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3. Big Marine Sewer Utility Facility Plan and NPDES Permit Modification 3 � SCA.. INUMMEEMIDEMEM Staff Report Date of Meeting: January 4, 2023 To: Mayor and City Council From: Anne Hurlburt, Interim City Administrator Re: Big Marine Sewer Utility, Bliss System: Authorize Completion of Facility Plan and NPDES Permit Modification Action Requested: Authorize Bolton and Menk to: a) complete the Facility Plan for the Bliss Sewer System; and b) proceed with the NPDES permit modification through the MPCA for the improvements. Background: There is an opportunity to apply for state funding for required improvements to the Bliss Sewer system. This includes low interest loans,and the Point Source Implementation Grant(PSIG)which could cover 80% of eligible costs. The first step is submission of a facility plan and application, due to the MPCA by March 3, 2023. In addition, the project must go through the full MPCA permitting process, which needs to be started immediately. Budget Impact: The expected fee to complete the facility plan is$20,000. Fees to complete the permit modification are estimated at $7,500. If the city is successful in obtaining state funding, it could free up the ARPA funds that have been earmarked for the project for other uses. This will be discussed in the next round of updates to the city's budget and CIP. The Council may wish to refer this information to the Wastewater Committee to keep them up to date with the project. Attachment: • Memo Dated December 28, 2022 from Seth A Peterson, P.E. and Ryan Goodman, P.E., City Engineer, Bolton& Menk O LTO 12224 Nicoll Avenue Burnsville,MN 55337-1649 Ph: 19521890-0509 Real People.Real Solutions. Fax: (9521890-8065 Bolton-Menk.com MEMORANDUM Date: December 28,2022 To: Anne Hurlburt, City Administrator Scandia City Council From: Seth A. Peterson, P.E. Ryan Goodman, P.E., City Engineer Subject: Scandia Bliss Wastewater System City of Scandia, Minnesota We had a virtual meeting with representatives from the MPCA on December 16, 2022,to discuss funding and timing options for the Bliss wastewater system. The Bliss system is designed to treat more than 10,000 gal/day and therefore is governed by a NPDES(National Pollutant Discharge Elimination System) permit that is issued through the MPCA. The City's permit was reissued in September 2021 and includes a compliance agreement to meet a nitrate limit of less than 10 mg/l. The permit required a plan to be sent to the MPCA in September 2022 that outlines how the City intends to meet the nitrate limit. The next item on the compliance schedule is the submittal of a Facility Plan to the MPCA. A facility plan is a formal engineering report submitted to the MPCA and allows the City to be placed on the funding lists. The funding programs include low interest loans through the Clean Water Revolving Loan Program and grant opportunities through the Point Source Implementation Grant(PSIG) program. Since the City has a nitrate limit,they are eligible to apply for the PSIG program. The PSIG program allows for grants that cover 80%of eligible costs for a maximum grant of$7 million. The project was estimated at$1.3 million in February 2022. For the City to be eligible for both the loan and PSIG program, below is a schedule of key dates and milestones. Key Dates for meeting compliance • March 3, 2023-Submit Facility Plan to MPCA/Project Priority List(PPL) application o Public hearing required as part of Facility Plan—hold in February or March 2023 • March 2023—City Council approval to start design of improvements at Bliss • June 2023—apply for Intended Use Plan (IUP) • June/July 2023—submit plans/specs to MPCA for approval • July 2023—apply for PSIG program • Aug.2023—Draft IUP/PSIG lists published • Sept. 2023—IUP/PSIG lists finalized • Oct.2023—MPCA certifies project Depending on if/how PSIG is funded by an upcoming bonding bill, the project could proceed to bidding in 2023 (Nov/Dec). However, it is likely the project would be a 'carry over' project due to the competitive nature of PSIG funding and then the following would occur for timing: H:\SCND\ON1123997\1_Corres\C_To Others\Dec2O22 Bliss Memo,docx &rOw"&NN vuh[w'm¢w4uar oM.^fpoll 0 imn y uipdrrjmw Name: Scandia Bliss Wastewater System Date: December 28,2022 Page: 2 • June 2024—reapply for IUP • July 2024—reapply for PSIG (assuming there are bonding dollars for PSIG) • Aug.2024—Draft IUP/PSIG lists • Sept. 2024—IUP/PSIG lists finalized • Oct/Nov 2024—Advertise/Bid Project To meet the above schedule, we are asking for approval to complete the Facility Plan for the Bliss system which must be submitted to MPCA by March 3, 2023. The City already completed the Nitrogen Mitigation memo report in September 2022 and this report will be the basis for the Facility Plan and we will expand upon this existing memo report so that it conforms with the MPCA requirements for Facility Plans. The expected fees to complete the Facility Plan is$20,000. Additionally,the proposed improvements at the Bliss Facility will require a NPDES permit modification that must go through the full M PCA permitting process. Due to the time requirements in working through a permit modification,this work should also be started immediately. We estimate the fees to complete the permit modification process at$7,500. 1 will be available to discuss these items in further detail at the January 4, 2022 City Council meeting. H:\SCND\0N1123997\1_Corres\C_To Others\Dec2022 Bliss Memo..docx Bohan dl1.ptiRen is an rMkTa bt rSr yrtrngra ryMwxlrp¢sr