10-02-2013 JWC Agenda PacketAGENDA
JOINT WATER COMMISSION
October 2, 2013 - 1:30 p.m.
Council Conference Room
Golden Valley City Hall
1. Call to Order
2. Approval of Minutes —September 4, 2013
3. Amendment to Minneapolis Water Agreement (Harder)
4. Consider TAC Recommendation on Design Consultant Selection —JWC Emergency Backup Water
Supply Plans and Specs, Award Contract (Mathisen)
5. Update on County Road 9 and JWC Pipeline Project (Mathisen)
a. Golden Valley Memo
6. Crystal Reservoir Fencing (Kloepper)
7. Other Business
8. 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.
JOINT WATER COMMISSION MINUTES
Golden Valley - Crystal - New Hope
Meeting of September 4, 2013
The Golden Valley — Crystal — New Hope Joint Water Commission meeting was called to order at
1:36 p.m. in the City of Golden Valley Council Conference Room.
Commissioners Present
meeting as
h Scott
3olton &
;ineers and
rr. The goa!
fore the
plan. The
eting. The
and then
Approve Purchase of 30- and 36 -inch PCP Repair Materials
In follow up to the emergency watermain break that occurred in Robbinsdale during the June
storms, the JWC directed staff to purchase replacement materials to have on hand in the event a
break like this should occur again. Payment for the parts purchase will be charged to the emergency
repair of the 36 -inch watermain.
I:\Joint Water Commission\JWC Minutes\2013 JWC Minutes\09-04-13 JWC Minutes.doc
Joint Water Commission
September 4, 2013
Page 2 of 2
MOVED by McDonald, seconded by Norris to approve the proposal from Minnesota Pipe and
Equipment in the amount of $37,612.66 for necessary repair parts for 30- and 36 -inch PCCP pipe
based on a failure in a straight run of pipe. Motion carried.
Mathisen reported some work still needs to be done regarding G^"ateFal damage with Robbinsdale.
Crews are jetting the line. The total cost of the emergency repair will be about $500,000.
County Road 9 Trunk Watermain Proiect Update
Mathisen said the project is still on schedule to go out for bids this winter with construction starting
in April or May. Clancy added Mitch Hoeft is in the process of contacting Bergerson-Caswell to look
at the water model and find out what the cost will be for the City to manage the model.
Next Meeting
The next scheduled meeting is October 2, 2013 at 1:30
Adjournment
Chair Burt adjourned the meeting at 1:58 p.m.
Pat Schutrop, Recordi
I:\Joint Water Commission\JWC Minutes\2013 JWC Minutes\09-04-13 JWC Minutes.doc
rt, Chair
AMENDMENT NO.2
MINNEAPOLIS -JOINT WATER COMMISSION
WATER AGREEMENT- 2004
AMENDMENT TO CONTRACT NO. C-22438
This agreement is made and entered into as of the day of , 2013, by and between the City of
Minneapolis, a Minnesota home rule charter city in Hennepin County, Minnesota, and the Joint Water Commission
("JWC"), a joint powers board formed pursuant to Minn. Stat. § 471.59 by the cities of Golden Valley, Crystal and
New Hope, Minnesota, all Minnesota cities in Hennepin County, Minnesota,
WITNESSETH:
RECITALS
WHEREAS, the City of Minneapolis operates a municipal water system known as the Minneapolis Water Works
("MWW"); and,
WHEREAS, the City of Minneapolis and the JWC have previously entered into an
Agreement for the City to supply water to the JWC to be effective as of the 1 st day of January
2004 entitled "Minneapolis- Joint Water Commission Water Agreement- 2004"; and,
WHEREAS, the City and JWC deem it to be appropriate to make amendments to that Agreement as specified herein.
