CITY OF WANAMINGO
City Council Regular Meeting
Monday, April 8, 2024 7:00 P.M.
Wanamingo City Council Chambers – 401 Main Street
Wanamingo, MN
CALL TO ORDER: Mayor Holmes.
PRESENT: Council: Ryan Holmes, Stuart Ohr, Eric Dierks, and Rebecca Haugen
City Administrator: Michael Boulton
Deputy Clerk: Karen Masters
ABSENT: Council: Jeremiah Flotterud
ALSO PRESENT: Brandon Theobald – WHKS, Bill Angerman – WHKS, Brad Kennedy, Richard Turri, Jason Boynton – Smith Schafer, Stephen Kingsbury, Beth Haas – Zumbrota News-Record, Andrew Deziel – Kenyon Leader, David Kujawa – Three Rivers Community Action, Edward Matul – Goodhue County Deputy Sheriff.
ADOPT AGENDA: Ohr motioned to adopt the agenda, seconded by Haugen. Passed 4-0-0.
CONSENT AGENDA: Dierks motioned, seconded by Ohr. Passed 4-0-0.
PRESENTERS:
A) Brad Kennedy reported on:
1) Jetted all clay sanitary sewer lines
2) Plowed snows and salted streets
3) Replaced leaking break line in 950 Caterpillar Pay Loaders
4) Had Schumacher Excavating dig up and replace section of sanitary sewer line between 2nd Street E, 3rd Street E, West Avenue, and High Avenue that partially collapsed
5) Placed out park benches and garbage containers on Main Street sidewalks
6) Worked with Core & Main staff to rebuild hydrant on West Avenue
7) Started work on alleys utilizing the skid loader and plainer attachment
8) Worked with Reliable Heating & Cooling on a furnace that was not working at the Medical Center. A bird’s nest was removed far into the exhaust line. The exhaust line will have a new mesh cover installed.
9) Received AED from Goodhue County Sheriff’s Office grant. Ordered and received a wall mount box from Ultimate Safety Concepts Inc that will be installed in the community center.
B) Jason Boynton of Smith Schafer & Associates reported on:
1) Conducted a presentation of the 2023 Wanamingo City Audit
2) No large (State or Federal) single audit required for 2023
3) There is limited segregation of duties in the small office – yearly recommendation for small staff communities. This is not possible with a small office staff.
4) The audit completion letter showed no disagreements with management
5) Paid down $636,000 of debt in 2023
6) The general fund showed a $22,646 shortfall in 2023 and will have roughly a $580,000 balance. This will decrease the reserve balance from 79% to 61%. There was planned reserve spending on Prairie Ridge Estate Park Shelter of $15,000 and additional street maintenance work $17,900. There was also unplanned capital spending with Community Center/City Hall doors of $11,500 and skid loader snow blade of $7,800. There were also one-time expenses toward fire relief association retirements of $30,000. There was additional revenue from investments totaling $44,000, donations of $30,000, and building permits. Water fund showed a decrease in cash from $1,082,274 274 to $701,322 at the end of 2023 at part of 2022 Utility Improvements project. Sewer fund showed an increase of cash of $75,541 while having $644,359 in cash at the end of 2023.
7) Recommend keeping an eye on water and sewer billing rates so that they are keeping up with operational costs and future capital needs.
Dierks stated that he was happy that debt was being paid down and that a number of bonds were being retired in the near future. Holmes stated that the City financial are in good shape and appreciates the continued vigilance by the staff.
D) Richard Turri Licensed WWTP Operator, reported on:
1) Has been licensed WWTP operator for the City of Wanamingo since 2011.
2) Wanamingo WWTP is a class B facility. Need operator with at least a class B operator license, Richard Turri has a class A operator license. Ongoing training of 32 hours/three years and 6 hours training for biosolids applicator license.
3) Wastewater treatment facility has had issues the past year with high pH levels and QAC’s from Reckitt. The pH issues seem to be getting under control. QAC issues are happening everywhere around the State. QAC usage is not regulated by the State and will continue to cause wastewater treatment facilities issues in high concentrations. The south digester, handling the domestic waste running extremely well. The north digester, handling the industrial waste from Reckitt still is not running optimally.
