03. Meeting Minutes - July 19
July 19, 2023
The meeting was conducted in person at the Scandia Community Center on the above date.
The meeting was called to order at 6:30 by City Administrator Kyle Morell. Committee members Peter
Nora, Dan Cartier, Jeff Dahlberg, and Jim Gribble were in attendance. Perry Rynders was absent. City
Administrator Kyle Morell, Public Works Director Charles Fischer, City Treasurer Colleen Firkus, and
Council Member Jerry Cusik also attended. City Engineer Bolton-Menk representatives Jacob Humberg
and Isiah Bubany were also in attendance.
APPROVAL OF AGENDA
Gribble, seconded by Cartier, made a motion to approve the agenda. The motion passed 4 – 0.
APPROVE MINUTES OF NOVEMBER 3, 2022
Cartier, seconded by Nora, made a motion to approve the minutes from November 3, 2023. The motion
passed 4 – 0.
BLISS PROJECT AND FUNDING UPDATE
Jacob Humberg updated the committee on the process of applying for funding for the Bliss Project which is
currently conservatively estimated to be $1.6 million, 15% of that engineering costs. The Facility Plan has
been completed, approved by the City Council, and was submitted in March to the MPCA, which has given
it preliminary approval. A state capital budget request was submitted in June as a funding source, but not
added to the bonding bill for 2023. The main funding sources are: 1. Project Priority List (PPL), 2. Point
Source Implementation Grant (PSIG) which is 80% grant, 20% city match, 3. State Capital bonding budget,
which is a 50/50 match, and 4. Public Facilities Authority (PFA) for a loan that is lower in cost and longer
term than city bonding in the market.
The Bliss Project is on the PPL but unlikely to receive funding in 2024. However, completing plans and
specs will help move the city up the PPL for possible funding in 2025. Council approved the PSIG grant
application resolution on July 18 and is in the application process as if the project is ready to construct in
2024. It is unlikely we’ll get approved in 2024, but more likely in the next construction cycle. Having
completed plans and specs will help move us up the PPL. Those plans and specs are currently being
developed, and will apply for the PSIG grant in fall 2023. The Council and the MPCA must approve the
final plans and specs. City Administrator Morell said the city is looking at getting multiple funding sources
to help the gap in grant funding. The Council has already set aside $437,000 in ARPA funds for this
project.
Water Meters: City Administrator Morell introduced the subject of transitioning from a flat rate to usage-
based billing. While the easiest and less expensive way is to introduce a meter in the house, many of the
houses are not built with a space for a meter which will increase the installation cost through additional
plumbing expenses. The cost estimate for water meters is estimated to be $400 per meter plus plumbing
expenses. One concern is if the city can require homeowners to purchase meters to measure water that the
city doesn’t provide in order to get a sewer use measurement. An alternative, more accurate meter is a
meter in holding tanks. Public Works Director Fischer is investigating the cost of purchasing and installing
outflow meters, but the cost will be significantly higher. Meters could be purchased by residents, or the city
assists in the purchase through the Sewer fund or the ARPA funds if any is left over after the Bliss Project.
The MPCA may have loan programs to buy meters. An outflow meter becomes less accurate over time and
will need recalibration and replacement, thus more maintenance costs. User Fees must include a meter
replacement fee paid by residents to the city. A meter project could potentially be added to next year's state
bonding capital request. An outflow meter will help pinpoint leaks and provide more accurate data, and
staff would not have to go into a house to read the meter.
Wastewater Advisory Committee
July 19, 2023
Page 2
AE Issues - AE has no more room for new homes or expansions on the system. I&I issues are being
monitored. Tanks are inspected when pumped, and seals are replaced when faulty. Snow melt and rain
events put the system over the permitted gallons per day limit. There is not as much funding in grants
available for maintenance issues rather than permitting issues, and there is a small number of users (34) to
cover debt payments compared to the 80 users on the Bliss system.
DRAFT PROPOSED 2024 SEWER BUDGET
Morell reviewed the proposed 2024 Sewer Budget. User fees reflect a 25% increase based on the 2020 rate
study. This study is based on no bonding or grant money received for the Bliss Nitrate Treatment Project.
Committee members would like to recommend that the Council adjust rates to consider seasonal versus
full-time users until meters can be installed.
The Next meeting will be in October to get updates on funding sources. Staff will convey to Committee
members opportunities when to meet with legislatures.
Cartier, seconded by Gribble, moved to adjourn. Motion passed 4 – 0.
The meeting ended at 8:00 p.m.
Respectfully submitted,
Colleen Firkus, City Treasurer