JWC Agenda 07-02-2025
AGENDA
JOINT WATER COMMISSION
July 2, 2025 – 1:30 pm
Remote Attendance: Members of the public may attend this meeting via Microsoft Teams by
calling 1-872-256-4160 and entering access code 119 801 16#.
Questions/Comments: Members of the public who have questions about the commission or any
items on the agenda should contact the staff commission liaison Tim Kieffer, Public Works
Director, City of Golden Valley, tkieffer@goldenvalleymn.gov, 763-593-3960.
1. Call to Order—Roll Call
2. Approval of Minutes – June 4, 2025
3. Discuss Inventory and Condition Assessment Study Proposals
4. Receive and file the 2024 Financial Statement and Management Letter
5. Discuss Douglas Drive Preliminary Feasibility Report
6. TAC Update
7. Adjournment
Joint Water Commission,
June 4, 2025
Page 1 of 1
JOINT WATER COMMISSION MINUTES
Golden Valley - Crystal - New Hope
Meeting of June 4, 2025
The Golden Valley - Crystal - New Hope Joint Water Commission (JWC) meeting was called
to order at 1:35 pm.
Roll Call Present
Adam Bell, City Manager, Crystal
Reece Bertholf, City Manager, New Hope
Staff Present
Tim Kieffer, Public Works Director, Golden Valley
Analeigh Moser, Accountant, Golden Valley
Lyle Hodges, Finance Director, Golden Valley
Bernie Weber, Public Works Director, New Hope
Jose Galeano, Public Works Superintendent, City of Crystal
Jesse Struve, Director of Public Works/City Engineer, City of Crystal
Matt Rowedder, Utilities Supervisor, City of New Hope
Carrie Nelson, Engineering Assistant, City of Golden Valley
Approval of Minutes – May 7, 2025
Moved by Bell and seconded by Bertholf to approve the minutes from the May 7, 2025
Joint Water Commission (JWC) Meeting. Upon a roll call vote the following voted in favor:
Bell and Bertholf. The following voted against: None. Motion carried.
2024 Financial Statement Audit
Commissioners heard a presentation on the 2024 Financial Statement Audit completed by the
firm of Conway, Deuth & Schmiesing, PLLP found in the June 4, 2025 Agenda Packet for Joint
Water Commission.
TAC Update
Staff provided an update from the May 20, 2025 TAC Meeting.
Adjournment
Vice-Chair Bertholf adjourned the meeting at 1:56 pm.
ATTEST:
Carrie Nelson, Recording Secretary Chair Noah Schuchman
https://goldenvalleymn.sharepoint.com/sites/PublicWorksDepartment-JWC/Shared Documents/JWC
Agendas/2025_JWC_Agendas/07 - July/3_System Inv_Assessment.docx
Joint Water Commission
July 2, 2025
AGENDA ITEM #3
Agenda Item
Discuss Inventory and Condition Assessment Study Proposals
Prepared by
Jesse Struve, Crystal Public Works Director/City Engineer
Summary
The TAC is proposing an inventory and condition assessment study of JWC’s assets to allow for
more effective management of JWC assets and CIP planning. A Request for Proposals was sent
out on March 27, 2025 to four consulting firms: Bolton & Menk, HDR, SEH, and WSB. Proposals
were due on May 29, 2025. JWC received proposals from Bolton & Menk, HDR, and WSB. Each
member city scored proposals independently. The TAC met on June 24, 2025 to select a
proposed consultant for the project. Staff selected HDR as the preferred consultant.
Finance
HDR proposed a not-to-exceed fee of $51,494 without optional tasks, and a not-to-exceed fee
of $65,370, including the optional tasks of a SCADA Assessment and Targeted Hydrant Flow
Testing as detailed in the attached proposal. Staff recommend moving forward with the base
proposal and optional tasks.
Attachments
Proposal for Engineering Consulting Services System Inventory and Assessment - HDR
Recommended Action
Approve the Proposal for Consulting Services from HDR for the System Inventory and
Assessment.
hdrinc.com
1601 Utica Avenue South, Suite 600, St. Louis Park, MN 55416-3400
(763) 591-5400
May 29, 2025
Mr. Jesse Struve
Joint Water Commission
4141 Douglas Dr. N.
Crystal, MN 55422
Submitted via Email
SUBJECT:Proposal for Engineering Consulting Services
System Inventory and Assessment
Dear Mr. Struve,
HDR is pleased to present our proposal for the Joint Water Commission (JWC) System Inventory
and Assessment. Our Twin-Cities based team brings deep experience in utility system assessment,
hydraulic modeling and capital planning; including a strong track record of working across multi-
jurisdictional systems like yours. To illustrate a couple of local examples of our experience, we have
included Project References as attachments to this proposal.
We understand the importance of having a clear picture of your shared infrastructure. Our approach
is focused on delivering a complete asset inventory, evaluating system condition and emergency
well reliability, and providing actionable planning tools to support both near and long-term decision
making.
I look forward to the opportunity to support JWC’s efforts and bring our technical and planning
expertise to this important project. Should you have any questions or need further information,
please contact me (Steve) at 763-591-5380 or steven.muir@hdrinc.com.
Sincerely,
HDR Engineering, Inc.
Steven Muir, PE Christine Wiegert
Project Manager Sr. Vice President / Area Manager
www.hdrinc.com PROPOSAL | Joint Water Commission
2
Scope of Services
HDR will provide a comprehensive inventory and assessment of the Joint Water Commission
(JWC) water system, serving the cities of Crystal, Golden Valley, and New Hope. This work will
include compiling existing GIS data, as-builts, inspection reports, and prior studies; conducting field
inspections of key assets; and reviewing system operations and interconnects. We will also
evaluate emergency well capacity, assess opportunities for pressure improvement, and update the
existing hydraulic model. HDR recommends a practical approach to main break data analysis, in
which we will utilize your existing main break data to provide straightforward recommendations
about your system. The final deliverables will include a complete GIS database, a system inventory
with risk assessment, a recommended 10-year Capital Improvement Plan (CIP), a 20-year
replacement schedule, and recommendations for system performance improvements.
Task 1.0 Project Management and Data Gathering
Task Objective: Establish a clear understanding of the project scope, expectations, and available
background information to support a streamlined and informed assessment process.
Specific tasks include:
-Conduct a project kickoff meeting with JWC stakeholders to confirm goals, key contacts,
schedule, and data needs.
-Collect and review all available documentation, including GIS files, as-built drawings, and
relevant studies previously conducted.
-Organize and summarize the existing documentation into a concise reference memo.
-Identify any critical data gaps and outline assumptions based on missing information.
-Establish GIS Geodatabase of record.
Assumptions:
-No field survey to be performed under this task.
-JWC will provide requested documentation.
Task 2.0 Tower and Valve Pit Condition Inspection
Task Objective: Assess the physical condition of two of the three JWC water towers to evaluate
coating integrity and mechanical condition and identify potential short and long-term maintenance
needs.
Specific tasks include:
- Conduct field inspections of two towers (Golden Valley and one New Hope), and valve
metering pit.
- Evaluate exterior and interior coating condition for the Water Towers, check for signs of
corrosion, peeling, or failure Using data from the assessment, HDR will provide a life
expectancy estimate of the coatings and a timeline for replacement. Tank inspection will be
conducted by KLM Engineering, Inc, who will use a ROV to conduct the inspection of the
wet portions of the tower.
www.hdrinc.com PROPOSAL | Joint Water Commission
3
- Conduct inspection of process piping and valving within the base of tower structures.
Identify signs of corrosion, material failure, or other easily identifiable issues. Conduct brief
interviews with operation staff to understand their observations and concerns.
- Inspect process piping, valves, hatches, vents, ladders, and safety systems for operability
and code compliance.
- Document findings with photos and recommendations for maintenance or repair.
Assumptions:
- ROV inspection will be used to inspect both tanks
Task 3.0 Linear Condition Assessment
Task Objective: Evaluate the visible and accessible infrastructure components; pump houses, valve
vaults, and related piping, to determine current condition and support future maintenance planning.
Specific tasks include:
- Conduct site visits to the pump houses, valve pit(s), and other accessible facilities.
- Assess visible piping, valves, and associated mechanical systems for wear, corrosion or
failure risks.
- Summarize facility age, materials, and observable deficiencies.
- Provide high-level recommendations for rehabilitation or replacement based on findings.
- Using HDRs extensive national dataset on watermain break information, HDR can provide
valuable insights into the JWC dataset. From this database, and JWC break information,
HDR can provide recommendations regarding potential likelihood of failure, and
recommendations for future replacement of critical assets.
- Depending on the amount of data available, HDR will generate a heat map comparing
break indices for the system, which will help inform the development of the CIP.
Task 4.0 Emergency Well Evaluation
Task Objective: Evaluate the capacity and reliability of the emergency wells to determine whether
current and projected emergency water demands can be met and identify potential improvements.
