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07-03-2013 JWC Agenda PacketAGENDA JOINT WATER COMMISSION July 3, 2013 - 1:30 p.m. Council Conference Room Golden Valley City Hall 1. Call to Order 2. Approval of Minutes—June 5, 2013 3. Tri -City Council Minutes for May 23, 2013 Meeting 4. Minneapolis Negotiations (Scott Harder) 5. Recent Storms and Communications (Burt) 6. 2014-2018 CIP Projects (Virnig) 7. Update —County Road 9 Trunk Watermain Project (Mathisen) 8. Other Business 9. 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. 6 2 JOINT WATER COMMISSION MINUTES Golden Valley - Crystal - New Hope Meeting of June 5, 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 Anne Norris, City Manager, Crystal 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 Jeannine Clancy, Director of Public Works, Golden Valley Bert Tracy, Public Works Maintenance Supervisor, Golden Valley Dave Lemke, Utilities Supervisor, Golden Valley Sue Virnig, Finance Director, Golden Valley Pat Schutrop, Administrative Assistant, Golden Valley Minutes of May 1, 2013 Meeting MOVED by McDonald, seconded by Norris to approve the minutes of the May 1, 2013 meeting as presented. Motion carried. May 23, 2013 Tri -City Council Meeting — Recap Barr Engineering Co. presented an update on the feasibility of an emergency backup water supply plan to the Crystal, New Hope and Golden Valley city councils. The three city councils agreed to move ahead with the project and to consider adoption of a resolution at their council meetings. The councils wanted the resolution modified to include development of a finance plan. The commissioners discussed the revised resolution and Norris agreed to modify #3 in the resolution to clarify the JWC will present the recommended financing plan to a Tri -City Council meeting later in 2013. The goal for the fall Tri -City Council meeting will be to discuss the water rates and the financing plan. Clancy will ask Scott Harder to monitor the Minneapolis progress on the rate study. The TAC will determine who will prepare the plans and specifications for the project, and who will develop the request for proposals for the emergency water supply plan. Update on County Road 9 Trunk Watermain Proiect Progress on the project is slow and is yet in the design stage. I:\Joint Water Commission\JWC Minutes\2013 JWC Minutes\06-05-131WC Minutes.doc Joint Water Commission June 5, 2013 Page 2 of 3 Resolution 13-04 Adopting the 2014-2018 Capital Projects for the Golden Valley -Crystal -New Hope Joint Water Commission Commissioner Norris introduced the following resolution and moved its adoption: RESOLUTION 13-04 RESOLUTION ADOPTING THE 2014-2018 CAPITAL PROJECTS FOR THE GOLDEN VALLEY -CRYSTAL -NEW HOPE JOINT WATER COMMISSION The motion for the adoption of the foregoing resolution noted on Scheduled A was seconded by Commissioner McDonald 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 13-04 Adopting the 2014 General Fund Budget of the Joint Water Commission Commissioner Norris introduced the following resolution and moved its adoption of the 2014 budget total of $8,460,671 (assuming a 3% increase in rates): RESOLUTION 13-04 RESOLUTION OF THE JOINT WATER COMMISSION ADOPTING THE 2014 GENERAL FUND BUDGET The motion for the adoption of the foregoing resolution was seconded by Commissioner McDonald 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. Golden Valley Pump Station Generator Exhaust Upgrade The US Environmental Protection Agency (EPA) has updated its rules and new source performance standards. Due to the number of hours used by the JWC generator, the new EPA standards apply and the generator exhaust system is required to be upgraded. Quotes were received from Zeigler Power Systems ($39,996) and Titan Energy Systems ($30,493). MOVED by Norris and seconded by McDonald to award the Golden Valley Pump Station Generator Exhaust Upgrade to Titan Energy Systems in the amount of $30,493. Motion carried. Golden Valley Pump Station Generator Maintenance Quotes were received from Zeigler Power Systems ($28,200) and Titan Energy Systems ($15,947) for a three-year contract for generator maintenance and monitoring. MOVED by Norris and seconded by McDonald to award the Golden Valley Pump Station Generator Maintenance to Titan Energy Systems in the amount of $15,947. Motion carried. I:\Joint Water Commission\JWC Minutes\2013 JWC Minutes\06-05-13 JWC Minutes.doc Joint Water Commission June 5, 2013 Page 3 of 3 Other Business Water Meter Improvement Project Update: Magney Construction