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03. Minutes of October 30, 2024 Meeting October 30 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, Jeff Dahlberg, Perry Rynders and Jim Gribble were in attendance. Dan Cartier was absent. City Administrator Kyle Morell, Public Works Director Charles Fischer, City Engineers Jacob Humberg and Isaiah Bubany, and City Treasurer Colleen Firkus were also present. Councilmember Jerry Cusick joined the meeting at 7:00 p.m. APPROVAL OF AGENDA Rynders, seconded by Gribble, made a motion to approve the agenda. The motion passed 4 – 0. APPROVE MINUTES OF OCTOBER 11, 2023 Dahlberg asked about the result of the Committee’s recommendation to explore installing meters. Morell replied it was not brought forward to the Council for further discussion. Dahlberg, seconded by Nora, motioned to approve the minutes from the October 11, 2023, meeting. The motion passed 4 – 0. BLISS PROJECT AND FUNDING UPDATE Administrator reported that the Legislature failed to pass a bonding bill in 2024 which would have fully funded the project as a grant through the Senate and House Capital Investment Committees Bonding Bill. Scandia is reapplying to both committees for funding in 2025. Scandia is still in line for the Public Facilities Funding (PSIG) and is ranked at 187 on the MPCA Project Priority List (PPL). This funding in an 80% grant. A 20% low-interest loan has already been awarded if this grant is awarded to make up the difference. The City is waiting for the MPCA’s response to the City’s request for an extension on the deadline for the system upgrade. Even though the one-year construction clock was started with the submission of plans & specs earlier this year, a favorable response is anticipated due to circumstances beyond the City’s control because of the delay in funding when the legislature did not pass a bonding bill, and the system is not failing but only requiring upgrade due to a change in MPCA guidelines. Construction would then start in 2026. ARPA funding was originally allocated in a budget for the Bliss project. Changes in ARPA requirements broadened the allowed uses. Since the City could no longer obligate the money to the Bliss Project by the end of 2024 with a signed construction contract, due to the delay in the Bliss Project funding, the Council also considered using the ARPA funds to reimburse the City for engineering Design Fees spent on the Bliss Project, and obligating future engineering fees on the project. During the 2025 budget process, the Council decided to allocate the funds to purchase a fire truck in 2024 reducing the need to borrow $800,000 to $340,000, and thereby reducing the City’s debt levy and future debt payments for 20 years. Wastewater Advisory CommiƩee October 30, 2023 Page 2 DRAFT PROPOSED 2025 BUDGET Administrator Morell presented the 2025 proposed budgets for the three sewer systems: Bliss, Anderson-Erickson (A-E), and Uptown. In 2024, the city started tracking expenses separately between the A-E and Bliss systems. Bliss is permitted through MPCA, and the A- E system is permitted through Washington County. The 2025 Bliss budget presented did not reflect the correct expenditures after splitting out revenues and expenditures for the A-E System. A revised budget with more realistic expenditures will go out this week. Dahlberg asked if there would be an opportunity to reimburse the sewer fund for design engineering expenses under the state grant of PSIG funding options. Morell stated that the City would do what it could to reimburse itself from state funding if allowed. PROPOSED CHANGES TO THE SEWER ORDINANCE Administrator Morell presented proposed changes to the sewer ordinance to help reduce expenses by turning over ownership and, thereby, maintenance of the tanks to the property owners. Other changes proposed are clean-up and clarification of definitions, changing the time of billing to a true quarter, language clean-up for assessment of delinquent accounts, and general language clean-up throughout the code section. After review by the Committee, it will be brought before the Council for review. A public hearing would be needed. The Council may wish to hold a meeting with residents first. Cartier submitted a written proposed motion that the seasonal property owners be given a break on their fees until such time as a metered system can be installed. This would make the billing more equitable for those property owners who are responsible for a fraction of the overall flow rates. Committee members would like the idea of meters to move forward to the Council for consideration, and for staff to look for ways to fund it. Also, the City should recognize seasonal residents and give them a break on their rates. A discussion was held regarding changing the User Fee structure to move the costs of pumping, maintenance and repairs of the tanks by either turning over ownership of the tanks to the property owners, or removing those costs from the User Fees and billing homeowners directly for those costs. The City would lose the ability to track pumping and maintenance of the tanks if it was left to the residents’ discretion, and having the City continue maintenance there would be a cost savings to the residents. Costs for services are negotiated by the City staff and typically lower than what an individual homeowner would pay. The Committee agreed to table the motion from Cartier for further discussion after the budget is updated with service fees. A revised revenue budget will be sent out with the addition of new revenue and adjusted seasonal rates, and how it will affect the rest of the full-time residents’ User Fees. Wastewater Advisory CommiƩee October 30, 2023 Page 2 FUTURE ITEMS A meeting will be called when updates become available on the above issues. Rynders, seconded by Gribble, moved to adjourn. The meeting adjourned 8:00 at p.m. Respectfully submitted, Colleen Firkus, City Treasurer