4) Has been attending the NZSSD technical committee meetings. Has provided and will continue to provide input to ensure that a new plant is designed with future operators in mind.
E) David Kujawa of Three Rivers Community Action reported on:
1) Three Rivers Community Action is starting a Chore and Homemaker Services for Older Adults in the Wanamingo Community.
2) Three Rivers are currently seeking volunteers to assist older adults who need help with yard work, laundry, cooking meals, and other tasks. Three River Community Action’s goal is to better connect older adults with volunteers and help them remain independent in their homes. Volunteers can reach out to Volunteer Coordinator David, at 507-321-0404 or by email at dkujawa@threeriverscap.org for more information and sign up. Volunteers can sign up at threeriverscap.galaxydigital.com for opportunities in Wanamingo.
3) Older adults looking for services can reach out to Three Rivers Community Action at 507-316-0610 or by email at oas@threeriverscap.org. An Older Adult Advocate will connect and set up a time for home a visit to assess needs. Three Rivers Community Action also provides energy assistance, SNAP application assistance, housing assistance, Meals on Wheels, and many other vital community programs.
NEW BUSINESS:
RESOLUTION:
Public Hearing – Mayor Holmes opened the North Zumbro Sanitary Sewer District (NZSSD) Wanamingo Portion of the Facilities Plan at 7:24PM. Brandon Theobald and Bill Angerman from WHKS presented a PowerPoint on the NZSSD Wanamingo Portion of the Facilities Plan. The proposed regional wastewater treatment facility and collection system will service the communities of Goodhue, Pine Island, Wanamingo and Zumbrota along with the Prairie Island Indian Community. This Facilities Plan public hearing is for the Wanamingo portion only. Goodhue, Pine Island, and Zumbrota have already completed their Facilities Plan public hearings. Wanamingo wastewater treatment facility was constructed in 1973 with an upgrade in 1981. The wastewater facility is at the end of its useful life. The plant is constructed in the floodplain and has been flooded out three times in the last fifteen years. The digester walls are leaking, the concrete/steel is deteriorating. The MPCA is reducing the effluent limits that the current plant can’t treat. The MPCA is in the process of placing phosphorus limits on to combat the Gulf of Mexico dead zone caused by discharge from the Mississippi River. The treatment alternatives are a new sewer plant onsite or a regional treatment facility and collections system. The North Zumbro Sanitary Sewer District (NZSSD) was formed through a joint power’s agreement. The proposed new facility would be constructed in Zumbrota with lift stations and force main. The four current sanitary sewer plants, including Wanamingo, would be decommissioned. A formal sanitary sewer district would be formed by the State as its own government entity. The Wanamingo collection system would start near the current Wanamingo wastewater treatment facility with a lift station and pumps, run up Hillcrest Avenue/Hill Avenue to the south, head east on MN TH 60, and then run through Zumbrota to the recently purchased land where a new wastewater treatment facility will be constructed. The total project costs are estimated at $111,300,000. The City of Wanamingo’s share is 10.1% of the costs, or $11,291,000. The treatment facility and collection system costs are based upon 50% flow, 25% Total Suspended Solids (TSS), and 25% Biological Oxygen Demand (BOD). The detention costs are based upon 100% of the peak flow (I & I). The four communities received $10 million in capital funding from the State in 2023 for land acquisition and predesign. The four cities have a $44.8 million State capital request in 2024. The Wanamingo actual cost to construct a new Wanamingo wastewater treatment facility at the current location would be $15,135,000. The Wanamingo actual cost for the regional treatment facility and collection system is $5,762,000 with the $44.8 State capital request. The four communities banding together create economies of scale. The Wanamingo actual cost for the regional treatment facility and collection system without additional State capital funds would be $11,291,000. There are additional funding options that the four communities will pursue, but are not definite, included Point Source Implementation Grants (PSIG). PSIG is capped at $7 million. It has not been defined if the PSIG eligibility would be capped at $7 million for the project or each community. Another funding option would be to pursue Federal Congressional Directed Spending (earmark). The Federal Congressional Directed Spending is capped at $5 million in 2025. The current Wanamingo average monthly home sewer portion of the utility bill is $63/month. After receiving the full State capital request the rates would need to increase to $118/month. Without receiving any of the State capital requested, the rates would need to increase to $290/month. If