10-12-22 Wastewater minutesOctober 21, 2022
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 6:30 by Chairperson Steve Kronmiller. In attendance were committee members Steve Kronmiller and Perry Rynders. A quorum was not achieved as Peter Nora
and Dan Cartier were participating remotely. City Staff in attendance were City Administrator Ken Cammilleri, Public Works Director Charles Fischer and City Treasurer Colleen Firkus.
City Engineer Ryan Goodman participated remotely.
As there was no quorum there were no motions only information presented.
DRAFT PROPOSED 2023 SEWER BUDGET AND UTILITY STUDY
Administrator Cammilleri reviewed the line-item budgets including capital expenditures for Uptown and Big Marine Sewers with the goal to balance the budget with more revenue than expenditures
to build fund balance for future repairs. An error in the 2022 Budget Depreciation line ($55,100) was noted with a need to amend that budget to $5,000. There was much discussion about
how to implement a rate increase with the consensus that it would be better to have a larger increase next year on a smaller amount with gradually diminishing increases as fund balance
builds towards a goal of $150,000. Nora questioned the amount of wages and engineering expenses in the Uptown budget. Engineer Goodman pointed out that this budget does not reflect
funding for major improvements like force main replacements needed in 2035. Rynders asked if it was realistic that the small businesses could pay three times the rate by 2027. There
was discussion on adding new residential customers to the system. An EDA study for adding residential to the Uptown Utility was cut from the 2023 EDA budget. It was suggested that the
County may be able to help fund that study. Kronmiller suggested using debt to fund bigger items in the future. Cammilleri indicated both saving up and borrowing should be implemented.
The Big Marine Sewer Nitrate problem is required to be completed by 2025 and the ARPA funds allocated towards the project to be spent by 2024. The balance is to be paid by debt. Cammilleri
reported that even with lobbying, the state legislature was cool on funding this project as there are programs in place for funding these kinds of projects. However, Scandia’s median
income makes them ineligible for these programs. Scandia needs to complete a facility study to get a higher rating on the Project Priority List (PPL), but Goodman pointed out it will
take legislative action to get some funding in this program. In the meantime, the estimated construction cost has gone up to $1.25 million. The Lift Station #2 Project has been pushed
out to 2026 and it’s estimated cost has also increased to $385,000. There are also two other systems in Scandia Planned Communities Wyldewood Acres and Tii Gavo that need major upgrades
to their systems and no means to cover that expense. Assessing improvements to benefiting homeowners over 20 years may be more affordable than increasing user fees, but an analysis
is needed to see if that would actually be more beneficial than just paying higher user rates.
Putting in meters to make user rates more equitable is a costly option and another piece of equipment that would need to be put on a replacement schedule. Without meters residents all
have to pay the same rate no matter the size of the home. Only a new connection fee could be differentiated by size.
Cammilleri suggested recommending to the Council to put an annual lobbying expense in the budget. The city should to get everything it can on the PPL so a lobbyist can show the city
is on the program list but not getting any funding hopefully making the city’s projects more amenable to get State bonding. This committee could also recommend to the Council to establish
a lobbying committee to help keep Scandia in front of the bonding committee representatives.
A letter should also go out to users of the utilities explaining the rate increase and projections that require it. The city should also reach out to the County, which hasn’t been tried
yet. Getting on the MET Council’s MUSA line is not a likely solution as they probably require a higher density and control the rates.
In the meantime, the MPCA permit is on Track B for the Bliss system nitrate problem fix. A new test well would not be required under this track.
Next meeting is scheduled for Tuesday, October 25, at 6:30 p.m. Need to meet in person to have a quorum.
Meeting ended at 8:06 p.m.
Respectfully submitted,
Colleen Firkus, City Treasurer