City administrator Steve and councilmember Barry briefed the council on the status of the city’s State Revolving Fund (SRF) applications and a pending request for future water rights in the Sioux quartzite aquifer.

Steve said the city submitted a request for future water rights and that the state (referred to in transcript as “Danner”) has approved the request to move forward to the water board and a public comment/protest period. The city has received two or three protests, including one from “MCWC” and another from an organization referenced as Barry Worksford (as read in transcript); staff said those parties’ concerns center on the state’s analysis of aquifer capacity rather than opposition to the city’s application per se.

Barry and Steve described the aquifer as fractured Sioux quartzite — an older bedrock source that can vary significantly in yield depending on fractures and local conditions. Staff said the usual next step, if further study is required, would be site-specific investigation by the U.S. Geological Survey (USGS), which staff said has performed similar exploratory work for other municipalities and would provide needed technical analysis without direct cost to the city. Barry cautioned that hiring private consultants could be costly if the city chose that route and urged the council to rely on USGS support where possible.

On SRF funding, Steve said the city applied for funding for the Western Utilities Expansion and the Orleans Avenue improvements. He read a summary from Trent noting that SRF drinking-water funds are unlikely for the Western Utilities Expansion but clean-water (sewer) loan money is likely available for that project. Orleans Avenue work may be eligible for both drinking- and clean-water funding and could receive some grant money for the clean-water portion, though staff said they do not anticipate significant grant funding for drinking water.

Staff said DanR/agency staff and CCOG will continue coordinating with the city and that more details should be available in a few weeks; staff expects to return with a fuller explanation at a future meeting.