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09.e Memo - December 2022 Administration ReportPage 1 of 3 City of Scandia 14727 209th St. N., Scandia, Minnesota 55073 Phone (651) 433-2274 | Fax (651) 433-5112 | www.cityofscandia.com DATE: Tuesday, August 16, 2022 FROM: Ken Cammilleri, City Administrator TO: Honorable Mayor and City Council Members RE: November 2022 Administration Report Good News on Bliss Waste Water Treatment Plant Nitrate Project Last Friday, Interim Administrator Hurlburt and I participated in an online meeting with representatives of the Minnesota Public Facilities Authority (PFA) and our engineering staff from Bolton and Menk. The focus of this discussion was to identify financing options to address mandated improvements to the Bliss Subsurface Treatment System for the reduction of nitrate concentration levels. (The estimated $1.3 million project is the first major improvement project to be conducted by the City for this utility since the system’s original construction.) We were able to confirm that the City has a good likelihood to qualify and meet state eligibility requirements for the Point Source Implementation Grant Program (PSIG). Project elements that are tied back to meeting effluent water quality standards under the federal Clean Water Act, such as the Bliss project, are eligible to have the state cover expenses up to 80% of cost. This is extremely good news for the Big Marine Sewer Utility. Its rates have historically not kept up with projected capital needs. Subsidizing this project will help the utility advance to a more financially healthy position. As a result, no budget or rate changes are being recommended for change at this time. The only real projected challenge of advancing through this program will be confirming which year and season funds will be awarded which could be as early as 2024 or later dependent on funding conditions and timing of applications and other submissions. This means that the City will likely still be aiming for project buildout in 2024, but it should consider options to free up timing restrictions on ARPA funds by offsetting it with another eligible project, in order to free the money from federal time constraints. So far, the City has taken all of the necessary steps to access this program in a timely fashion. It has been recently placed on the PFA’s 2022 Project Priority List (PPL) with a score of 50. This was extremely promising as it was at a level that frequently reaches the threshold of funding approval. However, current program conditions reduced the availability of funds needed to approve funding at this level. Next week, the Council will be presented with greater details about this grant program and the next steps needed to advance toward obtaining PSIG funding. The Council should expect a staff request to approve an order to complete a facilities study for the Bliss WWTP. Approval at this time will allow engineering staff to have this critical document ready to meet the program’s strict deadlines and requirements. Page 2 of 3 City of Scandia 14727 209th St. N., Scandia, Minnesota 55073 Phone (651) 433-2274 | Fax (651) 433-5112 | www.cityofscandia.com So, all in all, I am pleased to report that the Big Marine Sewer Utility may be on a more positive financial trajectory. The City Council’s leadership address this utility’s financial challenges have been the driving catalyst behind our current progress, but I do leave you all with a statement of caution. Even if both the ARPA and PSIG completely offset this project’s costs, other major improvements for this utility are just around the corner, so proposed rate increases will continue to be needed to address deteriorated infrastructure on both of the utility’s systems. Here is a summary of our anticipated calendar for moving forwards wit this project: At Jan. 4th meeting: · Looking for approval to complete Facility Plan for Bliss system due early March 2023 · Approval to proceed with permit modification (needed for new facility) – This can take about 8-9 months with MPCA timing so need to get started ASAP Additional Dates/items. · March 2023 – look for approval to start design of improvements · June 2023 – apply for Intended Use Plan (IUP) · June/July 2023 – submit plans/specs to MPCA for approval · July 2023 – apply for PSIG (Point Source Implementation Grant) program o PSIG is a grant that may provide grant for 80% of eligible costs · Sept. 2023 – IUP/PSIG lists finalized · Oct. 2023 – MPCA certifies project Depending on if/how PSIG is funded by an upcoming bonding bill, project could proceed to bidding in 2023 (Nov/Dec). Most likely though is project would be a ‘carry over’ project and then the following would occur for timing: · June 2024 – reapply for IUP · July 2024 – reapply for PSIG (assuming there is bonding $) · Sept. 2024 – IUP/PSIG lists finalize · Oct/Nov 2024 – Advertise/Bid Project Gateway Trail Project Although much of the next steps of this project will not begin until the start of the building season, we are still monitoring the progress of this project’s allocation through the Environmental and Natural Resources Trust Fund. Staff has reviewed and approved draft bill language for the allocation’s ultimate approval. The legislation was originally planned to be considered for final recommendation approval by the Legislative-Citizen Commission on Minnesota Resources (LCCMR) this last Monday, but this meeting has been canceled and will likely be rescheduled with a new meeting date and time, soon. Staff will continue to monitor this progress and provide any updates. Page 3 of 3 City of Scandia 14727 209th St. N., Scandia, Minnesota 55073 Phone (651) 433-2274 | Fax (651) 433-5112 | www.cityofscandia.com Martin Marietta Corp (Tiller) Annual Operators Permit Arrangements are being made this month to begin the site visits for Scandia’s aggregate mine and tar plant site. This upcoming year’s application will include a ground water report that will help address concerns regarding the operation’s increased water appropriation. Anyone who wishes to comment on this year’s application outside of the public hearing next spring are encouraged to share them by letter City of Scandia, 14727 209th St. N., Scandia, MN 55073 or email mail@ci.scandia.mn.us Committee Vacancies The City currently has vacancies on its, Planning Commission, Tourism Committee, Capital Investment Committee, and its Sewer Advisory Committee. Applications are available at the City Office or on the City’s website, www.cityofscandia.com Leaving the Organization For those who are unaware, I will be leaving the City at the end of this year. It has been a distinct honor, and my absolute pleasure, to have had the opportunity to serve this City Council and this community. Anything that I may have accomplished here could not have been possible without these fantastic people and the awesome team of staff who serve them so very well. So, my timing of departure really does leave the next incoming administration with an excellent opportunity to work in what I have considered to be one of the best work places that I have ever had the privilege to be in. Nevertheless, new opportunities await and I am looking forward to what they will bring. I am leaving my office in the very capable and experience hands of Interim Administrator Hurlburt and the best team of staff I could have every hoped to have, so I have little doubts about the future progress of this organization. To all of you, I wish you the very best. Sincerely, Ken