City Council Meeting Date: October 7, 2025
To: Mayor and City Council
City Administrator
From: Justin Wagner, Utilities Manager
Title
Second Reading of Ordinance 1085 establishing standards for water utility submetering in the City of Northfield.
Body
Action Requested:
Consider second reading of Ordinance 1085 establishing standards for water utility submetering in the City of Northfield
Summary Report:
On September 9, 2025, the City Council heard the first reading to Ordinance 1085. The proposed ordinance is related to submetering at multi-family residents for water utilities. Submetering is the process of property owners installing meter and billing tenants for their water usage.
Under Minnesota Statute 327C.04, manufactured home communities are allowed to submeter for water, however, property owners cannot legally charge higher than the total cost the City charges the property owner.
History
This issue was initially brought forward by residents at the Viking Terrace manufactured home community, owned and operated by Lakeshore Communities, Inc., a private operator of manufactured home communities in nine states in the fall of 2024 when Lakeshore Management notified residents at Viking Terrace that they would be installing individual water meters for each home. Previously, potable water and sanitary sewer charges were included in the lot rent.
The proposed submetering ordinance requires compliance with state law as well as requiring that residents are billed in the same unit that their City bills residents. For Northfield, residents are billed in cubic feet while bills in Viking Terrace are being billed in gallons. The proposed ordinance change will require Viking Terrace residents to be billed in cubic feet. Additionally, the proposed ordinance allows for residents to be able to ensure their water meters are accurate through testing of water meters at the request of the resident.
Additionally, at the September 9, 2025 City Council meeting, it was requested to add an auditing process to ensure compliance with the ordinance change and state law. The proposed ordinance change allows for the City to bi-annually audit usage for total water billed. Data will be required to be provided to the City within 30 days of the date of request. Additionally, if 25% or more of submetered residents request an audit to the City, an audit would take place. If there are discrepancies discovered during the audit, the City can seek compliance or reference to the State Attorney General.
The ordinance makes it that the City can ensure that submetered manufactured homes are being measured accurately. Additionally, the ordinance ensures that water rates do not exceed water rates established by the City for submetered bills for each tenant. Staff believes that residents in Viking Terrace have been billed accurately and in compliance with state law.
If residents believe they have leaks in their property, they can contact the City Utilities Division for assistance to evaluate whether there is a leak in their system by calling 507-645-3051. Residents also can view videos that were done in partnership with Clean River Partners by visiting the Northfield Public Broadcasting Youtube Channel. There you will find videos on how to check if your toilet is leaking and how to replace a leaking flapper valve in the toilet.
Alternative Options:
Changes to the ordinance now include the auditing provision. Staff does not recommend additional changes.
Financial Impacts:
N/A
Tentative Timelines:
ü September 9, 2025 - Consider first reading of ordinance
October 7, 2025 - Consider second reading of ordinance.
October 15, 2025 - Summary Publication of Ordinance
November 14, 2025 - Ordinance in effect.