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04-03-2013 JWC MinutesJOINT WATER COMMISSION MINUTES Golden Valley - Crystal - New Hope Meeting of April 3, 2013 The Golden Valley — Crystal — New Hope Joint Water Commission meeting was called to order at 1:32 p.m. in the City of Golden Valley Council Conference Room. Commissioners Present Tom Burt, City Manager, Golden Valley 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 Jeannine Clancy, Director of Public Works, Golden Valley Bert Tracy, Public Works Maintenance Supervisor, Golden Valley Sue Virnig, Finance Director, Golden Valley Pat Schutrop, Administrative Assistant, Golden Valley Others Present Brian LeMon, Barr Engineering Company David Fischer, Buell Consulting, Inc. Joseph Socha, Moss & Barnett Minutes of February 6, 2013 Meeting MOVED by Burt, seconded by McDonald and motion carried unanimously to approve the minutes of the February 6, 2013 meeting as presented. Average Hourly Rate With No Benefits The average hourly rate with no benefits for the three cities is 24.80. With New Hope's rate remaining the same, the overtime amount was corrected to 37.20. MOVED by Burt, seconded by McDonald and motion carried unanimously to approve the Average Hourly Rate Charged by JWC cities will be $24.80 per hour for straight time and $37.20 per hour for overtime. Verizon Site Agreement Verizon Wireless has requested to place antenna facilities on the JWC tower located on the Golden Valley City Hall campus and construct an equipment building. Two lease agreements are proposed: an antenna site agreement to place three antennas on the JWC water tower, and an equipment building and development agreement for an equipment building on Golden Valley -owned property. A portion of the building would be exclusively used by the City of Golden Valley and a minor PUD agreement will be required. Ownership of the building will transfer to Golden Valley upon completion of the building. The agreements are contingent on approval by both Golden Valley and the JWC. The JWC would have a 5 -year lease with a renewal option for an additional 5 years. The proposed combined building and antenna lease payment would be $28,321 annually, commencing in 2013 (with an annual 3% increase). Each city's share of the lease proceeds will be equal amounts. I:\Joint Water Commission\JWC Minutes\20131WC Minutes\04-03-13 JWC Minutes.doc Joint Water Commission April 3, 2013 Page 2 of 3 An interference study was done with no interferences determined to existing facilities by the proposed installation. Verizon will submit a cashier's check in substitution for the letter of credit or a letter of credit. In the event the lease is terminated or not renewed, Verizon will have 60 days to remove its antenna facility and related equipment from the leased premises, repair the site and restore the surface of the structure. MOVED by McDonald, seconded by Burt and motion carried subject to PUD approval by the Golden Valley City Council and acceptance of a cashier's check as the alternative method for the security payment or a letter of credit. Alternative Water Supply Study Brian LeMon, Barr Engineering Co., will give a presentation of the Emergency Water Supply Preliminary Design and Feasibility Study to the three city councils at the Tri -City Council meeting scheduled for May 23, 2013. LeMon attended today's meeting to review the presentation with the JWC. McDonald suggested starting the presentation with a review of the May 7, 2012 meeting and the direction given by the three city councils at that time. The concept under consideration is construction of three new wells and activating the New Hope well for the emergency water supply. In the event the JWC does not have an emergency water supply from Minneapolis and these wells were constructed, a treatment plant would most likely be necessary. The JWC discussed if treatment is needed, the location of the wells will need to be reconsidered. This system could be used as the main source with added improvements for treatment. LeMon stated they are seeing some resistance from the Department of Natural Resources and the Minnesota Pollution Control Agency regarding digging more wells. The new well locations identified by the JWC are within % mile of the reservoir on publicly -owned property. Considerations will include: 1. Look at interference and contamination 2. Plume contamination and draw down 3. Cost consideration: $4.4 to $4.7 million for all alternative wells Burt would be in favor of digging all the wells at one time and not spread out over time. Barr is also preparing the City of Minneapolis emergency backup water supply plan. LeMon said the regulators are in favor of groundwater as an emergency supply, but also want Minneapolis to keep its surface water supply. Moving from surface water to groundwater might prove to be favorable to the regulators. LeMon estimates the Minneapolis study will be completed within a month. The JWC will wait for Minneapolis to develop its backup water supply plan. LeMon will email the final draft of the presentation to the City Managers and the TAC members to review. I:\Joint Water Commission\JWC Minutes\2013 JWC Minutes\04-03-13 JWC Minutes.doc Joint Water Commission April 3, 2013 Page 3 of 3 Clancy will talk to Bonnie Morey, SEH, if the JWC were to decide to use her to facilitate the meeting. Minneapolis/Golden Valley Water Meter Improvements Cost Update Clancy provided an update of the estimated project costs associated with the JWC/Minneapolis Water Meter Improvement Project. Stantec's original proposal included $49,698 in engineering fees; however, Stantec requested that amount be renegotiated due to changes in project scope and that amount is now $80,341. The City of Minneapolis will be completing all the work on its existing 48 -inch watermain. A change order was issued to cover the installation of a conduit needed to relocate the Xcel electrical line that powers the pump house. A relocation charge was added for Xcel staff to mobilize to the project site to connect/install a new electrical feed to the pump house via the conduit system installed by Magney Construction. MOVED by McDonald, seconded by Burt, and motion carried unanimously to approve the Letter of Agreement between the City of Minneapolis and the JWC that includes the JWC will pay up to 50% of the estimated cost of $150,077 to a maximum of $75,038.50 for its share of the expenses. Minneapolis Water Rate Review — Memorandums of Understanding Burt will contact Scott Harder regarding meeting to discuss the water rate study. The cities of Edina, Bloomington, Columbia Heights and the Metropolitan Airports Commission (MAC) approached the City of Golden Valley about being part of the rate study. Memorandums of Understanding to Retain Professional Services for Minneapolis Water Rate Review were prepared for Edina, Bloomington and the MAC. Columbia Heights did not respond about entering into the agreement. The cost of the professional services will be split between the three communities. MOVED by McDonald, seconded by Burt and motion carried unanimously to approve the Memorandum of Understanding, authorizing Chair Burt to sign the Memorandums of Understanding with Edina, Bloomington and the Metropolitan Airports Commission, and the contract with Scott Harder not to exceed $41,650. Update on County Road 9 Reconstruction and Associated JWC Forcemain Replacement The project is moving ahead and project meetings are conducted on a regular schedule now. The testing report is out and the project will cost more than anticipated. Other Business None. Next Meeting The next scheduled meeting is May 1, 2013 at 1:30 pm. Adiournment Chair Burt adjourned the meeting at 2:54 pm. Thomas :Burt, Chair ATTEST: P t Schutrop, Recording Secretary I:\Joint Water Commission\JWC Minutes\2013 JWC Minutes\04-03-13 JWC Minutes.doc