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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: <br />The city has twice requested that our water appropriations permit from the DNR be amended to increase <br />our annual appropriation amount from 260 million gallons a year (MGY) to 540 MGY. Typically, the <br />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 <br />appropriations to 260 MGY. Again that was the approach taken in January 2021 to add well 5 in Tana <br />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 <br />increase to 540 MGY based upon the updated projected demand in the water supply plan. While working <br />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: <br /> <br /> <br /> Year Pop. <br />Served <br />GPCD Avg <br />MGD <br />MG/Yr <br />2020 7,302 105 766,710 280 <br />2021 8,653 105 908,565 332 <br />2022 10,004 105 1,050,420 383 <br />2023 11,355 105 1,192,275 435 <br />2024 12,708 105 1,334,340 487 <br />2025 14,056 105 1,475,880 539 <br />2030 15,407 100 1,540,700 562 <br />2040 21,165 96 2,031,840 742 <br /> <br />We rounded the 2025 number to 540 as that roughly, was when we would expect to have the next well <br />fully functioning and online. Like we have in the past, the plan would be to ask for an increase again <br />when well 6 is added to the system. <br /> <br />Since the request was denied in 2021, the City applied for an amendment to increase to 540 MGY again <br />in May 2022 and the denial was received on January 27, 2023. The city has 30 days to decide if they’d <br />like to file an administrative appeal, or contested case hearing, under Minn. Stat. chapter 14 and <br />103G.311. <br /> <br />The city has pumped 308 MGY in 2020, 395 MGY in 2021 and 400 MGY in 2022. <br /> <br />ISSUE BEFORE COUNCIL: <br />Should the city appeal the DNR’s denial of our permit amendment request to increase our appropriations <br />to 540 MGY??