02-11-11JWC Agenda PacketAGENDA
JOINT WATER COMMISSION
1:30 pm -February 2, 2011
Council Conference Room
Golden Valley City Hall
1. Call to Order
2. Approval of Minutes -December 1, 2010
3. 11-01 -Resolution Designating Depositories for Joint Water Funds
4. 11-02 -Resolution Making Annual Elections For the 2011-2012 Insurance
Policy
5. Update on the New Hope Well Pumping Test -Guy Johnson
6. CitiLink Lease Termination -Kirk McDonald
7. "New" Contract with Minneapolis -Anne
8. Update on JWC Forcemain Pipe Study Through Robbinsdale -Mathisen
9. Update on 2010-2011 High Service Pumps Replacement Project-Mathisen
10. Update on Crystal and Golden Valley Intake Meters Accuracy Study with
Minneapolis-Mathisen
11.Adjournment
JOINT WATER COMMISSION MINUTES
Golden Valley -Crystal -New Hope
Meeting of December 1, 2010
The Golden Valley -Crystal -New Hope Joint Water Commission meeting was called to
order at 3:30 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, Golden Valley
Dave Lemke, Utilities Maintenance Supervisor, Golden Valley
Guy Johnson, Director of Public Works, New Hope
Tom Mathisen, Director of Public Works, Crystal
Randy Kloepper, Utility Supervisor, Crystal
Minutes of October 6, 2010
MOVED by Norris seconded by McDonald and motion carried unanimously to approve the
minutes of the October 6, 2010 meeting..
Status of 2010 CIP Projects
MOVED by Norris seconded by McDonald and motion carried unanimously to create a
construction fund for x112010 CIP Projects.
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MOVED by Norris seconded by McDonald and motion carried move a portion of the 2010
costs for the 24" Valve Replace to the construction fund, due to delays in getting the
materials:.
Update on the New Hope,!Well Testing Puma
Mathisen reported the New Hope pump was capable of producing forty gallons per minute
per foot of drawdown, with a net capacity of 1000-1100 gpm and he was waiting for the
water quality report.
Update on 36" Force Main Study
Mathisen reported the findings suggested there were many years left of wear on the pipe
and the draft report should be available by year end.
Update Minneapolis Requests Regarding the Metering
Joint Water Commission
Page 2 of 2
Tracy reported there were some discrepancies with the old meters and work with the new
meters should be complete by the end of the year and the previous usage would then be
recalculated.
Other
No other business at this time.
Next Meeting
The next meeting will be January 5, 2011.
Adjournment
The meeting was adjourned at 3:48 pm.
ATTEST:
Thomas Q. Burt, Chair
Christine Columbus, Administrative Assistant
Resolution 11-1
Commissioner
adoption:
February 2, 2011
introduced the following resolution and moved its
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
Accounting 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:Burt, McDonald and Norris; 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.
Resolution 11-2 January 5, 2011
Commissioner introduced the following resolution and moved its
adoption:
RESOLUTION MAKING ANNUAL ELECTIONS
FOR THE 2011-2012 INSURANCE POLICY
WHEREAS, the Golden Valley-Crystal-New Hope Joint Water Commission must
declare whether or not to waive the statutory limits on tort liability established by Minnesota
Statutes 456.04, and
NOW, THEREFORE, BE IT RESOLVED by the Commissioners of the Golden
Valley-Crystal-New Hope Joint Water Commission that it does not waive the statutory limits
on tort liability established by Minnesota Statutes 466.04 for the 2011-2012 insurance
policy.
Thomas D. Burt, Chair
ATTEST:
Anne Norris, Vice Chair
The motion for the adoption of the foregoing resolution was seconded by
and upon a vote being taken thereon, the following voted in favor thereof: Burt, Norris and
McDonald; 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.
JENSEN SONDRALL & PEitsELLIN, P.A.
A~orneys At Law
8525 EnnvBxoox CROSSING, Sze. 201
BROOx[.nv PARx, MAVNESOTA 55443-1968
TELEPHONE (763) 424-8811$1'EI.EBAX (763) 493-5193
e-mail law@jspattorneyscom
AHtnNnA M. JFURTH Writer's Direct Dial No.: (763) 201-0211
GoRUON IN JENSEN' a-mail sas(,~spattorrceys com
Ane1M J. KAUFMADt
~'''~ P' ~''''"~' January 17, 2011
Sa~Pe¢+av M. RwcQucsN
sm;:vrav A. soNna~vr. Kirk McDonald
City Manager
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
Re: CitiLink Water Tower Lease
Our FYIe No.: 99-11351
Dear Kirk:
This letter is in follow up to the December 21, 20101etter you received from Carol Wirsbinski of
CitiLink. The letter notifies the JWC that CitiLink has been acquired by a company named Nextera
Communications. The letter also requests the termination of CitiLink's antenna lease for the North
Water Tower which was recently entered into in August 2010. It is my understanding CitiLink has
paid its rent through December 2010 and is offering to pay two additional $750.00 monthly rental
payments equaling $1,500.00 in total while they remove their equipment from the tower. You have
asked me to review the lease and advise if this is a reasonable proposal in accordance with the lease
terms.
