The Fremont City Council will consider an interlocal agreement with Yutan, a new natural gas supply contract, and a potential new individual sewer connection fee policy during its bi-weekly meeting on Tuesday.
The council will consider a resolution that would authorize Mayor Scott Getzschman to sign an interlocal agreement with the City of Yutan to help with commercial building inspections and plan review.
According to information released on the council’s agenda, currently Yutan does not have experienced staff nor can it afford to hire full-time staff to conduct commercial building inspections and plan review.
As a result, the City of Yutan is seeking to contract with the City of Fremont to provide those services.
The council will also consider a resolution that would establish an individual sewer connection fee policy.
According to a staff report prepared by Assistant City Administrator of Utilities Troy Schaben, the city’s practice on individual connections to an existing sanitary sewer that was not constructed as part of connection or assessment district or where there were four or more lots platted as a development, has been that all adjacent landowners pay half the frontage in feet times the cost of the sewer.
During a recent Utility and Infrastructure Board meeting, the board determined that the practice may result in an unreasonable charge to a single use with a large front footage.
To address that, a new individual sewer connection fee policy is being considered.
Under the potential new individual sewer connection policy proposed fees per connection would include:
A Single-Family home with a front footage of 75 feet would have a connection fee cap of $1,200. A Multi-Family residence with a front footage of 150 feet would have a connection fee capped at $2,400. A Commercial property with front footage of 250 feet would have a connection fee capped at $3,600, and a Industrial property with front footage of 500 feet would have a connection fee capped at $7,200.
The Connection Fee or CAP Fee would be paid by either a full payment or by rateable monthly installments added to the applicant’s monthly sewer bill for a period not to exceed 36 months.
The council will also consider a resolution authorizing the purchase of natural gas from the Minnesota Municipal Gas Agency.
According to information provided alongside the proposed resolution, the natural gas supply offer is being made by British Petroleum (BP) as part of the Minnesota Municipal Gas Agency (MMGA).
MMGA is inviting select municipal utilities a contract for a fixed supply of monthly gas supply at a minimum discount of $0.30/MMBtu for 5-6 years (first reset period) and a minimum of $0.20/MMBtu for successive reset periods.
According to a staff report prepared by Schaben, participation in MMGA would mean approximately 50% of Fremont’s average daily usage is contracted through a long-term fixed monthly supply agreement.
Several similar natural gas supply contracts are already utilized by the Department of Utilities.
Back in 2012, the Board of Public Works approved a natural gas supply contract with Central Plains Energy Project (CPEP). The city council approved a contract with Public Energy Authority of Kentucky (PEAK) to be a part of a prepaid natural gas consortium in April 2018. In addition, the city council approved a second prepaid natural gas supply agreement with CPEP in September 2018.
All three contracts purchase fixed monthly quantities of natural gas at a discounted rate from approximately $0.20—$0.50/MMBtu.
According to Schaben, if passed the new natural gas supply contract will save Fremont approximately $60,000 per year in natural gas costs during the first reset period (5-6 years) and $50,000 per year in successive reset periods.
He wrote that those saving will be passed on to customers as a lower purchase gas adjustment (PGA) rate.
The Fremont City Council meeting is set for 7 p.m. Tuesday within the City Council Chambers at 400 E. Military Ave. An open public comment period begins at 6:30 p.m.