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01-13-10 JWC Agenda AGENDA JOINT WATER COMMISSION 1 :30 pm - January 13, 2010 Council Conference Room Golden Valley City Hall 1. Call to Order 2. Approval of Minutes - December 2, 2009 3. 10-01- Resolution Designating Depositories for Joint Water Funds 4. Update the JWC on Emergency Supply Plan - Harder 5. Letter to City of Minneapolis - Harder 6. Contract for Services for Environmental Financial Group, Inc - Harder 7. Contract for 2009 Audit Services - Virnig 8. Clearwire Communications ( South Tower) - McDonald 9. Adjournment " JOINT WATER COMMISSION MINUTES Golden Valley - Crystal - New Hope Meeting of December 2,2009 The Golden Valley - Crystal - New Hope Joint Water Commission meeting was called to order at 1 :30 pm, in the City of Golden Valley Council Conference Room. Commissioners Present Tom Burt, City Manager, Golden Valley Anne Norris, City Manager, Crystal Kirk McDonald, City Manager, New Hope Staff Present Sue Virnig, Finance Director, Golden Valley Bert Tracy, Public Works Maintenance Manager, Gol<ff~1"'l Valley Dave Lemke, Utilities Maintenance Supervisor, Golden Valley Paul Coone, Operations Manager, New Hope Bernie Weber, Utilities Maintenance Supervisor, New Hope Guy Johnson, Director of Public Works, New Hope Other Scott Harder, Environmental Financi Brian Lemon, BARR Engineering Co. Minutes of October 7 Norris , 2009 meeting. carried unanimously to approve the MOVED by McDonal minutes of the Oct Upgrading of SCADACompute~$(iatiCrvstal and New Hope Staff tog~(<quot@5'f,f'~~Total:~grtrol Systems, Inc. for upgrading the SCADA computers for the citi~~:of New Hop~>~(ld C~~ I. MOVEO)9~ Norris, seco~~t~~ by Mc<'onald and motion carried unanimously to proceed with the upgradjrg of SCADA OgrJ1puters by Total Control in an amount not to exceed the approved quqtlPof $3800 for Crystal and New Hope. Repairs to the PulTi!,House Roof In Golden Valley Lemke said repairs need to be made to the pump house roof. The cost for the partial repairs was $827.00. The complete repair of the pump house roof is scheduled and budgeted for 2010. MOVED by McDonald, seconded by Norris and motion carried unanimously to proceed with partial repairs to the pump house roof in an amount not to exceed $827.00. Joint Water Commission Page 2 of 2 Barr Engineering Joint Water Commission Emergency Water Supply Technical Memorandum Brian Lemon from Barr Engineering was hired as a sub consultant to Environmental Financial Group Inc. to prepare a cost comparison between developing an emergency water supply plan using only existing wells where all but one of the wells are owned by General Mills and an option using only wells owned by the JWC. MOVED by Norris, seconded by McDonald and motion carried Barr Engineering Joint Water Commission Emergency Water Memorandum. to receive the Technical Other Business Scott Harder will draft a letter to Minneapolis to reop~hnegotiations with the Minneapolis Water Department will expir~iri 2013. agreement Technical Advisory Committee (TAC) will get cost estimatestn regards to an emergency water supply plan that would use wells that JWC will rehabilitate or purchased. Next Meeting The next meeting will be January 6, Adiournment The meeting was Thomas D. Burt, Chair ATTEST: BARR Technical Memorandum To: From: Subject: Date: Project: Joint Water Commission and Scott Harder, Environmental Financial Group, Inc Barr Engineering Co. Joint Water Commission Emergency Water Supply November 23,2009 23271009.00 Executive Summary The purpose of this memo is to compare the costs of the Joint Water Commission (JWC) developing an emergency water supply using only existing wells (Option 1), to an option using only wells owned by the JWC (Option 2). In the option where only existing wells are considered all but one of the wells are owned by General Mills and all are more than 20 years old. New well locations identified in this memo have been selected for cost planning purposes only, and not as an actual well siting study. This memo is a follow up effort to the January 9, 2009 memo. Both that memo and this one were prepared by Barr Engineering Co. as a subconsultant to Environmental Financial Group Inc. The following assumptions were used in developing the cost comparison between the two options. · The New Hope Well appears in both options since it fits into either concept, IE it already exists and is owned by a JWC member community. · Construction costs for both options were based on portable chemical feed stations · New well connection costs were based on connection to a large diameter watermains, rather than the closest main, which would lower costs but might cause unacceptable pressure spikes. · New wells were assumed to have a capacity of 2 million gallons per day (mgd) each (1,400- gallons per minute, gpm) which is considered a safe yield in the Prairie du Chein aquifer. However, one is shown at 2.8 mgd (1,950-gpm) to recognize that this is an emergency system. It is assumed one well could safely operate at this rate during an emergency scenario. · The adequacy of the distribution system in the vicinity of the existing wells, or proposed new wells has not been verified through modeling. · Preliminary well sites identified in this memo were suggested by the JWC technical advisory committee and are based upon readily available sites and should be investigated further before used as final well locations. To: Joint Water Commission and Scott Harder, Environmental Financial Group Inc. From: Barr Engineering Co. Subject: Joint Water Commission Emergency Water Supply Date: November 23, 2009 Project: 23271009.00 Page: 2 · The Honeywell site, which is Site 3 on Figure 1, is the assumed location for a future water treatment plant based on its availability, size, and location. From this study it can be concluded that: · JWC owned wells can meet emergency needs at a cost similar to using only existing wells. · It also results in newer wells that could be part of a future JWC water supply system. The construction costs identified below provide important information when reviewing potential future well locations. Other criteria, such as distribution system hydraulics, ground water contamination, and future system flexibility are also important. Considering the importance of these criteria, we recommend consideration of conducting the following additional investigations: · Distribution system modeling of existing and future well