City Council Agenda Packet 01-26-2026 SpecialSPECIAL MEETING
MONTICELLO CITY COUNCIL
Monday, January 26, 2026 – 5:00 p.m.
Monticello Community Center
AGENDA
1. Call to Order
2. 5:00 – 6:15 p.m. Water Treatment Plant Project Update
3. Adjournment
DATE: January 23, 2026
TO: Monticello City Council
FROM: Matt Leonard, Public Works Director/City Engineer
RE: Water Treatment Plant Overview
The City is undertaking a major infrastructure project to construct a new water
treatment plant to improve drinking water quality for the community.
Project Background
Monticello’s municipal water system is supplied by five city wells which currently meet
regulatory standards but have elevated levels of manganese, exceeding recommended
health guidelines set by the Minnesota Department of Health (MDH). High manganese
can pose health risks, particularly for infants and vulnerable populations. Due to these
health risks, the MDH considers manganese to be an emerging contaminant, and the
Environmental Protection Agency (EPA) has included manganese in the Contaminant
Candidate List (CCL) to be studied for future federal regulatory enforcement.
Because of these factors, the City determined that constructing a centralized treatment
facility is the most effective long-term solution for removing manganese from drinking
water.
The goals of the project are to:
• Improve water quality: Remove excess manganese and iron from the municipal
water supply prior to distribution.
• Ensure public health & safety: Meet or exceed MDH standards and reduce
potential health risks for all residents.
• Provide equitable service: Deliver treated water equitably to all customers and
reduce reliance on point-of-use home treatment or bottled water.
Project Funding
The City received $11M from the Minnesota State Bonding Bill to support the project.
We’ve also applied for funding through Minnesota’s State Revolving Fund, which may
provide an additional $5M in grant funding for the project. The remaining project costs
are anticipated to be financed through a low-interest loan through the MN Public
Facilities Authority (PFA). The loan will be paid back through the City’s Water Fund,
which receives revenue from water fees rather than the tax levy.
Facility Planning
Preliminary planning began in 2023 with a feasibility study confirming the need for a
treatment plant. AE2S was selected as the design firm and Rice Lake Contracting was
selected as the construction manager at-risk (CMAR) for the project.
A pilot study was completed as part of the initial design phase to determine the
treatment needed to meet Minnesota Department of Health (MDH) requirements and it
was determined that conventional gravity filtration would meet these requirements.
The project was initially planned to be constructed as a 10 million gallon per day (MGD)
facility, to meet current needs and future growth. However, MDH determined that PFA
funds could only be used for the construction of a 7.5 MGD facility. Rather than pursue
additional outside funding, the recommendation is to construct an 8 MGD facility which
is still expected to provide sufficient capacity for 20 years, based on the growth
projections anticipated in the Comprehensive Plan. The cost of for the additional 0.5
MGD in capacity is expected to be funded by the State Bonding Bill funds and not the
PFA loan.
The capacity of the facility is not being designed to accommodate any additional large
water users. If a large user is added to the community, we expect that an expansion of
the facility could be needed prior to the expected capacity timeline. For this reason, the
facility is being designed to cost-effectively accommodate future expansions and to
minimize disturbance to the existing operations.
Also included in planning discussions was the possibility of Wells 1 and 2 being under
the influence of surface water due to their proximity to the Mississippi River. Monticello
has long operated based on the indications that water from these wells is fed by
groundwater sourced from deep aquifers, but confirmation was critical since surface
water treatment regulations are significantly more complex than groundwater
treatment. Adjusting the treatment type would require additional capital and
operational investment.
Following discussions with MDH, Monticello’s wells are not considered to be under the
influence of surface water from the river, and groundwater treatment as planned will
meet the applicable regulations.
Additional Infrastructure Considerations
The construction of a new water treatment plant will require the extension of raw
watermains to connect the centralized plant to the existing wells.
Existing raw watermains were installed along 4th Street, Cedar Street, and Ramsey
Street as part of road reconstruction projects about 10 years ago. However the
adequacy of the pipe sizing is directly influenced by the location of new wells. In
particular, the 16” Ramsey Street watermain would need to be upsized if a new well is
located north of I-94. Knowing that redevelopment could result in Wells 1 and 2 needing
to be relocated from Block 34, careful consideration was given to whether to plan to
upsize the watermain with the construction of the water treatment plant. However,
there are potential well locations south of I-94, so staff recommends not upsizing this
section of watermain as part of the project. Leaving the 16” watermain in place will
reduce capital costs and allow future watermain upgrades to be based on actual well
capacity and only if new wells are eventually located in that area.
Raw watermains will need to be constructed between 7th Street and the new water
treatment plant across I-94 as part of the project. These watermains are being sized to
be able to convey flow pumped by additional wells north of I-94.
