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City Council MInutes 07-27-2009 SpecialMINUTES SPECIAL MEETING — MONTICELLO CITY COUNCIL Monday, July 27, 2009 — 5:30 p.m. Members Present: Clint Herbst, Tom Perrault, Glen Posusta, Brian Stumpf, Susie Wojehouski Members Absent: None 1. Call to Order. Workshop was called to order at 5:40 p.m. 2. Workshop — Wastewater Biosolids Treatment Options. Bruce Westby explained the purpose of the workshop is to look at the options that are available for treatment of wastewater as the City moves forward. Current treatment of wastewater results in Class B biosolids, which are spread on farmland subject to state requirements for land buffers and other limits. Nitrogen limits are set at 198 Ibs /acre for corn and 165 Ibs /acre for soybeans. Recent test results show that we are getting closer to exceeding our permitted concentration of nitrogen, The City is working with Peter Ewing, who contracts with the City to farm the land in a manner where crops are rotated to address needs to control concentrations of nitrogen. There have been questions circulating that the person farming is not satisfied with working with the City. Chuck Keyes said that is only a rumor; they have been meeting with Mr. Ewing and he is willing to work with City as needed. Mr. Ewing provided a letter as part of the agenda packet stating his willingness to work with the City. Chuck Keyes explained terms of agreement that City has with Ewing Farms that addresses needs of both parties. There is a section of the agreement that allows for crop yield loss which may come up if rotation has to be changed to put in corn in succeeding years instead of alternating between corns and soybeans. Chuck also described the process of handling the sludge by using a disc to turn the land over. Questions were asked regarding the phosphorus levels which have been creeping upwards lately and are close to reaching the maximum allowable. If concentrations become too high, the MPCA could pull the permit and suspend land application of biosolids. Bruce Westby explained that, due to the amount of phosphorus that is applied to the land, they are looking at adjusting the crop rotation to give the City several more years to apply on the current land and avoid purchasing more land at this time. Tom Perrault asked if it will make a difference in the amount of phosphorus levels if corn is planted more often. Chuck Keyes said that is not known. Bruce noted that the phosphorus levels were lower this year but it is not known how much those levels will fluctuate. Chuck Keyes explained the process of applying biosolids to the land including transporting the sludge to the land. He noted that there are several short term options that should could get the City by for several more years. Options for short term were explained by Bruce Westby. Option 1 - Corn on corn rotation: Cost would total about $60,000 a year and includes contract with Schluender to haul a Class A tanker to the farm. Option 2 - Land apply using corn on soybean rotation (as is currently done The cost is estimated at about $93,247 a year. It would be necessary to rent a portable press to dewater and landfill excess Class B biosolids, estimated at about 300 wet tons per year. The estimated cost would include rental of press, hauling Class B biosolids to farm, contract with Schluender to haul Class A tanker, and landfilling the dewatered biosolids. An issue with this option is that the press would be located in front of the Waste Water Treatment Facility (W WTF) and odor control would most likely create problems. There was a short discussion of possible other locations for spreading sludge. Land buffering may be an issue even if other land is found and leased. Bret Weiss of WSB suggested that any future land agreements be in place before approaching the Minnesota Pollution Control Agency for permitting. Option 3 — Dewater and Landfill the Biolsolids: With this option, the City would discontinue land application and rent a portable press to dewater and landfill the class B biosolids, estimated to be about 2000 wet tons per year. Cost is estimated at $180,829 for renting the press and landfilling the biosolids. The drawback is again the location of the press and odor control. Bruce Westby explained the long term options which can be used to continue with Class B or go to Class A. Option 4 — Expand current operations and continue with Class B Biosolids: Current land applications would be expanded by purchasing another applicator, an IME tanker and disk, at estimated cost of $600,000. Another 160 acres of land would be needed at anticipated cost of $20,000 per acre for total of at least $3.2 million. The WWTF would also need to be expanded by adding another digester and additional sludge storage capacity for a total of about $2.4 million in capital expenses. Under this option, hauling and land application of Class B biosolids