06-06-2012 JWC Agenda PacketAGENDA
JOINT WATER COMMISSION
1 p.m. —June 6, 2012
Council Conference Room
Golden Valley City Hall
1. Call to Order
2. Approval of Minutes — April 30, 2012
3. May 7, 2012 Tri -City Council Minutes — Receive and File
4. Recap of May 7, 2012 Tri -City Council Meeting (Clancy)
5. Status of JWC Wells Feasibility Authorization Resolution and Next Steps (Clancy)
6. New Hope Well and Health Department Approval (Mathisen)
7. Water Meter Improvements in Golden Valley (Tracy)
8. Leak Detection Contract (Tracy)
9. Authorize Proposal for JWC Unbilled Water Repayment Analysis (Clancy)
10. Minneapolis Cost of Service Study Update (Norris)
11. Debriefing of DeCola Ponds Discussion (Norris)
12. Other Business
13.Adjournment
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K
JOINT WATER COMMISSION MINUTES
Golden Valley - Crystal - New Hope
Meeting of April 30, 2012
The Golden Valley — Crystal — New Hope Joint Water Commission meeting was called to order at
1:32 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
Tom Mathisen, Director of Public Works/City Engineer, Crystal
Randy Kloepper, Utilities Superintendent, Crystal
Guy Johnson, Director of Public Works, New Hope
Bernie Weber, Utilities Supervisor, New Hope
Sue Virnig, f=inance Director, Golden Valley
Jeannine Clancy, Director of Public Works, Golden Valley
Jeff Oliver, PE, City Engineer, Golden Valley
Bert Tracy, Public Works Maintenance Manager, Golden Valley
Dave Lemke, Utilities Supervisor, Golden Valley
Pat Schutrop, Administrative Assistant, Golden Valley
Also Present
Brian Letson, Barr Engineering Company
Todd DeJoumett, Barr Engineering Company
Bonnie Morey, SEH, Inc.
Minutes of April 4, 2012
MOVED by McDonald, seconded by Norris and motion carried unanimously to approve the minutes
of the April 4, 2012 meeting.
Tri -City Council Meetina on May 7= 2012
Clancy discussed the draft agenda with the JWC. Bonnie Morey, SEH, will facilitate the meeting
and staff from Barr will be giving two presentations: (1) the backup water supply, and (2) the
DeCola Ponds area. The meeting is a work session and will be open to the public. No formal
decisions will be made and no public testimony will be received. Morey will facilitate future direction
from the councils.
Barr did a preview of its presentation on the backup water supply and received feedback from the
JWC. Mathisen will draft a resolution for the City Councils to authorize the development of a
feasibility report as the next step in the emergency backup water supply plan process. The JWC
will be looking for the councils to adopt the resolution by the end of June.
Jeff Oliver will introduce the DeCola Ponds area presentation and give a brief background.
Questions by the councils will be addressed at the end of the presentation. Oliver will then lay out
the next steps, share estimated costs, and recommend that a cooperative agreement be
developed for the three cities to sign moving forward with a Phase I I report.
I:Uoint Water CommissionUWC Minutes\2012 JWC Minutes\04-30-12 JWC Minutes.doc
Joint Water Commission
April 30, 2012
Page 2 of 2
Authorize Facilitator Proposal from SEH. Inc.
MOVED by McDonald, seconded by Norris and motion carried unanimously to approve the letter
proposal from SEH, Inc. to provide meeting planning and facilitation services for the May 7, 2012
Tri -City Council meeting in an amount not to exceed $1,800.
New Hope Well Rehabilitation Prolect Update
The report was submitted and signed.
Hennepin County 9 Proiiect Status Update
Hennepin County wants to do more soil borings and preparation delaying the project until 2014.
Crystal Larne Valve Replacement
The quote from Dave Perkins Contracting, Inc. for the valve replacement project was approved at
the April 4, 2012 JWC meeting. The budget has $100,000 allocated for the two valves. Crystal is
requesting $2,100 for work to be done by Northwest Asphalt as part of the project. The JWC
approved the request.
