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Commission approves selling water to Baxter at $3.32 per 1,000 gallons with no minimums
Summary
After debate over a proposed 89-million-gallon minimum and rate levels, the Brainerd Public Utilities Commission voted to sell wholesale water to the City of Baxter at $3.32 per 1,000 gallons with no stated minimum or maximum purchase in the motion carried at the meeting.
The Brainerd Public Utilities Commission approved a wholesale water sale to the City of Baxter at $3.32 per 1,000 gallons, with no minimum or maximum quantity set in the motion the commission approved.
Commissioners debated an earlier proposal that tied a discounted rate to a minimum annual purchase of 89,000,000 gallons and discussed infrastructure risks from additional pumping. Commissioner Matten expressed concern about mandating the 89,000,000-gallon minimum and urged negotiating a fair rate instead. Commissioner Haynes emphasized that selling water should generate revenue that can be set aside for future well or infrastructure replacement.
Trevor Walter, public works director for the City of Baxter, told the commission that Baxter would not be harmed by tabling the issue until next month but said Baxter preferred no upper limit and that 100,000,000 gallons at $3.32 would be acceptable. Staff said the $3.32 figure included CPI adjustments, debt service, reserves and margin components.
After discussion the commission voted to sell at $3.32 per 1,000 gallons and removed the 89,000,000-gallon purchase mandate; the motion passed by voice vote. The transcript records the motion passed with Commissioner Higgins seconding after a procedural gavel pass. No roll-call tally was recorded in the transcript; the motion carried by voice vote.
