator Comments and Updates* - 7:00 p.m. 3. Mayor and City Council Comments and Commission Liaison Updates* - 7:05 p.m. 4. Adjournment - 7:15 p.m.  Items under comments and updates are intended to be informational or of brief inquiry. More substantial discussion of matters under comments and updates should be scheduled for a future agenda.  Woodbury City Council Agenda October 09, 2024 | 5:30 PM The City of Woodbury is subject to Title II of the Americans with Disabilities Act which prohibits discrimination on the basis of disability by public entities. The City is committed to full implementation of the Act to our services, programs, and activities. Information regarding the provision of the Americans with Disabilities Act is available from the City Administrator's office at 651-714-3523. Auxiliary aids for disabled persons are available upon request at least 72 hours in advance of an event. Please call the ADA Coordinator, Clinton P. Gridley at 651-714-3523 (TDD 714- 3568) to make arrangements.  1A City of Woodbury, Minnesota Office of City Administrator Council Workshop Letter 24-246 October 9, 2024 To: The Honorable Mayor and Members of the City Council From: Clinton P. Gridley, City Administrator Subject: Drinking Water Strategic Initiative; Water Treatment Implementation Summary On September 25, the City Council awarded contracts for the Woodbury Water Treatment Plant (WTP) construction, accepted the associated state grant funding for 3M and State of Minnesota Settlement eligible components of the Woodbury WTP project, approved the associated grant budget amendment, and approved a budget amendment for City funded portions of the Woodbury WTP project. In addition to this significant milestone, beginning in early September the first pipeline project related to delivering permanent treated water to Woodbury was initiated. This workshop will provide a general project update, with a focus on the water treatment and water tower funding. Staff is approaching project decisions with the following project mission statement: Deliver resilient, system-wide treatment of drinking water for PFAS with continued urgency, while being mindful of community impacts. Recommendation The meeting is scheduled as an update, staff requests City Council provide feedback and indicate if there are unanswered questions. Governance Mode1  Fiduciary - Stewardship of tangible assets, oversees operations and ensures efficient and appropriate use of resources, legal compliance, and fiscal accountability.  Generative - identifying key questions, anticipating future challenges, framing of issues, and development of options. Fiscal Implications Water Treatment: Due to changes in the Minnesota Department of Health (MDH) guidance values for certain PFAS compounds, well eligibility and funding unknowns remain. A portion of the currently identified non-eligible amount may become eligible for reimbursement from the 3M and State of Minnesota Settlement Agreement in the future. Staff have and will continue to track the non-eligible costs incurred and seek re-imbursement when and if items become eligible. Until 1 Items marked “fiduciary” are primarily business-oriented topics; “strategic” items are primarily related to long-term strategies or goals; and “generative” items are primarily meant to produce new thoughts or ideas. Council Workshop Letter 24-246 October 9, 2024 Page 2 decisions related to well eligibility are made by state agencies, the City funded cost range currently is $17 million to $39 million. These costs will continue to be adjusted in response to eligibility determination made by the state and as additional water quality data is generated potentially impacting (increasing) the eligibility of wells and their treatment under the settlement agreement. Water Tower: The current project cost estimate provided by Engineering is $15 million. The financing plan is to fund the project with development area charges already collected and future development area charges. The Water and Sewer Trunk fund has $9 million of fund reserves that are available for the project. $7 million of fund reserves will be used to directly fund the project, $1.3 million of the reserves will be committed for debt service, and the remaining $0.7 million will be available for the project as needed. The remaining $8 million of project cost will be funded by a 20-year GO Revenue Bond. The bond payments will be funded by future development area charges, which will be budgeted each year as a transfer from the trunk fund to the debt service fund. The $1.3 million of fund reserves that will be committed for debt service in the trunk fund is equivalent to two years of debt service payments and will be used for debt payments if development area charges collected in any given year are not sufficient to make the debt payments. Policy Aligns with the 2019-2021 Strategic Initiative 19-01, Ensure Long-term Drinking Water Sustainability, 2022-2024 Strategic Initiative 22-01 Drinking Water Treatment Implementation and Environmental Stewardship. Public Process Due to the extensive length of public process items associated with these topics, only 2024 process is noted below. A list of previous public process can be found in past year’s Council Workshop letters.  