The Hastings City Council met in a closed work session Monday, March 2, to discuss legal strategy related to litigation against 3M over PFAS contamination in the city’s municipal water supply.
The closed session, held prior to the council’s regular meeting, was informational in nature, and no action was anticipated that evening, according to a memorandum from City Administrator Dan Wietecha.
The litigation discussion comes as Hastings continues to grapple with widespread contamination of its drinking water wells by per- and polyfluoroalkyl substances, commonly known as PFAS. The contamination — specifically PFOA detected in all six municipal wells and PFOS detected in two — is a central factor driving the city’s multi-year, multi-million-dollar effort to rebuild and expand its water treatment infrastructure.
Hastings has found PFOA levels over the U.S. Environmental Protection Agency’s maximum contaminant level in all six municipal wells, as well as at the future Well #9 site scheduled to come online in 2026.
In April 2024, the EPA finalized maximum contaminant levels (MCLs) for PFOA and PFOS at 4 parts per trillion. Water systems that detect PFAS above those standards have five years to implement solutions. Although the EPA has indicated its intent to extend the compliance deadline from April 2029 to 2031, Hastings officials have noted that even with additional time, the scale and complexity of the project leave little margin for delay. The city completed a feasibility study that recommended construction of three decentralized water treatment plants to remove PFAS and nitrates. The current plan is to build one plant per year over three years, beginning with the central water treatment plant, which broke ground in late September 2025 and is expected to reach substantial completion in December 2026
The financial impact of the PFAS mitigation effort is significant. The city’s current construction cost estimate for the three treatment plants is $70.3 million, with annual operation and maintenance costs exceeding $1 million.
Without financial assistance, water rates would need to double within three years and triple within five years to cover the cost. Even with approximately $23.3 million in assistance secured to date, water rates are projected to increase by around 150% between 2024 and 2028.
The council has already approved phased rate increases in 2025 and 2026 to begin addressing the funding gap. Additional increases are anticipated as construction progresses on each of the three treatment facilities.
Hastings has pursued multiple funding sources, including state and federal grants, low-interest loans through the Drinking Water Revolving Fund, and funds from Minnesota’s 2018 East Metro 3M Settlement.
Under that settlement agreement, grant money is available for drinking water projects in the East Metropolitan Area. However, interpretation of eligibility has been a point of contention between Hastings and the state’s co-trustees - the Minnesota Pollution Control Agency and Department of Natural Resources - particularly regarding whether a direct connection to a 3M disposal site is required.
Environmental studies have produced multiple lines of evidence suggesting a connection between Hastings’ Well #5 and the 3M Cottage Grove site, including geological mapping, chemical analyses, and groundwater modeling. In October 2024, the co-trustees agreed that Well #5 is connected and that costs associated with its treatment would be eligible for settlement funding. To date, the city has secured approximately $15.1 million from the East Metro 3M Settlement Fund to cover land acquisition and construction costs associated with Well #5
However, in early March 2025, an email from the co-trustees indicated that 3M questions whether certain East Metro projects have been “reasonable and necessary” under the settlement agreement and has initiated mediation for dispute resolution
The March 2 closed session was specifically to discuss legal strategy regarding litigation against 3M Company.
Meanwhile, construction continues on the central water treatment plant, located at 1292 North Frontage Road. The council previously approved flipping the construction sequence to prioritize the central plant because it has significant outside funding, helping reduce the immediate burden on local ratepayers.
Magney Construction is serving as the contractor for the treatment plant itself, with A1 Excavating handling raw water mains. Following demolition of the existing building, underground work began, including utility relocation. Underground excavation and pipe installation are expected to wrap up in late March before moving to the next stage of construction.
The project has not been without challenges. Vibration monitoring equipment was installed after concerns were raised about potential impacts to a neighboring property. Claims for cracked concrete at the adjacent property have been submitted to insurance, and the city’s contract states that the contractor is responsible for damage claims arising from the work.
While details of the closed session discussion were not made public, the council’s meeting underscores the city’s parallel tracks in addressing PFAS contamination: building new infrastructure to comply with federal standards and seeking to hold 3M financially accountable for contamination that city officials argue was caused by others.
As Hastings moves forward with construction and funding applications, the outcome of litigation and ongoing mediation efforts could play a significant role in determining how much of the financial burden ultimately falls on local ratepayers versus the manufacturer tied to the contamination.
For now, city officials continue to advance the central treatment plant project while pursuing additional grants, loans, and legal remedies to address what Wietecha has described in prior discussions as a “budget-busting” mandate driven by newly enforced federal standards.