Golden Valley Metering Project Update
Clancy reported that a decision was made on the type of meter to install. The project will be bid in
June or early July 2012. Construction is scheduled to start in late July/early August 2012 and
completed before winter 2012. Stantec is now working on the final design.
Other Business
The JWC and Minneapolis have a billing issue that is being addressed by Golden Valley staff and
Scott Harder. Golden Valley will keep the JWC informed.
Next Meeting
The next scheduled meeting is Wednesday, June 6, at 1:30 pm.
Adiournment
Chair Burt adjourned the meeting at 3:35 pm.
Thomas D. Burt, Chair
ATTEST:
Pat Schutrop, Recording Secretary
hhint Water CommissionUM Minutes12012 JWC Minutes104-30-12 JWC Minutes.doo
3
Tri -City Council Meeting Minutes
Monday, May 7, 2012
CALL TO ORDER
Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City
Charter, The Tri -City Council Meeting was held at 6:36 p.m. on Monday, May 7, 2012 in the
Crystal A -B Room at the Crystal Community Center located at 4800 Douglas Drive in
Crystal, Minnesota. After introductions, Golden Valley City Manager, Tom Burt summarized
the agenda and turned the meeting over to Bonnie Morey, meeting facilitator.
ATTENDANCE
Golden Valley Recording Secretary Pat Schutrop recorded the attendance as follows:
CRYSTAL COUNCIL:
CRYSTAL STAFF:
NEW HOPE COUNCIL:
NEW HOPE STAFF:
ReNae Bowman, Mayor
Dave Anderson, Council Member
Julie Deshler, Council Member
Joe Selton, Council Member
Mark Hoffmann, Council Member
John Budziszewski, Council Member
Janet Moore, Council Member
Tom Mathisen, Director of Public Works
Randy Kloepper, Water Superintendent
Kathi Hemken, Mayor
John Elder, Council Member
Dan Stauner, Council Member
Andy Hoffe, Council Member
Kirk McDonald, City Manager
Guy Johnson, Director of Public Works
GOLDEN VALLEY COUNCIL: Shep Harris, Mayor
DeDe Scanlon, Council Member
Paula Pentel, Council Member
Mike Freiberg, Council Member
Joanie Clausen, Council Member
GOLDEN VALLEY STAFF: Tom Burt, City Manager
Jeannine Clancy, Director of Public Works
Sue Virnig, Finance Director
Jeff Oliver, City Engineer
Bert Tracy, Public Works Maintenance Manager
Dave Lemke, Utilities Supervisor
Pat Schutrop, Recording Secretary
OTHERS: Bernie Bullert, Minneapolis Director, Water Treatment and
Distribution Services
Bonnie Morey, SEH, Inc., Facilitator
Brian Letson, Barr Engineering Company
Karen Chandler, Barr Engineering Company
Todd DeJournett, Barr Engineering Company
Jennifer Koehler, Barr Engineering Company
Sue Webber, Sun Newspapers
Steve Nelson, Bolton & Menk
Noint Water CommissionUM Minutes12012 JWC MinutesW5-07-2012 Tri -City Council Minutes.docx
AGENDA
The City Councils and staff of Crystal, Golden Valley, and New Hope received two
presentations and discussed the following:
1. Update on the Feasibility of Backup Water Supply
2. Update on Surface Water issues in the Vicinity of Winnetka Avenue and Medibine
Lake Road, Terra Linda Drive, and DeCola Ponds Neighborhood
Bonnie Morey recapped the direction given by the City Councils at the May 11, 2011 Tri -
City Council meeting and facilitated the discussion.
1. Update on the Feasibility of Backup Water Supply
A backup water supply is required as part of the Joint Water Commission's (JWC)
comprehensive plan. Staff from Barr Engineering Co. presented their findings on potential
risks that could affect delivery of water from Minneapolis, update on the emergency supply
work since the May 11, 2011 meeting, and requested future direction.
Minneapolis depends on the Mississippi River for its supply and is currently working on an
emergency backup water supply plan. Bernie Bullert reported that a cost analysis has not
been developed yet, but would likely be ready for the Water Advisory Board to consider at
its meeting on August 23, 2012.
