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City Council Regular Meeting Minutes April 11, 2006 Page 4 1 commence a 5 -year Surcharge Program starting in 2007. St. Anthony is to be charged for I/I in 2 excess of set MCES limits. That surcharge for St. Anthony is $1,197,000 or $119,700 annually 3 for ten years. Rebates and credits on surcharges will be given for City initiated I/I reduction 4 programs. He advised that an additional demand charge will begin in 2013 for future violations 5 of MCES limits. Mr. Hubmer listed St. Anthony's current I/I reduction programs and presented 6 a graph that showed the occurrences of violation of the Metropolitan Council standard from 1995 7 to 2004, noting it is now less than five occurrences which is a significant reduction. 8 9 Mr. Hubmer explained how the pilot study identified non-compliant homes. Visual inspection 10 was done of 60 homes, 45 allowed inspection, and 17 noncompliant connections were found. 11 The inspections found 12 homes that already had corrected an improper connection. He stated 12 that there remains about 830 non-compliant connections and if the City can remove them, it 13 would come into compliance with the Metropolitan Council standards. He a resented picture p 14 showing an incorrect sanitary sewer inflow connection and described how it can be corrected, at 15 a cost of $1,500 to $2,000. Mr. Hubmer explained how the proposed I/I Reduction Plan will 16 gain that level of compliance and the anticipated schedule. 17 18 Mr. Hubmer described financing and anticipated MCES costs as well as costs eligible for 19 surcharge credit. He stated the City will apply for credits against the 2007 surcharge for all 20 projects that have reduced I/I since 2004. 21 22 Mayor Faust asked if St. Anthony has been part of the flow to Lake Pepin. He noted there have 23 been newspaper articles about trying to construct a new system to stop flows into Lake Pepin, 24 which is impaired waters. Mr. Hubmer stated that is one of the reasons for the surcharrr ge 25 program from the Metropolitan Council. Now the focus is on the sanitary sewer systems; 26 however, in the next year or two, they will be talking about Lake Pepin and impact of stormwater 27 runoff from St. Anthony. 28 29 Councilmember Thuesen asked about an approximate time span of noncompliant houses with 30 passive drainage systems. Mr. Hubmer stated if the house was built before 1970, there is 31 potential that it has a passive system. Councilmember Thuesen stated that is a large percentage 32 of homes built in St. Anthony. Mr. Hubmer advised that about 65% of the homes in St. Anthony 33 have passive systems. 34 35 Councilmember Thuesen asked if the City will be in compliance upon completion of this 36 program. Mr. Hubmer stated that is the goal. 37 38 Councilmember Thuesen asked if they know which pipes have issue with infiltration. Mr. 39 Hubmer stated if the City gets 830 homes corrected, it will meet theoals of the Metropolitan g p 40 Council and the City will not to pay the surcharge. However, if St. Anthony has a large rainfall, .41 they will be fined for I/I, as would many other cities. 42 43 Mayor Faust asked when the ordinance was instituted and how much the Metropolitan Council 44 fee could cost the City. Mr. Hubmer stated the ordinance was adopted in 1997 and it would have 45 cost the taxpayers $50,000 and 70,000 a year. Mayor Faust noted the investment being made 46 would reduce that $50,000 to $70,000 per year cost. 47 5