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Lafayette secures full bonding for RO water project; officials warn of higher customer rates
Summary
City staff reported Lafayette secured $3.087 million in state bonding (total $4.087M with other funds) to fully fund a reverse-osmosis project; staff said operational costs will raise the base water rate by $4.65 and the user fee by $1.39 per 1,000 gallons and that a public hearing will be required.
Allan Fox, Lafayette's utility superintendent and interim city clerk, told the City Council on June 8 that the city has secured $3.087 million in state bonding for its planned reverse-osmosis (RO) water-treatment project. Combined with other Clean Drinking Water-State (CDS) funding, Fox said the total allocation for the project is $4.087 million.
Fox said he submitted the city's Intended Use Plan to the Public Facilities Authority and that the Environmental Protection Agency work plan had been amended with a requested one-year extension. He told the council that Representative Schwartz and Senator Frentz contacted city staff to congratulate Lafayette on the bonding success.
City staff warned the council that full construction funding does not cover ongoing operating costs. Fox said the projected operational changes will increase the monthly base water rate by $4.65 and raise the user fee by $1.39 per 1,000 gallons. He also said a public hearing will be required as the project proceeds.
Fox briefed council members on related regulatory steps: participating cities submitted effluent-limit reviews to the Minnesota Pollution Control Agency, and the city has advanced related monitoring agreements with the Minnesota Department of Health.
The council did not take a formal vote on construction contracts at the June 8 meeting; Fox said staff will return with the public-hearing schedule and next steps for procurement and ordinance or rate adjustments, as needed.