The New Hope well is the only backup supply source for the JWC at this time. However, the
water from this well would not produce enough water to meet the needs of all three cities.
The proposal is to activate the New Hope well and drill three additional wells. In total, the
wells would produce about 5.5 to 6.8 MGD which is the average daily use now received
from Minneapolis. The well water would be unsoftened, be of a constant temperature, and
have a slightly lower pH. Mitigation measures will be proposed to treat the iron taste in the
well supply.
If the JWC decides to drill the wells and activate the New Hope well, Barr estimates it could
be operational within one year. However, the JWC may decide to phase the project out over
any number of years, up to and including 10 years. The approximate cost to construct and
make operational all four wells would be about $4.2 million. Cost sharing options have not
been discussed with Minneapolis.
The three cities took a short caucus to decide if adopting a resolution to develop a feasibility
study is practical by June 1 or wait for Minneapolis to provide its backup water supply plan.
According to Barr, the estimated cost for the feasibility study would be about $20,000 to
$25,000 and would take about two months to prepare. The study could include ongoing
costs of the wells. The current JWC capital improvement program has the funding for the
study.
All three cities will consider a resolution by June 1, 2012 giving direction to the JWC to
prepare the feasibility study for an emergency backup water supply plan.
2. Update on Surface Water Issues in the Vicinity of Winnetka Avenue and Medicine Lake
Road, Terra Linda Drive. and DeCola Ponds Neighborhood
Barr presented an update to the Phase I study that included a history of the area, a flood
mitigation analysis, summary of what has been done, and recommended alternatives and
costs. All three cities contribute runoff to the flooding problem (50% in Golden Valley, and
Moint Water CommissionVWC Minutes12012 JWC Minute05-07-2012 Tri -City Council Minutes.docx 2
25% in Crystal and New Hope, respectively). Hennepin County's portion contributes about
1 % of the drainage area. Golden Valley staff is proposing a Phase II study that would
investigate solutions and costs more in-depth. The estimated cost is $116,000 ($93,000 for
the study and $23,000 for contingencies). The cost breakdown would be as follows:
Golden Valley $58,000
Crystal $29,000
New Hope $29,000
In the past, the Bassett Creek Watershed Management Commission (BCWMC) looked at
the drainage problem, but determined it was the local cities' responsibility. The current
BCWMC capital improvement program includes the re -sizing of the Honeywell Pond which
would give some cost savings and the Phase II study would take that into account.
Council members asked that information regarding grants and future funding options be
included in the Phase II study. Golden Valley staff will prepare cooperative agreements for
the three cities to consider.
OTHER BUSINESS
No other business items were discussed.
ADJOURNMENT
MOVED by Golden Valley Council Member DeDe Scanlon, seconded by Golden Valley
Council Member Mike Freiberg, and carried unanimously to adjourn the meeting.
The meeting adjourned at 8:36 p.m.