NOW THEREFORE, it is mutually agreed as follows:
I. That definition "I" on page 3 be replaced with the following language:
"Minneapolis Inside City Residential Rate".: The published price charged to residential customers
living within the Minneapolis city limits is expressed as a fixed charge by meter size and on a
dollar per hundred cubic feet (HCF) basis for service volume consumption. The published price
may involve a rate structure involving more than a single rate per HCF, based upon season,
volume of water consumed or any other variable factor that is reasonable. The JWC rate will be
based on the percentage of the Minneapolis Inside Residential Rate as determined by the "Cost of
Service Methodology" as described in Section 1 "E" using the Cost of Service analysis of Section
6 (B). Between wholesale costs of service studies, each intervening -year rate charge shall be
based on the monthly cost change to a Minneapolis residential customer when the City adopts
retail rates in its annual budget process. This cost shall be calculated by the % change year over
year for an inside -city residential customer using a 5/8" meter and 7 billing units of water in a
month. Therefore, the monthly cost for a residential customer is the sum of the monthly fixed
cost for a 5/8" meter and the cost for 7 units of water per month. These rate increases will be
based on rounding to the nearest one-hundredth of a per cent. The new rate to JWC will be
rounded to the nearest cent.
II. That Section 3: "Supply of water" paragraph A. be replaced with the following language:
The MWW will deliver up to the maximum amount of 21 million gallons of water per day. Both
parties agree to develop and maintain a daily delivery schedule considering the water demand
profile of the JWC and its' storage volume available and the JWC agrees to make all reasonable
efforts to operate an "off peak" delivery schedule and limit any "on peak" usage. The peak hours
shall be as defined in the Northern States Power Company "Minnesota Electric Rate Book" as
approved by the Minnesota Public Utilities Commission or by its successor as it exists at the time
of usage. If Minneapolis would need to activate its groundwater backup supply in an emergency
situation after it is operational by this agreement, Minneapolis may call and ask the Joint Water
Commission to not draw any water from Minneapolis but rather use its own emergency water
supply during the emergency in Minneapolis. Minneapolis will make every effort to minimize the
time period the JWC would need to operate its emergency water supply.
III. That in Section 3 "Supply of water", paragraph F be added as follows:
F.
(a) The parties understand that Minneapolis is planning to drill groundwater wells so
that it will have the ability to augment or replace all or a portion of its surface
water supply with the water from these groundwater wells. The parties
understand that in the future the City of Minneapolis may be using groundwater
for one of two purposes:
(i) Provide temperature control, hardness control, or very short-term
interruptions that could occur on the river. In these types of instances
the groundwater would be used seamlessly to provide a continuous
supply of softened drinking water to all customers, including customers
of the Joint Water Commission. This could occur when the groundwater
supply reaches a fourth of its ultimate design capacity.
(ii) Provide a backup supply of water (emergency source) to supplement or
substitute for Minneapolis' own surface water supply. This will occur
when the groundwater supply reaches full design capacity.
(b) The parties understand that Minneapolis intends to keep its operating expenses,
depreciation, and return on capital separate related to water supplied through its
surface water supply and to water supplied through its groundwater supply as
outlined above in subparagraph (a) (i) and in subparagraph (a) (ii).
(c) In the event that Minneapolis should begin using groundwater as described in
subparagraph (a) (i) to substitute for surface water on an occasional basis for
distribution to customers inside and outside of Minneapolis that are part of the
Minneapolis system, then Minneapolis and the Joint Water Commission shall in
good faith negotiate the parameters of a new cost of service model based on the
prior methodology. These changes in the cost.of service study caused by a
planned use of groundwater by Minneapolis shall be effective for the three-year
study period following Minneapolis' implementation of groundwater as a source
of supply pursuant to subparagraph (a) (i). The new cost of service model shall
allow Minneapolis to include costs related to its production of surface water
including groundwater used as specified in subparagraph (a) (i).
(d) The new cost of service model will exclude the costs of Minneapolis
groundwater being constructed and maintained for use as a backup source of
supply pursuant to subparagraph (a) (ii) from the cost model used to determine
1WC rates while permitting the Joint Water Commission to produce its own
groundwater. These changes in the cost of service study caused by the planned
use of groundwater by Minneapolis as a backup source of supply shall be
effective for the three-year study period following Minneapolis' full or partial
implementation of groundwater as a backup source of supply pursuant to
subparagraph (a) (ii).
