10.f2 Tii Gavo MPCA Clean Water Partnership Loan Application https://www.pca.state.mn.us • 651-296-6300 • 800-657-3864 • Use your preferred relay service • Available in alternative formats
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CWP loan
SSTS/LSTS-only proposal workplan
Clean Water Partnership (CWP)
Subsurface Sewage Treatment System (SSTS)
Doc Type: Contract
[Examples and instructions for completing this template are italicized in brackets.
Fill in every blank and delete all examples and instructions before submitting final
workplan.
It is helpful to work with the “View Gridlines” turned on in the Layout tab in the Word
ribbon.]
MPCA Use Only
Swift #:
SRF#:
AI #:
Activity ID:
Project title: Tii Gavo Septic System Modification
[No more than 10 words, 50 characters or less]
1. Loan sponsor (the one taking out the loan) summary:
Organization: City of Scandia
Contractor contact name: Kyle Morell
Title: City Administrator
Address: 14727 209th St. N.
Phone: 651.433.2274
Fax: 651.433.5112
Email: k.morell@ci.scandia.mn.us
Project sponsor partner(s) (if applicable):
Organization: Septic Check
Project manager: Brian Koski
Address: 6074 Keystone Road
Milaca, MN 56353
Phone: 320-983-2447
Fax:
Email: brian@septiccheck.com
MPCA contact(s): [TBD]
MPCA project manager: Lu Berry
Title: Environmental Specialist
Address: 520 Lafayette Rd N
St Paul, MN 55155
Phone: 651-757-2784
Fax:
Email: lu.berry@state.mn.us
Project information [Use your approximate start date. End date is three years following start date. These can be changed later]
Start date: 09/29/25 End date: 02/01/27
(mm/dd/yyyy) (mm/dd/yyyy)
Loan funds requested: 750000 Matching funds (optional):
Total project cost: 1175000
Watershed(s): Carnelian-Marie-St. Croix Watershed 8-digit Hydrologic unit code(s):
Attachment A
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District 10
Type of water body (check all that apply)
☐ Stream ☒ Lake ☐ River ☒ Groundwater ☐ Drinking water source ☐ Other
* Organization type: ☐ County government
☐ Watershed District
☐ Tribal government
☒ City
☐ Township
☐ Other – specify:
Project plan information
Identify water plans available for this area:
Comprehensive Local Water Plan: Surface Water Management Plan – City of Scandia
Total Maximum Daily Load (TMDL): Lake St. Croix (Phosphorus)
Minnesota Pollution Control Agency (MPCA)-approved TMDL Implementation Plan or Watershed Restoration and Protection Strategy
(WRAPS):
Carnelian-Marie-St. Croix Watershed District 10 lakes TMDL
Other plans, if applicable (e.g., nine element, One Water, One Plan):
Type, location, and problem addressed in this proposal:
SSTS systems to be upgraded/replaced to reduce nutrient and bacteria loading and to protect human health.
* Project type: ☒ SSTS replacement or upgrade and the administration of the program only
Implementing any other Best Management Practices in addition to SSTS? Use the SSTS-only proposal
found on the MPCA’s website at https://www.pca.state.mn.us/water/cwp-loans.)
County: Washington
How are groundwater or water body concerns addressed in water planning documents (e.g., protection, restoration,
undefined, needs more information, etc.) : We will be bring the discharge limits to 10 mg/L or lower.
Specific water quality concern(s) addressed by this proposal: Nitrogen removal to drinking water standard of 10 mg/l.
Phosphorus addressed by maintaining 500 foot lake setback.
How will concern(s) addressed in this proposal be prioritized (e.g., if demand exceeds available funds, how to choose
what to fund) : Funding of nitrogen treatment upgrade is the first priority, followed by a drain field update as second priority
Statement of problems, opportunities, and existing conditions
This project proposes the upgrade of a privately owned community septic system serving 37 homes, located near Big Marine Lake.
The current system is noncompliant with the nitrogen discharge limit of 10 mg/L and relies on aging drain field infrastructure that
requires excessive maintenance and oversight to remain operational. The proposed upgrade includes the installation of a nitrogen-
reducing treatment system and a full drain field replacement.
Expected Number of Noncompliant Systems
All 37 homes are currently served by a single large subsurface treatment system (LSTS) that does not meet nitrogen standards.
Therefore, the expected number of noncompliant systems is one LSTS, serving 37 individual residences. The goal is to fully
upgrade this system to meet compliance standards and reduce environmental impact.