Timeline
Project design is nearing 90% design and MDH review of the plans is anticipated to
occur in April, with bidding occurring in May and construction starting in June of 2026.
Given the large scale of the project construction isn’t anticipated to be complete until
fall of 2028.
City Council Meeting | January 26th, 2026
Monticello Water Supply
Treatment Plant Progress Update
2
Presentation Team
Ursinio Puga, PE
Project Manager
AE2S
Andrew Cooper, AIA
Architect of Record
Oertel Architects
Sherri Leaonard
Director of Collaborative Delivery
Rice Lake Construction Group
3
Outline
•Design Update
•Design Schedule Update
•Construction Cost Review
•Procurement Timeline
•Funding Update
4
DESIGN UPDATE
5
Design Decisions Summary
•Total Capacity: 8 MGD (ultimate: 16 MGD)
•Firm Capacity: 6 MGD (ultimate: 14 MGD)
•Treatment Train:
WELLS
Forced Draft
Aeration
Detention
Basin Clearwell
Pumping
Filters Distribution
6
Site
Layout
Future
Treatment
Options
Future
Treatment
Options
Future Potential
Driveway Extension
7
Site Plan
No utilities
planned in
this area for
future
expansion
Main Entrance & Admin
Areas
Garage &
Workshop
Chemical Handling
Me
c
h
a
n
i
c
a
l
&
El
e
c
t
r
i
c
a
l
Treatment
Clearwell
8
Main Entrance
& Admin Areas
Garage &
Workshop
Chemical Handling
Clearwell
Initial
Treatment
Mechanical &
Electrical Future
Treatment
9
Entrance and Admin Areas
Training /
Conference Room
Locker Room /
Restrooms
Lab
IT
Control /
Break Room
Approx. 3,400 SF including hallways
10
Garage & Workshop
Garage
~4,000 SF
Workshop /
Storage
~900 SF
11
Chemical Handling
Chlorine Storage
Chlorine Feed
Emergency
Scrubber
Liquid Chemicals
Future Liquid
Chemical / Misc.
Storage
1
12
Electrical and Mechanical Rooms
Mechanical
Room
~1,000 SF
Electrical
Room
~1,150 SF
13
Initial Treatment
Aeration
DetentionFiltration
Clearwell
Pumping
Backwash Storage
35 ft
40 ft
25 ft
2
3
14
Future Treatment
Initial Window
Placement
Window Removal for
Expansion
15
High Service Pump Room Design
16
High Service Pump Room Design
17
High Service Pump Room Design
18
North Elevation Design
19
North Elevation Design
20
Roof Top Unit Screening
21
Examples and Illustrations
22
Examples and Illustrations
23
Decision Making and Direction
24
DESIGN SCHEDULE
25
Project Schedule
DateMilestone
February 2024Design Kick-Off
March – June 2024Preliminary Design (30%)
July – August 2024CMAR Discussions
September 2024 – January 2025 CMAR Procurement Document Prep
February – May 2025CMAR Procurement
June 2025CMAR Kick-Off Meeting
July 2025CMAR Preliminary Design Cost Meeting
August – October 2025Preliminary Desing – Redesign
November 202570% Design Deliverable
February 202690% Design Deliverable
April 2026Final Design Deliverable
26
CONSTRUCTION COST
REVIEW
27
Cost Iterations &
Guaranteed Maximum Price
0
5
10
15
20
25
30
35
40
45
50
55
60
65
2025-07 2025-08 2025-08 2025-11 2026-01
(M
)
M
i
l
l
i
o
n
s
10 MGD – $51.2M
30% Design
For CMAR
Procurement 8 MGD – $44.2M
30% Design
Option 1
August 2025
8 MGD – $43.4M
30% Design
Option 2
August 2025
8 MGD – $42.9M
30% Redesign
November 2025
8 MGD – $42.1M
70% Design
January 2026
GMP does not include engineering fees or other costs incurred by the City (Lamar Property Acquisition , etc.)
28
PROCUREMENT
TIMELINE
29
What’s Next
DateMilestone
February 2026Trade Contract Qualifications
March 2026RFQ’s due & committee review
April 2026Plans & Specifications released to Qualified Firms
Due May 2026Competitive Bidding
5/26/2026GMP Preparation & Council Delivery
June 2026Construction Phase Commencement
August 2028Substantial Completion
30
FUNDING UPDATE
31
Project Funding
•Estimated Total Project Cost: $45,000,000
•State Bonding Grant: $11,000,000
•Emerging Contaminant Assistance: $2,000,000
o Additional $3,000,000 possible pending project certification
•Estimated PFA Loan: $32,000,000
o Potential PFA Loan Rate: 2.5% - 3.0%
o At 2.6%, estimated annual payment would be $2,200,000
o 20-year loan
Thank you!
Questions?
| Advanced Engineering and Environmental Services, LLC