Council backs wastewater upgrades tied to Enbridge project; city expects $1.1M contribution and $750K–$1M annual wastewater fees

The Superior Common Council on June 16 approved the public works committee's recommended actions, including moving forward with plans that would allow Enbridge to increase throughput at its terminal and connect a warm-water line to the city's interceptor system.

The public works committee chair told the council the city's full cost to upgrade the South End and Billings Park treatment facilities would be about $6.1 million, and that Enbridge has offered $1.1 million toward those upgrades. The chair said Enbridge is expected to become a full wastewater ratepayer and that estimated annual fees from Enbridge would be "anywhere between $750,000 to a million dollars a year." He also told council staff estimate a possible additional $1 million a year in terminal tax revenue if the terminal value increases.

Officials described the technical rationale: Enbridge plans to run a water cooling line adjacent to oil lines so oil can remain at a temperature suitable for tanking. Because the water will enter the city's interceptor and treatment process at elevated temperatures, treatment-plant upgrades (including UV disinfection) are needed to prevent warmer influent from reducing treatment quality. Staff said the proposed upgrades would allow the city to eliminate or markedly reduce lower-level discharges from the affected plants.

Councilors asked whether the projected revenue accrues while upgrades are under construction and how payback would work. Staff replied that Enbridge would begin paying fees only when it discharges into the system, and rough payback estimates ranged from about five to eight years depending on discharge volumes. Officials noted that even if Enbridge did not complete its larger terminal project, the city would still gain improved treatment capacity and reduced discharges.

The council approved the public works committee recommendations by voice vote, moving forward with procurement and planning steps outlined in the committee report. The committee also recommended contracts for excavation, engineering and other projects tied to the wastewater work, which the council approved as part of the committee package.

Next steps: staff will proceed with the recommended contracts and scope, and the city and Enbridge will finalize the cooperative agreement and project schedule. The plan includes follow-up budgetary and construction steps before upgrades are complete.