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HomeMy WebLinkAboutMinutes-05/13/2019COUNCIL WORK SESSION May 13, 2019 4:20 p.m. Harold E. Getty Council Chambers Members present: Morrissey, Feuss, Amos, Schmitt, and Juon. Mrs. Klein arrived at 4:28 p.m. Absent: Jacobs Moved by Schmitt seconded by Amos that the Agenda, as proposed, be approved. Voice -vote Ayes: Five. Motion carried. Objective: Update on a regional waste water treatment plant. Steve Hoambrecker, Waste Management Services Director, provided an update of the study on regionalizing wastewater services between Waterloo, Evansdale, Cedar Falls, Raymond, and Hudson. He reviewed costs to each community to upgrade their facilities with and without regionalization. Waterloo's cost to upgrade the system without regionalization is $101.16 million and with regionalization is $65.8 million, which would also cause sewer rates to increase. He explained that an administrative structure would need to be created that would oversee the management of a regional system if it proceeds. Mr. Morrissey commented that the other cities involved could potentially lower their costs as well. Steve Hoambrecker agreed that he thinks it would. Mr. Amos questioned if the plant will have capacity as the cities grow over time. Steve Hoambrecker explained that they looked at growth in the communities over twenty five years and confirmed that the plant would have the capacity. Mrs. Juon questioned if other communities are part of the discussion even though they have their own upgrades to make to their systems. Steve Hoambrecker confirmed that the other communities are part of the conversation but they need to upgrade their own systems as well. Mr. Morrissey questioned if the waste water treatment facility could be combined with the Bio Gas Lagoon. Steve Hoambrecker confirmed and explained that if the regional system proceeds, then the formation of an administrative oversight committee would be required. Mrs. Juon questioned if anyone has looked at the cities that have done this and what different structures had they considered and commented that something similar to the Solid Waste Commission might work well for this. Mr. Morrissey questioned if theoretically, the city went to a regional operation, would it increase the potential revenue for selling a bio solids processing facility. Steve Hoambrecker commented that theoretically, it could be possible to see a return on an investment but it would be a business decision down the road. Mr. Morrissey questioned if this would require a referendum. Steve Hoambrecker commented that he was unsure. Kevin Blanshan, INRCOG, explained the next steps for continuing to explore the feasibility of waste water regionalization. Mr. Morrissey commented that it would be good to have an answer to whether or not this requires a referendum prior to investing more money in studies. Page 2 Objective: Update on the Waste Management Biogas Project. Steve Hoambrecker provided an overview of the biogas studies conducted to date and the cost of upgrades needed at the plant and upgrades needed to capture and process biogas. He explained that the next step is to enter into an additional agreement to design plans and determine costs more definitively for the project. Mrs. Klein clarified that the study is predicated on the markets staying the same over time and questioned when a contract can be locked in. Steve Hoambrecker explained that once a project starts a contract can be negotiated. Mrs. Juon questioned how big of a risk is the city taking and is the market always going to be there. Steve Hoambrecker explained the current market projection. Mrs. Juon commented that the two projects, in her opinion, would complicate one another. Mr. Feuss questioned who the potential buyers are for the biogas market and if the market extends internationally, how that might affect the risk analysis. Steve Hoambrecker commented that it is his understanding it is more geared toward U.S. With no further business before the Council, it was moved by Schmitt seconded by Amos that the meeting be adjourned at 5:12 p.m. Voice -vote Ayes: Six. Motion carried. Kelley Felcffe City Clerk