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AGENDA RECOMMENDATION |
Consent Calendar 5.O.
City Council Regular Meeting
- Meeting Date:
- 03/09/2026
Agenda Item:
Resolutions authorizing the City Manager to apply to the Drinking Water Revolving Fund for the Capital Improvement Project 11213; 2026 Lead Water Service Line Replacement Project and apply to the Minnesota Department of Health (MDH) and Drinking Water Public Facilities Authority (PFA) for a 2027 Lead Water Service Line Replacement Project.
Recommendation/Action(s):
Adoption of the attached Resolutions.
Summary:
At the December 8, 2025, City Council meeting, the council accepted grant funding for the City of Mankato to complete a 2026 Lead Water Service Line Replacement Project. The grant amount has been communicated to be $1,000,000 or near this amount based on the final bid amount. The next step in the project process is to pursue Minnesota Department of Health (MDH) certification, which is required for all projects who are positioned to receive grant funding and start construction in 2026. The application for certification is due to MDH by March 31, 2026.
As a reminder, the Lead Service Line Replacement funding is a new program offered through the PFA and provides financial assistance for the full replacement of lead and galvanized water service lines. While funds are available, the program offers 100% funding for the replacement of the private water service line, which is the entire service line from the main to the meter in the City of Mankato. The expectation for this proposed 2026 project would be 100% grant funding for the consultant engineering and the actual service replacement costs. Residents within the community cannot receive this funding individually. PFA funding is only offered through projects that benefit from the Drinking Water System administered by the Public Water System/City.
Funding disbursement is expected to be similar to that of other projects financed through PFA, which consists of a reimbursement process. The anticipated project schedule would be as follows:
Additionally, the State of Minnesota has set a statewide goal to identify and replace all lead and galvanized water service lines by 2033. The Minnesota Department of Health (MDH) recognizes that this is a big undertaking for Public Water Systems and for this reason is offering grant funding for Lead Water Service Line Replacements through the Public Facilities Authority (PFA). The City of Mankato, based on the inventoried lead and galvanized water services, has replacement costs estimated to be more than $9 million. As a result, it is recommended that the City of Mankato apply for additional grant funding to support another Lead Water Service Line Replacement Project in 2027. It is anticipated that based on available funding the City of Mankato would be eligible to receive another $1 million in grant funding for a 2027 Lead Water Service Line Replacement Project.
To pursue this funding in 2027 the City is required to complete a two-step process. The first step is to apply to the MDH Project Priority List (PPL) with the application due on the second Friday in March, the 13th, 2026. The second step is to apply to the Minnesota PFA Intended Use Plan (IUP) with the application due on the first Friday in June, the 5th, 2026.
Construction Services Staff is recommending the Council consider the attached Resolutions authorizing the City Manager to continue the process for a 2026 Lead Water Service Line Replacement Project and submit an application for additional funding to support a future 2027 Lead Water Service Line Replacement Project.
As a reminder, the Lead Service Line Replacement funding is a new program offered through the PFA and provides financial assistance for the full replacement of lead and galvanized water service lines. While funds are available, the program offers 100% funding for the replacement of the private water service line, which is the entire service line from the main to the meter in the City of Mankato. The expectation for this proposed 2026 project would be 100% grant funding for the consultant engineering and the actual service replacement costs. Residents within the community cannot receive this funding individually. PFA funding is only offered through projects that benefit from the Drinking Water System administered by the Public Water System/City.
Funding disbursement is expected to be similar to that of other projects financed through PFA, which consists of a reimbursement process. The anticipated project schedule would be as follows:
- March 2026 – Submit Plans and Specifications for PFA Certification
- Spring/Summer 2026 – Authorize and open bids
- Summer/Fall 2026 – Construction
- Spring 2027 – Project completion
Additionally, the State of Minnesota has set a statewide goal to identify and replace all lead and galvanized water service lines by 2033. The Minnesota Department of Health (MDH) recognizes that this is a big undertaking for Public Water Systems and for this reason is offering grant funding for Lead Water Service Line Replacements through the Public Facilities Authority (PFA). The City of Mankato, based on the inventoried lead and galvanized water services, has replacement costs estimated to be more than $9 million. As a result, it is recommended that the City of Mankato apply for additional grant funding to support another Lead Water Service Line Replacement Project in 2027. It is anticipated that based on available funding the City of Mankato would be eligible to receive another $1 million in grant funding for a 2027 Lead Water Service Line Replacement Project.
To pursue this funding in 2027 the City is required to complete a two-step process. The first step is to apply to the MDH Project Priority List (PPL) with the application due on the second Friday in March, the 13th, 2026. The second step is to apply to the Minnesota PFA Intended Use Plan (IUP) with the application due on the first Friday in June, the 5th, 2026.
Construction Services Staff is recommending the Council consider the attached Resolutions authorizing the City Manager to continue the process for a 2026 Lead Water Service Line Replacement Project and submit an application for additional funding to support a future 2027 Lead Water Service Line Replacement Project.