IV. That in Section 6, "water rate", paragraph B, be amended by adding the following:
It is hereby agreed to amend the 5 -year interval for cost of Service studies to a 3 -year
cycle. The last basis year used was 2012. For the remainder of the contract, the cost of
service basis years will be 2015, affecting rates starting in 2017; in 2018, affecting rates
starting in 2020; and this last cycle shall run to the end of the contract.
For future cost of service studies, the volume used for the base year cost of service
calculations shall be an average of the three years, including the base year and two prior
years, rather than the single year. For example, the 2015 cost year will be studied in 2016
and the volumes used shall be the average volumes for 2013, 2014, and 2015.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day
and year first above written.
WITNESSETH:
CITY OF MINNEAPOLIS
Printed Name of Department Head
Signature of Department Head
Approved as to Form:
City Attorney/Assistant City Attorney
Printed Name of Finance Officer/Designee
Signature of Finance Officer/Designee
Date
091813 Amen dment2JWC0.docx
JOINT WATER COMMISSION
Thomas D. Burt, Chair
Joint Water commission of Crystal,
Golden Valley and New Hope
ENVIRONMENTAL
FINANCIAL
GROUP
INC
1515 N Astor St, Ste 5C
Chicago 60610-5792 USA
T +1 312 860 5767
F +1 312 278 0259
2 October 2013
Mr. Tom Burt, Chair
Joint Water Commission
c/o City of Golden Valley
7800 Golden Valley Road
Golden Valley, MN 55427
Minneapolis Water Rate Review — Supplemental Services
Dear Mr. Burt:
Environmental Financial Group, Inc. ("EFG") is pleased to submit to you and the Joint Water Commission
("JWC") this letter proposal to conduct a review of proposed City of Minneapolis ("City") water rates and to
participate in related discussions and negotiations.
Project Understanding
Over the past several months, the JWC has been participating in a contract and cost of service analysis review
process with the City of Minneapolis. Release of a final proposed amendment to the JWC Water Purchase
Agreement is now imminent. EFG has assisted the JWC in this review. The JWC is now poised to initiate a
final review and approval of this amendment, including communications with its city councils and council
actions as necessary. The JWC is seeking to document the proposed amendment and impacts on the JWC and
its water customers, and receive specific recommendations as to the benefits and impacts of the amendment to
JWC customers.
Goals
The goals of these supplemental review services are as follows:
• Review the final proposed amendment as submitted by Minneapolis.
• Advise the JWC as to the impacts on this amendment.
• Document the changes and related recommendations in a letter report.
Mr. Tom Burt, Chair Joint Water Commission
Minneapolis Water Rate Review — Supplemental Services
Scope of Services
The following tasks are proposed to reach these goals and objectives.
Task 11 Amendment Report and Documentation
EFG shall review the final amendment document with Minneapolis staff, and seek clarification and/or final
revisions as necessary.
EFG shall confer with JWC representatives during this final review process.
EFG shall prepare a detailed letter report documenting analyses, conclusions and recommendations related to
the proposed amendment to the JWC water purchase agreement.
EFG shall participate in the following meetings. EFG will produce presentation materials, handouts, as required
and requested.
1. One meeting with Minneapolis representatives.
2. One meeting with the JWC.
Schedule and Budget
EFG understands and accepts that the schedule to complete these services will be largely dictated by others.
Assuming a October 15, 2013 release of a final amendment document by Minneapolis, Task 1 is proposed to be
completed by November 15, 2013.
Task 1 services are proposed to be conducted for a total fee not to exceed $5,600.00. Invoices will be submitted
monthly and will itemize costs related to each participating customer city. No other EFG personnel will be
assigned to this work without prior approval.