sites · Revisit the previously completed well siting study to refine well spacing with a focus on potential groundwater contamination issues in the vicinity of proposed new wells. · If the Honeywell site is not available as a plant location then a water treatment plant siting study will be needed to determine other practical sites that could be used for the construction of a future water treatment plant should the JWC choose such a direction. Option 1, Rehabilitated Existing Wells Well Cumulative Estimated Well Capacity Capacity, Construction Oesianation mad mad Cost, $ New Hope Well 1.4 1.4 $487,000 GMO Well No.3 1.7 3.1 $979,000 included GMO Well directly No.4 1.7 4.8 above JFB Well No.2 1.7 6.5 $604,000 JFB Well No.3 1.7 8.2 $532,000 Estimated Construction Cost $2,602,000 Option 2, JWC Owned Wells Well Cumulative Estimated Well Capacity Capacity, Construction Oesianation mad mad Cost, $ New Hope Well 1.4 1.4 $487,000 3d 2 3.4 $702,000 3f 2 5.4 $702,000 3e 2.8 8.2 $708,000 Estimated Construction Cost $2,599,000 P:\Mpls\23 MN\27\23271009 JWC OM Emerency Water Supply\FinalDeliverablesVWC Emergency Water Supply Memo dated 11-23- 2009 Final.doc To: From: Subject: Date: Project: Page: Joint Water Commission and Scott Harder, Environmental Financial Group Inc. Barr Engineering Co. Joint Water Commission Emergency Water Supply November 23, 2009 23271009.00 3 Backe:round In a memo prepared by Barr dated January 9, 2009 the JWC reviewed the option of utilizing existing wells in the cities of Golden Valley and New Hope to provide potable water to Commission residents and businesses during an emergency event. The wells considered included one owned by the City of New Hope and four owned by General Mills. For clarity this will be called Option 1. In Option 1 all of the wells considered are 20 or more years old and four are not under direct JWC control. The costs associated with Option 1 were still significant and all wells are located on the west side of town where most of the watermains are generally smaller. The JWC system is set up to deliver water from two large ground storage reservoirs located on the east side of town where watermains are larger. The JWC would now like to review an option where they would own all of the wells used for emergency supply and where most would be new wells. For clarity this will be called Option 2. Under Option 2 the New Hope well will be considered along with new wells constructed within the Joint Water Commission communities to provide the remainder of the potable water needed during an emergency event. The emergency event could be any event which would interrupt or reduce the amount of water currently provided from the City of Minneapolis. During a previous review of potential "emergency" scenarios it was recognized that they could fit into two general categories of source water need. The two categories included a 6.0 mgd source water need and a 9.5 mgd source water need. Previously, while reviewing the potential of using existing wells, it was recognized that the total output of viable existing wells is approximately 8.2 mgd. Therefore, to better compare the use of existing wells versus the use of wells owned by the JWC, we will focus on the viability and cost associated of an 8.2 mgd source water need. While cost estimates for Option 2 will focus on the 8.2 mgd water source need, general information, such as number of wells needed to supply the amount of water in the other two categories of source water need identified above, will also be included in this report. P:\Mpls\23 MN\27\23271009 JWC GM Emerency Water Supply\FinalDeliverables\JWC Emergency Water Supply Memo dated 11-23- 2009 FinaI.doc To: From: Subject: Date: Project: Page: Joint Water Commission and Scott Harder, Environmental Financial Group Inc. Barr Engineering Co. Joint Water Commission Emergency Water Supply November 23, 2009 23271009.00 4 Tvpe and Number of Wells Production wells in the vicinity of the Joint Water Commission are predominately Jordan or Prairie du Chien/Jordan wells. These wells predominate due to the quality and quantity of water that can be reliably obtained from these aquifers. In addition, the depth of construction to reach this water source is not excessive. Based on the history of these types of wells in this area, we will focus on providing new Prairie du Chien/Jordan wells to meet the emergency source water needs of the JWC for the operating scenarios previously described. Prairie du Chien/Jordan wells have been known to produce in excess of 2,000-gpm. However, as well capacities increase so do velocities of the water entering the wells, the risk of sand production, and the risk of open hole collapse in the Jordan sandstone formation. To protect the stability of Jordan wells, long term capacities are generally planned in the range of 1,200 to 1,400-gpm. At flow rates of 1,400-gpm and below, velocities generally do not damage the wells or result in excessive maintenance. However, portions of the Prairie du Chein formation can be very productive since it is a fractured limestone. If productive fractures are encountered safe yields can be quite high. For shorter durations associated with emergency use it would not be out of the question to approach 2,000-gpm. Such yields cannot be guaranteed and would need to be verified on a well by well basis following carefully monitored pumping tests. Long term supply at these rates may not be sustainable, but for short term emergency use they are reasonable to assume for one of the wells. Based on these limitations each scenario in Option 2 will assume the New Hope well at 1,000-gpm (1.4 mgd) and one new well with a variable capacity of up to 1,950-gpm (2.8 mgd). All other wells will be assumed to have a capacity ofl,400-gpm (2 mgd). Based on the flow scenarios described in the previous section, and the range of well capacities just described, we anticipate the following number of new wells for each source water need scenario: Flow Scenario Source Water Need Water from New Wells * Number of New Wells One 6mgd 4.6 mgd 2 Two 8.2 mgd 6.8 mgd 3 Three 9.5 mgd 8.1 mgd 4 *This is the amount needed after subtracting out the New Hope well from the source water need. P:\Mpls\23 MN\27\23271009 JWC GM Emerency Water Supply\FinalDeliverables\JWC Emergency Water Supply Memo dated 11-23- 2009 Final.doc To: From: Subject: Date: Project: Page: Joint Water Commission and Scott Harder, Environmental Financial Group Inc. Barr