Respectfully submitted:
Pat Schutrop, Recording Secretary
1:1Joint Water CommissionUWC Minuteat2012 JWC MinutesW"7-2012 Td -City Council Minutes.doex
rJ
City of New Hope
Resolution No. 09 -
Resolution authorizing the Joint Wafter Commission
to prepare a feasibility study to site and drill wells,
including coordination with the city of Minneapolis water works
WHEREAS, the Joint Water Commission (JWC) is a joint powers entity authorized by
Minnesota Statute 471.59 consisting of the cities of Crystal, Golden Valley,
and New Hope, initiated in 1963; and,
WHEREAS, based on this agreement, the three cities built their water distribution
systems to be interconnected without reference to city boundaries; and,
WHEREAS, the JWC has an ongoing long-term water purchase agreement with the
city of Minneapolis water utility and intends to continue that
relationship; and,
WHEREAS, the JWC continues to have concerns regarding the reliability of the
Mississippi River as the sole water supply source for the city of
Minneapolis and its customers; and,
WHEREAS, in 2009 the JWC and, separately, each of the three member cities, adopted
a Water Supply, Emergency and Conservation Plan to comply with
Minnesota Statute 473.859, and said statute requires the JWC and the
three member cities to identify and develop an emergency source of
water supply; and,
WHEREAS, the JWC has identified groundwater from the Prairie du Chien/Jordan
aquifer to be a viable alternative water supply on an emergency basis;
and,
WHEREAS, at the direction of the three City Councils at the May 11, 2011 tri -Council
meeting, the New Hope municipal well has been examined, tested, and is
receiving authorization from the Minnesota Health Department to be
brought online in the event of a water shortage emergency, and,
WHEREAS, legislation was passed during the 2004 legislative session authorizing the
JWC to drill wells to meet the needs of the three member cities on a case
by case basis; and
WHEREAS, by drilling three additional wells it would be possible to meet the typical
non -summer related needs for all water users in the three cities in the
event of a failure of Minneapolis to supply water to the JWC.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the city of New Hope,
Minnesota:
That the JWC retain the required engineering and related technical services to
prepare a detailed feasibility study to develop and implement a capital
improvement plan and budget that includes:
1. Final preparation of the New Hope well for use if it becomes necessary.
2. Identification of well sites including well head protection considerations.
3. Preliminary design of the connections from the wells to the distribution
system.
4. Total cost estimate including alternative time period construction and related
financing plans, and cost estimates for long term maintenance of the
emergency system;
AND FURTHER, that said study is brought back to the JWC and three City
Councils for further action.
Adopted by the City Council of the city of New Hope, Hennepin County, Minnesota,
this 29th day of May, 2012.
Mayor
Attest:
City Clerk
E
ENVIRONMENTAL
FINANCIAL
GROUP
INC
1515 N Astor St, Ste 5C
Chicago 60610-5792 USA
1 +1312 860 5767
F +1312 278 0259
2 May 2012
Ms. Jeannine Clancy, Director of public Works
City of Golden Valley
7800 Golden Valley Rd.
Golden Valley, MN 55427
Proposed Task Authorization: JWC Unbilled Water Repayment Analysis
Dear Ms. Clancy.
Environmental Financial Group, Inc. ("EFG") is pleased to submit to you and the City of Golden Valley
("Golden Valley") and the Joint Water Commission (JWC') this letter proposal requesting a task authorization
to assist in resolving an unbilled water repayment matter involving the JWC and the City of Minneapolis
(Minneapolis).
Project Understanding
The JWC takes delivery of a portion of the water purchased from Minneapolis through two meters immediately
upstream of the Golden Valley Reservoir, a treated water storage facility owned by the JWC and operated and
maintained by Golden Valley. For several years, these two Golden Valley meters have been improperly
recording the amount of water delivered into the reservoir. (A third meter located at the Crystal Reservoir also
records the delivery of a portion of Minneapolis water, but this meter has been functioning correctly during this
period of time.) In 2011 the JWC replaced the meters and periodically tested their accuracy by comparing
metered flows with reservoir water elevation readings. By the end of 2011, a full year of data was recorded that
both the JWC and Minneapolis agree provide a good basis for adjusting past unbilled water amounts.
Representatives from Minneapolis prepared a preliminary analysis of the 2011 data to derive an unbilled water
benchmark of 15.3 percent, proposing that this benchmark now be used to adjust 2005 to 2010 billings (a period
of six years). This analysis concluded that the JWC owes about $1.6 million for these past underpayments.
Ms. Jeannine Clancy, City of Golden Valley
Proposed Task Authorization: Minneapolis Backbiling Matter
Last month, the JWC asked EFG to prepare a draft memorandum outlining conclusions as to the efficacy of the
Minneapolis analysis and offering recommendations for proceeding to resolve the matter and structure a
payment plan. This memorandum was shared with the JWC Managers on 30 April at their regularly scheduled
meeting. The JWC Managers have reviewed the situation and are now soliciting a proposal from EFG to assist
the JWC to develop and present a counter -proposal and repayment plan to Minneapolis.
