10 19 17 meetingCity of Scandia
Wastewater Advisory Committee
Thursday, October 19, 2017 - 6:30 P.M.
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 members
Chris Ness and Jim Schneider and Committee Members Brad Bergo, Peter Nora, Doran O’Brien, and Patrick Kelley. Staff present were Administrator Neil Soltis and Public Works Director
Adam Hawkinson.
Approval of Agenda – A motion to approve the agenda as modified for a discussion on the appointment of an additional Anderson-Erickson representative was made by Schneider and seconded
by Ness. Vote: 5-0 motion carried.
Approval of Minutes – A motion to approve the minutes of the July 7, 2017 meeting was made by Schneider and seconded by Bergo. Vote: 5-0 motion carried.
Discussion regarding Uptown Sewer System - Sewer charges and 2018 budget
Based on the previous Committee discussion Soltis presented information regarding the charge structure for the Uptown sewer system noting that the current rate structure relies primarily
on a fixed charge of 12,331 per year spread equally over the 9 users. This formula results in the cost per gallon of flow billed varying from around $0.035 for the large users and
to around $0.35 for the smaller users. A reduction of the fixed component to $3,000 per year spread equally with the remaining charges based on metered usage reduces the disparity
to roughly $0.05 / gallon for large users and $0.11 / gallon for small users. Soltis also recommended that fees be increased by the amount of depreciation on the system to provide
for a replacement reserve noting that without an increase there will not be sufficient funds available for the planned replacement of the drainfield blower in 2018 or the lift station
and drainfield pumps in 2022. The Committee was in agreement that the proposed changes be included in the budget when presented to the Council and that the users be notified of the
proposed changes.
Discussion regarding 201 Sewer System - Sewer charges, Amendment to the 201 Sewer Ordinance, and 2018 Budget
At the previous meeting the Committee discussed transferring responsibility for maintenance elements of the system to the customer. Soltis reported that as a condition of the “201”
grant assistance the City is responsible for all components of the collector system purchased and constructed, in whole or in part, with state and federal grant assistance and begin
at the end of the building sewer. The property owner is responsible for operation and maintenance of all plumbing lines and components that lie within the walls of the structure and
the building sewer which extends from the building to the sewage tank. The grant provision do provide the City with some discretion in establishing a charge system. Citing the 1988
ordinance language Soltis recommended that an additional fee shall be charged to users of the community sewage treatment system who, for whatever reason, require septic tank pumping
more frequently than once in two years. Based on the past 4 years this would result in a charge to 8 users and would
generate an additional $2,600 per year in revenue. The Committee discussed the recommendation and alternatives and recommended that the additional fee structure be incorporated into
the budget. Soltis also noted that the 1988 ordinance required the City to charge revenue sufficient to insure adequate replacement shall be held in the replacement fund separate from
the operation and maintenance fund. Soltis noted that the annual depreciation of the system of approximately $40,000 per year and recommended that the fees be increased to generate
an additional $20,000 to fund a replacement reserve. The Committee discussed the lack of a reserve and the impact if the rates were increased to fund a reserve in the recommended amount.
The Committee was in agreement that the recommended increase was too high and that the funds accumulated would not be sufficient to materially impact the funds needed to comply with
the PMCA requirements that the system establish treatment for nitrates. The Committee was in agreement to recommend a 10% rate increase that would generate roughly $7,000 per year
and that the users be notified of the proposed changes. Soltis suggested that the accounting for the 201 system be split so that the Anderson-Erickson and Bliss systems are accounted
for separately. The Committee was in agreement that there was little benefit and that the future capital costs should be borne by all of the 201 system users. The Committee discussed
the connection fee which is currently $4,250 per connection noting that SAC fees in most communities are significantly higher. The Committee recommended that the connection fee be
increased to $8,000.
Update on sewer system operations and maintenance update - Hawkinson provided a brief update on operation noting that there we no significant issues.
Appointment of an additional committee member – Ness noted that Dan Cartier did not apply when his previous term the Committee expired and recommended that the number of members be expanded
and that Cartier be appointed to the position. The Committee was in agreement in recommending the committee change and appointment to the Council.
Future Meeting Dates: No specific date was set for the next meeting.
No further discussion occurred. A motion to adjourn was made by Schneider and seconded by Nora. Vote: 6-0. Motion Carried.
Respectfully submitted,
Neil Soltis
Administrator