7.c Draft minutes of the 10 19 17 Wastewater Advisory committee meetingCity of Scandia
Wastewater Advisory Committee
Thursday, October 19, 2017 - 6:30 P.M.
A meeting of the Scandia Wastewater Advisory Committee was held on the above date. The
meeting was called to order by Jim Schneider at 6:30 p.m. In attendance were: Council
members Chris Ness and Jim Schneider and Committee Members Brad Bergo, Peter Nora,
Doran O’Brien, and Patrick Kelley. Staff present were Administrator Neil Soltis and Public
Works Director Adam Hawkinson.
Approval of Agenda – A motion to approve the agenda as modified for a discussion on the
appointment of an additional Anderson-Erickson representative was made by Schneider and
seconded by Ness. Vote: 5-0 motion carried.
Approval of Minutes – A motion to approve the minutes of the July 7, 2017 meeting was made
by Schneider and seconded by Bergo. Vote: 5-0 motion carried.
Discussion regarding Uptown Sewer System - Sewer charges and 2018 budget
Based on the previous Committee discussion Soltis presented information regarding the charge
structure for the Uptown sewer system noting that the current rate structure relies primarily on
a fixed charge of 12,331 per year spread equally over the 9 users. This formula results in the
cost per gallon of flow billed varying from around $0.035 for the large users and to around
$0.35 for the smaller users. A reduction of the fixed component to $3,000 per year spread
equally with the remaining charges based on metered usage reduces the disparity to roughly
$0.05 / gallon for large users and $0.11 / gallon for small users. Soltis also recommended that
fees be increased by the amount of depreciation on the system to provide for a replacement
reserve noting that without an increase there will not be sufficient funds available for the
planned replacement of the drainfield blower in 2018 or the lift station and drainfield pumps in
2022. The Committee was in agreement that the proposed changes be included in the budget
when presented to the Council and that the users be notified of the proposed changes.
Discussion regarding 201 Sewer System - Sewer charges, Amendment to the 201 Sewer
Ordinance, and 2018 Budget
At the previous meeting the Committee discussed transferring responsibility for maintenance
elements of the system to the customer. Soltis reported that as a condition of the “201” grant
assistance the City is responsible for all components of the collector system purchased and
constructed, in whole or in part, with state and federal grant assistance and begin at the end of
the building sewer. The property owner is responsible for operation and maintenance of all
plumbing lines and components that lie within the walls of the structure and the building sewer
which extends from the building to the sewage tank. The grant provision do provide the City
with some discretion in establishing a charge system. Citing the 1988 ordinance language Soltis
recommended that an additional fee shall be charged to users of the community sewage
treatment system who, for whatever reason, require septic tank pumping more frequently than
once in two years. Based on the past 4 years this would result in a charge to 8 users and would
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generate an additional $2,600 per year in revenue. The Committee discussed the
recommendation and alternatives and recommended that the additional fee structure be
incorporated into the budget. Soltis also noted that the 1988 ordinance required the City to
charge revenue sufficient to insure adequate replacement shall be held in the replacement
fund separate from the operation and maintenance fund. Soltis noted that the annual
depreciation of the system of approximately $40,000 per year and recommended that the fees
be increased to generate an additional $20,000 to fund a replacement reserve. The Committee
discussed the lack of a reserve and the impact if the rates were increased to fund a reserve in
the recommended amount. The Committee was in agreement that the recommended increase
was too high and that the funds accumulated would not be sufficient to materially im pact the
funds needed to comply with the PMCA requirements that the system establish treatment for
nitrates. The Committee was in agreement to recommend a 10% rate increase that would
generate roughly $7,000 per year and that the users be notified of the proposed changes. Soltis
suggested that the accounting for the 201 system be split so that the Anderson -Erickson and
Bliss systems are accounted for separately. The Committee was in agreement that there was
little benefit and that the future capital cost s should be borne by all of the 201 system users.
Update on sewer system operations and maintenance update - Hawkinson provided a brief
update on operation noting that there we no significant issues.
Appointment of an additional committee member – Ness noted that Dan Cartier did not apply
when his previous term the Committee expired and recommended that the number of
members be expanded and that Cartier be appointed to the position. The Committee was in
agreement in recommending the committee change and appointment to the Council.
Future Meeting Dates: No specific date was set for the next meeting.
No further discussion occurred. A motion to adjourn was made by Schneider and seconded by
Nora. Vote: 6-0. Motion Carried.
Respectfully submitted,
Neil Soltis
Administrator