would total about $90,000 a year. Option 5 - Expand current operations with eventual move to Class A Biosolids: With this option, the City would expand the WWTF to add dewatering facilities composed of a steel building, dewatering process equipment, and odor control equipment at estimated cost of $2.4 million. If City pursues a Class A system by constructing the dewatering facility, many processes will be reusable. This option allows building a Class A system in stages without incurring a huge financial burden all at one time. . Dewatered biosolids can be processed in one of two ways: • Option 5b — haul and landfill the dewatered biosolids at estimated annual cost of $86,045. • Option 5e — Haul and dry the dewatered biosolids at the City of Big Lake WWTF, with estimated annual cost of $274,495. Big Lake provided a letter listing yearly fee for 2011 and 2012 at $226,370. Staff feels that the proposed fees are high and sheuld could be reduced substantially. Option 6 — Expand current operations to Class A Biosolids: In this case, the City would expand the WWTF to add dewatering and drying facility with an estimated cost of $8.78 million. Annual costs related to the dryer expansion would be about $225,000. Jeff O'Neill asked if there would be a possibility of the Monticello Council meeting with Big Lake to discuss such a partnership and maybe arrive at a more reasonable fee. Bret Weiss expects that Big Lake would not adjust the fees much as they are trying to recoup some of their capital costs. Suzie Wojchouski asked if the City of Buffalo would be interested in a partnership. Chuck Keyes said that they had talked to their Public Works Director and were told that the City is not interested. Clint Herbst asked if the group felt that it would be a positive move to try to work with a neighboring City. Bret Weiss noted that it might be a positive move, but the City would still be subject to paying part of their capital costs in fees. Council reviewed the various options as outlined on the worksheet showing short and long term options for Class B and long term options for Class A. Chuck Keyes noted that he will be working with the MNPCA on a new licensure in the 2012 — 2013 time frame. He feels that there will be some changes coming that may provide some other options down the road. Clint Herbst feels that the City should try to find some more farmland to spread the Class B biosolids and extend the time needed to put long term options in place. He would like to see the least expensive options deployed until the economy improves and development recovers. Cargill Kitchen (Sunny Fresh) representatives suggested that the City should talk to some other people at Big Lake and Buffalo. Through their operations in those cities, they feel that there is an opportunity for the City to partner at a decent price because those cities will need to keep their dryer equipment running and maximize their investment. Bret Weiss asked Chuck Keyes to describe how much additional land the City would need before they would have to expand the WWTF. Chuck noted that the City would benefit from corn on corn rotation and be able to spread biosolids on the current land and/or additional leased land into the next 3 to 5 years without expanding the WWTF. Bret suggested that if the City uses this plan, they take a look three years from now to decide when they want to start capital expansion. It was noted that the City should begin setting aside funds for WWTF expansion now as part of the Capital Improvement Plan. Glen Posusta noted that the City should be looking at Class A dryer for the future as this will eliminate the landfilling costs, which are likely to increase in the future. Cargill noted that they are willing to keep options open in regards to a Class A facility. They said that Tom Kelly has been doing a good job of keeping them updated on what they have been paying as part of the agreement to finance some of the current improvements at the WWTF. Suzie Wojehouski asked about the letter from ProAg and the concerns regarding corn on corn versus corn - soybean rotation. Chuck Keyes stated that there is disagreement with some of the findings; after checking some other sources of information, he feels that corn-corn rotation will work at that site. Consensus is to find additional land that could be leased and negotiate a price. Council would like to hold off on corn on corn rotation for the time being and not renew Ewing's agreement until other possible leases are known. Chuck Keyes and Bob Paschke will talk to Ewing about any concerns or suggestions he may have with the short term options. It was recommended that another workshop be held in the near future to update Council on progress of land negotiations and other options. 3. Adiournment. THERE BEING NO FURTHER BUSINESS, MAYOR HERBST ADJOURNED TIIE MEETING AT 6:50 P.M. Recorder: Catherine M Shuman Approved: August 10, 2009 Attest: inistrator