09_30_21September 30, 2021
A meeting of the Wastewater Advisory Committee was held on the above date with modifications.
The meeting was conducted in-person at the Scandia Community Center and over an electronic platform. All participants who joined the meeting remotely could hear each other and contribute
to discussions.
The meeting was called to order at 7:00 by Chairperson Steve Kronmiller. In attendance were committee members Dan Cartier, Peter Nora, Perry Rynders, and Steve Kronmiller as City Council
liaison. Doran O’Brien and Craig Pittman were absent. City Staff in attendance were Ken Cammilleri, City Administrator, Ryan Goodman, City Engineer and Colleen Firkus City Treasurer.
Also in attendance was Bolton & Menk sewer consultant Seth Peterson.
APPROVAL OF THE AGENDA
Rynders, seconded by Nora, moved to approve the agenda. The motion passed 4 – 0.
APPROVAL OF MINUTES
Cartier, seconded by Rynders, moved to approve the agenda. The motion passed 4 – 0.
2022 DRAFT BUDGET / AMERICAN RESCUE ACT PROGRAM FUNDING
Administrator Cammilleri presented the 2022 Draft Proposed Utility Budget with projected rates over the next 10 years to meet funding goals based on a Utility Rate Study. Two scenarios
were proposed. One with State Bonding in the form of a grant to the City and an annual rate increase or 10%. The other without State Bonding and an annual rate increase of 10% for 2023
to 2025, then increasing to 15.50% thereafter. Both scenarios include American Rescue Plan funds.
UPTOWN SEWER
Discussion was held on the potential need to increase capacity of the Uptown Sewer system to serve the planned Scandia Heritage Alliance (SHA) Watertower Barn & Arts Center. The City
has the land for the expansion. Costs to expand the system would be paid by the SHA. Kronmiller and Rynder suggested it would be prudent for the City to research a larger expansion
to serve future development in the Uptown area or add in neighboring residents. Engineer Goodman recommended that the City find out first what is really going through the system as
there are different volume readings coming from two different points. The Café is now re-opened and so volume will increase over the past two years. A smoke test done last year did
not reveal any problem areas. Also, in order to research expansion, the capacity required for the SHA Arts Center will need to be determined.
Rynders, seconded by Nora, moved to recommend to the City Council the 2022 Draft Proposed Utilities Budget with an Uptown Sewer rate increase of 5% for 2022. Motion passed 4 – 0.
BIG MARINE SEWER
Cammilleri pointed out the City is not assured of State funding. He pointed out the Big Marine Sewer Fund has a very low fund balance to deal with maintenance issues in an ageing system
and he would like to see a $500,000 fund balance built up to deal with emergency repairs and other maintenance concerns that may arise. The System will need $1 million in bonds, if
State funding is not received, as well as all the ARP funds to fix the nitrate issue and replace the major lift station. Rate increases in the past have been 5% to 7%. This budget
recommends a level 10% to avoid rate fluctuations and to meet long-term capital needs. The costs built into the Capital Improvement Plan are inflated by 4% annually.
Rynders, seconded by Nora, moved to recommend to the City Council the 2022 Draft Proposed Utilities Budget with a Big Marine Sewer rate increase of 10% for 2022. Motion passed 4 – 0.
2022 RATES FOR BIG MARINE SEWER AND UPTOWN SEWER SYSTEMS
User rates were discussed and suggestions made on how to make them more equitable between year-round users and cabins used seasonally. Engineer Goodman estimated the cost of purchasing
and installing a meter for each of the 113 connections would be about $1,500 each. Replacement costs of those meters would need to be built into the budget. Additionally, there would
be the cost of software to be able to read the meters from the street and staff time to read the meters. It was suggested a formula using square footage and number of bathrooms could
be used in determining different user rates, or reading pump times of each tank. Implementation of these would require much more staff time and increase Users’ costs. It would also
be hard to define what Seasonal means and if a place is really being used as reported. Cammilleri pointed out the only way to be equitable to all people is using the current flat rate
for all users or having each connection metered.
CAPITAL MPROVEMENT PLAN
Cammilleri noted the Sewer CIP has $60,000 in 2021 for a test well that will actually be done in 2022. Public Works Director Fischer pointed out a new requirement of the MPCA permit
for meters to monitor the flow to infiltration trenches A, B and C. Three meters are required at an estimated of cost of $3,000-$4,000 each. Pricing on installation will come in the
next week or two after contractors have a chance to visit the site and determined the best installation methods. It was noted the 2022 Capital Outlay total will be $70,980 with the
test well inflated cost of $62,400 included.
ANDERSON-ERICKSON SYSTEM EXPANSION
Engineer Goodman pointed out the issues with expanding the A-E part of the Big Marine Sewer System and increasing capacity to over 10,00 gallons daily. Cammilleri pointed out the daily
limits have already been exceeded. Kronmiller suggested a separate small system could be established to accommodate additional connections. Engineer Goodman said the current system
has room to expand on existing land up to 1500-2000 gallons per day using a combination of mound systems and tanks. Goodman will research how much acreage would be needed to support
a 15,000 gal/day system. Goodman also pointed out the connection fee of $8,000 may need to be revisited as a higher fee will help support the cost of expansion and the current fee is
not comparable to the installation cost of an individual septic system.
PROPOSED SEWER ORDINANCE AMENDMENTS
Cammilleri reviewed a draft ordinance with amendments to Chapter 51 of the Code of Ordinance. Some changes noted were changing the name to Big Marine Sewer system, considering a house/cabin
replacement or expansion a new connection, defined service areas where connections are required, Rynders suggested clarification of the language in section 51.08 (C) (1) to define “three-day
period,” and section 51.09 (B) to reword time period required for the actual repair work and notice to the City of intended repairs. A revised draft will be presented for review at
the next meeting.
Rynders, seconded by Cartier, moved to adjourn the meeting. The meeting adjourned at 9:20 p.m.
Respectfully submitted,
Colleen Firkus
City Treasurer