07-19-23 Wastewater minutesJuly 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.
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