We appreciate the opportunity to submit this proposal to the Joint Water Commission and look forward to your
favorable response. Thank you.
Very Truly Yours,
ENVIRONMENTAL FINANCIAL GROUP INC
)Vjv "
Scott E. Harder, President and CEO
cc: Jeannine Clancy, City of Golden Valley
Page 2
city of
goldenlov..
valley
Date: September 27, 2013
Public Works Department
763-593-8030 / 763-593-3988 (fax)
To: Tom Burt, City Manager
From: Mitchell Hoeft, P.E. Utility Engineer
Jeff Oliver, P.E. City Engineer
Bert Tracy, Public Works Maintenance Manager
Kelley Janes, Utility Supervisor
Through: Jeannine Clancy, Director of Public Works
Subject: Joint Water Commission's Distribution System Improvements Needed
During CSAH 9 Construction
The Hennepin County Transportation Department will be reconstructing County State Aid
Highway 9 (CSAH 9) beginning in 2014. Part of this project is the removal and replacement of the
Joint Water Commission's (JWC) 36 -inch diameter watermain that transmits water from the City
of Minneapolis to the Crystal reservoir. In addition, the plans also include modifications to the
York Avenue metering vault. The planned work will require that the supply line be out of service
for an extended period of time during the peak JWC consumption months.
The JWC has two options for operation during the time period when the CSAH 9 supply line is out
of commission. The first option is to operate the system utilizing only the Golden Valley reservoir
and the three water towers for storage. The second option is to make modifications to the supply
line piping and meters at the Crystal reservoir to continue to utilize the storage available at that
facility.
Historically, the JWC has an average summer daily use of 7.0 million gallons per day (mgd) and a
historic peak day of approximately 18 mgd. Based upon these water demands, the daily available
water supply with and without the Crystal reservoir in service is as follows:
Average Daily Summer Demand
Without Crystal Reservoir 1.8 days
With Crystal Reservoir 4.5 days
G:\PROJECTS\JWC CSAH 9 Watermain\Memos\Crystal Reservoir Items.dou
Peak Summer D
Without Crystal Reservoir 0.69 days
With Crystal Reservoir 1.75 days
These supply figures do not include a fire demand.
Based upon the above supply figures, it is clear that JWC supply system can provide the daily
water supply without the Crystal reservoir in service. However, this ability to meet the daily
supply assumes that the water supply to the Golden Valley reservoir is uninterrupted and that
there are no major fire demands during peak demand hours. Furthermore, the ability to meet
demand assumes that there are no other major issues with the supply and distribution systems.
However, the operation of the JWC system during the CSAH 9 reconstruction project leaves the
JWC vulnerable if there is an interruption to supply and distribution system near the Golden
Valley reservoir. Should an unexpected interruption occur, the JWC will lose its ability to meet
demands in approximately one day if total demands are in excess of the average daily summer
use. Therefore, based upon acceptable risks in meeting water demands, it is important to have
the Crystal reservoir in service during the CSAH 9 reconstruction project.
In addition to meeting water demands, having the Crystal reservoir in service during the CSAH 9
project is critical from a water quality perspective. If the reservoir is full as an emergency
response measure, with the intent of bringing the reservoir into service only if issues arise at the
Golden Valley location, there is a significant possibility that the stored supply in Crystal will begin
to degrade in quality in a short period of time.
Based upon the above discussion, it is the opinion of Golden Valley Public Works staff that in
order to limit the risks associated with meeting anticipated water demands and the quality of the
product in the Crystal reservoir. It is important to modify the distribution piping at the Crystal
reservoir to allow filling of the reservoir through the distribution system when the Crystal
reservoir pump station is not pumping.
To continue to use the Crystal reservoir as part of the supply and distribution system during the
CSAH 9 project, piping and valve modifications are needed at the Crystal reservoir. Completing
the improvements outlined below will allow the JWC to continue to use the 19 million gallon
Crystal reservoir during the CSAH 9 project.
