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STAFF REPORT <br />DATE: February 21, 2023 <br /> REGULAR <br /> <br /> <br /> <br />AGENDA ITEM: Appeal of Water Appropriations Permit Denial <br />SUBMITTED BY: Kristina Handt, City Administrator <br /> <br />BACKGROUND: The city has twice requested that our water appropriations permit from the DNR be amended to increase our annual appropriation amount from 260 million gallons a year (MGY) to 540 MGY. Typically, the city makes requests to the DNR to increase appropriations at the same time as the request to add a new <br />well. This was the process followed in 2014 with the addition of well 4 on 50th St. and an increase in appropriations to 260 MGY. Again that was the approach taken in January 2021 to add well 5 in Tana Ridge Park and increase appropriations to 540 MGY. In May 2021, the DNR approved the addition of <br />well 5 but denied the request to increase the appropriations to 540 MGY. The city staff asked for an increase to 540 MGY based upon the updated projected demand in the water supply plan. While working with the MPCA and DNR on the Conceptual Drinking Water Supply Plan as part of the 3M settlement <br />work groups, the projected demand was updated as shown below: Year Pop. Served GPCD Avg MGD MG/Yr <br />2020 7,302 105 766,710 280 2021 8,653 105 908,565 332 2022 10,004 105 1,050,420 383 2023 11,355 105 1,192,275 435 2024 12,708 105 1,334,340 487 2025 14,056 105 1,475,880 539 <br />2030 15,407 100 1,540,700 562 2040 21,165 96 2,031,840 742 <br />We rounded the 2025 number to 540 as that roughly, was when we would expect to have the next well fully functioning and online. Like we have in the past, the plan would be to ask for an increase again when well 6 is added to the system. <br /> Since the request was denied in 2021, the City applied for an amendment to increase to 540 MGY again in May 2022 and the denial was received on January 27, 2023. The city has 30 days to decide if they’d like to file an administrative appeal, or contested case hearing, under Minn. Stat. chapter 14 and 103G.311. The city has pumped 308 MGY in 2020, 395 MGY in 2021 and 400 MGY in 2022. ISSUE BEFORE COUNCIL: Should the city appeal the DNR’s denial of our permit amendment request to increase our appropriations to 540 MGY??