the City constructed its own sewer plant the rates would need to increase to $315/month. Kingbury asked if his current utility bill was around $100 how much his utility bill would increase. Theobald stated roughly $40. Holmes asked what other Minnesota cities do to construct new wastewater treatment facilities. Theobald stated that projects are piecemealed, State funding is requested, and user rates increase significantly. Kingsbury asked if the project could wait. Theobald stated that the sewer plant is falling apart and that additional State standards for sulfates, nitrates, PFAS, and phosphorus will not be able to be met with the current facilities. Angerman stated that the positives would be there are strength in numbers to make operation & maintenance costs cheaper, have redundancies in treatment. The treatment per gallon will become cheaper over time. It will be simpler to meet new standards at one location in the future, rather than four. Kingsbury asked if reducing I & I will lower the costs. Theobald stated yes and no. Wanamingo factored in low growth, assuming that I & I will be reduced. Additional growth would be offset by I & I reduction. Theobald stated that reducing flows and loadings can reduce costs to Wanamingo in the future. Kingsbury asked what the proposed new facilities’ life expectancy would be. Angerman stated that the mechanics are designed for twenty years, and the plant is designed for fifty. The amount of land purchased has a footprint to double the size of the facility in the future. Theobald stated that the pipes are designed for one hundred years, the lift stated for fifty years, and the pumps for twenty years. Turri asked if the lift station would have a spare pump. Theobald stated that the lift station would have two to three pumps depending upon the final design, with the expectation of having an extra pump built in. No Additional Public Comments Offered. Mayor Holmes closed the public hearing at 7:46PM.
24-028 = Approving the NZSSD Wanamingo Portion of the Facilities Plan: Ohr moved to approve, Seconded by Haugen. Passed 4-0-0.
24-029 = Accepting the 2023 Wanamingo Audit: Ohr moved to approve, Seconded by Haugen. Passed 4-0-0.
24-030 = Approving a Revised City of Wanamingo Fund Balance Policy: Dierks moved to approve, Seconded by Haugen. Boulton stated that the general fund spending will be $1,040,000 in 2024. The current $500,000 reserve balance will now be in the middle of the 35%-65%. Boulton suggested moving the goal post of the general fund reserve balance to $650,000 to reflect the increase from $650,000 in the general fund spending since the policy was last modified in 2018. Haugen asked what the plan and timing is to increase the general fund balance. Boulton stated that the plan would be to increase over five years with a review of the policy to occur again in 2029. Boulton also stated that the recommendation is to budget a 3% reserve. Holmes stated that the yearly budget should be setting aside reserves to keep with reserve fund balance as yearly general fund spending increases. Passed 4-0-0.
24-031 = Approving PSA with WHKS for a Sump Pump Inspection Program: Ohr moved to approve, Seconded by Dierks. Theobald stated that Inflow & Infiltration (I & I) is groundwater that does not need to be treated with wastewater. When wastewater treatment plants, like Wanamingo, were constructed the solution to pollution was dilution. However, with the cost of new treatment facilities and operation it adds unnecessary costs to construct larger facilities and treat unnecessary I & I. The City sees spikes in waste water flow up to eight times regular flows during wet weather events. I & I costs are difficult to quantify in added costs to a facility. However, with the facilities plan presented the I & I in the proposed new NZSSD treatment facility will cost the average home roughly $30 extra per month. A sump pump program is the most cost-effective option to reduce I & I. Other options include drain tile inspections, replacement/lining of services lines, replacement/lining of sewer mains, and testing for cross connections with stormwater lines. Sump pump inspection programs are not attractive politically. The program would go into all homes for inventory later to ensure sump pumps do not hook into sanitary sewer, that all lines are plumbed outside, and all sump pump baskets have pumps and discharge lines (or are sealed off). There would be a requirement for homeowners to make corrections if they are out of compliance. The sewer utility rate payers will save money in the long run by implementing a sump pump inspection program. The end goal would be to give homeowners a timeline for inspection, timeline to fix if there are violations, or pay a surcharge. The program will educate the public through a website, mailings, and public hearings. The program will coincide with the MN Department of Health lead/copper grant to identify lead service line for future replacement. The two programs will also facilitate GPS in water service shutoff