The following recommended improvements/additions to the Crystal reservoir are needed prior to
the start of the CSAH 9 project:
1. Install a minimum of a 1,000 kW generator to power the Crystal reservoir pumps in case
of power failure. This generator is capable of operating the three pumps at the reservoir.
2. Modify the supply line piping to allow backfilling of the reservoir from the distribution
system. These modifications will provide flexibility in future operations if there are issues
with the 36 -inch supply line into the Crystal reservoir.
G:\PROJECTS\JWC CSAH 9 Watermain\Memos\Crystal Reservoir Items.docx
Therefore, the City of Golden Valley is requesting that JWC authorize the installation of a
generator and modifications to the supply line into the Crystal reservoir as outlined in this
memorandum. These improvements must be completed prior to the start of the CSAH 9
reconstruction project, which is scheduled to being in the spring of 2014. Therefore, the
authorization should include solicitation of design services and quotes, to be approved by the
JWC at the November meeting.
G:\PROJECTS\JWC CSAH 9 Watermain\Memos\Crystal Reservoir Items.doa
Date: October 1, 2013
To: Joint Water Commission
From: Randy Kloepper, Crystal Utilities superintendent
Subject: Crystal reservoir security fencing
Prices were received for the perimeter security fence for the Crystal reservoir. Approximately 1700' of
72" high fencing will be installed with two 4' swing gates and one 12' double swing gate. Fabric will be 9
gauge galvanized chain link with a top rail and bottom tension wire. The install will include an 18" wide
concrete maintenance strip.
Quotes were received from three fencing contractors,
Midwest Fence $55.633.78
Town and County Fence $56,850.00
Century Fence $89,904.32
Please review and advise if you would like to move forward with this project. This project was planned
for and $70,000 was budgeted in the2013 CIP.
Thanks for your consideration
ESTIMATE ! ORDER
4
��a.y. axa+: �-wo"Y .[+'ti++ -cwt k. .eschar+axp+an°x.#�y�C?''y.r'm.�s�w.-��uater�+9�r"s�wa�.✓„�.,v�vz�,.:' 1Y
i �, � K .c '> r �` '�.: J■� : as /�.<� � ",�.
525 E. Villaume Ave.
So. St. Paul, MN 55075
Phone: 651-451-2222 Fax: 651-451-6939
Gopher state (1) Call ID #464
Nearest Intersecting Street
Hudson Page #
Township
Ticket #
Hudson Grid #
County
Company: City of Crystal
Bill To: Same
Date:
9/30/2013
Address: 4141 Douglas Drive N.
Address:
Job No:
City: Crystal State: MN Zip: 55422
City:
State: Zip: Estimator:
Tim A. Schirck
Contact: Randy Kloepper
12' double swing gate
P.O.
2
Job Site Address: Crystal Reservoir
Work Phone
2161 Brunswick Ave. N
Fax #:
Terms
Down Payment
3" terminal posts SS -40
Progress Payment
Crystal, MN 55422
Other Phone
15/8" top rail SS -30
All posts set in 12" x 18" concrete footing
X Bal on Completion
Quantity
Description
Amount
Furnish and install
$ 26,555.00
1700'
6' tall galvanized chain link fence
1
12' double swing gate
2
4' double swing gate
Fence Spcitications
9 Gauge fence fabric and 7 gauge bottom tension wire
3" terminal posts SS -40
2.5" line posts SS -30
15/8" top rail SS -30
All posts set in 12" x 18" concrete footing
1700'
4" x 18" concrete maintenance strip
$ 25,500.00
Footage is approximate and will be billed @ $15.55 for the fence, and $15.00 for maintenance strip
per foot.