installed the pipe at the reservoir and is currently working on pressure testing. KLM Engineering, Inc. inspected the north and south tanks and verbally said the tanks were exceptionally clean. The official results will be sent by the end of the week. Minneapolis is scheduled to install the 48 -inch watermain later this week. The reservoir should be back online shortly. Next Meeting The next scheduled meeting is July 3, 2013 at 1:30 pm. Adiournment Chair Burt adjourned the meeting at 2:22 pm. Thomas D. Burt, Chair ATTEST: Pat Schutrop, Recording Secretary I:\Joint Water Commission\JWC Minutes\2013 JWC Minutes\06-05-13 JWC Minutes.doc Tri -City Council Meeting Minutes Lk] Thursday, May 23, 2013 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 6:32 p.m. on Thursday, May 23, 2013 in the Council Chambers at the City of New Hope City Hall, 4401 Xylon Avenue North in New Hope, Minnesota. New Hope Mayor Kathi Hemken opened the meeting with introductions and turned the meeting over to Bonnie Morey, meeting facilitator. ATTENDANCE Golden Valley Recording Secretary Pat Schutrop recorded the attendance as follows: CRYSTAL COUNCIL Jim Adams, Mayor Laura Libby, Council Member Julie Deshler, Council Member Joe Selton, Council Member Mark Hoffmann, Council Member John Budziszewski, Council Member Casey Peak, Council Member CRYSTAL STAFF: Anne Norris, City Manager Tom Mathisen, Director of Public Works Randy Kloepper, Water Superintendent NEW HOPE COUNCIL: NEW HOPE STAFF Kathi Hemken, Mayor John Elder, Council Member Eric Lammle, Council Member Dan Stauner, Council Member Andy Hoffe, Council Member Kirk McDonald, City Manager Guy Johnson, Director of Public Works Bernie Weber, Utilities Supervisor GOLDEN VALLEY COUNCIL: Shep Harris, Mayor DeDe Scanlon, Council Member Paula Pentel, Council Member Steve Schmidgall, Council Member Joanie Clausen, Council Member GOLDEN VALLEY STAFF: Tom Burt, City Manager Jeannine Clancy, Director of Public Works Sue Virnig, Finance Director Dave Lemke, Utilities Supervisor Pat Schutrop, Recording Secretary OTHERS: Bernie Bullert, Minneapolis Director, Water Treatment and Distribution Services Glen Gerads, Assistant Director, Minneapolis Water Treatment and Distribution Services Bonnie Morey, SEH, Inc., Facilitator Brian LeMon, Barr Engineering Company Tri -City Council Meeting Minutes May 23, 2013 Page 2 AGENDA The City Councils and staff of Crystal, Golden Valley, and New Hope heard a presentation and discussed the following: 1. Update on the Feasibility of Backup Water Supply a. Discuss and Develop Consensus on Direction 2. DNR Drought Monitoring Information Bonnie Morey summarized the direction given by the City Councils at the May 7, 2012 Tri - City Council meeting, reviewed the agenda and the expected outcome for city councils to consider acting on the proposed resolution accepting emergency water supply preliminary design and feasibility study; directing staff to proceed with implementation. A backup water supply is required as part of the Joint Water Commission's (JWC) comprehensive plan. Brian LeMon from Barr Engineering Co. presented a review of their findings on potential risks that could affect delivery of water from Minneapolis, an update on the emergency supply work since the May 7, 2012 Tri -City Council meeting, and direction for next steps on the emergency supply plan. Prior to 2012, the JWC technical advisory committee (TAC) was working out the regulatory requirements to allow use of the existing New Hope well. Barr also performed a water interaction study to determine impacts of adding unsoftened groundwater to the current softened Minneapolis water system. In 2012, the Tri -City Councils directed Barr Engineering Co. to prepare a feasibility study for an emergency water supply by building three wells and activating the New Hope well. Barr estimates the cost to be $4.4 to $4.7 million for development of the emergency water supply. The current plan includes complete preparation of the New Hope well for emergency use. It assumes the new wells will be located in the Prairie du Chien aquifer. Council members expressed concern about the drawdown from the wells and how that will affect private well usage. LeMon did not think the drawdown from the wells would substantially affect the private well users. However, if the emergency supply should dry up any private wells, the JWC is regulated under an appropriation permit and the Minnesota Department of Natural Resources (DNR) would work with the JWC to narrow down the identity