curb stops. The proposed program cost is $72,440. Ohr stated that he does not wish to pay for others I & I when the new regional NZSSD is in operation. Haugen agreed that the I & I will cost residents significantly in the future if not addressed. Holmes asked what the timeline would be to complete the program. Theobald than a half hour for each inspection. Theobald stated that the work would start later this summer and run into fall. Holmes asked where the water will be deposited if sump pumps are changed from dumping into the sanitary system to outside. Theobald stated that the ideal place would be to pump the water to tile line behind the back of the curb. If there is no tile line behind the back of the curb the water will be deposited into the street or into the homeowner’s yard. Kennedy asked when should sewer service lines be televised and drain tiles be removed from going into the sanitary sewer system. Theobald stated that drain tile inspections program could be completed down the road, but the effort and cost is higher than sump pump inspection program. Theobald stated that smoke tests would be completed next spring in which roof drains and cross connection could be identified for future repairs saving additional I & I. Passed 4-0-0.
Administrator Boulton provided a memo and cost estimates for emailed billing and online utility billing portal options. The topic of emailed utility billing has come up with Council and staff over the past two years. Other communities such as Zumbrota, Pine Island, and Goodhue have recently offered online billing. Currently, all Wanamingo utility bills are mailed, including those on auto pay. The United States Post Office charges $0.53 for post cards and $0.64 for regular envelopes processed through the Quadient postage machine. There were 544 total utility bills generated in March 2024. There were 226 auto pays and 318 regular billings (paying with check, cash, or credit card). There are roughly 25 envelopes sent out each month with multiple post cards while there are roughly 475 individual post cards. This equals out to roughly $280 in postage each month. The
postcards, ink, and envelopes probably cost an additional $0.50 each. This would equal an additional $270 in other direct costs to mailing each month. The monthly direct cost total for mailing would be $550 per month or $6,600 per year. There are also indirect costs of staff time generating the utility bills and placing the postage on each envelope and post card.
There is significant staff time in preparation of monthly utility bills. The City saved significant staff time in changing over from hand held meter reader to the cellular data package reading. The City staff continues to have an additional workload and a need to look for ways to simplify tasks in order to get work completed in a timely manner. Emailed utility billing along with a citizen portal to access historic usage, billing, and handle payments would save staff time in the long run. There would be initial increased staff time to manage the email collection and maintenance for citizens. The alternative is for the City Council to hire additional City staff to manage the ever-increasing workload. Hiring additional City staff is a burden to both the property taxes and utility bills.
The US Post Office has become unreliable in the long duration for normal deliveries of bills, damage to letters, and some cards not showing up for months. The US Post Office has gotten so bad that the staff is considering other forms of payments to vendors to avoid late fees. There are getting to be more citizens that inform the City that they did not receive their bills. For these reasons the City Council and staff should look toward other more reliable alternatives to the US Post Office such as emailed utility bills.
The computer system and utility billing software has undergone some updates over the past two years. The City has upgraded utility billing software through Civic Systems (Casselle) in spring 2021, completed a two-and-a-half-year city-wide water meter replacement program and changes from hand held meter reader to cellular data packet online reading in August 2023, and completed backup server replacements in May 2023. All of these updates have come with drawbacks, hiccups, and additional challenges before the systems run smoothly. City staff have wanted to ensure that the system is running smoothly before taking on the next update. Staff contacted Civic Systems regarding emailed billing options this past winter. Civic Systems has two options for emailed billing. The first option is for emailed utility billing with an initial one-time fee of $1,800 and a $300 annual support fee. The second option is for both emailed utility billing and citizen portal with an initial one-time fee of $1,900 and a $400 annual support fee. The second option would be a better buy, getting both emailed billing and a citizen portal to be able to see current bills, usage history, billing history, and be able to pay with credit card.
