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3.d 201 Community Septic Systems OrientationMay 1, 2019 201 Sewer System History Status Financing/ Budget Current Issues “201” System Location “201” System In operation since 1987 Financed with by the Federal Environmental Protection Agency through their “201 program” Washington County utilized the program to construct the improvements on individual and cluster systems Collection systems for septic tank effluents and jointly used soil treatment systems Owned by City of Scandia Residential users only (110 total connections, 77 Bliss, 32 Anderson Erickson) “201”System City ordinances #202 (connections)& #206 (user charges) govern system and set user fees System is operated (budget, contract, rates, etc. ) as a single system but served by 2 different sub-surface treatment systems (drain fields) with different operation and permitting requirements Bliss Collector System Operated by Washington County under contract with city through 2012, by contractor into 2014, by PW staff since Permit issued by Minnesota Pollution Control Agency (MPCA) (5-year permit for “Class D” facility). The 5-year permit expires in February 2020 Requires Class D and Service Provider license holder to operate Permitted Capacity–19,800 gallons per day Average Daily flow –2016 –8,723 gallons per day; 2017 – 7,385 g.p.d.; 2018 –6,420 g.p.d. Due to high nitrate levels in monitoring well, a report on plans to lower the total nitrogen entering the soil dispersal area is due 180 days prior to permit expiration Anderson-Erickson Collector System Annual permit issued by Washington County System design flow 6,700 gallons per day. Average daily flow –2016 –2,549 gallons / day; 2017 – 2,438 g.p.d.; 2018 –2,355 g.p.d. Initially 21 homes connected Collector system expanded in 2001 without expansion of treatment system “201” System Finances Operations funded by user fees–no tax revenue “Enterprise Fund” segregates revenues, expenses and reserves No metering; all users pay the same rate Year User Fee (Annual) 2013 $691.68 2014 $691.68 2015 $691.68 2016 $691.68 2017 $726.24 2018 $798.88 2019 $798.88 “201” System Finances 2016 2017 2018 2019 Budget Revenue $82,149 $88,342 $87,037 $90,900 Operating Exp.(71,939)(63,260)(58,779)(87,825) Net 10,210 25,082 28,257 3,075 Less: Depreciation (38,262)(38,718)(39,632)(49,700) Net Income (Loss)$ (28,052)$ (13,636)$ (11,375)$ (46,625) Capital Exp.$ (-0-)$ (10,400)$ -0-$ (75,000) Net Cash Flow $ 10,210 $ 14,682 $ 28,257 $ (71,925) Cash Balance 12/31 $ 68,210 $ 82,893 $ 103,812 $ 31,887 “201” System Issues Need to address nitrate limits in Bliss permit renewal ($10,000 budgeted in 2019 for MPCA permit renewal assistance) Need to address inflow and infiltration issues –peak flows after major storm events are in excess of design flow ($10,000 budgeted in 2019 for I&I inspections) Inadequate reserves for eventual replacement of system components Limited capacity for expansion based on current flows