07 19 17 meetingCity of Scandia
Wastewater Advisory Committee
July 19, 2017
A meeting of the Scandia Wastewater Advisory Committee was held on the above date. The meeting was called to order by Jim Schneider at 6:30 p.m. In attendance were: Council member and
Committee Members Brad Bergo, Peter Nora, Doran O’Brien, and Craig Pittman. Staff present were Administrator Neil Soltis and Public Works Director Adam Hawkinson.
Approval of Agenda – The Committee approved the agenda by consensus.
Approval of Minutes – The Committee made no correction to the minutes of the April 27, 2017 meeting as submitted.
Update on 2017 Expenditures – Hawkinson reviewed the expenditures for the sewer funds through June 30, 2017. In the Uptown Fund wages and sewer pumping are over 50% of the budget and
additional repair costs are anticipated. In the 201 Fund wages and repair costs are less than 50% of the budget; however, Hawkinson noted that there have been a number of septic pumps
replaced. Soltis noted that in 2017 actual labor cost is being charged to the sewer instead of using a percentage of each public work staff member.
Review of 2018 Operating Budgets and 2018 – 2022 Capital Improvement Plan – Hawkinson presented the 2018 budget for the Uptown System noting little change from 2017 beyond the addition
of replacing the drainfield blower. Looking at the 2018 – 2022 Capital budget is was noted that the system does not have cash reserves and there will not be sufficient funds available
for the planned pump replacements scheduled for 2022 or if any of the pumps need to be replaced in advance of 2022. The 2018 budget for the 201 system shows no change from 2017 beyond
the addition of replacing the control panels for Bliss lift stations #1 and #2. Looking at the 2018 – 2022 capital budget the fund generates sufficient cash to fund the pump replacements
scheduled for 2021 but there are not sufficient funds for the Anderson – Erickson drainfield improvements or the Bliss nitrate treatment scheduled for 2022. Soltis noted that the annual
debt service for the projected nitrate treatment equipment would be over $70,000 per year and would require sewer rates to nearly double.
Update on sewer system operations and maintenance – Hawkinson provided an update on operations noting that he is working with the contractor on issues with concrete pieces in the Uptown
eco-pod equipment, the valves at the Bliss sand filter and drainfield have been switched, and a there appears to have been changes in the test results at Bliss well #4 after the switch.
Hawkinson presented May flow information for the Bliss showing the peak daily flow tripled the normal flow after a major rain event due to the inflow and infiltration.
Discussion of rates and rate increases –
Uptown system - Hawkinson expressed concerns that there are not sufficient funds in the Uptown system to cover equipment replacement. Soltis presented information on the cost per gallon
based on the current rate structure which relied on a high fixed charge per user noting that the large users are being billed an average of $0.03 per gallon and the small users an
average of $0.30 per gallon with the average billing system-wide being $0.049 / gallon. Soltis suggested that increasing the fees by the amount of depreciation on the system would provide
for a replacement reserve and presented information on revising the billing structure to reduce the fixed charge which would reduce the differences in the billed cost per gallon for
the various users. The Committee discussed various options and felt that a $300 fixed charge with the remainder billed at $0.047 a gallon which would increase the large user cost to
$0.05 / gallon and the small users to roughly $0.12 per gallon was equitable. The Committee requested that the users be invited to a meeting to comment on the proposed change.
201 system - Hawkinson expressed concerns as to whether sufficient funds are being generated to provide for the replacement of septic tanks pumps for the 110 users of the system since
the City is responsible for all maintenance and replacements and suggested that the rates be increased by $15,000 per year, to either charge the customer for replacements or to transfer
the maintenance / replacement responsibility to the customer. The Committee favored the option of transferring responsibility to the customer and requested Hawkinson to verify that
this approach is feasible and, if so, to update the budget to reflect the change in both the billing rate to the customer and the budgeted expenditures by the City. The Committee also
discussed the options for the nitrate issue at Bliss test well #4 noting that the preferred option would be to work with Forest Lake to connect to the MPCA system though an extension
to the line on MN 61 in Forest Lake. The other options discussed in order to preference were to acquire a new site for an infiltration areas and to add equipment to provide for nitrate
treatment.
Future Meeting Dates: No specific date was set for the next meeting.
No further discussion occurred and the meeting was adjourned.
Respectfully submitted,
Neil Soltis
Administrator