of the well(s) and likely ask the JWC to mitigate the impact of the wells. LeMon discussed the risks to residents and businesses if the current supply is interrupted. JWC purchases its water from Minneapolis and Minneapolis currently does not have a backup water supply, but is in the planning stages now for an alternative supply. Barr staff reviewed the Minnesota Pollution Control Agency's contaminants database and identified two contamination plumes near the proposed wells; Joslyn Manufacturing and Supply and Honeywell plume in Golden Valley. However, it was determined that the risk is minimal to the area where the wells will potentially be drilled. Tom Mathisen discussed the DNR's drought monitoring information that supports the importance for communities to have a backup water supply plan in place. He discussed his past participation with the Community Water Suppliers and the bureaucratic delays that can occur if an emergency situation should arise. Tri -City Council Meeting Minutes May 23, 2013 Page 3 Staff from the three cities provided input in the location of the alternatives. The three emergency supply well sites selected are capable of delivering 5.5 to 6.8 mgd to the JWC water system when combined with the New Hope well. All sites investigated are equal in proximity to the reservoir, anticipated to meet Minnesota Well Code requirements and setbacks, and close in cost. Bernie Bullert stated Minneapolis supports the JWC having its own backup water supply and updated the councils on the Minneapolis backup water supply process. Minneapolis did conduct a preliminary study and found that drilling wells is feasible. The study was presented to the Public Works Committee for discussion and support. The Minneapolis Park and Recreation Board was approached to help identify property where the wells could be drilled. The study was presented to the Capital Committee in April and the first phase is proposed in the 2014 budget. Cost estimates will not be determined until the well sites are identified. Bullert estimated by August or September he would know how the process is moving. He estimates a minimum of 10 years before approval. Funding sources are being investigated by Minneapolis through discussions with State Legislature and the Corps of Engineers. Minneapolis intends to drill enough wells to supply water to all of its customers. Financing options for the JWC wells were not discussed in detail. It may be possible to fund the wells through bonding. The JWC CIP budget includes $450,000 annually over the next five years to move ahead for the wells. If cities can finance the program through bonding over 10 to 15 years, payments may be funded from the JWC CIP budget at an amount lower than currently budgeted. After a 10 -minute caucus, the following outcomes were reported for each city: • New Hope is in favor of the project and will consider the resolution at the next City Council meeting. Mayor Hemken proposed language changes to the resolution to include a finance plan. • Crystal is in favor of the project and will consider the resolution at its next council meeting. Crystal also discussed that individual cities consider having their own finance plan. • Golden Valley is in favor of the project and working with the other two cities in developing a finance plan. The JWC will work on the wording of the resolution and redistribute to the cities. The three cities will adopt the resolution before the three city councils meet again, tentatively, in the fall of 2013. OTHER BUSINESS Mayor Harris extended appreciation to all the communities for their involvement in the Memorial Day event that went very well. ADJOURNMENT Mayor Hemken adjourned the meeting at 7:55 p.m. Respectfully submitted: J�e L�a'2 P4 Schutrop, Recording Se retary '0 O 0 V^Co 1 VOOi N O O M O M o v o v S (D N � C 2 m 06 C h N M N v� OC (o w - o 0 3L vdi C > M M V r ti a � a z O O ry N = 3 v v m u v1 v1 ti O N 00 m MIz m 000 00 oc 00 m ni u ` z = 0 0 0 o g 0 0 c 0 0 N n n � m > > z z P% A E> d n > O O y a u > c c o O O O O p U @ pO O O O Yt > j n > O O � T � S 'o W N O a E r a Z m O O O N A m w V tOn V01 O . U Z O O 3 " � ` 'o O o 0 0 0 N v 2 p 0 0 3L n V N � M �. C Z p o N O N 000 1l O W x O x n > Z N o IA ` o o O O m va o x o 0 .•i x' - z N V Wo 0 0 0 � 0 �g�- 0 0 o 0 m x z � uoi W � g6 Bl a 3 o O N n v s Z O O 00 N ti ti 'i 3 s v uO1i 4zN `w - p z z u0i u0i w � 3 N ti r1 u o - t. R N r 0 7 C M � O U m c a c LL N O N c o a o � v � � v C •E A bb 0 (J ? 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