08.f 10-12-22 Wastewater minutes
October 12, 2022
A meeting of the Wastewater Advisory Committee was held on the above date with modifications. The
meeting was conducted in-person at the Scandia Community Center and over an electronic platform. All
participants who joined the meeting remotely could hear each other and contribute to discussions.
The meeting was called to order at 6:30 by Chairperson Steve Kronmiller. In attendance were committee
members Steve Kronmiller and Perry Rynders. A quorum was not achieved as Peter Nora and Dan Cartier
were participating remotely. City Staff in attendance were City Administrator Ken Cammilleri, Public
Works Director Charles Fischer and City Treasurer Colleen Firkus. City Engineer Ryan Goodman
participated remotely.
As there was no quorum there were no motions only information presented.
DRAFT PROPOSED 2023 SEWER BUDGET AND UTILITY STUDY
Administrator Cammilleri reviewed the line-item budgets including capital expenditures for Uptown and
Big Marine Sewers with the goal to balance the budget with more revenue than expenditures to build fund
balance for future repairs. An error in the 2022 Budget Depreciation line ($55,100) was noted with a need
to amend that budget to $5,000. There was much discussion about how to implement a rate increase with
the consensus that it would be better to have a larger increase next year on a smaller amount with gradually
diminishing increases as fund balance builds towards a goal of $150,000. Nora questioned the amount of
wages and engineering expenses in the Uptown budget. Engineer Goodman pointed out that this budget
does not reflect funding for major improvements like force main replacements needed in 2035. Rynders
asked if it was realistic that the small businesses could pay three times the rate by 2027. There was
discussion on adding new residential customers to the system. An EDA study for adding residential to the
Uptown Utility was cut from the 2023 EDA budget. It was suggested that the County may be able to help
fund that study. Kronmiller suggested using debt to fund bigger items in the future. Cammilleri indicated
both saving up and borrowing should be implemented.
The Big Marine Sewer Nitrate problem is required to be completed by 2025 and the ARPA funds allocated
towards the project to be spent by 2024. The balance is to be paid by debt. Cammilleri reported that even
with lobbying, the state legislature was cool on funding this project as there are programs in place for
funding these kinds of projects. However, Scandia’s median income makes them ineligible for these
programs. Scandia needs to complete a facility study to get a higher rating on the Project Priority List
(PPL), but Goodman pointed out it will take legislative action to get some funding in this program. In the
meantime, the estimated construction cost has gone up to $1.25 million. The Lift Station #2 Project has
been pushed out to 2026 and it’s estimated cost has also increased to $385,000. There are also two other
systems in Scandia Planned Communities Wyldewood Acres and Tii Gavo that need major upgrades to
their systems and no means to cover that expense. Assessing improvements to benefiting homeowners over
20 years may be more affordable than increasing user fees, but an analysis is needed to see if that would
actually be more beneficial than just paying higher user rates.
Putting in meters to make user rates more equitable is a costly option and another piece of equipment that
would need to be put on a replacement schedule. Without meters residents all have to pay the same rate no
matter the size of the home. Only a new connection fee could be differentiated by size.
Cammilleri suggested recommending to the Council to put an annual lobbying expense in the budget. The
city should to get everything it can on the PPL so a lobbyist can show the city is on the program list but not
getting any funding hopefully making the city’s projects more amenable to get State bonding. This
committee could also recommend to the Council to establish a lobbying committee to help keep Scandia in
front of the bonding committee representatives.
Wastewater Advisory Committee
October 12, 2022
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A letter should also go out to users of the utilities explaining the rate increase and projections that require
it. The city should also reach out to the County, which hasn’t been tried yet. Getting on the MET Council’s
MUSA line is not a likely solution as they probably require a higher density and control the rates.
In the meantime, the MPCA permit is on Track B for the Bliss system nitrate problem fix. A new test well
would not be required under this track.
Next meeting is scheduled for Tuesday, October 25, at 6:30 p.m. Need to meet in person to have a
quorum.
Meeting ended at 8:06 p.m.
Respectfully submitted,
Colleen Firkus, City Treasurer