The term of the lease is governed by paragraph 4 of the Site Lease Agreement. The initial lease
term was 5 years. This paragraph is found on page 3 of the lease agreement. Paragraph 13 governs
"
Lease Termination". This paragraph is found on pp.10-12 of the Site Lease Agreement.
Subsection (a) of paragraph 13 contains eleven events allowing for termination upon 60 days
notice. However, only subsections 13(ax6) and ('~ permit termination by the tenant and then only
if the JWC/City has violated a term of the lease or CitiLink is unable to obtain government
approval to operate on the tower. Neither of these lease termination events occurred; therefore
CitiLink is not permitted to terminate this lease on only 60 days notice.
CitiLink is basically requesting an early termination which is governed by paragraph 13(b) found
on p. 12 of the Site Lease Agreement. This provision allows for an early termination but requires
CitiLink to pay 1 SO% of the annual rent for the year in which the early termination is taking place.
In this case, the early termination is occurring in 20i 1. The annual rent is $9
000.00. Therefore the
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early termination fee due under paragraph 13(b) of the Site Lease Agreement from CitiLink is
r6a ~ smc~ $13 500.00.
Bat Aagoaiation
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~ a practical matter, Carol Wirsbinski has informed me the acquisition of CitiLinlc by Nextera
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°°~' was as asset purchase only. This means that CitiLink is no longer in existence with possibly little
or no assets to pursue. We have several possible options to consider at this junction as follows:
1. We could simply accept CitiLink's $1,500.00 payment option on condition they
remove their equipment in a timely manner and return our properly to its original
condition. I did speak with Guy Johnson and Paul Coone about the equipment
removal. Both Guy and Paul informed me there is very little work to remove the
January 17, 2011
Page 2
equipment. The antenna is bolted onto a handrail and can be simply removed. The ground box is also easily
removed and the cabling can be left in the ground. Carol Wirsbinski told me the equipment would be
removed within 30 days;
2. We could demand that CitiLink and/or Nextera pay the $13,000.00 early termination fee. If they refused to
pay the fee we could bring a fraudulent conveyance lawsuit against both CitiLink and Nextera claiming the
asset purchase of CitiLink by Nextera was done to fraudulently and intentionally avoid the lease obligation
CitiLink has with the JWC/City. This would be a potentially long and costly lawsuit with no guarantee of
success. Also, the JWC/City would incur legal fees that may not be collectable from CitiLink or Nextera
further diminishing the utility of this option.
3. We could reduce our claim to $7,500.00 and bring a conciliation court fraudulent conveyance action against
CitiLink and Nextera. This would significantly reduce our time and cost associated with a fraudulent
conveyance action in district court, however, there is still no guarantee for success and some attorneys' fees
and costs would still be incurred to pursue a conciliation court action.
Carol Wirsbinski also gave me the name of the attorney representing Nextera in the asset purchase. He is Richard
Kelber from Moss & Barnett. If the JWC wants to pursue more than the $1,500.00 currently being offered by
CitiLink we will be dealing most likely with this attorney.
Given the fact the service CitiLink attempted to provide to LDI which necessitated the lease did not work, that LDI
was the only CitiLink client requiring this lease, the easy removal of the equipment and CitiLink now out of
business, the JWC and the City may want to accept the $1,500.00 payment and put this matter behind us. It may be
more trouble than it is worth to pursue CitiLink or Nextera for additional funds. Neither the JWC nor the City has
suffered any measurable damage by the early termination of this Lease and it does appear that CitiLink is current on
its rental obligation thus far. However, Guy Johnson did send me a copy of an invoice for "After Hour Access"
during the month of October in the amount of $1,442.75 (see attached) owed to the City that CitiLink has apparently
not paid. This invoice should be submitted to CitiLink for payment as well in addition to its $1,500.00 payment offer
to terminate the lease..
Please let me know what the JWC decides and I will communicate the same to Carol Wirsbinski.
Very holy yours,
Steven A. Sondrall
New Hope City Attorney
P:aao„~ey~sasu cttau z cny otAtew Hopel9s-11351((~mL1nk laase)wr x. Mc~ia re l~so cdminadon.aoc
REQUEST FOR FINANCE DEPARTMENT TO ISSUE AN INVOICE
INVOICE TO: CAROL WIRSBINSKI, PRESIDENT
CITILINK COMMUNICATIONS, LLC
15322 GALAXIE AVENUE, SUITE 200
ST PAUL, MN 55124-3152
DESCRIPTION - (PRINTED ON INVOICE)
Afterhours access to water tower (month of
October 2010)
AMOUNT PROG-OBJECT
1,443.75 0070-5800
AUTHORIZED BY: DATE: ~ "~ / ~ / 1
DUE DATE PRINTED ON B L IS GENERALLY 30 DAYS FROM THE INVOICE DATE. IF A DIFFERENT DUE
DATE IS REQUESTED, PLEASE FILL IN DATE BELOW.
DUE DATE:
G:1PubWorks\Finance to issue Invoices\2010\Citilink communications -1-5-11.doc