Water Utility Council

Meeting Minutes

Thursday December 16, 2004

Held @ Saint Cloud Wastewater Treatment Facility

Saint Cloud, Minnesota

 

Attendance:

Bernie Bullert, Bob Cockriel, Glen Gerads, Steve Gleason, Chad Hill, Ruth Hubbard, Craig Johnson, Kurt Johnson, Allen Lamm, Doug Mandy, Cliff McLain, Dick Nagy, Chip Robinson, Dave Scheerer, Pat Shea, Ed Sorenson, Bert Tracy.

 

Housekeeping:

Kurt Johnson chaired the meeting.

 

Kurt explained the Minnesota Section is seeking a representative to attend AWWA’s 2-day “Water Matters” Fly-In on Capital Hill in Washington DC April 13-14, 2005.  It is intended that the Minnesota Section representative will attend a national AWWA briefing and be sent out to see Congressional Delegates or their aides and advise them on water industry issues.  Bernie Bullert and Kurt Johnson have attended in the past.  Let Kurt know ASAP.

 

Meeting Minutes:

On page 3 of the meeting minutes of October 5, 2004 under Article 1, paragraph c., item 1, delete the second sentence and insert the following: “Preliminary proposals call for the State collecting from Cities $36 per year per sewer drain connection; or $36 per year per water connection for a total of $36 for a typical residential user.”

 

The Meeting Minutes of October 5, 2004 were approved as amended above.  Motion by Bob Cockriel.  Secondary by Dick Nagy.  Motion approved.

 

Congressional/EPA Update:

            None.  Bob Peplin was not present.

 

Legislative report from LMNC Representative:

Craig Johnson provided the following insights into issues likely to be before the legislature in 2005:

1.      Federal Level: Waste Water Funding to the Waste Water SRF will be cut by $200M.  Minnesota gets 2% of such funding.  Therefore, The State of Minnesota Revolving Loan Fund will likely be cut by an estimated $4M.

2.      State Bonding Bill: Expect a $435M bonding bill will include funding for water and wastewater infrastructure improvements.  The legislative session must be done by July 1 or State Government shuts down.

3.      Water Appropriation: DNR has proposed raising water appropriation fees.  However, LMC has advised DNR of its opposition to such a fee increase and further advised DNR to dedicate latest rate hike to Water Appropriation operations.  The last rate hike monies went to the general fund.  Craig may look to the WUC for support to get appropriation fee into a dedicated account.

4.      Drinking Water Fee:  Minnesota Department of Health is seeking to raise $5.21 fee to $6.36 to balance fund to 2010.

5.      Impaired Water Funding Proposal: An un-funded federal mandate requires the State make impaired water environmental improvements.  Some funding mechanism will be approved in 2005.  The LMC supports a funding source where each sewer drain connection / septic system pays $36 per year to a “State Water Protection Fee”.

 

Discussion suggested the fee description and public education is critical on this issue.  The description on the “bill” to customers should clearly distinguish and differentiate this fee from the “drinking water” side.  Also, WUC believes the impaired water is mostly a result of storm water and natural erosion etc. WUC recommends the fee description not “implicate” wastewater facilities even though the proposed collection mechanism is through wastewater connections.

 

WUC suggested the most appropriate source of funding for impaired waters seems to be lottery proceeds.  Craig suggested the lottery was established as an Environmental Trust Fund where 40% of the proceeds were to go to environmental issues, 60% to economic development.  LMC agrees this funding source would be appropriate.  However, more revenues are needed by the State to meet all expenses.

 

LMC plans to support $15M per year be dedicated for grant monies for cities to invest in necessary capital improvements to meet phosphorus discharge rules.  Further LMC supports the grant money being available as a retroactive rebate to cities who have built systems to meet the phosphorus rules since the rule adoption in 2000.

 

LMC expects within next 4 years, a Phase II Stormwater rule will require reductions in storm water phosphorus concentrations.

6.      Metropolitan Council is interested and has proposed taking over the State Agency responsibilities (DNR) of regional groundwater oversight and water appropriation planning across its service area.

7.      LMC anticipates further levee limits and LGA cuts will be proposed in the 2005 session.

 

State-Related Water Issues:

 

1.      Miscellaneous Updates:

 

                                           a.      Gopher State One-Call (GSOC) Adam Kramer was not present.

                                          b.      Environmental Quality Board (EQB) Ed Sorenson indicated the EQB has been focused on lakeshore issues, timber harvesting and sand/gravel mining.  He provided Kurt Johnson a copy of the latest meeting minutes.  Kurt will provide copies of these minutes upon request.

2.      Reports

                                           a.      Minnesota Rural Water Association

Ruth Hubbard reported the Office of the Inspector General has clarified small systems will need vulnerability assessments and emergency response plans to qualify for any funding.

