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FEASIBILITY STUDY GEMLK 186534 ES-1 Executive Summary The City of Gem Lake ordered this feasibility study to evaluate extending municipal water service to properties along Goose Lake Road, Tessier Road, Haven Lane, Big Fox Road, and Little Fox Lane in response to recent well testing that detected 1,4-dioxane, a likely human carcinogen, above health- based guidance levels. (see figure ES-1 below) Most residents currently rely on private wells, with limited municipal service provided through earlier connections to Vadnais Heights and White Bear Lake. This study identifies extending a 12-inch water main from Vadnais Heights along Labore Road, with connections at Little Fox Lane and Goose Lake Road and supporting 6-inch mains to local streets, as the most cost-effective and feasible option. Vadnais Heights has adequate supply capacity and delivers safe, treated water that meets all standards, while looping options to the Gem Lake Villas water main should also be considered to improve system redundancy. The improvements will provide residents with potable water, reliable pressures, and fire protection capacity, with construction anticipated to remain largely within existing rights-of-way. Project costs are proposed to be funded through special assessments to planned industrial benefiting properties, City contributions, and grant funding, with an independent appraisal confirming assessable benefit values. If approved, the City Council can proceed under Minnesota Statute 429, beginning with an Improvement Hearing in spring of 2026, with bidding in fall/winter of 2026 and construction scheduled for summer and fall 2027. The study concludes that the improvements are necessary, feasible, and cost-effective, and recommends that the Council accept the report, hold the Improvement Hearing, and move forward with design, bidding, and construction. Figure ES-1 – Current 1,4-dioxane Contamination Testing Results