Cost increase for water service expected in Tower

MONDAY, NOVEMBER 13, 2017 — One thing is certain: the price of water service will go up for Tower residents in 2018. The Tower-Breitung Wastewater Board has announced that the rate it charges for water will go up and the Tower City Council discussed how to handle the increase at its regular November 13 meeting. Currently the Tower-Breitung Wastewater Board charges the city $54 for each property annually. It is expected that it will have to raise the charge to $61 to cover an approximate $30,000 budget shortfall for 2018, according to City Clerk-Treasurer Linda Keith. The wastewater board is meeting on Wednesday, of this week, to finalize its plans for the increase and the city will need to determine how it pays for the increase by the end of the year. The only option the city council has is to pass the cost increase on to water customers on quarterly water and sewer bills.

One idea proposed would have the city to equally pass the cost on to each property owner, regardless of use. The other option would be to pass the increase on to only those who have active water accounts. The city currently utilizes a formula where every property is charged a base amount to cover infrastructure debt and then charges for water and sewer use in addition to that base. Keith reported that an additional $15.25 is needed, quarterly, from each property to break even with the expected additional charges. If the city decides to only increase charges for active water customers that amount will have to go up, Keith said. She explained that seasonal residents and property owners should also contribute to paying the increased expenses regardless of how much time they spend in Tower. “We are all in this together,” Keith said.

Alderman Lance Dougherty was not sure that raising the base cost is the best way to go. “Why should we tack on $15 to people who aren’t using water?” Dougherty asked.

The city clerk reported that somewhere between 20 and 25 properties only pay the base charges, while the rest, approximately 250 customers, also have water service and charges.

Water and sewer infrastructure has been, and will continue to be, a concern for the city. In early October the City of Tower issued warnings to avoid contact with water in the East Two River and the south side of Pike Bay because of a leaking sewer line. The city also acknowledged correspondence from the Minnesota Department of Health regarding a raised haloacetic acid level, a disinfection byproduct, in recent tests conducted quarterly to measure water quality. While the contaminate averages do not currently exceed Minnesota standards, additional monitoring of the water is required. Repairs to Tower’s main sewer line will also need to be addressed.

The city council tabled any action on the need to increase water charges as Alderman Kevin Fitton asked Keith to return to the next meeting with examples of proposed charges so the council can evaluate the different scenarios before it makes its final determination on costs for each customer.

Tower Economic Development Authority (TEDA) president Marshall Helmberger presented the city council with a letter and a resolution it wants to send to the Iron Range Resources and Rehabilitation Board (IRRRB) seeking funding to build a new manufacturing facility to lease to Lamppa Manufacturing. The city council, however, voiced several concerns about Helmberger’s proposed correspondence. The main objection was that the language in the resolution infer that TEDA would be in charge of the project. Dougherty noted that the letter should come from TEDA, on TEDA’s city email account and reflect the city’s address, not Helmberger’s private email and the Timberjay address. The city also raised concerns about the size of the building. Helmberger’s request for IRRRB funding proposes a 7,000 square foot facility, while Lamppa’s plans call for a smaller footprint.

Although Helmberger said he was not clear on the amount of space Lamppa Manfacuting requires, he defended his request for the larger building stating that he thought they should build a larger facility and create additional space for another tenant. “There are a number of possibilities,” Helmberger said, “This is just an introductory letter and does not commit the city to anything.” One of the ideas TEDA discussed at its October meeting was a proposal by Helmberger to create space in the manufacturing facility for the Little Eagles Daycare, although this idea was not presented to the city council.

These documents have TEDA working exclusively with the city engineer and Lamppa Manfacturing and not come before the council, this is not acceptable, Mayor Carlson emphasized

“Everything has to come before the city council,” Mayor Josh Carlson said, a point that the city has had to make to Helmberger in the past. Carlson suggested that the city table any decision on the IRRRB correspondence until the next city meeting, allowing time to redraft a resolution.

“We will be set back two weeks,” Helmberger complained, encouraging the city to act on his proposal immediately.

“I’m still not comfortable with the last verse,” Carlson said. City Clerk Keith told the council that the IRRRB provides a standard, sample resolution for the city to use when it applies for grants. “This (TEDA proposed) resolution is not it,” Keith said as she went to her office to retrieve a copy of the standard IRRRB resolution.

“This will move everything through beautifully,” Mayor Carlson reported. The city council unanimously approved changing the proposed letter to reflect the city address and email and approved the standard IRRRB resolution and moved the project forward without any delay.

In other action, the Tower City Council:

• Approved the minutes of the October 10 and October 23 regular meetings of the council and approved the minutes of the October 30 special meeting

• Accepted the Utility Systems of America’s construction contract for the Hoodoo Point Campground project and entered into an agreement with Short Elliot Hendrickon Inc. to pay an estimated $64,000 to oversee the project.

• Approved making application for Minnesota water infrastructure fund grant money

• Approved making application to the IRRRB for residential tear down grant money

• Approved updating the Lake Vermilion Bike Trail joint powers agreement and gave preliminary approval for the trail committee to explore the possibility of locating a portion of the trail, from the “Y” Store to Tower, across city owned land

• Approved removing the inoperable water drinking fountain and coat racks prior to painting the civic center

• Accepted the resignations of Karel Winkelaar and Josh Zika from the Tower Fire Department

• Approved hiring Brylie Landfried as a Tower Ambulance Service emergency medical technician and Steven Olson as a Tower firefighter

• Received a request from Orlyn Kringstad to revisit his request for additional street lighting near the Highway 169 entrance to the Marjo Motel. Kringstad provided the city council with a copy of a letter from Minnesota Power outlining the expected costs of installation.

• Approved moving the city’s website hosting from Cold Snap Technology to Tech Bytes, an Aurora, Minnesota business

• Received and approved written monthly reports from: SEH Engineering; Tower Fire Chief; Tower Ambulance Director, Breitung Police Chief and TEDA.