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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 This document is available in alternate formats upon a 72 -hour request. Please call 763-593-8006 (TTY: 763-593-3968) to make a request. Examples of alternate formats may include large print, electronic, Braille, audiocassette, etc. 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^