4. Memo - Proposed Big Marine Sewer State Bonding RequestPage 1 of 2
City of Scandia
14727 209 th St. N. PO Box 128, Scandia, Minnesota 55073
Phone (651) 433 -2274 Fax (651) 433 -5112 http://www.ci.scandia.mn.us
DATE: April 1, 2021
TO: Honorable Mayor and City Council
FROM: Ken Cammilleri, City Administrator
RE: State Bonding Request to Address the Big Marine Sewer Utility and its Bliss
Addition Wastewater Treatment System
INTRODUCTION
The Bliss Wastewater Wastewater Treatment Plant (WWTP) is part of a pair drainfield-type
wastewater disposal systems within the Big Marine Lake Sewer Utility that is owned and
operated by the City of Scandia. The Bliss WWTP services 75 homes on the west side of the
lake and is licensed to operate under a National Pollutant Discharge Elimination System
(NPDES) Permit provided by the Minnesota Pollution Control Agency (MPCA).
This facility was not originally designed for nitrate treatment. Only one of the facilities test
wells have been returning sample test results that exceed the regulatory threshold of 10
milligrams per liter parts per million (ppm) of nitrate nitrogen. The City has taken steps to
attempt to address this issue by introducing operational changes. These changes include the
introduction of biologicals into the system to help breakdown the nitrates. The overall
results of these efforts have been mixed and have not ultimately addressed nitrate
compliance issues.
On February 22nd of this year, MPCA released its first draft NPDES Permit to the City
highlighting the necessity for the city to introduce nitrate treatment systems at the facility.
The draft permit requires the City to complete a Facility Evaluation Report within six
months of issuance and lays out two tracts regarding how the City will be required to
proceed. The first tract essentially provides the City with an additional 6 months to
implement nitrate treatment and requires the installation and drilling of a new test well on
site at the cost of $40,000-50,000. The second tract forces the City to proceed with
introducing additional nitrate treatment.
REQUIRED ACTION
The time frame for compliance suggests that we will need to be able to fund this project
within a two year-time frame. Currently, the Big Marine Sewer Utility lacks the appropriate
fund balance to support any substantial capital costs. The fund’s current cash balance is
$47,100. As a result, the City will need to seek funding to help offset these costs.
Due to this mandate to introduce treatment in a short time frame, it will be most prudent for
the City to make a state bonding request for a grant. Although the state’s grant funding
Page 2 of 2
City of Scandia
14727 209 th St. N. PO Box 128, Scandia, Minnesota 55073
Phone (651) 433 -2274 Fax (651) 433 -5112 http://www.ci.scandia.mn.us
typically requires a 50% match from the requesting entity, it is critical that the City proceed
with a state budget and bonding request for the state’s 2022 bianniam.
THE PROJECTED PROJECT COSTS
Costs Expense Item
$900,000-
$1,000,000
Purchase and Installation of Nitrate Pre-Treatment Chamber
$350,000 Upgrade Infrastructure at the system’s principle lift station, Lift Station
#2 including replacement of well, pumps, and improvements to
controls*
$30,000 To replace facility flow meters
$50,000 For Miscellaneous repairs
$1,325,000-
$1,425,000
Estimated Total Project Costs
$662,500-
$712,500
Estimated Share for the City and State
* The improvements to Lift Station #2 is in significant need, but could be removed from a grant request if we need
to negotiate the request down to support approval and passage of funding.
Based on the outcome of direction from the City Council, staff will work with Ehlers to
come up with a funding plan for the anticipated City share. This will be presented to the
Sewer Committee later this month and to the City Council at next month’s work session.
RECOMMENDATION
The state operates on a bi-annual budget cycle. Odd years are focused on the state’s
operating budget for the next two years. In the even years, the state considers bonding for
special projects, this would include this bonding grant request.
To improve the odds of potential passage, it is common to introduce state bonding requests
in the preceding legislative session. The earlier the introduction, the greater the opportunity
to build support with key legislators. With the legislative session formally coming to a close
at the end of May, I would like to get authorization to proceed with a legislative ask as soon
as possible.
It is requested that the City Council authorize a state budget request and bonding request for
the Bliss System Sewer Project. It is further requested that one or two City Council
Members consider volunteering to assist with this legislative advocacy process. If
authorized, we will also be seeking assistance from members of the Sewer Committee.
Please let me know if you have any questions.