Specific tasks include:
- Request and review recent pumping test data, historical performance records, and well
construction details.
- Review interior conditions and pumping infrastructure within the building.
- Compile historical water demand data, including maximum day and peak hour usage.
- Compare available emergency well capacity with storage and supply requirements under
emergency conditions.
- Provide recommendations to improve emergency supply, including possible rehabilitation or
addition of wells.
Assumptions:
www.hdrinc.com PROPOSAL | Joint Water Commission
4
- JWC will conduct and provide results from any necessary pump testing during study period.
Task 5.0 Hydraulic Model Update and System Capacity Analysis
Task Objective: Update the existing hydraulic model with current system data and evaluate system
wide performance to identify potential areas for improvement.
Specific tasks include:
- Update model geometry, demand allocations, and facility information using recent data and
findings from Tasks 1-4.
- Review system supply, storage, and pressure zones under normal and emergency
operating conditions.
- Evaluate emergency well capacity and reliability of supply from Minneapolis.
- Conduct desktop analysis of storage and supply requirements.
- Conduct hydrant flow testing & Model calibration (optional, dependent upon model review)
- Use the updated hydraulic model to identify areas with potential hydraulic deficiencies,
based on estimated pressure, available fire flow, and headloss/velocity.
- Propose system improvements to address hydraulic deficiencies.
Task 6.0 Project Documentation
Task Objective: Provide JWC with documentation of findings, recommendations, and planning tools
to guide capital planning decisions.
Specific tasks include:
- Develop a Technical Memorandum summarizing system inventory, condition assessment,
and evaluation of results.
- Prepare a 10-year Capital Improvement Plan (CIP) with project priorities, cost estimates,
and justification.
- Outline a tentative 20-year replacement and maintenance schedule for planning purposes.
- Deliver an updated GIS geodatabase incorporating data gathering results.
- Deliver updated hydraulic model files with documentation of changes and model
assumptions.
Overall Project Deliverables:
•Technical Memorandum summarizing:
o System inventory
o Water tower coating conditioning report documenting recommendations and expected
remaining life of coatings for two water towers.
o Asset condition assessment findings
o Water tower and valve pit inspection report
o Emergency well evaluation
www.hdrinc.com PROPOSAL | Joint Water Commission
5
o System performance analysis
•Updated hydraulic model with revised geometry, demands, and calibrated results
•10-year Capital Improvement Plan (CIP) with project priorities and cost estimates
o CIP to include the following recommendations:
▪Tower recoating
▪Reservoir rehabilitation (Inspection report &recommendations by others)
▪Water Distribution Improvements
•Tentative 20-year asset replacement schedule with planning-level costs
•GIS geodatabase including compiled and newly gathered asset information
•Inspection reports for two water towers, including photos and recommendations
•Summary memo of existing data and document review
Assumptions:
•JWC will provide all available data at the start of the project (GIS files, reports, as-builts,
inspection records, etc.)
•No survey or subsurface investigation will be conducted
•JWC will perform and provide results of any needed pump testing for emergency wells
•One water tower (currently scheduled for painting) will not be inspected
•Reservoirs will not be inspected as part of this project
•No permitting or regulatory coordination is included in this scope
•No field data collection or GIS data population is expected to be completed by HDR
•One draft and one final TM, in electronic format.
•Up to 3-month project duration
•Local travel is included in fee estimate for HDR to attend meetings at JWC offices
www.hdrinc.com PROPOSAL | Joint Water Commission
6
Optional Services
Task 7.1 SCADA Assessment
During our scoping discussion, it appears that some assessment of SCADA and controls would be
helpful to include as part of this report. We have included the following as an optional service:
•Investigation of the existing control system components, including instrumentation,
Programmable Logic Controllers (PLC), Operator Interface Terminals (OIT), and the
Supervisory Control and Data Acquisition servers and software.
•Instrumentation data collection will focus on installed instruments' quality, quantity, and
location and include model numbers, serial numbers, and measurement ranges. The
amount location of PLC and OIT equipment will also be recorded; the assessment should
consist of the make/model, serial number, and firmware versions for both the OIT and PLC;
to gather the firmware information, copies of PLC and OIT programs would need to be
provided by the owner to HDR.
•To assess the SCADA servers and software, the existing PC hardware specifications
(Operating System, Processor, RAM, and HDD capacity) will be recorded in addition to the
SCADA package and version being used. A thorough assessment should include the
communications path between the SCADA system and the Remote Terminal Units (RTU).
•The information regarding systems communications would vary on the mode of
communication but would generally be one of the following: licensed or unlicensed radio
links, cellular communications, or leased lines from an internet service provider.
Task 7.2 Targeted Hydrant Flow Testing
Hydrant flow testing for model calibration is a critical piece to confirming model accuracy. HDR will
review the current model, and results from any previous model calibration efforts, and then
recommend whether or not hydrant flow testing is needed. The HDR team has flow tested for
multiple utilities throughout the upper Midwest and the local MN HDR office maintains the full suite
of hydrant flow testing and pressure monitoring equipment for the company, allowing JWC to utilize
this equipment for this project in an efficient manner.
Services Include:
•Prepare flow testing plan and coordinate with JWC staff prior to field work.
•Deploy temporary pressure monitors at key hydrants within the JWC water system.
•Conduct 1-day of flow testing, 8 tests minimum.
•Compile data from day of flow testing, calibrate hydraulic model to flow testing data.
•Flow testing plan, results, and maps to be provided as a deliverable.
Schedule
HDR is available to begin work on the project immediately and anticipates completing the scope of
services within three (3) months of notice to proceed (NTP) from the City.
www.hdrinc.com PROPOSAL | Joint Water Commission
7
Personnel
HDR proposes the following key staff to support this project.
•Kathryn (Kabby) Jones, PE..............................................................Principal In Charge
•Steve Muir, PE.....................................................................................Project Manager
•Kris Knutson, PE ...................................................................................Technical Lead
•Lukas Garcia-Oppriecht, EIT ..............................................................Project Engineer
Kabby Jones, PE. Kabby has a strong portfolio of experience in management and execution of
water and environmental projects. Her background includes all components of water systems
planning including water demand analysis and forecasting, hydraulic distribution system modeling,
water source development, capital improvement planning, and water conservation planning. Her
design experience includes groundwater wells, municipal treatment distribution pipeline, and water
storage facilities. With a combined background in civil engineering and public policy, Kabby can
provide a bridge between technical analysis and the social and environmental implications of
resource challenges.
Steve Muir, PE. Steve is a water and wastewater planning professional with more than 12 years of
experience in master planning, condition assessment, and long-range capital planning. He has led
and supported numerous projects involving hydraulic modeling, CIP development, and data
integration using GIS and historical asset data. Steve regularly manages planning projects for local
and regional utilities and is the Infrastructure Planning Lead for the Minnesota and Wisconsin water
group.
Kris Knutson, PE. With more than 20 years of experience in drinking water engineering, Kris
supports drinking water planning and design projects in Minnesota and the Upper Midwest. Kris
brings a broad understanding of water treatment, water supply management, and design from his
background as a water operator, utility manager, and design engineer. He is experienced in water
treatment facility management, is a certified plant operator, as well as a professional engineer in
MN with significant water treatment design expertise.
Lukas Garcia-Oppriecht, EIT. Lukas is a water and wastewater engineer specializing in hydraulic
modeling, master planning, and asset management. Lukas also supports condition assessment,
GIS and model integration, operational system modeling, dynamic tools and dashboards, water
demand forecasting, and CIP development.
KLM
KLM Engineering Incorporated, out of Woodbury, Minnesota, is a well-known water tower
engineering and inspection firm staffed by experienced, registered professionals in all positions.
Our engineers and inspectors are highly qualified to meet your requirements and have performed
numerous tank inspections within the Twin Cities metropolitan area.
KLM employs one of the largest certified NACE coatings, AWS/CWI inspection staff in the Midwest.
With two branch locations in addition to our headquarters, KLM is able to efficiently reach clients
nationwide.
www.hdrinc.com PROPOSAL | Joint Water Commission
8
Fee
HDR proposes to complete Tasks 1 through 6, for a not-to-exceed fee of $51,494. The budget is
detailed in the table below. As work is performed, we will invoice monthly.