Engineering Co. Joint Water Commission Emergency Water Supply November 23, 2009 23271009.00 5 Well Spacioe A good rule of thumb with Praire du Chien/Jordan wells is to maintain a 1,500 foot separation to minimize the potential for well interference. Due to common limitations of available land for a well field and piping construction costs to tie a well field together, these distances are often reduced. Reducing the distances between wells will result in additional well interference that increases the cost to deliver each gallon of source water due to additional well drawdown which translates into a greater pump horsepower to pull the water to the surface. We would recommend that well separation distances should never be less than 1,000 feet. Greater well spacing will cost more but in the end will result in a more sustainable well field that will not be subject to dramatic draw downs during prolonged drought and excessive pumping. Proposed Well Sites Five general areas around the JWC were considered for potential well fields and are shown on Figure 1. The locations were recommended during previous studies performed for the JWc. The ground elevation of the five sites varies by approximately 55 feet from roughly 845 feet to 900 feet. The top of bedrock elevation at each of the five sites varies by roughly 20 feet from approximately 630 feet to 650 feet in elevation. The potentiometric water surface of the Prairie du Chien/Jordan aquifer at each of the sites varies from an elevation of approximately 825 feet to 850 feet. Total well depth at most sites will be approximately 600 feet. Based on these rather small variations in ground surface and pertinent subsurface geology and hydrogeology, the variation in individual well costs will be insignificant. The location of the wells with respect to the distribution system will have a much greater impact on site selection. Another factor considered was the potential location of a future water treatment plant should the JWC ever elect to supply and treat its own water rather than purchase it form Minneapolis. After discussions with the technical advisory committee our effort focused generally around Site 3. There are very few tracts of land centrally located on the east side of the JWC that are large enough to be considered for a future treatment plant. This is one of the few that could be used for a plant and is currently considered available. New well sites considered during this effort will take into account costs associated with piping to this location and resulted in developing a grouping of new wells in an area reasonably close to Site 3. If this site does not remain available for a treatment plant an P:\Mpls\23 MN\27\2327 1009 JWC GM Emerency Water Supply\FinalDeliverables\JWC Emergency Water Supply Memo dated 11-23- 2009 Pinal.doc To: From: Subject: Date: Project: Page: Joint Water Commission and Scott Harder, Environmental Financial Group Inc. Barr Engineering Co. Joint Water Commission Emergency Water Supply November 23, 2009 23271009.00 6 additional study would be needed to select a new site for a potential plant. Potential well sites have been identified near proposed Site 3. These sites have been identified as a potential well field to serve a future water treatment plant which could be located at Site 3. These potential well sites are identified as Site 3a through 3g and are shown in Figure 2. Potential Contamination at Proposed Well Sites Figure 1 and Figure 2 indicate the location of potential contamination in relation to each of the proposed well sites. There is potential contamination in close proximity to each of the proposed well sites shown on Figure 1 and well locations shown on Figure 2. It is beyond the scope of this effort to determine how severe the contamination is at any of the locations shown on either figure. Before any final well or treatment plant sites are selected a more detailed investigation into the severity of contamination throughout the JWC will need to be undertaken. Such an investigation should be undertaken in conjunction with revisiting the previous well siting studies to determine the effects of adding individual wells, or a well field, upon any identified contamination. Such a study was not included in the original scope of this project. Site Rankine A number of factors can be utilized to prioritize potential well sites. The following criteria have been utilized to develop a ranking system for the potential well sites: · Depth and configuration of a well · Distance and complexity to tie into existing large diameter water main · Distance and complexity to discharge into existing water reservoirs · Location with respect to city wide large diameter water main network · Location with respect to city wide large diameter main between existing water reservoirs · Number of major road and railroad crossings necessary to connect individual wells to existing large diameter water mains · Depth to static water level · Distance from potential future water treatment plant site (Site 3) · Ability to place a number of wells in the same general location (well field concept) · Location with respect to known contaminants P:\Mp1s\23 MN\27\23271009 JWC GM Emerency Water Supp1y\FinalDeliverables\JWC Emergency Water Supply Memo dated 11-23- 2009 Fina1.doc To: From: Subject: Date: Project: Page: Joint Water Commission and Scott Harder, Environmental Financial Group Inc. Barr Engineering Co. Joint Water Commission Emergency Water Supply November 23, 2009 23271009.00 7 A number of potential well sites have been identified by the JWC technical advisory committee on and near Site 3, which is also the site that has been identified as a potential site for a future water treatment facility. Based on the criteria identified previously in this memo, the well sites near Site 3 have been generally ranked and are shown below: Criteria Site 3a Site 3b Site 3c Site 3d Site 3e Site 3f Site 3g Proximity to Contamination 7 7 7 7 7 7 7 Proximity to Reservoir 7 7 7 7 7 7 7 Proximity to Large 4 4 4 2 1 2 3 Diameter Water Main Proximity to Potential 1 1 2 3 4 5 5 Future WTP Site Table Key: 1 = The Most Advantageous 7 = The Least Advantageous Based on the available information, and on the analysis completed to date, the potential well sites are ranked for direct connection to the existing distribution system, and for connection to a potential future water treatment plant located at Site 3, the site where proposed wells 3a and 3b are