                                          b.      Minnesota Department of Health

                                                                           i.      Doug Mandy discussed the Health Departments funding request.  Effective July 1, 2006, MDH will collect an increased fee per service connection from $5.21 to $6.36 per service connection per year to fund continued drinking water protection. The fee, effective for fiscal year 2007, must be collected beginning in July 2006.  The fee increase is needed to hold program expenses within budget until 2010.  Doug may look to WUC to formally support this funding request via testifying, letter etc.

                                                                         ii.      Rule updates: Over the next few years the Health Department will be reviewing and updating rules as appropriate along with abolishing obsolete rules.

                                                                        iii.      Legislation to further address lead in drinking water is still being proposed.

1.      MCL for lead. MNDOH opposes.

2.      Emphasis on schools and daycares. MNDOH supports,

                                                                       iv.      SRF for drinking water infrastructure should not be reduced in 2005.  Doug anticipates the fund will receive $850M nationally.

                                                                         v.      Other infrastructure funding mechanisms being proposed include a container deposit such as 5 cents per bottle. 

 

                                           c.      Metropolitan Council

                                                                           i.      Chris Elvrum was not present.

                                          d.      Minnesota Department of Natural Resources

                                                                           i.      Jim Japs was not present.

                                           e.      Association Director

                                                                           i.      Bernie Bullert advised EPA was still working on D/DBP and enhanced SWTR.  He understands Minnesota may get some funding from EPA in 2005.

                                                                         ii.      Bernie discussed the need for AWWA to promote more “Utility” and “Corporate” memberships as opposed to individual memberships.  AWWA needs to look at membership costs etc. The attendance at national conferences, a major source of funding for AWWA, is down 96% of utilities with smaller than 10,000 connections are not members.  There is a need for AWWA to better serve regional needs.

                                                                        iii.      AWWA standards committees are looking for volunteers.  The committees are usually short utility members.  It is best to apply through the “section” and its representatives.  All are asked to consider volunteering.

Discussion/Action Items

1.      WUC membership

Currently, the WUC is represented by six Commercial Consulting members, 2 short of the full complement of eight.  In addition, Verne Jacobsen will vacate his seat on the council.  This means there are 3 vacancies.  Kurt Johnson will recommend to the Section Board that Doug Lubin of CH2MHILL be appointed as a member of WUC.

a.       WUC extends special thanks to Verne Jacobsen for serving on the WUC and for his overall dedication and commitment serving AWWA.

2.      Current Issues

                                                                   a.      Gopher State One Call/MNOPS Rule Changes;  Bob Cockriel distributed a draft or rules proposed to be enacted by MNOPs and published December 20, 2004. A hearing is scheduled before an administrative law judge February 1, 2005 at the MNDOT offices in Saint Cloud, MN.

                                                                                       i.      The issues of concern to cities and utilities are:

1.      Cities will be responsible to locate private utilities in the R-O-W.

2.      Effective January 1, 2006 all new installations of buried utilities must be traceable.  However, no such system to accurately locate facilities is currently available.

3.      The outcome of the rules seems to push liability for utility hits to the cities and away from the contractors who might strike such buried utilities.

3.      New Issues

                                                                   a.      DNR Emergency/Conservation Plan Guidelines

                                                                                       i.      Bob Cockriel, Bernie Bullert and Don Volkw worked with DNR and Met Council to modernize and simplify the completion of updated 10-year plans.  The plan guidelines are scheduled to be issued to cities in February 2005.

                                                                                     ii.      Cities need not complete the “emergency response plan” details if a City can provide a copy of certification from EPA indicating EPA has received an emergency response plan.

                                                                  b.      Water Appropriations Committee

                                                                                       i.      Kurt Johnson, Chip Robinson and Ed Sorenson plan to contact Jim Japs and initiate discussions on this issue.

                                                                                     ii.      WUC would like the rules to suggest; Failure of the DNR to act on an appropriation application within a designated timeline would mean the application is approved

 

 

                                                                   c.      Legislative Committee Chair

                                                                                       i.      Bernie Bullert suggested WUC should stay in touch with Craig Johnson and the LMC and be prepared to testify etc. as various bills are introduced during the 2005 legislative session.  Craig’s cell phone: 651-470-1825. E-mail cjohnson@lmnc.org.

                                                                                     ii.      Ed Sorenson, Bob Cockriel and Pat Shea will serve as liaisons.

Next Meeting:

Will be held on March 17, 2005, 10:00-12:00 at the Bloomington Water Treatment Plant

 

Meeting Adjourned:

There being no further business, Kurt Johnson adjourned the meeting at 12:00 noon.  Motion by Bob Cockriel; Second by Cliff McClain.  Motion approved.