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HomeMy WebLinkAbout2023-02-09 UC MIN UTILITIES COMMISSION MEETING February 9, 2023 8:00 A.M. Utilities Superintendent Benson called the meeting to order at 8:00 a.m. Present: Chairman Speedling, Commissioners Hutter, Jensen and Whitcomb, Councilmember Polehna Absent: Commissioner Hudak Staff: Utilities Superintendent Benson, Public Works Director Sanders APPROVAL OF MINUTES Possible approval of minutes of December 8, 2022 meeting Motion by Chairman Speedling, seconded by Commissioner Whitcomb, to approve the minutes of the December 8, 2022 meeting. All in favor. OPEN FORUM There were no public comments. NEW BUSINESS Discussion on Annual Water Rate Increase Public Works Director Sanders stated that after the last rate study, a residential rate increase of 5% was recommended but there was no recommendation of an annual increase for commercial properties. Staff was directed to contact CliftonLarsonAllen, and discuss the merits of an annual increase for commercial property. There was no opposition. All other utility funds (sanitary, storm and lighting) have been approved for an annual increase of 3%. To be consistent, staff recommends a 3% water rate increase for both residential and commercial properties. The Finance Director suggests that the rate increase begin with the first quarter water usage of each year for the April billing beginning 2023. Commissioner Jensen asked if the rate increase will provide enough revenue for projects such as the painting of the tower, and Mr. Sanders replied there is almost $2 million in reserves and the Finance Director stated there is enough money to do the 2023 budget items. Motion by Chairman Speedling, seconded by Commissioner Jensen, to approve an annual water rate increase of 3% for residential and commercial users. All in favor. Continue discussion on Water and Sanitary Sewer Connections Mr. Sanders stated that at the November meeting, the Commission discussed when a sewer and water connection is considered “available.” Often, both sewer and water main are adjacent to a property and considered available. However there are several areas in the City where only one utility is available, mainly water mains in the western part of the City where water was extended to serve a development and passes by existing homes that weren’t part of the development. Current code requires connection to water when it is available at the time sale of the home as follows: “Water Department Sec 28-3. subd 16. Immediate Connection Required. Any building which has available to it City water services must be connected to the City water system if and when they connect to the City sewer system or upon sale or transfer of title to the property.” The City Attorney recommends a wording change to: “If Utilities Commission Meeting February 9, 2023 both sewer and water are available to the property, then upon sale or transfer of title, the owner must connect to the water system. Any new building that has City water service available to the property must connect to the City water system upon construction." Commissioner Whitcomb asked if the language should also state that connection to sewer is required if available, and Mr. Sanders answered that staff can add that language for clarity. Motion by Commissioner Whitcomb, seconded by Commissioner Speedling, to approve the proposed language change as presented, adding "and sanitary sewer system." All in favor. UNFINISHED BUSINESS There was no unfinished business. DIRECTOR/SUPERINTENDENT UPDATE Monthly Gallons Pumped Mr. Sanders gave the number of gallons pumped per month, on par with 2021, and Mr. Benson added that the January 2023 numbers are down a bit. Water Efficiency Rebate Update Mr. Sanders reported on the grant received from the Metropolitan Council, which provides property owners, who replace certain household items and install new water efficient and/or energy efficient items, an opportunity for a rebate for the purchase. In 2022 there were 34 applications and rebates of about $5,700. So far in 2023, nine applications have been received. Staff will continue sending the message out in the City newsletter and on the web site. PFAS Mr. Benson presented the report of the Minnesota Department of Health (MDH) sampling for Perfluoroalkyl Substances (PFAS) in each well. Levels were high (over 1) in Well 6 on Fourth Street. The prior sample was .3 so the MDH will continue quarterly sampling before making a recommendation on what the City needs to do. If indicated, the City would have to send out a letter noting that the samples exceed the health guidance. Mr. Sanders added there are really no standards, they are just guidelines at present. The MDH is considering establishing lower standards so it will monitor samples over the next three quarters. As time goes on the MDH will meet with the City to discuss what actions may need to be taken. COMMISSIONER ITEMS Chairman Speedling remarked he sent out a link to a KARE 11 segment on Minnesota drinking water not being an infinite resource especially in northern Minnesota. Councilmember Polehna and Mr. Sanders commented on manganese problems in water in the City of Mound, which has estimated $38 million to install a treatment system. ADJOURNMENT Motion by Commissioner Whitcomb, seconded by Chairman Speedling, to adjourn. All in favor. The meeting was adjourned at 8:25 a.m. The Commission decioeAto cancel the March meeting. Steve Speedling, CIVair ATTEST: Shawn Sanders, Public Works Director Page 2 of 2