located. These rankings are indicated directly below and are listed from most desirable location down to least desirable location: Connection to Distribution System Well 3e Well 3d We1l3f We1l3g Well 3c We1l3a Well 3b Connection to Potential Future Water Treatment Plant We1l3a Well 3b Well 3c Well 3d We1l3e Well 3f We1l3g As previously noted the depth and configuration of all the wells is very similar as is the depth to the static water level. Potential contamination exists relatively close to all well sites, and therefore will not be a useful tool in prioritizing well sites until a more thorough review of the contaminated sites and hydrogeology is completed for the area. P:\Mpls\23 MN\27\2327I 009 JWC GM Emerency Water Supply\FinalDeliverables\JWC Emergency Water Supply Memo dated 11-23- 2009 Final.doc To: From: Subject: Date: Project: Page: Joint Water Commission and Scott Harder, Environmental Financial Group Inc. Barr Engineering Co. Joint Water Commission Emergency Water Supply November 23, 2009 23271009.00 8 Construction Costs The construction cost of a single Prairie du Chien/Jordan well utilizing a submersible well pump with pitless adapter and portable chemical feed equipment is approximately $630,000. The construction cost of a single Prairie du Chien/Jordan well utilizing a vertical turbine well pump housed in a small well house without chemical feed equipment is approximately $780,000. The construction cost of a single Praire du Chien/Jordan well utilizing a vertical turbine well pump housed in a full well house with chemical feed equipment is approximately $1,000,000. Table No.1 provides a breakdown of these anticipated construction costs. The construction cost of connecting each well directly to the existing distribution system is detailed in Table No.2, and summarized directly below: Well Well3a Well 3c Well 3d Well 3e Well3f Cost to Connect to Distribution System $ 113,000 $ 295,000 $ 72,000 $ 78,000 $ 72,000 The costs to connect the New Hope well to the distribution system are included in the previous memo and are not displayed separately here. Also note that distribution system modeling has not been completed as part of this study. The adequacy of the assumed well connection locations used in preparation of this opinion of probable construction costs must be confirmed through distribution system modeling. The construction cost of connecting each well to a future water treatment plant located at the well 3a and 3b site is detailed in Table No.3, and summarized directly below: Well Well3a Well 3b Well 3c Well 3d Well 3e Well 3f Well 3g Cost to Connect to Future Water Treatment Plant $ 50,000 $ 50,000 $ 223,000 $ 292,000 $ 873,000 $ 521,000 $ 313,000 P:\Mpls\23 MN\27\2327 1009 JWC OM Emerency Water Supply\FinalDeliverables\JWC Emergency Water Supply Memo dated 11-23- 2009 Final.doc To: From: Subject: Date: Project: Page: Joint Water Commission and Scott Harder, Environmental Financial Group Inc. Barr Engineering Co. Joint Water Commission Emergency Water Supply November 23, 2009 23271009.00 9 Please note that seven wells have been indicated for potential connection to a future water treatment plant. The seven wells may have a capacity of approximately 12 mgd to provide raw water to a future water treatment plant. The costs of connecting the New Hope well to a water plant at Site 3 are not shown here because of the distance. Pipe costs alone would exceed $1.3 million. Adding restoration would significantly increase that cost. Because of this the New Hope well would truly be only an emergency supply well even in a future scenario where a water treatment plant was constructed. Many cities own similar wells that become orphaned when a water treatment plant is constructed too far away to make connection feasible. These wells often remain in their system as emergency back up wells. This is not necessarily a negative since the cost of using that existing asset is relatively low and it provides additional flexibility and security. The construction cost of connecting a future water treatment plant located at the Well 3a and 3b site to the large diameter north south distribution main is approximately $1,408,000. The breakdown of this cost is shown in Table No.4. Distribution system modeling is needed to confirm the need and/or adequacy of the northern and southern routes utilized for this opinion of probable construction cost. P:\Mpls\23 MN\27\2327 1009 JWC GM Emerency Water Supply\FinalDeliverablesVWC Emergency Water Supply Memo dated 11-23- 2009 Final.doc To: Joint Water Commission and Scott Harder, Environmental Financial Group Inc. From: Barr Engineering Co. Subject Joint Water Commission Emergency Water Supply Date: November 23, 2009 Project: 23271009.00 Page: 10 Conclusions and Recommendations The main objective of this study was to compare the costs of using only existing wells to supply the JWC during an emergency to that of developing an emergency supply only from wells owned by the JWC. From this study it can be concluded that: · JWC owned wells can meet emergency needs at a cost similar to using only existing wells. · It also results in newer wells that could be part of a future JWC water supply system. · The New Hope well can be used in either an existing wells only or a JWC owned scenario but may never be connected to a future water treatment plant given its location so far from the larger watermains on the east side of the JWC. · Additional study is needed to refine specific well sites and investigate potential contamination. The construction costs identified in this memo provide important information when reviewing potential future well locations. Other criteria, such as distribution system hydraulics, ground water contamination, and future system flexibility are also important. Considering the importance of these criteria, we recommend consideration of conducting the following additional investigations: · Distribution system modeling of existing and future well sites · Revisit the previously completed well siting study if specific sites are considered in order to refine well spacing with respect to potential groundwater contamination issues in the vicinity of proposed new wells. · If the Honeywell site cannot be used for a future water treatment plant then perform a water treatment plant siting study to determine several practical sites that could be used for the construction of a future watertreatment plant. Such a study would be valuable even