Staff seeks update to water/wastewater rate model and reports SRF funding applications, including lead and copper program

Utility staff told the council they intend to hire NewGen Strategies to update the city’s 2005 water and wastewater rate model and to analyze alternatives for tiers, fire‑line charges and customer classes so revenue will cover operation, debt service and capital repair/rehab/replace needs.

Staff said the system currently serves about 31,500 water accounts, of which roughly 45% are inside municipal limits and 55% outside; on the wastewater side staff reported about 21,000 accounts with most wastewater billing responsibility inside the city. The consultant scope will analyze consumption trends, fire‑line charges, irrigation/sewer‑deduct meters, compound meter billing and allocation assumptions for wholesale or outside customers. Staff told council they will model multiple rate scenarios and report draft options before any final change is proposed for implementation.

Funding and MDE State Revolving Fund (SRF) applications: staff provided an overview of SRF and other funding submissions. Key points: the city has submitted multiple applications to MDE for projects including the RC Wilson transmission work, lead and copper rule implementation (service‑line investigations and potential replacements), Edgemont Reservoir work and wastewater treatment plant phases. Staff warned that the lead and copper work is resource‑intensive because it requires investigation of private service lines (the private side is owned by the customer) and coordination with households; staff said some customers will need to respond to surveys and inspections.

Staff described the practical challenge of the lead and copper rule work and clarified what customers should expect: outreach and surveys to identify private service‑line materials and, where necessary, a program to coordinate replacements. Staff emphasized existing water‑treatment measures the city already uses (pH control and corrosion inhibitor dosing) and said routine system lead/copper sampling has remained below action levels.

Next steps: staff will begin the rate‑model engagement with NewGen and return to council with scenario results. Separately staff will continue to advance SRF funding applications and will present recommended acceptance of awards and any required local match if and when grants/loans are offered.

Ending: Staff will provide draft rate scenarios for council review and will keep the council updated on SRF awards and any required local funding decisions.