""Permit by Owner""
A Service charge of 1.5% (18% annually) will be applied on all past due balances. The
purchaser shall be responsible for any and all collection and legal costs incurred by Midwest
Commercial Fence in the event of this bill becomming past due. Midwest Fence reserves the MATERIALS AND INSTALLATION $ 52,055.00
right to lien the improved property if payment in full as agreed to In this contract is not THIS ESTIMATE VALID FOR 30 TAX -3
received. DAYS FROM ABOVEDATE TOTAL $5F�33.'T8
Owner responsible for establishing correct property and fence lines. Any permits required shall be the sole responsibility of the owner. Owner responsible for
removal of obstructions of every nature which will interfere with the installation of the fence. This contract assumes normal ground conditions. Should rocky or
excessive hard digging be encountered, owner agrees to pay additional costs of such work. Midwest Fence shall furnish only the materials and labor specified in this
contract. Any changes made from the above specifications will be billed at Midwest Fence's current retail prices.
THIS CONTRACT SUBJECT TO ACCEPTANCE BY MIDWEST FENCE'S CREDIT MANAGER.
I accept this contract on behalf of Midwest Fence & Mfg. Co.
Customer Signature Date
Credit Manager Date Salesperson Signature Date
-Thv Best Hama 0" Foace"
To: City of Crystal — Utilities Date of Estimate: 9/19/2013
Randy Kloepper
RE: Reservoir Fence
Furnish & Install:
-1700' of 72" high galvanized chain link fence
-9 gauge galvanized chain link fabric*
-1 5/8" top rail
-7 gauge bottom tension wire
-21/2" line posts
-3" terminal posts
(1) — 12' wide double swing gate
(2) — 4' wide single gates
Terms: Net on Comp.
-posts set in 12" diameter x 18" deep concrete footings above reservoir
-incased in 18" wide x 4" deep concrete mow strip for extra stability
*Total Proiect Price = $56,850.00*
*Fence footage adjusted at $15.50/ linear foot*
*Mow strip adjusted at $15/linear foot*
*Option for 6 gauge chain link fabric = +$1000.00*
Thank you,
Mark Wassink
Commercial Sales
Office (763) 425-5050
Fax (763) 425-9006
Cell (612) 968-4945
markwgtcfence.com
Office (651) 464-7373
ON tuRY FEN Toll Free (800) 328-9558
COMPANY Fax (651) 464-7377
Cell Phone (612) 309-2148
.917 Tltl=_ >tv ARK OF PERh4ANENCF sroush@centuryfence.com
P.O. Box 277, Forest Lake, MN 55025 9/26/2013
Phone: 763-531-1166 Fax: 763-531-1100
Proposal To:
City of Crystal
Randy Kloepper
4141 Douglas Drive North
Crystal, MN 55422
Ship To:
6209 41 st Ave N
Crystal,MN
[FlInstalled ElMaterial Only E Prepaid Freight F]Freight Collect F.O.B. Job Site Delivery Schedule:
Furnish and Install:
17681.f. of chain link fence, 6 ' high overall. Fabric shall be 2" mesh 9 gauge galvanized wire. Line posts
shall be 21/2" O.D and spaced a maximum of 10' on centers. The top rail shall be galvanized (1-5/8" o.d.).
7 gauge tension wire shall be attached along the bottom of the fence fabric.
2 - Single swing gate 4' wide by 6' high. Frame shall be constructed of 2" steel pipe welded at all corners to
form a rigid panel.
1 - Double swing gate 12' wide by 6' high. Frame shall be constructed of 2" steel pipe welded at all corners
to form a rigid panel.
All posts will be plate mounted and anchored to the concrete mow strip.
1768 l.f. of mow strip will be installed before fence installation. The mow strip will be 18" wide by 4" thick.
Material and Labor: $84,121.00
Excludes excavation through rock, frost, or backfill
Excludes locating of private utilities
Proposal is valid for 15 days
5 -79.3 .3c-�,
Total c,s�"
99, 90V,3 D
Acceptance: This proposal when accepted in writing by purchaser and by Century Fence Company's Main Office becomes a contract
between two parties. The conditions on the attached "Terms and Conditions" sheet are made a part of this contract.
Terms of Payment: Net Cash upon receipt of invoice.
tsuyers signature Date Submitted by
Scott Roush