Replacement/Upgrade Goals
Install advanced nitrogen treatment technology to consistently meet or exceed the 10 mg/L nitrogen limit.
Replace and modernize the drain field to reduce maintenance needs and improve long-term reliability.
Ensure full compliance with local and state wastewater regulations.
Protect nearby water resources, especially Big Marine Lake, from nutrient loading and potential contamination.
Local Prioritization and Targeting
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This project has been prioritized due to its proximity to Big Marine Lake, a sensitive water body with recreational and ecological
significance. The lake is vulnerable to nutrient pollution, particularly nitrogen, which can contribute to algal blooms and degrade
water quality.
Key prioritization factors include:
Proximity to an impaired water body: Big Marine Lake is at risk due to nutrient loading from nearby septic systems.
Potential impact to drinking water: The area includes private wells that could be affected by septic system failure.
Shoreland zoning: The community lies within a shoreland zone, increasing the urgency for compliance and environmental
protection.
High maintenance burden: The existing system requires frequent oversight, indicating a risk of operational failure and
environmental harm.
This upgrade aligns with local water plans and environmental priorities, targeting a high-impact system with significant potential to
improve water quality and reduce public health risks.
Objectives, tasks, and subtasks
Objective 1: Complete system upgrade design and submit for MPCA major modification SDS permit review
Objective 1 Timeline: Complete and submitted by February 1 2026.
Objective 1 Cost: $85,000
Objective 1 Deliverables: Plans, Specifications, hydrologic/groundwater study, and MPCA/SDS permit application
Objective 2: Complete construction of treatment system upgrade
Objective 2 Timeline: Operational by October 1 2026.
Objective 2 Cost: $580,000
Objective 2 Deliverables: Treatment system upgrade is operational and meeting 10 mg/l Nitrogen limit
Objective 3: Complete Drainfield system upgrade
Objective 3 Timeline: Operational by November 1 2026.
Objective 3 Cost: $510,000
Objective 3 Deliverables: Drain field construction complete and operational.
2. Participation and administration of the program
Please describe the method(s) for participation:
The city of Scandia is administering the loan program on behalf of Tii Gavo Home Owners Association. The project will be
managed by Septic Check. The project scope is to upgrade a noncompliant system which serves 37 homes in the
development.
3. Measurable outcomes
[Please use the University of Minnesota’s SSTS Improvement Estimator
https://septic.umn.edu/sites/septic.umn.edu/files/septice_system_improvement_estimator.xlsx and guidance for the tool can
be found at https://septic.umn.edu/sites/septic.umn.edu/files/septic_users_guide.pdf .]
Please describe the total expected reductions for this project:
Lake ID or stream AUID Big Marine Lake
Phosphorus lbs/yr $/lb
Sediment tons/yr $/ton
Nitrogen 2,400 lbs/yr $/lb
Other (list): $/
$/
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The goal will be to ensure our nitrogen levels are at or below the permit required level.
4. Environmental justice
Are there any specific areas to be targeted for SSTS improvement? Are there any considerations for low-income borrowers?
The main focus of the upgrade is to address the noncompliance to permit relating to nitrogen. Through the construction
process we due plan to upgrade the drain field from a dripper based system to a traditional drain field.
5. Project budget
Description of activity Loan requested Match (optional) Total
Loans to replace SSTS $1,175,000 $1,175,000
Loan funds to administer project: including
outreach and program admin
Total $1,175,000 $1,175,000
Resolution No. 09-16-25-05
Page 1 of 1
CITY OF SCANDIA, MINNESOTA
RESOLUTION NO. 09-16-25-05
RESOLUTION AUTHORIZING SUBMITTAL OF A LOAN APPLICATION TO THE
MINNESOTA POLLUTION CONTROL AGENCY CLEAN WATER PARTNERSHIP
LOAN PROGRAM
Be it resolved, by the City of Scandia to submit a proposal with the Minnesota Pollution Control
Agency to conduct the following project: Tii Gavo Septic System Modification.
Be it further resolved, that City Administrator, Kyle Morell, be authorized to submit the
proposal for the above-mentioned Project and shall have the authority to represent this body in
all matters that do not specifically require the action of this body.
Be it further resolved, that submittal of a proposal does not obligate this body to accept a grant
and/or loan if so offered.
Whereupon, the above resolution was adopted at a regular meeting of the Scandia City Council
this sixteenth day of September 2025.
____________________________
Steve Kronmiller, Mayor
ATTEST:
____________________________
Kyle Morell, City Administrator