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Council approves DNR grant amendment and wastewater contracts, including new local costs
Summary
Council amended a previously supported DNR flood‑mitigation acquisition grant to add $43,500 in city-funded consultant costs (bringing local option sales tax share to $533,500), adopted an ICM stipulation agreement imposing penalties for industrial exceedances, and authorized $25,000 in WHKS engineering work for a digester recoating project.
At a city council meeting, staff asked the council to approve three interrelated items affecting flood mitigation and wastewater infrastructure funding.
Staff (Stephen) said earlier support for a DNR acquisition grant required revision after staff identified consultant costs that are not eligible for DNR reimbursement. The council approved an amendment to fund $43,500 in consultant costs entirely from the city’s local option sales tax fund; after the change, staff said the city’s total local option sales tax commitment for the project rises to $533,500. Stephen explained that the DNR-eligible costs will continue to be funded 50/50 between the city and DNR, while the $43,500 is 100% city-funded.
Stephen also presented an ICM (Hormill) stipulation agreement that memorializes penalties for industrial user exceedances of the ICM agreement. Under the agreement described to council, industrial users would be charged $1,000 per every 10 ICM exceeded and $1,000 for each exceedance that causes an effluent violation reported to the city; staff provided quarterly breakdowns back to July 1, 2025, and will continue reporting quarterly. Council adopted the resolution with one abstention recorded (Council member Baskin).
Finally, council approved a $25,000 engineering agreement with WHKS to develop plans and specifications for recoating work on digester number two at the wastewater treatment plant. Staff explained these digester repairs follow prior work done in 2022 and 2024 that required additional remediation; the WHKS contract will support design and specifications for summer–fall construction.
Council members asked when local option sales tax collections end; staff said those collections stop on March 31, 2027, but funds already collected remain available for spending. The council voted to approve all three items.
The council’s approvals will allow staff to submit the amended DNR resolution to the state, implement the ICM stipulation penalties on a quarterly basis, and begin design work on the digester recoating project.