if the JWC plans to continue to purchase water from Minneapolis for many years. The reason is that any new wells constructed as part of a JWC owned emergency water supply system should still be sited in such a way that at some point in the future they could be routed to a water treatment plant located at a reasonable site. P:\Mpls\23 MN\27\2327 1009 JWC GM Emerency Water Supply\FinalDeliverables\JWC Emergency Water Supply Memo dated 11-23- 2009 Final.doc Table No. 1 Construction of 1,200 - 1,400 gpm Praire du Chien/Jordan Well Joint Water Commission (Crystal, Golden Valley, New Hope) 23-Nov-09 Submersible Well With Portable Chemical Feed Construction Cost Estimated Description Quantitv Units Unit Price Extension Mobil ization/Demobilization 1 LS $30,000 $30,000 Furnish Drill and Drive 30 inch Dia. Outer Casing 40 LF $365 $14,600 Advancing 29.25 Inch Borehole 110 LF $220 $24,200 Furnish and Install 24 Inch Dia. Middle Casing 160 LF $105 $16,800 Advancing 23.25 Inch Borehole in Bedrock 240 LF $100 $24,000 Furnish and Install 18 Inch Dia. Inner Casing 400 LF $90 $36,000 Advancing 17.25 Inch Borehole in Bedrock 190 LF $80 $15,200 Removal of Excessive Cuttings From Site 500 CY $13 $6,500 Furnish and Install Neat Cement Grout 560 LF $40 $22,400 Plumbness and Alignment Test 1 Ea $350 $350 Furnish Development Equipment 1 Ea $2,500 $2,500 Install and Remove Development Equipment 1 Ea $4,500 $4,500 Operate Development Equipment 130 Hours $330 $42,900 Furnish, Install, Detonate Explosives 200 Lbs $20 $4,000 Remove Fill From Well 500 CY $85 $42,500 Furnish Test Pumping Equipment 1 Ea $1,500 $1,500 Install and Remove Test Pumping Equipment 1 Ea $4,800 $4,800 Operate Test Pumping Equipment 30 Hours $165 $4,950 Televise Well 1 Ea $1,350 $1,350 Well Disinfectiion 1 Ea $125 $125 Submersible Pump/Motor/Drop Pipe 1 Ea $65,000 $65,000 Pitless Adapter 1 Ea $30,000 $30,000 Furnish and Install Water Level Indicator 1 Ea $3,600 $3,600 Flow Meas';Chem. Feed MH and App. 1 Ea $18,000 $18,000 Flow Meter 1 Ea $6,000 $6,000 Air Release MH and Appurtenances 1 Ea $18,000 $18,000 12 inch DIP 50 LF $95 $4,750 12 inch Gate Valves 1 Ea $3,000 $3,000 12 inch Fittings 6 Ea $1,500 $9,000 6 inch DIP 10 LF $60 $600 6 inch Gate Valves 1 Ea $1,200 $1,200 Fire Hydrant 1 Ea $3,500 $3,500 Disinfection and Sampling 1 Ea $4,000 $4,000 Chemical Feed System and Enclosure 1 Ea $15,000 $15,000 Small Electrical-Chem Feed Hut 1 LS $2,000 $2,000 large Electrical-well 1 lS $95,000 $95,000 3 Phase Electrical Service to Well 1 LS $15,000 $15,000 Standby Power 0 ea $250,000 $0 SCADA Update 1 LS $12,000 $12,000 Drive/Parking Area 1 LS $15,000 $15,000 Site Restoration 1 LS $10,000 $10,000 Total Submersible Well With Portable Chemical Feed Systems and No Standby Power $629,825 Additional Cost for Non-Chemical Well House With Vertical Turbine Pump $150,000 Additional Cost for Chemical Well House With Vertical Turbine Pump $370,000 Additional Cost for Standby Power $250,000 Kev lump Sum LS linear Feet lF Cubic Yards CY Each Ea Hours Hours Pounds lbs Table No.2 Joint Water Commission Emergency Water Supply Well Connection Costs 23-Nov-09 DescriDtion Quantitv Units Unit Cost Subtotal Well 3e 12 inch DIP 125 ft $ 95 $ 11,875 12 inch gate valve 1 ea $ 3,000 $ 3,000 12 inch fittings 4 ea $ 1,500 $ 6,000 18 inch gate valve 2 ea $ 12,000 $ 24,000 18 inch fittings 0 ea $ 4,500 $ Tee cut in-live 1 ea $ 12,000 $ 12,000 Road Crossings 0 Is $ Water Crossings 0 Is $ Disinfection and Sampling 1 Is $ 1,000 $ 1,000 Restoration 1 Is $ 20,000 $ 20,000 Total Well 3e Distribution System Connect $ 77,875 DescriDtion Quantitv Units Unit Cost Subtotal Well 3d 24 inch DIP 125 ft $ 195 $ 24,375 24 inch gate valve 1 ea $ 20,000 $ 20,000 24 inch fittings 4 ea $ 8,500 $ 34,000 16 inch gate valve 2 ea $ 9,000 $ 18,000 16 inch fittings 0 ea $ 2,500 $ Tee cut in-live 1 ea $ 12,000 $ 12,000 Road Crossings 0 Is $ Water Crossings 0 Is $ Disinfection and Sampling 1 Is $ 1,000 $ 1,000 Restoration 1 Is $ 20,000 $ 20,000 Total Well 3d Distribution System Connect $ 129,375 Well 3f 12 inch DIP 125 ft $ 95 $ 11,875 12 inch gate valve 1 ea $ 3,000 $ 3,000 12 inch fittings 4 ea $ 1,500 $ 6,000 16 inch gate valve 2 ea $ 9,000 $ 18,000 16 inch fittings 0 ea $ 2,500 $ Tee cut in-live 1 ea $ 12,000 $ 12,000 Road Crossings 0 Is $ Water Crossings 0 Is $ Disinfection and Sampling 1 Is $ 1,000 $ 1,000 Restoration 1 Is $ 20,000 $ 20,000 Total Well 3f Distribution System Connect $ 71,875 Well 3c Ito Well 3d) 12 inch HOPE 1100 ft $ 75 $ 82,500 12 inch gate valve 1 ea $ 3,000 $ 3,000 12 inch fittings 4 ea $ 1,500 $ 6,000 16 inch HOPE 1900 ft $ 95 $ 180,500 16 inch gate valve 1 ea $ 9,000 $ 9,000 16 inch fittings 2 ea $ 2,500 $ 5,000 Road Crossings 0 Is $ Water Crossings 0 Is $ Tee cut in-live 0 ea $ 12,000 $ Disinfection and Sampling 1 ea $ 1,000 $ 1,000 Restoration 1 Is $ 8,000 $ 8,000 Total Well 3c Distribution System Connect $ 295,000 Description Quantitv Units Unit Cost Subtotal Well 3a (to well 3c and 3d) 12 inch HOPE 900 ft $ 75 $ 67,500 12 inch gate valve 1 ea $ 3,000 $ 3,000 12 inch fittings 4 ea $ 1,500 $ 6,000 16 inch gate valve 1 ea $ 9,000 $ 9,000 16 inch fittings 2 ea $ 2,500 $ 5,000 Road Crossings 1 Is $ 15,000 $ 15,000 Water Crossings 0 Is $ Tee cut in-live 0 ea $ 12,000 $ Disinfection and Sampling 1 ea $ 1,000 $ 1,000 Restoration 1 Is $ 6,000 $ 6,000 Total Well 3a Distribution System Connect $ 112,500 Table No.3 Joint Water Commission WTP Raw Water Supply Well Connection Costs 23-Nov-09 DescriDtion Quantitv Units Unit Cost Subtotal Well 3a 12 inch DIP 400 ft $ 95 $ 38,000 12 inch gate valve 1 ea $ 3,000 $ 3,000 12 inch fittings 4 ea $ 1,500 $ 6,000 18 inch gate valve 0 ea $ 12,000 $ 18 inch fittings 0 ea $ 4,500 $ Tee cut in-live 0 ea $ 12,000 $ Road Crossings 0 ea $ Water Crossings 0 ea $ Disinfection and Sampling 1 Is $ 500 $ 500 Restoration 1 Is $ 2,000 $ 2,000 Total Well 3a $ 49,500 Well 3b 12 inch DIP 400 ft $ 95 $ 38,000 12 inch gate valve 1 ea $ 3,000 $ 3,000 12 inch fittings 4 ea $ 1,500 $ 6,000 18 inch gate valve 0 ea $ 12,000 $ 18 inch fittings 0 ea $ 4,500 $ Tee cut in-live 0 ea $ 12,000 $ Road Crossings 0 Is $ Water Crossings 0 Is $ Disinfection and Sampling 1 Is $ 500 $ 500 Restoration 1 Is $ 2,000 $ 2,000 Total Well 3b $ 49,500 DescriDtion Quantitv Units Unit Cost Subtotal Well3c 12 inch HOPE 2400 ft $ 75 $ 180,000 12 inch gate valve 2 ea $ 3,000 $ 6,000 12 inch fittings 10 ea $ 1,500 $ 15,000 16 inch gate valve 0 ea $ 9,000 $ 16 inch fittings 0 ea $ 