January 10, 2024, Council Resolution Authorizing the Mayor and City Administrator to Execute a Letter of Engagement with WSB, Inc. For Final Design Services, Ordering the Project, Authorizing Preparation of Plans and Specifications, and Authorizing Preparation, Acquisition and, if Necessary, Condemnation of Easements for the Woodbury Water treatment Plant and Pipeline Project.  January 10, 2024, Council Resolution Authorizing Acceptance of City of Woodbury Water Treatment Plant and Pipeline Design Project Grant Amendment #1, Contract #223996 from Minnesota Pollution Control Agency in the Amount of $3,888,543 and Approval of Budget Amendment to the Water and Sewer Utility Fund.  January 24, 2024, Council Resolution Establishing a Bid Date of February 15, 2024, for the Woodbury WTP Pipelines Utility Locating Services Project.  February 14, 2024, Council Resolution Authorizing Acceptance of the City of Woodbury PER and Pilot Grant Amendment #3.  February 28th, 2024, Council Resolution Authorizing Acceptance of City of Woodbury Water Treatment Plant Equipment Pre-Procurement Grant in the Amount of $24,501,591 from Minnesota Pollution Control Agency and Approval of Budget Amendment to the Water and Sewer Utility Fund.  February 28, 2024, Council Resolution Approving a Budget Amendment in the Amount of $3,089,000 to the water and Sewer Utility Fund (Enterprise Fund) for Woodbury WTP Pre- Procurement Non-Eligible Costs.  February 28, 2024, Council Resolution Establishing a Bid Date of March 21, 2024, for the Woodbury WTP Pre-Procurement Treatment Vessel Project. Council Workshop Letter 24-246 October 9, 2024 Page 3  March 13, 2024, Council Resolution Awarding the Construction Contract to Q3 Contracting, Inc. for the Subsurface Existing Utility Location Potholing Services Project and Authorizing the Mayor and City Administrator to Sign Said Contract.  April 10, 2024, Council Resolution Authorizing Execution of a Consultant Services Agreement with Advanced Engineering and Environmental Services, LLC, for the Water System Fiber Optic Design Project.  May 8, 2024, Council Resolution Awarding the Woodbury Water Treatment Plant PFAS Removal Pressure Vessel Systems Project Contract to AqueoUS Vets in the amount of $10,825,201 and Authorizing the Mayor and City Administrator to Execute Contract.  June 12, 2024, Council Resolution Accepting a Grant from the Environmental Protection Agency for the Congressionally Directed Spending for the East Wellfield Manifold Pipe Project.  June 12, 2024, Council Resolution Authorizing Acceptance of City of Woodbury Temporary Water Treatment Operations and Maintenance Grant in the Amount of $5,970,025 from Minnesota Pollution Control Agency and Approval of Budget Amendment to the Water and Sewer Utility Fund.  June 12, 2024, Authorizing Acceptance of the City of Woodbury-Newport Interconnect Grant Amendment #1 from Minnesota Pollution Control Agency.  July 10, 2024, Authorizing Acceptance of City of Woodbury Water Treatment Plant Pre- Procurement Grant Amendment #1 Reducing the Grant in the Amount of $2,880,000 from Minnesota Pollution Control Agency and Approval of Budget Amendment to the Water and Sewer Utility Fund.  July 10, 2024, Council Resolution Awarding the Construction Contract to A1 Excavating, LLC., Authorizing a Professional Service Agreement with WSB for Construction Services and Use of Trunk Water and Sanitary Sewer Fund for the Hargis Parkway and Woodland Drive Distribution Pipeline Project.  August 28, 2024, Council Resolution Authorizing Acceptance of City of Woodbury Water Treatment Plant Construction Grant from Minnesota Pollution Control.  September 25, 2024, Council Resolutions: Award of Contract for Woodbury WTP Construction, Budget Amendment to Water/Sewer Utility, WTP Construction Grant Acceptance, WTP Construction Special Inspection Award of Contract, WTP Consultant Selection for Construction Services Background Following the August 2021 release of the State of Minesota conceptual drinking water supply plan, which includes a long-term water treatment plant for the City of Woodbury, staff developed, submitted to, and received approval from the MPCA for the implementation of a Woodbury WTP design scope to support the ultimate construction of the Woodbury WTP. This effort has been and continues to receive funding under grant agreements between the City of Woodbury and the MPCA through the 3M and State of Minnesota Settlement Agreement. Written By: Mary Van Milligen, Public Works Director Approved Through: Clinton P. Gridley, City Administrator Attachment: None