The pros would include long-term direct cost savings in postage, postcards, ink, and envelopes. Emailed utility bills would be more reliable than the US Post Office. This would save the city staff time in preparation of monthly utility bills and answering historic usage and billing questions with citizen use of an online portal. The cons would include difficulty in getting 544 utility billing recipients to sign up for emailed billing. There would probably still need to be a printed billing option moving forward for those that do not utilize the internet or email. This would mean that the utility billing system would not be uniform. There is question regarding the redundancy of receipts for both the customer and the city. Some residents like a receipt of the top stub of the current postcard bill. Going forward they may wish for a receipt from the City if they come in make a payment. The city utilizes the bottom portion stub of the postcard for a receipt or generate a receipt from the carbon copy book. This helps with any questions in case a payment is entered incorrectly when processing payments. The carbon copy receipt books are over $50 each (150 receipts per book). The city utilizes roughly five of these books per year. The city would either require twenty more receipt books or some other redundant payment tracking to cover the payments for the year without paper stub. Other alternatives would be tracking payments through Casselle (utility billing software) cash receipt module or track check images through the bank.
Boulton asked if the Council wished to move forward with an emailed utility billing option? The Council members agreed to bring forward a resolution for consideration of approval at the May City Council meeting. Boulton asked the City Council’s intention to offer an incentive to citizens to sign up for emailed billing. The Cities of Zumbrota, Pine Island, and Goodhue are looking at offering a one-time ($5) credit to customers utility bill to sign up for emailed billing. The Council did not offer specific feedback on credits for signing up. Boulton asked if the City Council wished to eventually charge those who do not sign up for emailed billing. The City of Zumbrota, Pine Island, and Goodhue have all discussed charging $1-$5 per month for those who still receive a hard copy bill in the US Mail. The City Council did not offer specific feedback on requiring emailed signup or monthly charges for mailed bills. Kingsbury stated that the City utility bill is the only regular monthly bill that he gets in the US Mail. Holmes stated that he wished to see the emailed utility bills with the customer portal option. Ohr agreed with including the portal option.
OLD BUSINESS:
Enforcement Process – Mead Johnson - Reckitt – 120 day written letter toward meeting goal of waste pH – Boulton stated that the City had received a letter from Mead Johnson – Reckitt. Mead Johnson – Reckitt pH of wastewater discharge was consistently within range during the month of March. The frac tank was installed and incorporated into their process on March 6th. Mead Johnson – Reckitt goal is to install a new lift station with pH treatment. The project has been funded and is proceeding through the final engineering design phase. Boulton stated that the Wanamingo staff are still monitoring the wastewater discharge from Reckitt-Mead Johnson. Kennedy stated that there were no high pH levels in March. Kennedy stated that with the installation of the new frac tank the flows went from 24 hours per day to less than 6 hours per day. The pH levels of the wastewater discharge are being adjusted before being sent to the wastewater treatment plant. Prior to December results have regularly shown extremely low and at times high pH levels along with the presence of high levels of QAC (Quaternary Ammonium Compounds) have been sent to Reckitt-Mead Johnson. The pH levels should be within 5.0 and 9.5. City Staff have been working with Reckitt-Mead Johnson toward the achieved solution of pH levels within the limits. The City appreciates the open dialogue and work, to date, from Reckitt- Mead Johnson. The City continues to keep the Minnesota Pollution Control Agency informed during this process. Boulton stated the Enforcement Process would be left on the monthly agenda until November 2024, or when the action items are completed. Boulton stated the Mead Johnson -Reckitt would be required to provide written monthly updates to the City Council.
Holmes noted that the Goodhue County Sheriff had provided a 2023 annual report to Council members. The report was presented to the Wanamingo Police Work Group committee. The committee has been meeting with the Sheriff’s office on Wanamingo policing on the first even month Friday at 9:00AM. The next Wanamingo Police Work Group committee meeting will be on June 7th.
*Next City Council meeting on 5/13/2024 at 7:00pm.
Adjourn: At 8:26PM a motion to adjourn was made by Dierks and seconded by Ohr. Passed 4-0-0.
Signed: Attest:
_____________________ ____________________________________
Ryan Holmes, Mayor Michael Boulton, City Administrator