2,500 $ Tee cut in-live 0 ea $ 12,000 $ Road Crossings 1 Is $ 15,000 $ 15,000 Water Crossings 0 Is $ Disinfection and Sampling 1 Is $ 1,000 $ 1,000 Restoration 1 Is $ 6,000 $ 6,000 Total Well 3c $ 223,000 Well 3d 12 inch HOPE 3200 ft $ 75 $ 240,000 12 inch gate valve 4 ea $ 3,000 $ 12,000 12 inch fittings 12 ea $ 1,500 $ 18,000 16 inch gate valve 0 ea $ 9,000 $ 16 inch fittings 0 ea $ 2,500 $ Tee cut in-live 0 ea $ 12,000 $ Road Crossings 1 Is $ 15,000 $ 15,000 Water Crossings 0 Is $ Disinfection and Sampling 1 Is $ 1,000 $ 1,000 Restoration 1 Is $ 6,000 $ 6,000 Total Well 3d $ 292,000 Well 3e 24 inch HOPE 3000 ft $ 195 $ 585,000 24 inch gate valve 2 ea $ 20,000 $ 40,000 24 inch fittings 12 ea $ 8,500 $ 102,000 16 inch HOPE 0 ft $ 95 $ 16 inch gate valve 0 ea $ 9,000 $ 16 inch fittings 0 ea $ 2,500 $ Road Crossings 1 Is $ 50,000 $ 50,000 Track Crossings 1 Is $ 85,000 $ 85,000 Tee cut in-live 0 ea $ 12,000 $ Disinfection and Sampling 1 ea $ 1,000 $ 1,000 Restoration 1 Is $ 10,000 $ 10,000 Total Well 3e $ 873,000 Descriotion Quantitv Units Unit Cost Subtotal Well 3f (to Well 3e dischars:e oioins:) 12 inch HOPE 2100 ft $ 75 $ 157,500 12 inch gate valve 3 ea $ 3,000 $ 9,000 12 inch fittings 8 ea $ 1,500 $ 12,000 16 inch HOPE 1300 ft $ 95 $ 123,500 16 inch gate valve 2 ea $ 9,000 $ 18,000 16 inch fittings 12 ea $ 2,500 $ 30,000 Road Crossings 2 Is $ 50,000 $ 100,000 Water Crossings 0 Is $ Tee cut in-live 0 ea $ 12,000 $ Disinfection and Sampling 1 ea $ 1,000 $ 1,000 Restoration 1 Is $ 70,000 $ 70,000 Total Well3f $ 521,000 Well 3s: (to Well 3f dischars:e oioins:) 12 inch HOPE 2100 ft $ 75 $ 157,500 12 inch gate valve 8 ea $ 3,000 $ 24,000 12 inch fittings 20 ea $ 1,500 $ 30,000 16 inch gate valve 0 ea $ 9,000 $ 16 inch fittings 0 ea $ 2,500 $ Road Crossings 1 Is $ 15,000 $ 15,000 Water Crossings 1 Is $ 15,000 $ 15,000 Tee cut in-live 0 ea $ 12,000 $ Disinfection and Sampling 1 ea $ 1,000 $ 1,000 Restoration 1 Is $ 70,000 $ 70,000 Total Well 3g $ 312,500 Table No.4 Joint Water Commission WTP Connection to Distribution System 23-Nov-09 DescriDtion Quantitv Units Unit Price Extension North Connection 24 inch HDPE 3300 ft $ 165 $ 544,500 24 inch Gate Valves 4 ea $ 20,000 $ 80,000 24 inch Fittings 8 ea $ 8,500 $ 68,000 Road Crossings 1 Is $ 50,000 $ 50,000 Water Crossings 0 Is $ $ Tee cut in-live 1 ea $ 12,000 $ 12,000 Disinfection and Sampling 1 ea $ 1,000 $ 1,000 Restoration 1 Is $ 25,000 $ 25,000 Total North Connection $ 780,500 South Connection 24 inch HDPE 2900 ft $ 165 $ 478,500 24 inch Gate Valves 3 ea $ 20,000 $ 60,000 24 inch Fittings 6 ea $ 8,500 $ 51,000 Road Crossings 0 Is $ $ Water Crossings 0 Is $ $ Tee cut in-live 1 ea $ 12,000 $ 12,000 Disinfection and Sampling 1 ea $ 1,000 $ 1,000 Restoration 1 Is $ 25,000 $ 25,000 Total South Connection $ 627,500 .5! u: ::; "- '" '" o '" .;j~ a> o o !::! .... ~ Qi 11i o ]j o o u. t: .. '" Jl Potential Location of Historical Soil or Groundwater Contamination Leaking Underground Storage Tank Potential Well Location t!J ~"~".":, ',: ",.',/;<1:c; ~ '.'\/:~...<' J.f Data Sources: MPCA Master Entity System (MES) Database MPCA Leaking Underground Storage Tank (LUST) Database Aerials Express 2009 o Feet 2,000 o 2,000 4,000 Meters 600 600 1,200 o Figure 1 POTENTIAL WELL SITE IMPACTS General Mills Emergency Water Supply General Mills Golden Valley, MN a; 16 o ., o o "- t: III CO In Potential Location of Historical Soil or Groundwater Contamination Leaking Underground Storage Tank Potential Well Location (!J o Data Sources: MPCA Master Entity System (MES) Database MPCA Leaking Underground Storage Tank (LUST) Database Aerials Express 2009 o 2,000 Feet o 2,000 600 Meters o 600 Figure 2 POTENTIAL WELLS AROUND SITE 3 General Mills Emergency Water Supply General Mills Golden Valley, MN Resolution 10-1 January 13, 2010 Commissioner introduced the following resolution and moved its adoption: RESOLUTION DESIGNATING DEPOSITORIES FOR JOINT WATER FUNDS BE IT RESOLVED by the Joint Water Commission of the Cities of Golden Valley, Crystal, and New Hope that the following are named as depositories for funds on deposit as provided in the Laws of the State of Minnesota: Wells Fargo Golden Valley BE IT FURTHER RESOLVED that the following signatories or alternates are authorized to sign on checks drawn on funds deposited: General Checking: Joint Water Chair Alternate: Joint Water Vice Chair BE IT FURTHER RESOLVED that the following shall be authorized to make investments of Joint Water Funds and shall be authorized to deposit the principal of said investments in the above named depositories and beneficial to the Joint Water Commission: Joint Water Chair, Golden Valley's Finance Director; Golden Valley AccounUng Coordinator. Thomas D. Burt, Chair ATTEST: Anne Norris, Vice Chair The motion for the adoption of the foregoing resolution was seconded by Commissioner and upon a vote being taken thereon, the following voted in favor thereof:, , and and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted, signed by the Chair and his signature attested by the Vice Chair. Memorandum To: Kirk McDonald, City Manager From: Paul Coone, Operations Manager fJ t Date: December 10, 2009 Subject: Clear Wireless, LLC Kirk, Clearwire sent you a Letter of Intent to request you permission to allow them to install communication facilities on the south water tower and the property the tower is on. Public Works staff recommends you deny this request for the following reasons: 1. When I told them on October 21,2009 to send me the Letter of Intent addressed to you, they still sent it to me addressed to ME! I received this Letter the first week in December. 2. When their engineer called me to gain access to the site, I asked him about the Letter of Intent? I was told they had already mailed it to you! That was not the case - I received it three weeks later. 3. The site already has three different communication structures and not enough room for yet another structure. 4. The last project with T-Mobile literally took 12 months to complete. 