Objectives
The goals of this assignment are as follows:
• Develop an analysis setting forth a counter -proposal to the proposed Minneapolis repayment.
• Develop recommendations as to a viable repayment plan.
• Attend a meeting with the JWC to present the counter -proposal and solicit their input.
• Attend a meeting with Minneapolis representatives to present the counter -proposal and assist in
negotiating a repayment plan and related matters.
• Attend a meeting with the JWC to present the final negotiated settlement.
Scope of Services
The following tasks are proposed to achieve these goals.
Task 1 I Develop Counter -Proposal Analysis and Repayment Pian
EFG shall prepare a counter -proposal analysis and repayment plan incorporating input from JWC staff and
legal counsel. EFG shall distribute a draft of the analysis and repayment plan to JWC managers and staff, solicit
input, finalize it, and submit a final version in letter report format.
Task 2 1 Meetings
EFG shall participate in the following meetings.
Teleconferences with JWC staff, JWC managers, and others as requested.
One meeting with Minneapolis representatives.
Two meetings with the JWC managers.
Schedule
It is expected that a meeting with Minneapolis could occur as early as mid-June, but it is understood that aspects
of this schedule will be directed by others.
Page 2
Ms. Jeannine Clancy, City of Golden Valley
Proposed Task Authorization: Minneapolis Backbilling Matter
Budget
These services are proposed to be conducted by myself at an hourly rate of $175.00, not to exceed $15,400.
Invoices will be submitted monthly. No others will be assigned to this work without prior JWC approval.
We appreciate the opportunity to submit this proposal to you and the JWC and look forward to your favorable
response. We stand ready to begin work as soon as we receive verbal notice to proceed.
Thank you.
Very Truly Yours,
ENVIRONMENTAL FINANCIAL GROUP INC
Dighmily signed 1n ,emcoff Harder
DN: a Swft Nan46 q o — mkunmeuW
).A&, f Wndai Gmup Inc,email.seharder*efgcom,
o -us
Drte 2012A5A21 S51:11.06W
Scott E. Harder, President and CEO
Cc: Bert Tracy, Public Works Maintenance Manager, City of Golden Valley
Page 3
May 1, 2012
Ms. Bonnie Morey
Manager of Learning and Development
SEH, Inc.
3535 Vadnais Center Drive
St. Paul, MN 55110-5196
Subject: Joint Water Commission
Meeting Planning and Facilitation Services
Dear Bonnie:
Please find enclosed a signed copy of the letter proposal to provide facilitation
services at the Joint Water Commission Tri -City Council meeting on May 7, 2012,
as approved by the Joint Water Commission at its April 30, 2012 meeting.
If you have any questions, please contact me at 763.593.8035.
Sincerely,
Jea ine Clancy
Director of Public Works
Enclosure
C: Joint Water Commission
G:1 WC\CorreslTransmit_FacilitationAgmt_SEH.docx
?h. c°3-6 i _ .
Building a Better World
for All of Us"
April 25, 2012
Joint Water Commission
C/O Ms. Jeannine Clancy
City of Golden Valley
7800 Golden Valley Rd.
Golden Valley, MN 55427-4508
Dear Ms. Clancy:
RE: Joint Water Commission
Meeting Planning and Facilitation Services
Thank you for the opportunity to present this brief letter proposal to the Joint Water Commission to
Provide facilitation services at the Joint Water Commission, Tri -City Council meeting on May 7, 2012.
This meeting will consist of two main agenda items: update on the feasibility of a back-up water supply
and update on surface water issues.
SEH will work with you and the Joint Water Commission to plan the meeting, develop an appropriate
agenda, and facilitate the May 7 meeting.
SEH proposes to provide the above facilitation services on an hourly basis of $150/hour. SEH estimates
a total of 8 to 12 hours for these services.
We look forward to working with you and the Joint Water Commission in your efforts to move forward with
directives for both the back-up water supply and surface water issues.
Sincerely,
-, Of�,yM.,���
Bonnie Morey
Manager of Learning and Development
14-
Accepted on this �,6 day of r ( 201;,
Joint Water Commission
By:
Title: f^