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11-06-2013 JWC MinutesJOINT WATER COMMISSION MINUTES Golden Valley - Crystal - New Hope Meeting of November 6, 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, City Engineer, Crystal Randy Kloepper, Utilities Superintendent, Crystal Bob Paschke, Director of Public Works, New Hope Sue Virnig, Finance Director, Golden Valley Jeannine Clancy, Director of Public Works, Golden Valley Jeff Oliver, City Engineer, Golden Valley Bert Tracy, Public Works Utility Manager, Golden Valley Kelley Janes, Utilities Supervisor, Golden Valley Mitch Hoeft, Utility Engineer, Golden Valley Pat Schutrop, Administrative Assistant, Golden Valley Others Present Scott Harder, Environmental Financial Group, Inc. Bernie Bullert, Director of Water Treatment and Distribution Services, City of Minneapolis Glen Gerads, Assistant Director of Water Treatment and Distribution Services, City of Minneapolis Minutes of October 2, 2013 Meeting MOVED by Norris and seconded by McDonald to approve the minutes of the October 2, 2013 meeting as presented. Motion carried. Amendment to Minneapolis Water Agreement The JWC engaged the services of Scott Harder, EFG, Inc., to work with the City of Minneapolis on the water rate study. Minneapolis hired HDR to take a critical look at the rate study process and what determined the costs to its customers. This current process will result in more transparency, consistency, and demonstrates to Minneapolis customers what they are paying for. Key areas addressed in the amendment include: 1. 2014 water rate will be $1.97/100 cubic feet. This amount is pending approval by the Minneapolis City Council. 2. A revised definition of "Minneapolis Inside City Residential Rate" was replaced in the new amendment. 3. The interval schedule for cost of service studies will change from 5 years to 3 years. 2015 will be the next cost of service cycle affecting rates starting in 2017; in 2018, affecting rates in 2020; and the last cycle will run to the end of the contract. I:\Joint Water Commission\JWC Minutes\2013 JWC Minutes\11-06-13 JWC Minutes.doc Joint Water Commission November 6, 2013 Page 2 of 4 4. Both Minneapolis and the JWC are beginning to develop emergency backup groundwater supply systems. Text was added to the amendment clarifying how the groundwater supply costs will be identified and apportioned resulting in a more equitable and transparent allocation of costs and assurance that the JWC will not be paying for two systems. Bullert added drilling wells is 10 years out because the Minneapolis City Council will not approve drilling right away. 5. The agreement reconfirms both parties will keep the service off peak as much as possible. Peak hours are from 9 am to 9 pm. In the event Minneapolis has an interruption of service, Minneapolis may ask the JWC to draw water from its emergency backup supply during an emergency in Minneapolis. The emergency would be a "true" emergency and not used to manage water quality issues such as temperature or hardness control, etc. MOVED by McDonald and seconded by Norris to direct the JWC Chair to approve the amendment to the Minneapolis Water Purchase Agreement. Motion carried. The commissioners will present to their city councils for information only. Update on Emergency Backup Water Supply Plan The work is focused on locating well sites, meeting with the Minnesota Department of Health and talking to property owners regarding easements. As stated in the feasibility study prepared by Barr Engineering Co., the estimated cost for the wells will be about $4.5 million. Request for proposals were distributed to five consultants and TAC requested Bolton & Menk, Inc. be awarded the contract. An updated 80% design cost estimate will be completed by November 25, but the three cities financial directors can use the $4.5 million knowing that amount will change when the new cost comes in. Burt added the JWC has a lot of projects that need to be completed and asked where the wells will fit in the prioritization process (i.e., faulty pipe may be more important than drilling the wells). Clancy added that looking at the County Road 9 project and what the JWC is committed to, there is about one mile of the JWC 36 -inch water transmission line from Minneapolis that is programmed to be replaced at a 72.5%JWC/27.5% Hennepin County cost share. The estimated total for JWC will be $1,260,733. The JWC has $1,300,000 budgeted which includes replacing the meter vault at York Avenue. Discussion followed regarding the infrastructure and evaluating its integrity. Burt wants the TAC to review the entire CIP and consider drilling the wells in sections. Bolton & Menk, Inc. submitted a professional services agreement in the amount of $128,035. The work scope approach proposed is a two-phase approach. Phase I is the design and bidding ($77,805) and Phase II is providing construction services ($50,230). MOVED by Norris and seconded by McDonald to approve the professional services agreement with Bolton & Menk, Inc. in the amount of $128,035. Motion carried. I:\Joint Water Commission\JWC Minutes\2013 JWC Minutes\11-06-13 JWC Minutes.doc Joint Water Commission November 6, 2013 Page 3 of 4 The TAC will review and update the CIP to coordinate with the County Road 9 project, drilling wells and the Crystal emergency generator. The TAC will report back to the JWC at the December meeting an amended CIP. Update on Crystal Pump Station Emergency Generator and Costs Crystal is continuing to work toward the purchase of a generator from Cat Ziegler. Xcel Energy meter records indicates an 800 kW generator will be able to handle the three 300 ph pumps. The estimated cost is $500,000 and will be brought back to the Commission for financing and approval at the December meeting. Update on Crystal Reservoir Fill from System Project Crystal is looking at removing #5 pump and installing a butterfly valve that would allow backfilling the Crystal reservoir during off hours through that pump column. The flows would not affect the Golden Valley system. Total cost is about $15,000 to remove pump and install the valve. The pump has been recently rebuilt and should not require a total rebuild. Mathisen will be ordering some parts for the project after the first of the year. Approve Leak Detection Study of 36 -Inch Pipeline as Part of County Road 9 Proiect Pure Technologies submitted a budgetary proposal to provide an internal SmartBall inspection for a lump sum cost of $53,300. MOVED by Norris and seconded by McDonald to approve the proposal with Pure Technologies to provide a pipeline inspection as part of the County Road 9 project in the amount not to exceed $53,300. Motion carried. Mathisen will prepare a contract document with Pure Technologies for the project. System Evaluation Due to Pendine County Road Projects Mathisen reported that he will not be getting back to Smart technology because it has some limitations. December 4, 2013 Tri -City Council Meeting The JWC decided to postpone the December 4 Tri -City Council meeting to allow the TAC to meet and evaluate the CIP and for the three cities' finance directors to develop the finance plan for the emergency backup water supply. The meeting will be rescheduled for early January 2014. Clancy will contact Bonnie Morey, SEH, Inc., to see if she is available to facilitate the meeting. Other Business The New Hope City Council approved the contract amount of $49,355 to Dave Perkins Contracting, Inc. for the replacement of one 18 -inch water valve at the intersection of Boone and 54th avenues. MOVED by Norris and seconded by Burt to approve the reimbursement amount of $49,355 to the City of New Hope for the repair of the 18 -inch water valve at the intersection of Boone and 54th avenues in the City of New Hope. Motion carried. I:\Joint Water Commission\JWC Minutes\2013 JWC Minutes\11-06-13 JWC Minutes.doc Joint Water Commission November 6, 2013 Page 4 of 4 Next Meeting The next scheduled meeting is December 4, 2013 at 1:30 pm. Adjournment Chair Burt adjourned the meeting at 3:12 p.m. Thomas D. Burt, C ATTES . Pat Schutrop, Recording Secretary I:\Joint Water Commission\JWC Minutes\2013 JWC Minutes\11-06-13 JWC Minutes.doc