5. To date, they have not proved to us that their project will go any better than T-Mobile's project. In speaking with KLM Engineering (civil engineers that specialize in water towers) told me Clearwire does not follow through with requests from them for such things as plans and specs. They try to use someone else's generic plans. I was told by KLM to be leery of this company. They are trying to flood the market and will say virtually anything to get their foot in the door. It is my understanding they are working on several tower sites in the metro area and have not followed through and started any of them. ... p: 425-216-7600 ~overnber30,2009 City of~ew Hope Attention: Mr. Paul Coone 5500 International Parkway ~ew Hope, MN 55428 RE: Letter of Intent from Clear Wireless LLC, also known as Clearwire to locate our Equipment for Wireless Services on the New Hope Water Tower, located at 2801 HiUsboro Avenue N., New Hope, Minnesota. Dear Mr. Coone, The purpose of this letter is to express Clearwire's interest in locating our Equipment on the New Hope Water Tower located at 2801 Hillsboro Avenue N., New Hope, Minnesota. Our Ractio Frequency Engineers have determined that locating our Antennas on this Water Tower would deliver our services to a great portion of the ~ew Hope Community. This site is one of approximately 500 sites that we are currently working on within the Minneapolis/St. Paul Market. We are expecting to launch commercial services by the end of the third quarter of20l0. I have also included an informational packet that will give you and the City more insight into who is Clearwire. If you have any additional questions, please feel free to give me a call. Sincerely, Matt Sonke Cleant,,"'p!:'; Minneapolis Engineering 8800 Hwy. 7, Suite 203, St. Louis Park, MN 55426 303-859-9696 (Cell) M PRINCIPALS Kenneth W. Malloy, CPA Thomas M. Montague. CPA Thomas A. Karnowski, CPA Paul A. Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA CERTIFIED PUBLIC ACCOUNTANTS January 11,2010 Ms. Sue Virnig, Treasurer Golden Valley - Crystal- New Hope Joint Water Commission 7800 Golden Valley Road Golden Valley, MN 55427 Dear Ms. Virnig: Enclosed are two copies of an engagement letter which explains and confirms the basic services we expect to perform in conjunction with your upcoming audit. Also enclosed is a copy of our most recent peer review report and letter of comment. Assuming the letter adequately describes those services you desire, please sign both copies, return one copy to our office, and keep the other copy for your files. Please do not hesitate to contact me if you believe the letter should be modified or if you have any questions. Sincerely, MALLOY, MONTAGUE, KARNOWSKI, RADOSEVICH & CO., P.A. W:.&tVWj dd~-"'-- WilliamJ. Lauer, CPA Principal WJL:hls Enclosures Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard' Suite 410' Minneapolis, MN 55416' Telephone: 952-545-0424' Telefax: 952-545-0569 · www.mmkr.com M KR PRINCIPALS Kenneth W Malloy, CPA Thomas M. Montague, CPA Thomas A Karnowski, CPA Paul A Radosevich, CPA William J. Lauer, CPA James H. Eichten, CPA Aaron J. Nielsen, CPA Victoria L. Holinka, CPA CERTIFIED PUBLIC ACCOUNTANTS January 11,2010 To the Board of Commissioners Golden Valley - Crystal- New Hope Joint Water Commission 7800 Golden Valley Road Golden Valley, MN 55427 We are pleased to confirm our understanding of the services we are to provide for the Golden Valley- Crystal- New Hope Joint Water Commission (the Commission) for the year ended December 31, 2009. We will audit the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information, which collectively comprise the Commission's basic financial statements as of and for the year ended December 31, 2009. Accounting standards generally accepted in the United States of America provide for certain required supplementary information (RSI), such as Management's Discussion and Analysis (MD&A), to accompany the Commission's basic financial statements. As part of our engagement, we will apply certain limited procedures to the Commission's RSI. These limited procedures will consist principally of inquires of management regarding the methods of measurement and presentation, which management is responsible for affirming to us in its representation letter. Unless we encounter problems with the presentation of the RSI or with procedures relating to it, we will disclaim an opinion on it. Supplementary information other than RSI, such as combining and individual fund financial statements, may also accompany the Commission's basic financial statements. We will subject any supplementary information to the auditing procedures applied in our audit of the basic financial statements and will provide an opinion on it in relation to the basic financial statements. We will perform the required State Legal Compliance Audit conducted in accordance with auditing standards generally accepted in the United States of America and the provisions of the Legal Compliance Audit Guide, promulgated by the State Auditor pursuant to Minnesota Statute ~ 6.65, and it will include such tests of the accounting records and other procedures we consider necessary to enable us to conclude that, for the items tested, the Commission has complied with the material terms and conditions of applicable legal provisions. Malloy, Montague, Karnowski, Radosevich & Co., P.A. 5353 Wayzata Boulevard · Suite 410 · Minneapolis, MN 55416 . Telephone: 952-545-0424 . TeJefax: 952-545-0569 . www,mmkr.com Golden Valley - Crystal- New Hope Joint Water Commission January 11,2010 Page 2 Audit Objectives The objective of our audit is the expression of opinions as to whether your basic financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America and to report on the fairness of the additional information referred to in the first paragraph when considered in relation to the basic financial statements taken as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America established by the Auditing Standards Board, and will include tests of accounting records of the Commission and other procedures we consider necessary to enable us to express such opinions. If our opinions on the financial statements are other than unqualified, we will fully discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form, or have not formed opinions, we may decline to express opinions or to issue a report as a result ofthis engagement. Management Responsibilities Management is responsible for the basic financial statements and all accompanying information as well as all representations contained therein. You are also responsible for making all management decisions and performing all management functions; for designating an individual with suitable skill, knowledge, or experience to oversee our financial statement preparation services and any other nonattest services we provide; and for evaluating the adequacy and results