Task Task Description
Project ManagerAsset Management Technical LeadProject EngineerQA/QCOffice PrincipalProject AccountantAdmin CoordinatorHours Labor Fee
Hourly Rates $210 $210 $142 $285 $285 $95 $100
1
Project
Management and
Data Gathering
16 1 32 8 5 5 5 72 $ 12,794
2
Tower and Valve
Pit Condition
Inspection
0 0 4 0 0 0 0 4 $ 568
3 Linear Condition
Inspection 2 9 16 0 0 0 0 27 $ 4,582
4 Emergency Well
Evaluation 6 6 52 0 0 0 0 64 $ 9,904
5
Hydraulic Model
Update and
System Capacity
Eval
5 2 56 0 0 0 0 63 $ 9,422
6 Project
Documentation 3 0 41 0 0 0 0 44 $ 6,452
Optional Tasks 4 0 90 0 0 0 0 94 $ 13,676
HDR Labor Subtotal $ 43,722
HDR Labor Subtotal (with Optional Tasks) $ 57,398
Mileage $ 150
Printing / Plotting $ 22
Equipment Rental (optional task)$ 200
Sub Consultant (KLM – Task 2)$ 7,600
Total Fee (No Optional Tasks) $ 51,494
Total Fee (with Optional Tasks) $ 65,370
www.hdrinc.com PROPOSAL | Joint Water Commission
9
Optional Tasks are not included in this Scope and would be further defined and submitted with an
estimated Fee only if requested by the City.
Billing Terms
•This fee is based on our current understanding of the project and the assumptions listed. If
Owner desires changes to this scope of work, HDR would be pleased to revisit our fee and
align it with an adjusted scope.
•Labor Fee shall mean salaries and wages (basic and overtime) paid to all personnel
engaged directly on the Project. The Labor fee was derived from HDR’s labor rates times a
multiplier to cover overhead costs. Individuals not listed in the attached rate table will be
billed at a similar multiplier of their direct salary. The Labor Fee above reflects 2025
calendar year rates. If the contract extends beyond 2025, the Labor Fee will be adjusted as
of the first of the year to reflect equitable changes to the compensation payable to
personnel on remaining work.
•Expenses shall mean the actual expenses incurred directly or indirectly in connection with
the Project for transportation, travel, printing, shipping, and other incurred expense.
www.hdrinc.com PROPOSAL | Joint Water Commission
10
Joint Powers Water Board
Albertville – St. Michael - Hanover, MN
Water System Needs Assessment
HDR assisted the cities of Albertville, Hanover, and
St. Michael with an update to the CIP. HDR
provided a review of the existing water system,
water demand analysis for existing and future
conditions, a hydraulic model update, deficiency
analysis, condition assessment, and updated CIP.
Key Features
•Compile & review data from 3 entities
•Demand analysis
•Hydraulic model update
•Deficiency analysis
•Treatment capacity evaluation
•Condition assessment
•Capital Improvement Plan
Client Reference
John Seifert
General Manager
Veolia North America
Joint Powers Water Board
11100 50th Street NE
Albertville, MN 55301
John.Seifert@veolia.com
www.hdrinc.com PROPOSAL | Joint Water Commission
11
www.hdrinc.com PROPOSAL | Joint Water Commission
12
City of Fargo, Water Tower No. 6
City of Fargo, ND
The HDR team is providing design services for the Water Tower 6 reconditioning and
piping improvements project. The tower's existing coatings need replacement, and piping
and valving improvements are desired by City Staff to enhance operation and control of
the water tower. Other improvements under consideration include:
•Interior (wet and dry) and exterior blasting and recoating surfaces.
•Addition of valve service room within existing water tower base. Service room
upgrades include lighting and heating.
•Riser pipe replacement.
•Piping modifications to allow for valve operations in proposed new valve service
room within tower base.
•Replacement piping and valves inside existing meter pit. Demolition of meter pit
following removal of piping.
•Addition of recirculation pump at the base of the tower for the purpose of
replacement of existing grid bee mixer.
Client Reference:
Dan Portlock PE
Assistant Water Utility
Director
City of Fargo
Office: 701.476.6799 Cell:
701.412.5118
DPortlock@FargoND.gov
www.hdrinc.com PROPOSAL | Joint Water Commission
13
Corporate Office
1976 Wooddale Drive, Suite 4
Woodbury, MN 55125
651-773-5111
Copyright 2025 by KLM Engineering, Inc. Page 1 of 8
April 4, 2025
Sent via Email Only
Mr. Kris Knutson, PE
Drinking Water Project Manager
HDR, Inc.
1601 Utica Ave. S. Suite 600
St. Louis Park, MN 55416
RE: 1,500,000‐Gallon Legged “Tower No. 1”‐ Golden Valley, MN
500,000‐Gallon Double Ellipsoidal “North Tower”‐ New Hope, MN
Dear Mr. Knutson:
KLM is pleased to submit this proposal for the remote operated vehicle (ROV) evaluation of the above‐
referenced water storage tanks.
KLM Engineering provides AMPP/NACE and AWS trained inspectors, certified in competent climbing,
having experience and working knowledge of the Occupational Safety and Health Standards (OSHA),
American Water Works Association (AWWA), American Concrete Industry (ACI) and State Regulations.
KLM Engineering provides evaluation reports that are reviewed by an engineer who has authored the
report and/or were written under the engineer’s direct supervision.
DOCUMENTATION
KLM will provide the Owner with an evaluation report, which will provide the following benefits:
1. Clearly stating the actual condition of the reservoirs.
2. For coated reservoirs, provide a life expectancy estimate of the coatings and/or an estimated
timeline for coating replacement.
3. Identify structure deficiencies and recommended repairs to bring the reservoir into compliance
with ACI, AWWA and OSHA requirements.
4. Provide a schedule for performing recommended maintenance work.
5. Provide a Cost Estimate for all structure repairs and coating replacement.
6. Identify the quantity of sediment and recommend a timeline for cleanout, if warranted.
7. Include color photographs identifying current conditions and any required repairs.
8. Recommend a timeline for future evaluations.
The evaluation report will be provided to HDR, Inc. in digital format (pdf). After which, KLM will contact
HDR, Inc. to discuss the report and answer any questions.
HDR, Inc. – ROV Evaluations
Copyright 2025 by KLM Engineering, Inc. Page 2 of 8
SCOPE OF WORK
ROV Evaluation
KLM plans to utilize a two‐man crew and a remote operated vehicle (ROV) to perform the evaluations.
This evaluation method can be performed in one day per asset.
KLM will provide evaluators who are properly trained and qualified to perform this type of evaluation.
KLM inspectors will place a disinfected ROV and tether into the reservoir for the interior evaluation of
the roof, walls, partition walls, floor, piping and valves. Photos will be taken with an underwater camera,
which will show the structure conditions and quantity of sediment. The interior of the inlet pipe is
excluded from the evaluation, unless otherwise written into this Agreement.
Exterior and Interior Evaluation
The exterior and interior evaluation is critical to the evaluation to determine whether there are any
structure deficiencies and items out of OSHA compliance.
The exterior will be inspected from all areas accessible without rigging, unless otherwise written into
this Agreement. Coating conditions of both the interior and exterior piping and reservoir coatings, when
applicable, will be examined using dry film thickness (DFT) and standard ASTM tests.
Interior and Exterior:
Roof structure (size and style).
Vents (size and style).
Roof manways (size and style).
Ventilation manways (size and style).
Overflow weir and pipe (size and style).
Support column (size and style).
Capacity level and head range.
Inlet/outlet pipe.
Mud ring.
Site dimensions.
Safety considerations.
Drains.
Floor condition.
Pitting on piping.
Ladders, cages, platforms and handrails.
Base pad condition, including Flexcell and
grout.
Screens on vents and overflows.
Overflow air breaks, splash pads and
drainage.
Safety devices.
HDR, Inc. ‐ ROV Evaluations
Copyright 2025 by KLM Engineering, Inc. Page 3 of 8
OWNER’S RESPONSIBILITIES
The Owner’s personnel shall also be responsible for:
Set the water at, or near, the high‐water operating level.
Cease the water inlet and outlet operation during the ROV inspection.
Taking and testing water samples, as required.
Providing information on the reservoir, including maintenance records, construction drawings,
previous evaluation reports and previous painting or reconditioning specifications. This information is
most useful if obtained prior to the reservoir inspection and evaluation.
FEES
The fee for the above‐referenced scope of work for both tanks is……………………………………………$7,600.00
The fee for gasket installation on state‐required wet access manway is $100.00.
Lead or chromium testing on any piping or steel components will be $800.00 additional.
It is the responsibility of the Owner to make sure that the tanks is prepared for the evaluation per the
schedule agreed to in advance by both parties. In the event KLM arrives on site and the tank is not
ready, a second day will be charged as additional time and materials.
Should the tank be deemed unsafe by our evaluators, we reserve the right to revise the proposal to
include necessary equipment and measures to ensure safe access to complete the scope of work. The
revised proposal would be subject to Owner approval.
TERMS AND CONDITIONS
KLM has attached our standard Terms and Conditions. The Terms and Conditions are part of this
Agreement between the Moore and KLM Engineering, Inc. unless otherwise agreed to in writing by both
parties.
Fees are subject to change if the proposed work exceeds twelve (12) months from the date of this
proposal.
ADDITIONAL INFORMATION
Additional information can be found at KLM’s website at: www.klmengineering.com
HDR, Inc. ‐ ROV Evaluations
Copyright 2025 by KLM Engineering, Inc. Page 4 of 8
AGREEMENT
This proposal is valid for sixty (60) days from the date of this proposal. If HDR, Inc., finds the proposal
acceptable, please sign and return it by mail, fax or email. By signing and returning this signature page
only, you agree to the terms of the entire proposal document submitted. When KLM receives the signed
proposal, we will contact the Owner to coordinate an evaluation date. Upon delivery of the report to
HDR, Inc., an invoice will be submitted according to the terms of this Agreement.
This Agreement, between HDR, Inc. and KLM Engineering, Inc. is accepted by:
HDR, Inc.
1601 Utica Ave. S. Suite 600
St. Louis Park, MN 55416
KLM ENGINEERING, INC.
1976 Wooddale Drive, Suite 4
Woodbury, MN 55125
Signature Signature
Dewey Prinzing
Name Name
Vice President of Business Development
Title Title
April 4, 2025
Date Date
We look forward to working with you.
Sincerely,
KLM ENGINEERING, INC.
Dewey Prinzing
Vice President of Business Development
1976 Wooddale Drive, Suite 4
Woodbury, MN 55125
Cell: 651‐434‐4321
Email: dprinzing@klmengineering.com
Attachment: KLM Terms and Conditions
Rev 2025.03.18
https://goldenvalleymn.sharepoint.com/sites/PublicWorksDepartment-JWC/Shared Documents/JWC
Agendas/2025_JWC_Agendas/07 - July/4_Memo for 2024 JWC Financial Reports and Letter.docx
Joint Water Commission
July 2, 2025
AGENDA ITEM #4
Agenda Item
Receive and File the 2024 Financial Statement and Management Letter
Prepared by
Lyle Hodges, Golden Valley Finance Director
Summary
The 2024 JWC Financial Statement and Management Report are attached to this memo. Our
auditor CDS found no material weaknesses and no issues of legal noncompliance. There were
two significant deficiencies noted; Limited Segregation of Duties and Auditor Prepared Financial
Statements. Both items are inherent in organizations of the size of the JWC where there are
limited staff to perform the varied duties related to financial management. The auditors did rely
on the Golden Valley Finance Director to review and approve the final compilation of the 2024
financial statements.
Attachments
2024 Financial Statements
2024 Management Report
Recommended Action
Receive and file the 2024 Financial Statements and 2024 Management Letter.
LITCHFIELD, MINNESOTA
GOLDEN VALLEY-CRYSTAL-NEW HOPE
JOINT WATER COMMISSION
MANAGEMENT LETTER
DECEMBER 31, 2024
CONWAY, DEUTH & SCHMIESING, PLLP
CPAS & ADVISORS
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Page
Required Communications 1-2
Schedule of Findings on Internal Accounting Issues and Internal Controls 3
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
TABLE OF CONTENTS
DECEMBER 31, 2024
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Board of Commissioners and Management,
Golden Valley-Crystal-New Hope Joint Water Commission
Qualitative Aspects of Accounting Practices
1
We have audited the accompanying financial statements of the governmental activities and each major fund of the
Golden Valley-Crystal-New Hope Joint Water Commission, for the year ended December 31, 2024. Professional
standards require that we provide you with information about our responsibilities under generally accepted auditing
standards and Government Auditing Standards, as well as certain information related to the planned scope and timing of
our audit. We have communicated such information in our letter to you dated April 7, 2025. Professional standards also
require that we communicate to you the following information related to our audit.
Management's estimate of lease terms and discount rates on leases is based on information stated in the lease
agreement and expectations of the lease. The lease terms and discount rates determine the amount of interest
revenue that will be recorded during each reporting period as well as the amount of deferred inflows of resources
and lease receivable that is reported at the end of a reporting period.
The financial statement disclosures are neutral, consistent, and clear.
Significant Audit Findings
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting
policies used by the Golden Valley-Crystal-New Hope Joint Water Commission are described in Note 1 to the financial
statements. No new accounting policies were adopted and the application of existing policies was not changed during
2024. We noted no transactions entered into by the Commission during the year for which there is a lack of authoritative
guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on
management’s knowledge and experience about past and current events and assumptions about future events. Certain
accounting estimates are particularly sensitive because of their significance to the financial statements and because of
the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate
affecting the financial statements were:
Management’s estimate of depreciation is based on the number of years an asset is in service. We evaluated
the key factors and assumptions used to develop the depreciation estimate in determining that it is reasonable in
relation to the financial statements taken as a whole.
Difficulties Encountered in Performing the Audit
Other Matters
CONWAY, DEUTH & SCHMIESING, PLLP
CPAS & ADVISORS
LITCHFIELD, MINNESOTA
2
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters,
similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting
principle to the Commission's financial statements or a determination of the type of auditor’s opinion that may be
expressed on those statements, our professional standards require the consulting accountant to check with us to
determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other
accountants.
Other Audit Findings or Issues
We were not engaged to report on the Elected Officials and Administration page, which accompany the financial
statements but are not required supplementary information. We did not audit or perform other procedures on this other
information and we do not express an opinion or provide any assurance on it.
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with
management each year prior to retention as the Commission’s auditors. However, these discussions occurred in the
normal course of our professional relationship and our responses were not a condition to our retention.
This information is intended solely for the use of the Commission and management of Golden Valley-Crystal-New Hope
Joint Water Commission, Golden Valley, Minnesota, and is not intended to be, and should not be, used by anyone other
than these specified parties.
June 4, 2025
We have requested certain representations from management that are included in the management representation letter
dated June 4, 2025.
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than
those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected
all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by
management were material, either individually or in the aggregate, to the financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter,
whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We
are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
INTERNAL CONTROL
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
SCHEDULE OF FINDINGS ON INTERNAL ACCOUNTING ISSUES AND INTERNAL CONTROLS
DECEMBER 31, 2024
3
GENERAL RECOMMENDATIONS
The purpose of financial statements is to provide the users with insight as to the financial condition and the results of
operations of the organization. In order to make financial decisions on a timely basis, financial statements must be
prepared timely and correctly.
Throughout the course of the audit, we spoke with management regarding certain items that we see as an opportunity to
improve. None of these were considered significant within the scope of the audit. The items discussed requiring action
have been resolved or are in the process of resolution. We would like to acknowledge the assistance and courtesies
extended to us by the personnel of the Golden Valley-Crystal-New Hope Joint Water Commission.
We noted certain matters involving the internal control structure and its operation that we consider being deficiencies in
internal control under standards established by the American Institute of Certified Public Accountants. A deficiency in
internal control exists when the design or operation of a control does not allow management or employees, in the normal
course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis.
The objective of internal accounting control is to provide reasonable, but not absolute, assurance as to the safeguarding
of assets against loss from unauthorized use or disposition, and the reliability of financial records for preparing financial
statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of a
system of internal accounting control should not exceed the benefits derived and also recognizes that the valuation of
these factors necessarily requires estimates and judgments by management.
It should be recognized that within the Commission, an inherent risk is present with certain positions. It is very common
for organizations such as the Golden Valley-Crystal-New Hope Joint Water Commission, to assign many major
responsibilities to a few key individuals in an attempt to operate within limited budgets. The inherent risk is again
addressed only to maintain the awareness of the internal control structure and to encourage the Board's continual review
of financial information at monthly meetings.
CPAS & ADVISORS
LITCHFIELD, MINNESOTA
GOLDEN VALLEY-CRYSTAL-NEW HOPE
AUDITED FINANCIAL STATEMENTS
DECEMBER 31, 2024
CONWAY, DEUTH & SCHMIESING, PLLP
JOINT WATER COMMISSION
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PAGE
ELECTED OFFICIALS AND ADMINISTRATION 1
INDEPENDENT AUDITOR'S REPORT 2-4
BASIC FINANCIAL STATEMENTS
Statement of Net Position 5
Statement of Activities 6
Balance Sheet - Governmental Funds 7
Reconciliation of the Governmental Funds
Balance Sheet to the Statement of Net Position 8
Statement of Revenues, Expenditures and Changes in Fund Balances -
Governmental Funds 9
Reconciliation of the Statement of Revenues, Expenditures
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities 10
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget and Actual - General Fund 11
Notes to the Financial Statements 12-20
COMPLIANCE SECTION
Independent Auditor's Report on Minnesota Legal Compliance 21
Independent Auditor's Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance
with Government Auditing Standards 22-23
Schedule of Findings 24-25
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
DECEMBER 31, 2024
TABLE OF CONTENTS
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Name Position Governmental Unit Term Expires
Noah Schuchman Chairperson City of Golden Valley December 31, 2026
Reece Bertholf Vice Chairperson City of New Hope December 31, 2025
Adam Bell Secretary/Treasurer City of Crystal December 31, 2024
Lyle Hodges Finance Director
Analeigh Morrow Accountant
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
ELECTED OFFICIALS AND ADMINISTRATION
DECEMBER 31, 2024
1
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Board of Commissioners and Management,
Golden Valley-Crystal-New Hope Joint Water Commission
Report on the Audit of the Financial Statements
Opinions
Basis for Opinions
Responsibilities of Management for the Financial Statements
2
INDEPENDENT AUDITOR'S REPORT
We have audited the financial statements of the governmental activities and each major fund of the Golden Valley-Crystal-
New Hope Joint Water Commission (the Commission), as of and for the year ended December 31, 2024 and the related
notes to the financial statements, which collectively comprise the Commission's basic financial statements as listed in the
table of contents.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
(GAAS) and the standards applicable to financial audits contained in Government Auditing Standards , issued by the
Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the
Commission, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating
to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
Management is responsible for the preparation and fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and each major fund of the Commission, as of December 31,
2024, and the respective changes in financial position, and, where applicable, cash flows thereof and the budgetary
comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in
the United States of America.
Responsibilities of Management for the Financial Statements (Cont'd)
Auditor's Responsibilities for the Audit of the Financial Statements
Required Supplementary Information
In performing an audit in accordance with GAAS and Government Auditing Standards , we
We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified
during the audit.
Management has omitted the Management's Discussion and Analysis that accounting principles generally accepted in the
United States of America require to be presented to supplement the basic financial statements. Such missing information,
although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who
considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing
information.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an
audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the Commission’s ability to continue as a going concern
for twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
and design and perform audit procedures responsive to those risks. Such procedures include examining, on a
test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Commission's internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the Commission's ability to continue as a going concern for a reasonable period of time.
Exercise professional judgment and maintain professional skepticism throughout the audit.
3
Other Information
Other Reporting Required by Government Auditing Standards
CONWAY, DEUTH & SCHMIESING, PLLP
CPAS & ADVISORS
LITCHFIELD, MINNESOTA
June 4, 2025
4
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements, or the
other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an
uncorrected material misstatement of the other information exists, we are required to describe it in our report.
In accordance with Government Auditing Standards, we have also issued our report dated June 4, 2025 on our
consideration of the Commission's internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to
describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the effectiveness of the Commission's internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the Commission's internal control over financial reporting and compliance.
Management is responsible for the other information included in the annual report. The other information comprises the
Elected and Appointed Officials section, but does not include the basic financial statements and our auditor's report
thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an
opinion or any form of assurance thereon.
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BASIC FINANCIAL STATEMENTS
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ASSETS
Current Assets
Cash and Investments 11,680,839$
Due from Other Governments 1,415,360
Leases Receivable 266,641
Prepaid Items 62,206
Total Current Assets 13,425,046
Noncurrent Assets
Assets Not Being Depreciated 513,802
Other Capital Assets, Net of Depreciation 11,262,805
Total Noncurrent Assets 11,776,607
Total Assets 25,201,653$
LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION
Liabilities
Current Liabilities
Accounts and Contracts Payable 25,294$
Deposits Payable 8,915
Due to Other Governments 741,452
Total Liabilities 775,661
Deferred Inflows of Resources
Related to Leases 266,641
Net Position
Net Investment in Capital Assets 11,764,393
Restricted for Capital Improvements 9,170,160
Restricted for Emergency Water Supply 1,700,000
Unrestricted 1,524,798
Total Net Position 24,159,351
Total Liabilities and Net Position 25,201,653$
See Accompanying Notes to the Financial Statements
5
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
STATEMENT OF NET POSITION
GOVERNMENTAL FUND
DECEMBER 31, 2024
PROGRAM REVENUES
Charges for Services
Member Assessments 8,417,451$
Capital Grants and Contributions 1,605,897
Total Program Revenues 10,023,348
PROGRAM EXPENSES
Water Distribution
Water Purchases 7,944,038
Administration and Maintenance 521,992
Depreciation 491,462
Total Program Expenses 8,957,492
GENERAL REVENUES
Investment Income 591,430
Rental Income 72,202
Total General Revenues 663,632
Change in Net Position 1,729,488
NET POSITION, BEGINNING OF YEAR 22,429,863
NET POSITION, END OF YEAR 24,159,351$
See Accompanying Notes to the Financial Statements
YEAR ENDED DECEMBER 31, 2024
6
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
STATEMENT OF ACTIVITIES
Improvement Total
Capital Projects Governmental
General Fund Funds
ASSETS
Cash and Investments 679,574$ 11,001,265$ 11,680,839$
Due from Other Governments 1,415,360 1,415,360
Leases Receivable 266,641 266,641
Prepaid Items 62,206 62,206
Total Assets 2,423,781$ 11,001,265$ 13,425,046$
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCE
Liabilities
Accounts and Contracts Payable 13,080$ 12,214$ 25,294$
Deposits Payable 8,915 8,915
Due to Other Governments 622,561 118,891 741,452
Total Liabilities 644,556 131,105 775,661
Deferred Inflows of Resources
Related to Leases 266,641 266,641
Fund Balance
Nonspendable 62,206 62,206
Restricted for Capital Improvements 9,170,160 9,170,160
Restricted for Emergency Water Supply 1,700,000 1,700,000
Unassigned 1,450,378 1,450,378
Total Fund Balance 1,512,584 10,870,160 12,382,744
Total Liabilities, Deferred Inflows of
Resources and Fund Balance 2,423,781$ 11,001,265$ 13,425,046$
See Accompanying Notes to the Financial Statements
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
BALANCE SHEET
GOVERNMENTAL FUNDS
DECEMBER 31, 2024
7
2024
Total Fund Balances - Governmental Funds 12,382,744$
Capital Assets 22,850,966
Less: Accumulated Depreciation (11,074,359)
Total Net Position - Governmental Activities 24,159,351$
See Accompanying Notes to the Financial Statements
RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION
DECEMBER 31, 2024
8
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
Amounts reported for governmental activities in the Statement of Net Position are different
because:
Capital assets used in governmental activities are not financial resources and therefore are not
reported as assets in the governmental funds.
Improvement
Capital Projects
General Fund Total
REVENUES
Member Assessments
Charges for Services 8,408,737$ $ 8,408,737$
Nonoperating Surcharges 8,714 8,714
Construction Charges 1,605,897 1,605,897
Other Revenue
Investment Income 116,863 474,567 591,430
Rental Income 72,202 72,202
Total Revenues 8,606,516 2,080,464 10,686,980
EXPENDITURES
Current
Water Purchased 7,944,038 7,944,038
Insurance 64,107 64,107
Utilities 195,635 195,635
Labor 45,175 45,175
Maintenance 53,783 53,783
Professional Services 13,112 13,112
Administrative Charges Paid to Members 34,857 34,857
Rent Remitted to Members 72,202 72,202
Miscellaneous 10,860 10,860
Capital Outlay 952,712 952,712
Total Expenditures 8,433,769 952,712 9,386,481
Net Change in Fund Balances 172,747 1,127,752 1,300,499
FUND BALANCE, BEGINNING OF YEAR 1,339,837 9,742,408 11,082,245
FUND BALANCE, END OF YEAR 1,512,584$ 10,870,160$ 12,382,744$
See Accompanying Notes to the Financial Statements
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED DECEMBER 31, 2024
9
YEAR ENDED DECEMBER 31, 2024
2024
Total Net Change in Fund Balances - Governmental Funds 1,300,499$
Capital Outlays 920,451
Depreciation Expense (491,462)
Change in Net Position - Governmental Activities 1,729,488$
See Accompanying Notes to the Financial Statements
10
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
Amounts reported for governmental activities in the Statement of Activities are different
because:
Capital outlays are reported in governmental funds as expenditures. However, in the
Statement of Activities, the cost of those assets is allocated over the estimated useful lives as
depreciation expense.
Over
(Under)
Final
Original Final Actual Budget
REVENUES
Member Assessments
Charges for Services 8,866,703$ 8,866,703$ 8,408,737$ (457,966)$
Nonoperating Surcharges 8,714 8,714
Other Revenue
Investment Income 116,863 116,863
Rental Income 72,202 72,202
Total Revenues 8,866,703 8,866,703 8,606,516 (260,187)
EXPENDITURES
Current
Water Purchased 8,350,353 8,350,353 7,944,038 (406,315)
Insurance 79,000 79,000 64,107 (14,893)
Utilities 257,350 257,350 195,635 (61,715)
Labor 120,000 120,000 45,175 (74,825)
Maintenance 53,783 53,783
Professional Services 15,000 15,000 13,112 (1,888)
Administrative Charges Paid to Members 45,000 45,000 34,857 (10,143)
Rent Remitted to Members 72,202 72,202
Miscellaneous 10,860 10,860
Total Expenditures 8,866,703 8,866,703 8,433,769 (432,934)
Net Change in Fund Balance 0$ 0$ 172,747 172,747$
FUND BALANCE, BEGINNING OF YEAR 1,339,837
FUND BALANCE, END OF YEAR 1,512,584$
See Accompanying Notes to the Financial Statements
Budgeted Amounts
11
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
GENERAL FUND
YEAR ENDED DECEMBER 31, 2024
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NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. REPORTING ENTITY
As a result of applying the criteria above, the Commission does not have any component units.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific
function or segment. Program revenues include 1) charges to customers or applicants who purchase, use or
directly benefit from goods, services or privileges provided by a given function or segment; 2) operating
grants and contributions; and 3) capital grants and contributions. Other internally directed revenues are
reported as general revenues.
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2024
12
The Golden Valley-Crystal-New Hope Joint Water Commission (the "Commission") was formed under the
authority of Minnesota Statues § 471.59. Its purpose is to provide for the operation and ownership of a water
supply system in and for the Commission. The Commission is governed by a Board of Commissioners,
which consists of three members, one from each of the participating cities.
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of
Activities) report information about the reporting government as a whole. These statements include all of the
financial activities of the Commission.
Original construction costs for the water supply system were allocated to the member cities based on
percentages agreed upon in the Joint Powers Agreement. All subsequent operating and maintenance costs
are apportioned to each member city based on water usage. All property acquired under this agreement is
owned by the member cities in proportion to the amount of construction costs each city pays.
The criteria used to determine if the Commission is financially accountable for a component unit includes
whether or not 1) the Commission appoints the voting majority of the potential component unit's governing
body and is able to impose its will on the potential component unit or is in a relationship of financial benefit or
burden with the potential component unit, or 2) the potential component unit is fiscally dependent on and
there is a potential for the potential component unit to provide specific financial benefits to, or impose
specific financial burdens on, the Commission.
A joint venture is a legal entity resulting from a contractual agreement that is owned, operated, or governed
by two or more participants as a separate and specific activity subject to joint control, in which the
participants retain either an ongoing financial interest or an ongoing financial responsibility. The
Commission, as described above, is considered a joint venture of the cities of Golden Valley, Crystal, and
New Hope, and is included as such in the financial statements.
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
C.
D. BUDGET
E. USE OF ESTIMATES
The General Fund is the general operating fund of the Commission. This accounts for all financial resources
of the general government, except those required to be accounted for in another fund.
The Improvement Capital Projects Fund is used to account for financial resources set aside for the
construction of infrastructure improvements.
MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION
The preparation of financial statements, in accordance with accounting principles generally accepted in the
United States of America, required management to make estimates that affect the amounts reported in the
basic financial statements. Actual results could differ from these estimates.
A budget for the General Fund is adopted annually on the modified accrual basis of accounting. Budgetary
control is at the fund level. All appropriations lapse at year-end.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
Commission considers revenues to be available if they are collected within 60 days after the end of the
current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to compensated absences
and claims and judgments, are recorded only when payment is due.
It is generally the Commission's policy to use restricted resources first, then unrestricted resources as they
are needed when an expense is incurred for purposes for which both restricted and unrestricted net position
are available.
The accounts of the Commission are organized on the basis of funds, each of which is considered a
separate accounting entity. The operations of each fund are accounts for with a separate set of self-
balancing accounts that comprise its assets, liabilities, deferred outflows/inflows of resources, fund equity,
revenue, and expenditures. Separate fund financial statements are provided for governmental funds. Major
governmental funds are reported as separate columns in the fund financial statements. The resources of the
Commission are accounted for in the following two major governmental funds:
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when
a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are recognized
as revenue as soon as all eligibility requirements imposed by the provider have been met.
13
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
F. DEPOSITS AND INVESTMENTS
(1)
(2)
(3)
(4)
(5)
(6)
Cash and cash equivalents were comprised of an external investment pool.
The Commission does not have an investment policy in place that addresses interest rate risk, credit risk,
concentration of credit risk or custodial credit risk.
14
Cash balances from all funds of the Commission are pooled and invested, to the extent available, in
allowable cash management accounts and time deposits. Earnings from such accounts are allocated to the
respective funds on the basis of applicable cash balance participation by each fund.
The Commission invests in an external investment pool, the Minnesota Municipal Money Market Fund (4M
Fund), which is created under a joint powers agreement pursuant to Minn. Stat. §471.59. The 4M Fund is not
registered with the Securities Exchange Commission (SEC), but does satisfy the requirements of Rule 2a-7
prescribed by the SEC pursuant to the Investment Company Act of 1940 (17 CFR §270.2a-7), as amended.
The investment in the pool is measured at the net asset value per share provided by the pool.
time deposits that are fully insured by the Federal Deposit Insurance Corporation or bankers
acceptances of United States bank;
commercial paper issued by United States corporations or their Canadian subsidiaries that is rated in the
highest quality category by at least two nationally recognized rating agencies and matures in 270 days or
less; and
with certain restrictions, in repurchase agreements, securities lending agreements, joint powers
investment trusts, and guaranteed investment contracts.
general obligations of the State of Minnesota and its municipalities, and in certain state agency and local
obligations of Minnesota and other states provided such obligations have certain specified bond ratings
by a national bond rating service;
The Commission may invest in the following types of investments as authorized by Minn. Stat. §§118A.04
and 118A.05:
securities which are direct obligations or are guaranteed or insured issues of the United States, its
agencies, its instrumentalities, or organizations created by an act of Congress, except mortgage-backed
securities defined as "high risk" by Minn. Stat. §118A.04, subd. 6;
mutual funds through shares of registered investment companies provided the mutual fund receives
certain ratings depending on its investments;
The Commission's cash and cash equivalents are considered to be cash on hand, deposits and highly liquid
debt instruments purchased with original maturities of three months or less from the date of acquisition.
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
F.DEPOSITS AND INVESTMENTS (Cont'd)
G.RECEIVABLES
Custodial Credit Risk - Deposits: For deposits, this is the risk that in the event of bank failure, the
Commission's deposits may not be returned to it. Minnesota Statutes require all Commission deposits be
protected by federal deposit insurance, corporate surety bonds, or collateral. The market value of collateral
pledged must be 110 percent more than the amount on deposit plus accrued interest at the close of the
financial institution's banking day, not covered by Federal Deposit Insurance Corporation (FDIC) insurance
or corporate surety bonds. The Commission has no formal policy in place to address custodial credit risk for
deposits.
Authorized collateral includes the obligations of the U.S. Treasury, agencies, and instrumentalities, shares of
investment companies whose only investments are in the aforementioned securities, obligations of the State
of Minnesota or its municipalities, bankers' acceptances, futures contracts, repurchase and reverse
purchase agreements, and commercial paper of the highest quality with a maturity of no longer than 270
days, as well as certain first mortgage notes, and certain other state or local government obligations.
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the Commission
treasurer or in a financial institution other than that furnishing the collateral.
Interest Rate Risk: This is the risk that market values of securities in a portfolio would decrease due to
changes in market interest rates. The Commission minimizes its exposure to interest rate risk by investing in
short-term and long-term investments and by timing cash flows from maturities so that a portion of the
portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and
liquidity needed for operations. However, the Commission does not have a formal investment policy that
limits investment maturities as a means of managing its exposure to fair value losses arising from increasing
interest rates.
Credit Risk: Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligation to the holder of the investment. Minnesota Statutes §118A.04 and §118A.05 limits investments
that are in the top two ratings issued by nationally recognized statistical rating organizations. The
Commission does not have an investment policy that further limits credit risk.
Concentration of Credit Risk: This is the risk of loss attributed to the magnitude of an investment in a single
issuer. Investments should be diversified to avoid incurring unreasonable risk inherent in over investing in
specific instruments, individual financial institutions or maturities. The Commission does not have a formal
policy to address concentration of credit risk.
15
Lease receivables represent amounts receivable from individuals, firms and corporations for the right to use
of Commission assets. No substantial losses are anticipated from the present receivables balances and
therefore, no allowance for uncollectible amounts is deemed necessary.
Custodial Credit Risk: For investments, this is the risk that in the event of the failure of the counterparty, the
Commission will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. The Commission does not have a formal policy to address custodial credit
risk.
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
H. PREPAID ITEMS
I. CAPITAL ASSETS
Years
Distribution System 5-40
Storage Facilities 10-30
The Commission does not possess any material amounts of intangible assets.
J. DEFERRED INFLOWS OF RESOURCES
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. Deferred inflows of resources represents an acquisition of net position that
applies to a future reporting period. During that future period, it will be recognized as an inflow of resources
(revenue). The Commission has items that qualify for reporting in this category on both the government-wide
Statement of Net Position and the governmental fund financial statements related to leases.
Capital Assets
16
Such assets are recorded at their historical cost or estimated historical cost if purchased or constructed.
Donated assets are recorded as capital assets at their estimated acquisition value at the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend
assets lives are not capitalized.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items.
Capital assets, both tangible and intangible, are reported in the applicable governmental columns in the
government-wide financial statements. Capital Assets are defined by the Commission as assets with an
initial, individual cost of $5,000 or more, which benefit more than one fiscal year.
Tangible and intangible assets of the Commission are depreciated using the straight-line, full month
convention method over the following estimated useful lives:
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)
K. FUND BALANCE
L. RISK MANAGEMENT
The Commission's fund balance policy includes goals for maintaining minimums of $900,000 of unassigned
fund balance in the General Fund and $1,000,000 of fund balance restricted for capital projects in the
Improvement Capital Projects Fund.
In the governmental fund financial statements, fund balance is divided into five classifications based
primarily on the extent to which the Commission is bound to observe constraints imposed upon the use of
resources reported in governmental funds. These classifications are as follows:
There were no significant reductions in insurance coverage from the previous year or settlements in excess
of insurance coverage during the current fiscal year.
17
The Commission purchases commercial insurance coverage through the League of Minnesota Cities
Insurance Trust (LMCIT), which is a public entity risk pool currently operating as a common risk
management and insurance program, with other cities in the state. The Commission pays an annual
premium to the LMCIT for its insurance coverage. The LMCIT is self-sustaining through commercial
companies for excess claims. The Commission is covered through the pool for any claims incurred but
unreported, but retains risk for the deductible portion of its insurance policies. The amount of these
deductibles is considered immaterial to the financial statements.
Nonspendable - consists of amounts that cannot be spent because it is not in spendable form or are legally
or contractually required to be maintained intact, such as inventories and prepaid items.
Restricted - consists of amounts related to externally imposed constraints established by creditors, grantors
or contributors; or constraints imposed by state statutory provisions.
Committed - consists of amounts that are constrained for specific purposes that are internally imposed by
formal action of the Board of Commissioners. Those committed amounts cannot be used for any other
purpose unless the Board removes or changes the specified use by taking the same type of action it
employed to previously commit those amounts. These constraints are established by Resolution of the
Board of Commissioners.
Unassigned - is the residual classification for the General Fund and also reflects negative residual amounts
in the remaining governmental funds.
When both restricted and unrestricted resources are available for use, it is the Commission's policy to first
use restricted resources, and then use unrestricted resources as they are needed. When committed,
assigned, or unassigned resources are available for use, it is the Commission's policy to use resources in
the following order: 1) committed, 2) assigned, 3) unassigned.
Assigned - consists of amounts intended to be used by the Commission for specific purposes but do not
meet the criteria to be classified as restricted or committed. In governmental funds other than the General
Fund, assigned fund balance represents the remaining amount that is not restricted or committed. In the
General Fund, assigned amounts represent intended uses established by the governing body itself or by an
official to which the governing body delegates the authority.
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 2. DEPOSITS AND INVESTMENTS
A. INVESTMENTS
The Commission had the following investments:
Investments at Amortized Cost:
External Investment Pool - 4M Fund 2,150,514$
External Investment Pool - 4MP Fund 9,530,325
Total Investments 11,680,839$
Deposits and investments are presented in the basic financial statements as follows:
Statement of Net Position
Cash and Investments 11,680,839$
NOTE 3. LEASE RECEIVABLES
The Commission's leases are summarized as follows:
Amounts not
Scheduled
for Collection
During the
Subsequent
Year
Verizon Site Lease 156,730$ 33,458$ 5,744$ 121,086
T-Mobile Site Lease 109,911 28,438 4,562 85,429
Total Lease Receivables 266,641$ 61,896$ 10,306$ 206,515$
Verizon Wireless Antenna Site Lease - On May 1, 2013 the Commission entered into a five-year lease
agreement with Verizon Wireless, for an antenna site lease. There are renewal options in 5 year increments
through 2028 included in this lease agreement. Based on this agreement, the Commission is receiving annual
payments through 2028.
T-Mobile Antenna Site Lease - On September 10, 2008 the Commission entered into a lease agreement with T-
Mobile USA, Inc, for an antenna site lease. The initial lease term was through September 2019 and was then
renewed with updated terms which included renewal options in 5 year increments through 2043. On November
8, 2024, the Commission received notice of T-Mobile's intent to not renew the lease beyond 2028. Based on
this agreement, the Commission is receiving annual payments through 2028.
Lease payments do not include contingent payments that may be received under certain lease agreements
based on usage in excess of specified amounts. Commission practice is to defer recognition of such contingent
payments until the specified usage levels are met. Contingent payments during the year totaled $0.
Lease
Receivable
Balance Lease Revenue
Lease Interest
Revenue
18
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 4. CAPITAL ASSETS
Beginning Ending
Balance Additions Disposals Balance
Capital Assets Not Being
Depreciated
Construction in Progress 154,596$ 920,451$ (561,245)$ 513,802$
Capital Assets, Being
Depreciated
18,560,959 561,245 19,122,204
3,214,960 3,214,960
21,775,919 561,245 0 22,337,164
Less Accumulated
Depreciation for
7,635,920 469,676 8,105,596
2,946,977 21,786 2,968,763
10,582,897 491,462 0 11,074,359
11,193,022 69,783 0 11,262,805
11,347,618$ 990,234$ (561,245)$ 11,776,607$ Total Capital Assets, Net
Total Accumulated
19
Distribution System
Capital asset activity was as follows:
Being Depreciated, Net
Storage Facilities
Total Capital Assets,
Distribution System
Total Capital Assets,
Being Depreciated
Depreciation
Storage Facilities
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2024
NOTE 5. RELATED PARTY TRANSACTIONS
A. REVENUE AND RELATED RECEIVABLES
City of Golden Valley 3,281,845$ 854,461$ 450,231$
City of Crystal 2,319,832 354,210
City of New Hope 2,815,774 751,436 610,919
8,417,451$ 1,605,897$ 1,415,360$
B. EXPENDITURES AND RELATED PAYABLES
City of Golden Valley 422,601$ 24,068$ 21,519$
City of Crystal 577,391 24,067 95,188
City of New Hope 86,311 24,067 30,790
1,086,303$ 72,202$ 147,497$
20
Expenditures
The Commission transacts business with the three member cities affiliated through common ownership of the
joint venture.
The Commission charges the member cities for water costs, system maintenance and improvement,
administrative expenditures generated in the ordinary course of business, and a nonoperating surcharge.
Revenue from charges to the member cities in 2024, along with any remaining receivable, is as follows:
General Fund
Revenue
Improvement
Capital Projects
Fund Revenue
Receivable at
December 31,
2024
Lease
Revenues
Remitted
Included in
Payables at
December 31,
2024
The member cities charge the Commission for expenditures incurred or services performed on the
Commission's behalf, as well as an administrative charge. In addition, the Commission remits revenue
received on antenna leases to the member cities. Expenditures made to the member cities and rental
revenues passed through to the member cities during the year, along with any liabilities remaining at year-
end, are as follows:
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COMPLIANCE SECTION
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Members of Golden Valley-Crystal-New Hope Joint Water Commission
Golden Valley, Minnesota
CONWAY, DEUTH & SCHMIESING, PLLP
CPAS & ADVISORS
LITCHFIELD, MINNESOTA
INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE
of the United States, the financial statements of the governmental activities and each major fund of the Golden Valley-
Crystal-New Hope Joint Water Commission, as of and for the year ended December 31, 2024, and the related notes to
the financial statements, and have issued our report thereon dated June 4, 2025.
We have audited, in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General
21
The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and
not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose.
June 4, 2025
In connection with our audit, nothing came to our attention that caused us to believe that the Commission failed to comply
with the provisions of the contracting-bid laws, depositories of public funds and public investments, conflicts of interest,
claims and disbursements and miscellaneous provisions sections of the Minnesota Legal Compliance Audit Guide for
Other Politcal Subdivisions, promulgated by the State Auditor pursuant of Minn. Stat. § 6.65, insofar as they relate to
accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance.
Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the
Commission's noncompliance with the above referenced provisions, insofar as they relate to accounting matters.
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Members of Golden Valley-Crystal-New Hope Joint Water Commission
Golden Valley, Minnesota
Report on Internal Control Over Financial Reporting
We have audited in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General
of the United States, the financial statements of the governmental activities and each major fund of the Golden Valley-
Crystal-New Hope Joint Water Commission, as of and for the year ended December 31, 2024, and the related notes to
the financial statements, which collectively comprise the Commission's basic financial statements and have issued our
report thereon dated June 4, 2025.
In planning and performing our audit of the financial statements, we considered the Commission’s internal control over
financial reporting (internal control) as a basis for designing the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the Commission’s internal control. Accordingly, we do not express an
opinion on the effectiveness of the Commission’s internal control.
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL
22
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements
on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that
there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or
detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was
not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies
and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified certain
deficiencies in internal control, described in the accompanying Schedule of Findings as Findings 2024-001 and 2024-002
that we consider to be significant deficiencies.
Report on Compliance and Other Matters
Commission's Response to Findings
Purpose of this Report
CONWAY, DEUTH & SCHMIESING, PLLP
CPAS & ADVISORS
LITCHFIELD, MINNESOTA
June 4, 2025
23
As part of obtaining reasonable assurance about whether the Commission's financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our
audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards.
Government Auditing Standards requires the auditor to perform limited procedures on the Commission's response to the
findings identified in our audit and described in the accompanying Schedule of Findings. The Commission's response
was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we
express no opinion on the response.
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result
of that testing, and not to provide an opinion on the effectiveness of the Commission's internal control or on compliance.
This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering
the Commission's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
I.
FINDING: 2024-001
Condition:
Criteria:
Cause:
Effect:
Recommendation:
CORRECTIVE ACTION PLAN (CAP):
Explanation of Disagreement with Audit Findings:
There is no disagreement with the audit finding.
Actions Planned in Response to Finding:
Official Responsible for Ensuring CAP:
Analeigh Morrow, Accountant
Planned Completion Date for CAP:
Plan to Monitor Completion of CAP:
The Commissioner's will monitor the completion of this corrective action plan.
24
December 31, 2025
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
SCHEDULE OF FINDINGS
DECEMBER 31, 2024
FINDINGS RELATED TO FINANCIAL STATEMENTS AUDITED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS
LIMITED SEGREGATION OF DUTIES
There is an absence of appropriate segregation of duties consistent with appropriate control
objectives due to a limited number of employees.
The basic premise is that no one person should have access to both physical assets and the
related accounting records or to all phases of a transaction. The lack of such controls could
result in the occurrence of a material error or fraud in relation to the financial statements not
being detected by management.
The Commission has assigned duties to staff based on a cost-benefit relationship to the
Commission and the practicality of the level of staffing the Commission maintains.
The lack of adequate segregation of duties could adversely affect the Commission's ability to
initiate, record, process and report financial data consistent with the assertions of management
in the financial statements.
The Commission should continue to monitor and evaluate the job responsibilities assigned to
staff to determine whether there is an unacceptable risk.
The Commission is aware of the limited segregation of duties and will continue to review internal controls and make
changes when they can be made.
I.
FINDING: 2024-002 AUDITOR PREPARED FINANCIAL STATEMENTS
Condition:
Criteria:
Cause:
Effect:
Recommendation:
CORRECTIVE ACTION PLAN (CAP):
Explanation of Disagreement with Audit Finding:
None
Actions Planned in Response to Finding:
Official Responsible for Ensuring CAP:
Analeigh Morrow, Accountant
Planned Completion Date for CAP:
Plan to Monitor Completion of CAP:
The Commissioner's will monitor the completion of this corrective action plan.
There are a limited number of office employees and resources available to allow for the
adequate preparation of the financial statements and the related notes by the Commission.
This could result in a material misstatement to the financial statements and related notes that
would not be prevented, or detected and corrected as a result of the Commission's current
internal control.
The Commission should continue to request the assistance to draft the financial statements
and related notes and thoroughly review these financial statements after they have been
prepared so the Commission can take responsibility for them.
The Commission is aware of this; however, due to significant cost and a limited number of employees, it is in the
Commission's best financial interest to contract for the preparation of the financial statements.
25
December 31, 2025
The preparation of the financial statements and the related notes are the responsibility of
management.
GOLDEN VALLEY-CRYSTAL-NEW HOPE JOINT WATER COMMISSION
SCHEDULE OF FINDINGS
DECEMBER 31, 2024
FINDINGS RELATED TO FINANCIAL STATEMENTS AUDITED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS (Cont'd)
The Commission does not have an internal control system designed to provide for the
preparation of the financial statements and the related notes being audited. However, based on
the degree of complexity and level of detail needed to prepare the financial statements in
accordance with accounting principles generally accepted in the United States of America
(GAAP), the Commission has requested the auditors to prepare them.
https://goldenvalleymn.sharepoint.com/sites/PublicWorksDepartment-JWC/Shared Documents/JWC
Agendas/2025_JWC_Agendas/07 - July/5_Douglas Drive Feasibility.docx
Joint Water Commission
July 2, 2025
AGENDA ITEM #5
Agenda Item
Discuss Douglas Drive Preliminary Feasibility Report
Prepared by
Jesse Struve, Crystal Public Works Director/City Engineer
Summary
On March 5, 2025, the JWC approved entering a contract with Bolton & Menk to put together a
feasibility report for the replacement of the JWC’s watermain on Douglas Dr. This is in response
to Hennepin County proposing a full-depth reclamation project on Douglas Dr and the TAC
wanting to look at the watermain replacement in conjunction with Hennepin County’s project.
The TAC will get a draft copy of the feasibility report on Monday June 30, and we will email this
draft report to the commissioners on Tuesday prior to the meeting.
This overview will provide high level cost considerations for the JWC to consider.
Finance
No financial impacts
Attachments
Recommended Action
Direct the TAC to work with the finance team to look at potential funding options for the
replacement of the JWC’s watermain under Douglas Dr, in partnership with Hennepin
County.
Joint Water Commission TAC Meeting
Tuesday May 20, 2025, 1:30 PM
1) Towers
a) MLR tower
i) Move construction to 2025. Updated budget to 3 million for construction and engineering.
This will include a new altitude valve and hydrant at tower location within the fenced in
area. On schedule, weekly meetings Thursdays at 9am. Working inside the tower currently.
Deduct for logos and inner fencing, manway tube. Change order for additional 12 hours of
grinding, hand railing outside the bowl.
ii) Parts storage – Parts in Connex boxes.
iii) Altitude Vault – need to seal leaks and make electrical repairs. Possibly line inside of vault.
Most parts are in for valve, Matt meeting with Valley Rich this afternoon. Discussed adding
an additional butterfly valve outside the altitude valve to allow for isolation. Take out of
operating budget.
b) Tower replacement
i) GV tower to get replaced 2028/2029. Going to hold off on lining until tower location is
definite.
2) Projects
a) MCC / motor, pump, VFD replacement at both pump houses – Pumps and motors removed
i) GV construction 2024/2025 (pump #4)
(1) Switch Gear / Transfer Switch
(a) Consulting engineer is following up on lead times for equipment at the GV station.
Fall of 2025. Minneapolis contacted PCi about 9/22 start date.
(b) Parts being stored at pumphouse
ii) Crystal construction 2025/2026 (pump #3)
(1) Review change order for new door between pump room and control room. Still pending,
currently with Bolton and Menk. Follow up with Bolton and Menk, discussed 5/20. Tim
to follow up
b) Effluent Meters
i) GV
(1) Access the condition of the existing structures when time allows.
ii) Crystal construction 2026/2027 tentative
(1) After the MCC project is complete, the effluent meters along with 3 valves will be
replaced.
(2) Have meters on site.
c) Reservoirs
i) Golden Valley
(1) MPLS will be installing a 48” valve to isolate intake 1 and 2 in case of emergency. Delayed
to fall 2025.
ii) Crystal
(1) KLM completed the robotic inspection in 2023. Working with KLM to review inspection.
Crystal to follow up on report.
(2) Drain down and perform in-person inspection while pumphouse is down spring 2026
d) SCADA
i) Met with Total Control
(1) Total Control recommended security upgrades at all JWC properties which included
cameras, door fobs, etc. Will be done after the MCC project. Schedule for late 2026.
Access coordination still in progress 5/20/25
(2) Commision approved North and South tower security for amounts below
(a) North Tower was $23,500
(b) South Tower was $20,000
(3) Jose will reach out to Craig to schedule a meeting at 7/17 to discuss SCADA security
e) Valve replacement.
i) GV
(1) 18” @ Olympia and Louisiana Ave – Valley Rich is low bid at $21,200. Late summer or
early fall
(2) Golden Valley Rd (x2) 24” - within Three Rivers trail project limits. Precision Utilities low
bid. Later summer or early fall.
ii) Crystal
(1) Crystal pumphouse (x3). Concurrent with 2026 pump house work.
(2) 24” butterfly intake valve from Minneapolis replaced last week (week of 6/16)
iii) New Hope
(1) Altitude valve – will be completed at end of tower work
3) Miscellaneous
a) Emergency Wells
i) GV – Final payment was made in 2024. No collection have been reported in 2025. There is
$107,803 in surplus. Ordinance doesn’t specify what to do with the remaining balance.
(1) TAC proposes to look for a suitable site in Golden Valley. Currently under review with
the TAC and legal. Wait for comprehensive study to be done to determine what to do
with surplus
b) County will be replacing pavement (reclaim) on Douglas from Medicine Lake Road to Broadway
in ADA and pavement in 2027. 3 miles of reclaim.
i) Bolton & Menk feasibility study approved by Crystal council 3/18
(1) Look at directional drilling and open cutting as main two options
(2) Install 24” main throughout, eliminate 16”
c) Asset condition assessment – TAC met with consultants to go over scope of work. Anticipate
proposals late May.