of those services and accepting responsibility for them. Management is responsible for establishing and maintaining effective internal controls, including monitoring ongoing activities; for the selection and application of accounting principles; and for the fair presentation in the financial statements of the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Commission and the respective changes in financial position and where applicable, cash flows, in conformity with accounting principles generally accepted in the United States of America. Management is also responsible for making all financial records and related information available to us and for the accuracy and completeness of that information. Your responsibilities include adjusting the financial statements to correct material misstatements and for confirming to us in the representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about known or suspected fraud or illegal acts affecting the Commission involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud or illegal acts could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the Commission received in communications from employees, former employees, regulators, or others. In addition, you are responsible for identifying and ensuring that the Commission complies with applicable laws and regulations. Golden Valley- Crystal- New Hope Joint Water Commission January 11,2010 Page 3 Audit Procedures - General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. We will plan and perform the audit to obtain reasonable, rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent fmancial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the Commission or to acts by management or employees acting on behalf of the Commission. Because an audit is designed to provide reasonable, but not absolute assurance and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements or noncompliance may exist and not be detected by us. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements or major programs. However, we will inform you of any material errors and any fraudulent financial reporting or misappropriation of assets that come to our attention. We will also inform you of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about the financial statements and related matters. Audit Procedures - Internal Control Our audit will include obtaining an understanding of the Commission and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. An audit is not designed to provide assurance on internal control or to identifY deficiencies in internal control. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under MCP A professional standards. Audit Procedures - Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the Commission's compliance with applicable laws and regulations and the provisions of contracts and agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. Audit Administration, Fees, and Other The assistance to be supplied by your personnel, including the preparation of schedules and analysis of accounts, typing all cash or other confirmations we request, and locating any invoices selected by us for testing, will be discussed and coordinated with you. Golden Valley - Crystal - New Hope Joint Water Commission January 11,2010 Page 4 We will provide copies of our reports to the Commission; however, management is responsible for distribution of the reports and the financial statements. Unless restricted by law or regulation, or containing privileged and confidential information, copies of our reports are to be made available for public inspection. The audit documentation for this engagement is the property of Malloy, Montague, Kamowski, Radosevich & Co., P.A. (MMKR) and constitutes confidential information. However, we may be requested to make certain audit documentation available to a regulatory agency pursuant to authority given to it by law or regulation. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of MMKR personnel. Furthermore, upon request, we may provide photocopies of selected audit documentation to the regulatory agency. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of five years after the report release date or for any additional period requested by the regulatory agency as applicable. If we are aware that a federal awarding agency, pass-through entity, or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation. William J. Lauer, CPA is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. Our fees for these services will be based on the actual time spent at our standard hourly rates. We will also bill you for travel and other out-of-pocket costs such as report production, typing, and postage. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable upon presentation. Unless additional work is requested, or circumstances require additional work, we estimate the basic audit fees to be $8,425. The fee is based on anticipated cooperation from your persOlmel and the assumption that unexpected circumstances will not be encountered during the audit. If we find that additional audit procedures are required, or if additional services are requested by the Commission, those services will be billed at our standard hourly rates. Additional audit procedures may be required for certain accounting issues or events such as new accounting or auditing standards, due to turnover of key accounting personnel, or if there is an indication of misappropriation or misuse of public funds. With regard to the electronic dissemination of audited financial statements, including financial statements published electronically on your website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document. If you intend to publish or otherwise reproduce the fmancial statements, and make reference to our fmn name, you agree to provide us with printers' proofs or masters for our review and approval before printing. You also agree to provide us with a copy of the final reproduced material for our approval before it is distributed. We appreciate the opportunity to be of service to the Commission and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Golden Valley - Crystal- New Hope Joint Water Commission January 11,2010 Page 5 Sincerely, MALLOY, MONTAGUE, KARNOWSKI, RADOSEVICH & CO., P.A. J;;J2;~ 1 J~ WilliamJ. Lauer, C~ Principal WJL:hls Response: This letter correctly sets forth the understanding of the Golden Valley - Crystal- New Hope Joint Water Commission. By: Title: Date: