07-02-2014 JWC Agenda PacketAGENDA
JOINT WATER COMMISSION
July 2, 2014 —1:30 p.m.
Council Conference Room
Golden Valley City Hall
1. Call to Order
2. Approval of Minutes—June 4, 2014
3. 2013 Annual Financial Report (Virnig)
4. Resolution 14-01— Designating Depositories for Joint Water Funds (Virnig)
5. Resolution 14-02 — Making Annual Elections for the 2014-2015 Insurance Policy (Virnig)
6. Resolution 14-03 — Adoption of the 2015-2019 JWC Capital Projects (Virnig)
7. Resolution 14-04 — Adoption of 2015 JWC General Fund Budget (Virnig)
8. Update on Emergency Backup Water Supply Project (Pasch ke/Kloepper/Hoeft)
a. Special JWC Meeting —Week of July 21 (Emergency Wells Water Supply Line)
9. Update on County Road 9 Project (Kloepper)
10. Update on Crystal Pump Station Generator Project (Kloepper)
11. Other Business
12. 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
JOINT WATER COMMISSION MINUTES
Golden Valley - Crystal - New Hope
Meeting of June 4, 2014
The Golden Valley — Crystal — New Hope Joint Water Commission meeting was called to order at 1:33
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
Bernie Weber, Operations Manager, New Hope '
Jeannine Clancy, Director of Public Works
Sue Virnig, Finance Director, Golden Valley
Bert Tracy, Public Works Maintenance Supervisor
Kelley Janes, Utilities Supervisor, Golder
Mitch Hoeft, Utilities Engineer, Golden
Pat Schutrop, Administrative Assistant,
Others Present
Steve Nelson, Bolton &
MOVED by McDonald
presented. M21WILca
Pipe Anal or $33
security fenc jec
analysis is nece
Arc Flash Hazard A
Project is kept in the
amounts toward the
the minutes of the May 7, 2014 meeting as
r discussioPtwo new projects were added: Douglas Drive
and Arc Flash Hazard Analysis for $20,000 in 2015. The
(ley rvoir moved from 2014 to 2015. The Douglas Drive pipe
orwar with the Douglas Drive rehabilitation project design. The
HA safety requirements. The Emergency Water Supply Well
n purposes. The cities are each responsible for paying those
A. The formal CIP will be presented at the next JWC meeting for
Award Contract for Emergency Backup Water Supply Proiect
The bid opening took place at 11 am, Wednesday, May 28, in the City of Golden Valley Council
Chambers. The following bids were received:
E.H. Renner & Sons
$1,006,000.00 (cable tool method)
Mark J. Traut Wells
$1,127,605.00 (dual rotary method)
Keys Well Drilling
$1,195,260.00 (cable tool method)
Mark J. Traut Wells uses dual rotary (DR) which is less disruptive and a more efficient construction
method for drilling the wells. Nelson said DR would complete a well in 90 days versus 240 days using the
cable tool (CT) method. The CT method will also generate substantial pounding noise and vibration.
(:\Joint Water Commission\1WC Minutes\20141WC Minutes\06-04-20141WC Minutes.doc
Joint Water Commission
June 4, 2014
Page 2 of 2
Due to the amount of extra time it will take to drill the wells using the CT method and the added noise
impact to the neighborhood, it is the recommendation of Bolton & Menk, Inc. to award the contract to
Mark J. Traut Wells based on the construction method proposed which is better suited to the project.
The TAC discussed the recommendation and agreed with the recommendation made by Bolton & Menk.
MOVED by Norris and seconded by McDonald to award the Emergency Backup Water Supply well
drilling project to Mark J. Traut Wells in the amount of $1,127,605 with simultaneous construction (90
days) to start in September 2014. Motion carried.
The September start date will accommodate the completion of the portion of the CSAH 9 project
involving the shutdown of the Crystal reservoir and therefore redu ' the risk of having to take the
Golden Valley reservoir out of service and the Minneapolis Parkecreation Department's request to
avoid potential conflicts with service at its golf course. If the begins in September, Golden Valley
is confident the well can be completed by December 2014
The watermain portion of the work will be a
watermain segment, there will be one more
JWC directed Bolton & Menk, Inc. to do the
Bert Tracy put together some preliminary operating cd9
test pumping is done, the water will beAiLcted down t
Update on County Road 9 Proiect
The contractor had a late start, but the
installed to some Robbinsdale_resident
The main control pa
Service Agreement,
ATTEST:
Pat Schutrop, Recording Secretary
Rhe next coupiN
ie project that w►
nt for bids for the
to review
In addition to the
to go out for bids. The
rain.
d that when the
ry water services have been
ranges to the completion date.
► room. MMhisen received a Tier 2 Electric
Xcel Energy for the Chair's signature.
2, 2014, at 1:30 p.m.
Thomas D. Burt, Chair
(:\Joint Water Commission\JWC Minutes\2014 JWC Minutes\06-04-2014 JWC Minutes.doc
GOLDEN VALLEY — CRYSTAL — NEW HOPE
JOINT WATER COMMISSION
Financial Statements
and Supplemental Information
Year Ended
December 31, 2013
GOLDEN VALLEY — CRYSTAL — NEW HOPE
JOINT WATER COMMISSION
Table of Contents
INTRODUCTORY SECTION
Page
BOARD OF COMMISSIONERS 1
FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT 2-3
BASIC FINANCIAL STATEMENTS
Government -Wide Financial Statements
Statement of Net Position
4
Statement of Activities
5
Fund Financial Statements
Balance Sheet — Governmental Funds
6
Statement of Revenue, Expenditures, and Changes in Fund Balances —
Governmental Funds
7
Statement of Revenue, Expenditures, and Changes in Fund Balances —
Budget and Actual — General Fund
8
Notes to Basic Financial Statements
9-14
OTHER REQUIRED REPORTS
Independent Auditor's Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance With Government Auditing Standards 15-16
Independent Auditor's Report on Minnesota Legal Compliance 17
INTRODUCTORY SECTION
GOLDEN VALLEY — CRYSTAL — NEW HOPE
JOINT WATER COMMISSION
Board of Commissioners
Year Ended December 31, 2013
Commissioner Position
Tom Burt
Anne Norris
Kirk McDonald
Chairperson
Vice Chairperson
Secretary/Treasurer
-1-
Governmental Unit
City of Golden Valley
City of Crystal
City of New Hope
FINANCIAL SECTION
M NK
CERTIFIED PUBLIC
ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
Board of Commissioners and Management
Golden Valley — Crystal — New Hope Joint Water Commission
REPORT ON THE FINANCIAL STATEMENTS
PRINCIPALS
Thomas M. Montague. CPA
Thomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichren, CPA
Aaron J. Nielsen. CPA
Victoria L. Holinka, CPA
We have audited the financial statements of the governmental activities and each major fund of the
Golden Valley — Crystal — New Hope Joint Water Commission (the Commission) as of and for the year
ended December 31, 2013, and the related notes to the financial statements, which collectively comprise
the Commission's basic financial statements as listed in the table of contents.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
Management is responsible for the preparation and fair presentation of these basic financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
AUDITOR'S RESPONSIBILITY
Our responsibility is to express opinions on these basic financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the basic financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the Commission's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the Commission's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
(continued)
-2-
Malloy, Montague, Karnowski, Radosevich, & Co.. P.A.
5353 WAytita flmd"a,d • Suitt 410 • 4linnra p,.lis. SIN 55416 • Telephone: 9i1-545.0414 • Tr ,f— 951545-0509 • wn x.mmkr. wpm
OPINIONS
In our opinion, the basic financial statements referred to on the previous page present fairly, in all
material respects, the respective financial position of the governmental activities and each major fund of
the Commission as of December 31, 2013, the respective changes in financial position thereof, and the
budgetary comparison for the General Fund for the year then ended, in accordance with accounting
principles generally accepted in the United States of America.
OTHER MATTERS
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management's
Discussion and Analysis (MD&A) be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board (GASB), who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic, or historical context. The
Commission has not presented the MD&A that accounting principles generally accepted in the United
States of America have determined necessary to supplement, although not required to be a part of, the
basic financial statements. Our opinion on the basic financial statements is not affected by this missing
information.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Commission's basic financial statements. The introductory section, as listed in the table of
contents, is presented for purposes of additional analysis and is not a required part of the basic financial
statements. The introductory section has not been subjected to the auditing procedures applied in the audit
of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance
on it.
Prior Year Comparative Information
We have previously audited the Commission's financial statements for the year ended December 31,
2012, and we expressed unmodified audit opinions on the respective financial statements of the
governmental activities and each major fund in our report dated April 30, 2013. In our opinion, the partial
comparative information presented herein as of and for the year ended December 31, 2012 is consistent,
in all material respects, with the audited financial statements from which it has been derived.
OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated May 19, 2014
on our consideration of the Commission's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the Commission's internal control over
financial reporting and compliance.
Q
Minneapolis, Minnesota
May 19, 2014
-3-
BASIC FINANCIAL STATEMENTS
GOLDEN VALLEY — CRYSTAL — NEW HOPE
JOINT WATER COMMISSION
Statement of Net Position
as of December 31, 2013
(With Partial Comparative Information for the Year Ended December 31, 2012)
Assets
Cash and investments
Due from other governmental units
Prepaids
Capital assets
Not depreciated
Depreciated, net of accumulated depreciation
Total capital assets, net of accumulated depreciation
Total assets
Liabilities
Accounts and contracts payable
Deposits payable
Due to other governmental units
Unearned revenue
Total liabilities
Net position
Net investment in capital assets
Restricted for capital improvements
Unrestricted
Total net position
Total liabilities and net position
See notes to basic financial statements
-4-
Governmental Activities
2013 2012
$ 2,020,176 $ 1,915,060
444,395 981,966
20,102 18,341
1,112,017 278,742
1,127,759 1,029,767
2,239,776 1,308,509
$ 4,724,449 $ 4,223,876
$ 36,911
$ 19,879
8,515
8,515
532,617
800,746
68,461
37,421
646,504
866,561
2,239,776
1,308,509
1,001,552
1,203,916
836,617
844,890
4,077,945
3,357,315
$ 4,724,449 $ 4,223,876
GOLDEN VALLEY — CRYSTAL — NEW HOPE
JOINT WATER COMMISSION
Statement of Activities
Year Ended December 31, 2013
(With Partial Comparative Information for the Year Ended December 31, 2012)
Program expenses
Water distribution
Water purchases
Administration and maintenance
Depreciation
Total program expenses
Program revenues — water distribution
Charges for services
Member assessments
Maintenance charges
Total charges for services
Capital grants and contributions
Total program revenues — water distribution
Net program revenue
General revenues
Rental income
Change in net position
Net position
Beginning of year
End of year
See notes to basic financial statements
-5-
Governmental Activities
2013 2012
$ 6,319,979 $ 7,341,453
984,844 612,822
90,826 85,477
7,395,649 8,039,752
7,585,686 8,639,175
29,706 17,500
7,615,392 8,656,675
387,916 30,635
8,003,308 8,687,310
607,659 647,558
112,971 124,060
720,630 771,618
3,357,315 2,585,697
$ 4,077,945 $ 3,357,315
GOLDEN VALLEY - CRYSTAL - NEW HOPE
JOINT WATER COMMISSION
Balance Sheet
Governmental Funds
as of December 31, 2013
(With Partial Comparative Information for the Year Ended December 31, 2012)
Assets
Cash and investments
Due from other governmental units
Prepaids
Total assets
Liabilities
Accounts and contracts payable
Deposits payable
Due to other governmental units
Unearned revenue
Total liabilities
Deferred inflows of resources
Unavailable revenue - receivables
Fund balances
Nonspendable for prepaids
Restricted for capital improvements
Unassigned
Total fund balances
Improvement
Capital Projects
General Fund Fund
Total Governmental Funds
2013 2012
$ 796,873 $ 1,223,303 $ 2,020,176 $ 1,915,060
389,532 54,863 444,395 981,966
20,102 - 20,102 18,341
$ 1,206,507 $ 1,278,166 $ 2,484,673 $ 2,915,367
$ 7,779 $ 29,132 $ 36,911 $ 19,879
8,515 - 8,515 8,515
285,135 247,482 532,617 800,746
68,461 - 68,461 37,421
369,890 276,614 646,504 866,561
372,778
20,102 - 20,102
18,341
- 1,001,552 1,001,552
1,203,916
816,515 - 816,515
453,771
836,617 1,001,552 1,838,169
1,676,028
Total liabilities, deferred inflows
of resources, and fund balances $ 1,206,507 $ 1,278,166 $ 2,484,673 $ 2,915,367
Amounts reported for governmental activities in the Statement of Net Position differ because:
Fund balances - governmental funds
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported as assets in governmental funds.
Cost of capital assets
Less accumulated depreciation
Certain receivables included in net position are excluded from fund balances until
they are available to liquidate liabilities of the current period.
Net position of governmental activities
See notes to basic financial statements
-6-
$ 1,838,169 $ 1,676,028
9,185,303 8,163,210
(6,945,527) (6,854,701)
- 372,778
$ 4,077,945 $ 3,357,315
GOLDEN VALLEY - CRYSTAL - NEW HOPE
JOINT WATER COMMISSION
Statement of Revenue, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended December 31, 2013
(With Partial Comparative Information for the Year Ended December 31, 2012)
Revenue
Member assessments
Charges for services
Nonoperating surcharge
Construction charges
Intergovernmental
Other revenue
Rental income
Maintenance charges
Total revenue
Expenditures
Current
Water purchased
Insurance
Utilities
Labor
Maintenance
Professional services
Administrative charges paid to members
Rent remitted to members
Miscellaneous
Capital outlay
Total expenditures
Net change in fund balances
Improvement
Capital Projects
General Fund Fund
Total Governmental Funds
2013 2012
$ 7,097,923 $ - $ 7,097,923 $ 7,342,781
10,541 - 10,541 11,560
- 850,000 850,000 912,056
387,916 387,916 30,635
112,971 - 112,971 124,060
29,706 - 29,706 17,500
7,251,141 1,237,916 8,489,057 8,438,592
6,319,979
- 6,319,979
7,341,453
28,043
- 28,043
22,409
209,324
- 209,324
198,138
28,697
- 28,697
22,001
109,912
- 109,912
47,762
35,546
- 35,546
29,870
42,164
- 42,164
46,241
112,971
- 112,971
124,060
-
- -
643
-
1,440,280 1,440,280
476,416
6,886,636
1,440,280 8,326,916
8,308,993
364,505 (202,364) 162,141 129,599
Fund balances
Beginning of year 472,112 1,203,916 1,676,028 1,546,429
End of year $ 836,617 $ 1,001,552 $ 1,838,169 $ 1,676,028
Amounts reported for governmental activities in the Statement of Activities are different because:
Net change in fund balances - governmental funds
Capital outlays are reported as expenditures in governmental funds, but are allocated
over the estimated useful lives of the capital assets as depreciation expense
in the Statement of Activities.
Capital outlay
Depreciation expense
Certain revenues included in net position are excluded from fund balances until
they are available to liquidate liabilities of the current period.
Change in net position of governmental activities
See notes to basic financial statements
-7-
$ 162,141 $ 129,599
1,022,093 354,718
(90,826) (85,477)
(372,778) 372,778
$ 720,630 $ 771,618
GOLDEN VALLEY - CRYSTAL - NEW HOPE
JOINT WATER COMMISSION
Statement of Revenue, Expenditures, and Changes in Fund Balances
Budget and Actual
General Fund
Year Ended December 31, 2013
(With Partial Comparative Information for the Year Ended December 31, 2012)
2013 2012
Original and Over (Under)
Final Budget Actual Final Budget Actual
Revenue
Charges for services
$ 8,187,920
$ 7,097,923
$ (1,089,997) $
7,342,781
Nonoperating surcharge
-
10,541
10,541
11,560
Otherrevenue
Rental income
-
112,971
112,971
124,060
Maintenance charges
-
29,706
29,706
17,500
Total revenue
8,187,920
7,251,141
(936,779)
7,495,901
Expenditures
Current
Water purchased
6,907,920
6,319,979
(587,941)
7,341,453
Insurance
30,000
28,043
(1,957)
22,409
Utilities
240,000
209,324
(30,676)
198,138
Labor
45,000
28,697
(16,303)
22,001
Maintenance
-
109,912
109,912
47,762
Professional services
115,000
35,546
(79,454)
29,870
Administrative charges paid to members
-
42,164
42,164
46,241
Rent remitted to members
-
112,971
112,971
124,060
Miscellaneous
-
-
-
643
Capital outlay
850,000
-
(850,000)
-
Total expenditures
8,187,920
6,886,636
(1,301,284)
7,832,577
Net change in fund balances
$ -
364,505
$ 364,505
(336,676)
Fund balances
Beginning of year
472,112
808,788
End of year
$ 836,617
$
472,112
See notes to basic financial statements
-8-
GOLDEN VALLEY — CRYSTAL — NEW HOPE
JOINT WATER COMMISSION
Notes to Basic Financial Statements
December 31, 2013
NOTE 1— SIGNIFICANT ACCOUNTING POLICIES
A. Organization
The Golden Valley — Crystal — New Hope Joint Water Commission (the Commission) was formed under
the authority of Minnesota Statute § 471.59. Its purpose is to provide for the operation and ownership of a
water supply system in and for the Commission. The Commission is governed by a Board of
Commissioners which consists of three members, one from each of the participating cities.
Original construction costs for the water supply system were allocated to the member cities based on
percentages agreed upon in the Joint Powers Agreement. All subsequent operating and maintenance costs
are apportioned to each member city based on water usage. All property acquired under this agreement is
owned by the member cities in proportion to the amount of construction costs each city pays.
The accounting policies of the Commission conform to accounting principles generally accepted in the
United States of America as applicable to governmental units.
B. Reporting Entity
A joint venture is a legal entity resulting from a contractual agreement that is owned, operated, or
governed by two or more participants as a separate and specific activity subject to joint control, in which
the participants retain either an ongoing financial interest or an ongoing financial responsibility. The
Commission, as described above, is considered a joint venture of the cities of Golden Valley, Crystal, and
New Hope, and is included as such in their financial statements.
As required by accounting principles generally accepted in the United States of America, these financial
statements include the Commission (the primary government) and its component units. Component units
are legally separate entities for which the primary government is financially accountable, or for which the
exclusion of the component unit would render the financial statements of the primary government
misleading. The criteria used to determine if the primary government is financially accountable for a
component unit includes whether or not the primary government appoints the voting majority of the
potential component unit's board, is able to impose its will on the potential component unit, is in a
relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon
by the potential component unit. Based on these criteria, there are no component units required to be
included in the Commission's financial statements.
C. Government -Wide Financial Statements
The government -wide financial statements (Statement of Net Position and Statement of Activities)
display information about the reporting government as a whole. These statements include all of the
financial activities of the Commission. The Statement of Activities demonstrates the degree to which the
direct expenses of a given function or segment are offset by program revenues. Direct expenses are those
that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or segment, 2) operating grants and contributions, and 3) capital grants and
contributions. Other internally directed revenues are reported as general revenues.
-9-
NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The government -wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when
a liability is incurred, regardless of the timing of related cash flows. Grants and similar items are
recognized as revenue when all eligibility requirements imposed by the provider have been met.
Generally, the effect of interfund activity is eliminated from the government -wide financial statements.
The Commission applies restricted resources first when an expense is incurred for which both restricted
and unrestricted resources are available.
D. Fund Financial Statement Presentation
The accounts of the Commission are organized on the basis of funds, each of which is considered a
separate accounting entity. The operations of each fund are accounted for with a separate set of
self -balancing accounts that comprise its assets, liabilities, deferred inflows/outflows of financial
resources, fund equity, revenue, and expenditures. Separate fund financial statements are provided for
governmental funds. Major governmental funds are reported as separate columns in the fund financial
statements. The resources of the Commission are accounted for in the following two major governmental
funds:
General Fund — This fund is the Commission's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another fund.
Improvement Capital Projects Fund — This fund is used to account for financial resources set aside
for the construction of infrastructure improvements.
Governmental funds are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. With this measurement focus, only current assets and current
liabilities are generally included on the Balance Sheet. Operating statements of this fund present increases
(revenue and other financing sources) and decreases (expenditures and other financing uses) in net current
assets. Under this basis of accounting transactions are recorded in the following manner:
1. Revenue Recognition — Revenue is recognized when it becomes measurable and available.
"Measurable" means the amount of the transaction can be determined and "available" means
collectible within the current period or soon enough thereafter to be used to pay liabilities of the
current period. For this purpose, the Commission considers revenues to be available if collected
within 60 days after year-end. All significant revenue sources are considered susceptible to
accrual.
2. Recording of Expenditures — Expenditures are generally recorded when a liability is incurred;
however, expenditures are recorded as prepaid for approved disbursements or liabilities incurred
in advance of the year in which the item is to be used.
E. Budget
A budget for the General Fund is adopted annually on the modified accrual basis of accounting.
Budgetary control is at the fund level. All appropriations lapse at year-end.
F. Use of Estimates
The preparation of financial statements, in accordance with accounting principles generally accepted in
the United States of America, required management to make estimates that affect the amounts reported.
Actual results could alter from these estimates.
-10-
NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
G. Receivables
The Commission utilizes an allowance for uncollectible accounts to value its receivables; however, it
considers all of its current receivables to be collectible.
H. Prepaids
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaids. Prepaids are recorded as expenditures/expenses at the time of consumption.
I. Capital Assets
Capital assets are capitalized at historical cost, or estimated historical cost if purchased or constructed.
Donated capital assets are recorded at their estimated fair market value at the date of donation. The
Commission defines capital assets as those with an initial, individual cost of $5,000 or more, which
benefit more than one fiscal year. The cost of normal maintenance and repairs that do not add to the value
of the asset or materially extend asset lives is not capitalized.
Capital assets are recorded in the government -wide financial statements, but are not reported in the fund
financial statements. Capital assets are depreciated using the straight-line method over their estimated
useful lives. Since assets are generally sold for an immaterial amount or scrapped when declared as no
longer fit or needed by the Commission, no salvage value is taken into consideration for depreciation
purposes. Useful lives used range from 5 to 30 years for the distribution system and 30 years for storage
facilities. Construction in progress is not depreciated.
J. Risk Management
The Commission is exposed to various risks of loss related to torts: theft of, damage to, and destruction of
assets; error and omissions; and natural disasters. The Commission participates in the League of
Minnesota Cities Insurance Trust (LMCIT), a public entity risk pool for its general property, casualty, and
other miscellaneous insurance coverages. LMCIT operates as a common risk management and insurance
program for a large number of cities in Minnesota. The Commission pays an annual premium to LMCIT
for insurance coverage. The LMCIT agreement provides that LMCIT will be self-sustaining through
member premiums and will reinsure through commercial companies for claims in excess of certain limits.
Settled claims have not exceeded this commercial coverage in any of the past three years. There were no
significant reductions in insurance coverage in 2013.
K. Deferred Inflows of Resources
In addition to liabilities, statements of financial position or balance sheets will sometimes report a
separate section for deferred inflows of resources. This separate financial statement element represents an
acquisition of net position that applies to future periods and so will not be recognized as an inflow of
resources (revenue) until that time. The Commission has only one type of item, which arises under a
modified accrual basis of accounting, which qualifies for reporting in this category. Accordingly, the
item, unavailable revenue, is reported only in the governmental funds Balance Sheet. These amounts are
deferred and recognized as an inflow of resources in the period the amounts become available.
-11-
NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
L. Net Position
In the government -wide financial statements, net position represent the difference between assets,
deferred outflows of resources (if any), liabilities, and deferred inflows of resources (if any). Net position
is displayed in three components:
• Net Investment in Capital Assets — Consists of capital assets, net of accumulated depreciation,
reduced by any outstanding debt attributable to acquire capital assets.
• Restricted Net Position — Consists of net position restricted when there are limitations imposed
on their use through external restrictions imposed by creditors, grantors, or laws or regulations of
other governments.
• Unrestricted Net Position — All other net position that does not meet the definition of
"restricted" or "net investment in capital assets."
M. Fund Balance Classifications
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
• Nonspendable — Consists of amounts that are not in spendable form, such as prepaid items,
inventory, and other long-term assets.
• Restricted — Consists of amounts related to externally imposed constraints established by
creditors, grantors, or contributors; or constraints imposed by state statutory provisions.
• Committed — Consists of internally imposed constraints that are established by resolution of the
Board of Commissioners. Those committed amounts cannot be used for any other purpose unless
the Board of Commissioners removes or changes the specified use by taking the same type of
action it employed to previously commit those amounts.
• Assigned — Consists of internally imposed constraints. These constraints consist of amounts
intended to be used by the Commission for specific purposes but do not meet the criteria to be
classified as restricted or committed. In governmental funds, assigned amounts represent intended
uses established by the governing body itself or by an official to which the governing body
delegates the authority.
• Unassigned — The residual classification for the General Fund which also reflects negative
residual amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the Commission's policy to first
use restricted resources, and then use unrestricted resources as they are needed.
When committed, assigned, or unassigned resources are available for use, it is the Commission's policy to
use resources in the following order: 1) committed, 2) assigned, and 3) unassigned.
-12-
NOTE 2 — CASH
Cash balances of the Commission are maintained in deposits as authorized by Minnesota Statutes.
Custodial credit risk is considered the most significant risk associated with deposits. In the case of
deposits, this is the risk that in the event of a bank failure, the Commission's deposits may be lost.
Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety
bonds, or collateral. The market value of collateral pledged must equal 110 percent of the deposits not
covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury
bills, notes, and bonds; issues of U.S. government agencies; general obligations rated "A" or better;
revenue obligations rated "AA" or better; irrevocable standard letters of credit issued by the Federal
Home Loan Bank; and certificates of deposit. Minnesota Statutes require that securities pledged as
collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a
trust department of a commercial bank or other financial institution that is not owned or controlled by the
financial institution furnishing the collateral. The Commission has no additional deposit policies
addressing custodial credit risk.
At year-end, the carrying amount of the Commission's deposits was $2,020,176, while the balance on the
bank records was $1,394,274. At December 31, 2013, all deposits were fully covered by federal
depository insurance or collateral held by the Commission's agent in the Commission's name.
NOTE 3 — CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2013 is as follows:
Beginning Completed Ending
Balance Additions Retirements Construction Balance
Capital assets, not depreciated
Construction in progress $ 278,742 $ 991,600 $ — $ (158,325) $ 1,112,017
Capital assets, depreciated
Distribution system
4,837,353
30,493
— 158,325 5,026,171
Storage facilities
3,047,115
—
— — 3,047,115
Total capital assets, depreciated
7,884,468
30,493
— 158,325 8,073,286
Less accumulated depreciation
(6,854,701)
(90,826)
— — (6,945,527)
Net capital assets, depreciated
1,029,767
(60,333)
— 158,325 1,127,759
Total capital assets, net
$ 1,308,509 $
931,267 $
— $ — $ 2,239,776
Depreciation expense is included in the water distribution program in the government -wide financial
statements.
-13-
NOTE 4 — RELATED PARTY TRANSACTIONS
The Commission transacts business with the three member cities affiliated through common ownership of
the joint venture.
A. Revenue and Related Receivables
The Commission charges the member cities for water costs, maintenance, and administrative expenditures
generated in the ordinary course of business, as well as a nonoperating surcharge. Revenue from charges
to the member cities in 2013, along with any remaining receivable, is as follows:
City of Golden Valley
City of Crystal
City of New Hope
General Fund
Revenue
$ 3,098,840
1,941,844
2,067,780
Improvement
Capital Projects
Fund Revenue
$ 371,110
233,325
245,565
Receivable at
December 31, 2013
$ 116,481
165,980
94,340
$ 7,108,464 $ 850,000 $ 376,801
B. Expenditures and Related Payables
The member cities charge the Commission for expenditures incurred or services performed on the
Commission's behalf, as well as an administrative charge. In addition, the Commission remits certain
rental revenues received to the member cities. Expenditures made to the member cities in 2013, along
with any liability remaining at year-end, are as follows:
City of Golden Valley
City of Crystal
City of New Hope
2013
Expenditures
$ 98,381
521,169
108,788
2013 Rental
Revenues Remitted
$ 37,657
37,657
37,657
Included in
Payables at
December 31, 2013
$ 8,689
166,413
52,624
$ 728,338 $ 112,971 $ 227,726
-14-
OTHER REQUIRED REPORTS
MMKR
CERTIFIED PUBLIC
A C C O U N T A N T S
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Board of Commissioners and Management
Golden Valley — Crystal — New Hope Joint Water Commission
PRINCIPALS
Thomas M. Montague. CPA
'Phomas A. Karnowski, CPA
Paul A. Radoscvich. CPA
William J. I Auer, CPA
James H. P.ichten, CPA
Aaron J. Nielsen. CPA
Victoria L. Holinka, CPA
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the basic financial statements of the governmental
activities and each major fund of the Golden Valley — Crystal — New Hope Joint Water Commission (the
Commission) as of and for the year ended December 31, 2013, and the related notes to the financial
statements, which collectively comprise the Commission's basic financial statements, and have issued our
report thereon dated May 19, 2014.
INTERNAL CONTROL OVER FINANCIAL REPORTING
In planning and performing our audit of the basic financial statements, we considered the Commission's
internal control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the basic financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the Commission's
internal control. Accordingly, we do not express an opinion on the effectiveness of the Commission's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the Commission's basic financial statements will not be prevented, or detected and corrected, on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses
may exist that have not been identified.
(continued)
-15-
%h1h,v. \lunt.lt;uc, h.arnn,..1;i, 16d—rvich, & Co.. P.A.
_.i, ,I^I .n i „�•, n AIti ,!v Ir y, i,. . 44;-11,,' • I , I , f , , `);-'_SHS 0569 • wa x.mmkr,,um
COMPLIANCE AND OTHER MATTERS
As part of obtaining reasonable assurance about whether the Commission's basic financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on compliance
with those provisions was not an objective of our audit and, accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
PURPOSE OF THIS REPORT
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the Commission's
internal control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the Commission's internal control and compliance.
Accordingly, this report is not suitable for any other purpose.
Wa&a7, Wim •, K , ' &.4 P. A .
Minneapolis, Minnesota
May 19, 2014
-16-
4MNK =
ERT1FIED PUBLIC
A C C 0 U N T A N T S
INDEPENDENT AUDITOR'S REPORT
ON MINNESOTA LEGAL COMPLIANCE
Board of Commissioners and Management
Golden Valley — Crystal — New Hope Joint Water Commission
PRINCIPALS
Thomas M. Montague. CPA
`I'homas A. Karnowski. CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichren, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA
We have audited in accordance with auditing standards generally accepted in the United States of
America, and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the basic financial statements of the governmental
activities and each major fund of the Golden Valley — Crystal — New Hope Joint Water Commission (the
Commission) as of and for the year ended December 31, 2013, and the related notes to the financial
statements, which collectively comprise the Commission's basic financial statements, and have issued our
report thereon dated May 19, 2014.
The Minnesota Legal Compliance Audit Guide for Political Subdivisions, promulgated by the Office of
the State Auditor pursuant to Minnesota Statute § 6.65, contains seven categories of compliance to be
tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness,
claims and disbursements, miscellaneous provisions, and tax increment financing. Our audit considered
all of the listed categories, except that we did not test for compliance in tax increment financing, because
the Commission does not utilize tax increment financing.
In connection with our audit, nothing came to our attention that caused us to believe that the Commission
failed to comply with the provisions of the Minnesota Legal Compliance Audit Guide for Political
Subdivisions. However, our audit was not directed primarily toward obtaining knowledge of such
noncompliance. Accordingly, had we performed additional procedures, other matters may have come to
our attention regarding the Commission's noncompliance with the above referenced provisions.
The purpose of this report is solely to describe the scope of our testing of compliance and the results of
that testing and not to provide an opinion on compliance. Accordingly, this report is not suitable for any
other purpose.
'hl,&107, %eat,
Minneapolis, Minnesota
May 19, 2014
-17-
Malloy, Montague. Karnowski, Radoscvich, & Co.. P.A.
1353 V1grata Foulcvard • Suit, 410 • Miuocapoli,, NIN 55416 • i'cicphonc: 952.545.0.24 • Tclefm 95:•545-0569 • W—Mmkr..om
Resolution 14-1
July 2, 2014
Commissioner XXX introduced the following resolution and moved its adoption:
RESOLUTION DESIGNATING DEPOSITORIES FOR JOINT WATER FUNDS
BE IT RESOLVED by the Joint Water Commission of the Cities of Golden Valley,
Crystal, and New Hope that the following are named as depositories for funds on deposit
as provided in the Laws of the State of Minnesota:
Wells Fargo Golden Valley
BE IT FURTHER RESOLVED that the following signatories or alternates are
authorized to sign on checks drawn on funds deposited:
General Checking:
Joint Water Chair
Alternate:
Joint Water Vice Chair
BE IT FURTHER RESOLVED that the following shall be authorized to make
investments of Joint Water Funds and shall be authorized to deposit the principal of said
investments in the above named depositories and beneficial to the Joint Water
Commission: Joint Water Chair, Golden Valley's Finance Director; Golden Valley
Accounting Coordinator.
Thomas D. Burt, Chair
ATTEST:
Anne Norris, Vice Chair
The motion for the adoption of the foregoing resolution was seconded by Commissioner
XXX, and upon a vote being taken thereon, the following voted in favor thereof: XXX, XXX,
XXX, and the following voted against the same: XXX, whereupon said resolution was
declared duly passed and adopted, signed by the Chair and his signature attested by the
Vice Chair.
Resolution 14-2 July 2, 2014
Commissioner XXX introduced the following resolution and moved its adoption:
RESOLUTION MAKING ANNUAL ELECTIONS
FOR THE 2014-2015 INSURANCE POLICY
WHEREAS, the Golden Valley -Crystal -New Hope Joint Water Commission must
declare whether or not to waive the statutory limits on tort liability established by Minnesota
Statutes 456.04, and
WHEREAS, the Golden Valley -Crystal -New Hope Joint Water Commission
insurance period begins August 1, 2014 through July 31, 2015.
NOW, THEREFORE, BE IT RESOLVED by the Commissioners of the Golden
Valley -Crystal -New Hope Joint Water Commission that it does not waive the statutory limits
on tort liability established by Minnesota Statutes 466.04 for the 2013-2014 insurance
policy.
Thomas D. Burt, Chair
ATTEST:
Anne Norris, Vice Chair
The motion for the adoption of the foregoing resolution was seconded by Commissioner
XXX and upon a vote being taken thereon, the following voted in favor thereof: XXX, XXX,
XXX, and the following voted against the same: XXX, whereupon said resolution was
declared duly passed and adopted, signed by the Chair and his signature attested by the
Vice Chair.
Resolution 14-03
July 2, 2014
Commissioner XXX introduced the following resolution and moved its adoption:
RESOLUTION ADOPTING THE 2015-2019 CAPITAL PROJECTS FOR THE
GOLDEN VALLEY -CRYSTAL- NEW HOPE JOINT WATER COMMISSION
BE IT RESOLVED by the Joint Water Commission of the Cities of Golden Valley,
Crystal, and New Hope that the Capital Projects for the year 2015 thru 2019 shall be as
listed on attached Schedule A.
BE IT FURTHER RESOLVED by the Joint Water Commission of the Cities of
Golden Valley, Crystal, and New Hope that the sources of financing shall come from each
of the cities based on the current year consumption percentage.
Thomas D. Burt, Chair
ATTEST:
Anne Norris, Vice Chair
The motion for the adoption of the foregoing resolution was seconded by Commissioner
XXX and upon a vote being taken thereon, the following voted in favor thereof: XXXX 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 14-03 - Continued July 2, 2014
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Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: County Road 9 (12-023) City: Crystal
Replace approximately one mile of the Joint Water Commission 36" water transmission line
on County Road 9 from Victory Memorial Parkway to Lake Road. This will be a two year
project spanning years 2014 and 2015.
Starting in 2014, Hennepin County will be reconstructing the portion of County Road 9 in
Robbinsdale from Victory Memorial Parkway to Lake Road. Due to the age of the 36"
watermain, installed in 1963, and conflicts within the roadway corridor the Joint Water
Commission will need to replace the watermain for the length of the project Hennepin County
will share in the cost of this project.
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
750,000
750,000
Funding Sources
2015
2016
2017
2018
2019
Total
JWC
750,000
750,000
Total
750,000
750,000
Prepared By RANDY KLOEPPER
Overview Statement—Executive
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: Security Fence Reservoir (13-030) City: Golden Valley
Security fence installed at the JWC Golden Valley reservoir
74
Security fence is essential to ensure a safe and secure drinking water system
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
35,000
35,000
Funding Sources
2015
2016
2017
2018
2019
Total
JWC
35,000
35,000
Total
35,000
35,000
Prepared By MITCHELL HOEFT, P.E. KELLEY JANES, AND BERT TRACY
Confidential Page 2 6/26/2014
Project Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: Debt Service Payments (14-001) City:
Project Description
In 2014, the Joint Water Commission anticipates selling a bond for $4 million to pay for the
Emergency Water Supply Plan. Debt service payments will start in 2015.
Project Justification
In order to finance the improvements, bonds will need to be sold with a term of 20 years.
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
350,000
350,000
350,000
350,000
350,000
1,750,000
Funding Sources
2015
2016
2017
2018
2019
Total
JWC
350,000
350,000
350,000
350,000
350,000
1,750,000
Total
350,000
350,000
350,000
350,000
350,000
1,750,000
Prepared By
Confidential Page 3 6/26/2014
Project Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: Two Pumps and Valves (14-027) City: Golden Valley
Replace automatic control valves, air release valves and flow meter on two pumps
Automatic control valves, air release valves and flow meters are essential to pump operation at
the Joint Water Commission Golden Valley pump house.
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
70,000
70,000
Funding Sources
2015
2016
2017
2018
2019
Total
JWC
70,000
70,000
Total
70,000
70,000
Prepared By KELLEY JANES AND BERT TRACY
Confidential Page 4 6/26/2014
Project Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: Trunk Valves (15-001) City: Golden Valley
Project Dee -n
Replace trunk valve that do not operate and/or close completely in Golden Valley
Replace trunk valves that do no operated properly so that the portions of the JWC watermain
system can be shut down for repair
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
70,000
70,000
140,000
Funding Sources
2015
2016
2017
2018
2019
Total
JWC
70,000
70,000
140,000
Total
70,000
70,000
140,000
Prepared By KELLEY JANES AND BERT TRACY
Confidential Page 5 6/26/2014
Project Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: Elevated Tower Inspection (15-002) City: Golden Valley
Pr4jt Ike
Inspect the JWC Golden Valley water tower
Project JUSM0- 1
Inspect the condition of the interior "wet" paint and exterior coating of the JWC Golden
Valley water tower. This also provides for cleaning of the tower
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
10,000
10,000
Funding Sources
2015
2016
2017
2018
2019
Total
JWC
10,000
10,000
Total
10,000
10,000
PREPARED By Kelley Janes
Confidential Page 6 6/26/2014
Project Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: North Tower Blast and Repaint (15-003) City: New Hope
---
0=79 0. U
Interior and exterior structure repairs to elevated north tower, along with blasting and
repaint.
tir�ni�art lr�flf�s�ti�s
After careful site investigation, the north tower needs to be blasted and completely repainted.
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
500,000
500,000
Funding Sources
2015
2016
2017
2018
2019
Total
1wC
500,000
500,000
Total
500,000
500,000
Prepared By BERNIE WEBER AND BOB PASCHKE
Confidential Page 7 6/26/2014
Project Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: Trunk Valve Replacements (15-004) City: New Hope
2015-
2017-
2019
015-
2017-
2019 — Replace trunk valve at 7701— 42"d Ave N. (16" Valve on PCCP Water Main)
Projed Justiflation
Replace trunk valves that do not operate properly so that the portions of the JWC watermain
system can be shut down for repair when necessary.
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
70,000
70,000
80,000
220,000
Funding Sources
2015
2016
2017
2018
2019
Total
JWC
70,000
70,000
80,000
220,000
Total
70,000
70,000
80,000
220,000
Prepared By: BERNIE WEBER AND BOB PASCHKE
Confidential Page 8 6/26/2014
Project Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: Install Additional Reservoir Access (15-005) City: Crystal
Install additional maintenance hatched in Crystal reservoir to allow access for
replacement\replacement of the 48" gate valves.
Project Justiic 1
The current 2'X3' access hatches are not large enough to allow replacement or repairs to be
performed on the 48" valve in the underground reservoir.
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
100,000
100,000
Funding Sources
2015
2016
2017
2018
2019
Total
JWC
100,000
100,000
Total
100,000
100,000
Prepared By Randy Kloepper
Confidential Page 9 6/26/2014
Project Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: Install 48" Valve at JWC Golden Valley reservoir (15-006)
City: Golden Valley
Install 48" valve on the Minneapolis 48" main that delivers water to the JWC Golden Valley
reservoir
Installation of a 48" main valve will ensure delivery of water from Minneapolis from either
direction to allow for increased insurance of water to the reservoir
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
150,000
150,000
Funding Sources
2015
2016
2017
2018
2019
Total
JWC
150,000
150,000
Total
150,000
150,000
Prepared By MITCHELL HOEFT, P.E., KELLEY JANES, AND BERT TRACY
Confidential Page 10 6/26/2014
ect Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: Replacements at Pump Station (16-001)
City: Golden Valley
Project Description
Replace two pumps, motors, and motor starters at JWC Golden Valley pump station
Project Justification
Continue with pump, motor, motor starter upgrades at the JWC Golden Valley pump station.
One pump, motor, and starter was replaced in 2010. The four existing pumps are 50 years old
and need to be upgraded.
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
280,000
280,000
560,000
Funding Sources
2015
2016
2017
2018
2019
Total
JWC
280,000
280,000
560,000
Total
280,000
280,000
560,000
Prepared By MITCHELL HOEFT, P.E. , KELLEY JANES, AND BERT TRACY
Confidential Page 11 6/26/2014
Project Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: Replace Reservoir Ladders (2) Tank Grouting and misc. Tank
Repairs, Blasting/Painting Piping (16-002) City: Golden Valley
RrYlJ"t DaC►'i�EleNt
Replace JWC Golden Valley reservoir ladders (2), sandblast and paint interior piping and
metal appurtenances, and interior tank grouting.
g 4
Existing ladders (2) are degraded creating a safety concern. Interior tank maintenance on the
reservoir which is over 50 years old.
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
45,000
45,000
Funding Sources
2015
2016
2017
2018
2019
Total
JWC
45,000
45,000
Total
45,000
45,000
Prepared By MITCHELL HOEFT, P.E., KELLEY JANES, AND BERT TRACY
Confidential Page 12 6/26/2014
Project Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: Replace Reservoir Mud Valves and Install Orifice Plates (16-003)
City _Golden Valley
Replace JWC Golden Valley reservoir mud valves (2) and install two orifice plates on the 24"
influent reservoir pipes at the JWC Golden Valley reservoir
Mud valves are degraded to the point where the valves do not operate. Install orifice plates to
eliminate the use of isolation valves for reducing reservoir influent flow rates. The isolation
valves are for isolating the flow meters for repair. The continued use of the isolation valves as
flow control valves will prematurely wear out the valves.
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
65,000
65,000
Funding Sources
2015
2016
2017
2018
2019
Total
JWC
65,000
65,000
Total
65,000
65,000
Prepared By MITCHELL HOEFT, P.E. AND KELLEY JANES
Confidential Page 13 6/26/2014
Project Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: South Tower Blast and Repaint (16-004) City: New Hope
"ect Description'
Interior and exterior structure repair to elevated south tower, along with blasting and
repaint.
After careful site investigation, the south tower needs to be blasted and repainted.
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
750,000
750,000
Funding Sources
2015
2016
2017
2018
2019
Total
1wC
750,000
750,000
Total
750,000
750,000
PREPARED BY Bernie Weber and Bob Paschke
Confidential Page 14 6/26/2014
Project Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: Gate Valve Replacements (16-005) City: Crystal
Project DeScription,
Replace the 16" gate valves located at 30th and Douglas Dr. 32"d and Hampshire and the 24" valve
at 391h and Douglas Dr.
Project h*11""Oo" I
The swamp coolers at the Crystal pump station provide the cooling of the interior of the pump
room and were installed in 1963 are reaching the end of their life cycle.
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
70,000
70,000
75,000
215,000
Funding Sources
2015
2016
2017
2018
2019
Total
JWC
70,000
70,000
75,000
215,000
Total
1 70,000
1
i 70,000
1 75,000
1 215,000
Prepared By Randy Kloepper
Confidential Page 15 6/26/2014
Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: Inspect and Clean Reservoir (16-006) City: Crystal
Pray ir®n I
Clean and inspect the Crystal 19 million gallon reservoir
Periodically concrete reservoirs require structural inspection and cleaning.
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
30,000
30,000
Funding Sources
2015
2016
2017
2018
2019
Total
JWC
30,000
30,000
Total
30,000
30,000
Prepared By Randy Kloepper
Confidential Page 16 6/26/2014
Project Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: Replace 16" and 18" Watermain on Douglas Dr. (16-007)
City: Golden Valley
Prosect Descflorlon
Replace watermain on Douglas Drive
Replace the 16" and 18" watermain on Douglas Drive as part of the Douglas Drive
reconstruction project. This watermain is 50 years old and should be replaces during the full
reconstruction of Douglas Drive due to the condition of the pipe.
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
800,000
800,000
Funding Sources
2015
2016
2017
2018
2019
Total
J WC
800,000
800,000
Total
800,000
800,000
Prepared By MITCHELL HOEFT, P. E. AND KELLEY JANES
Confidential Page 17 6/26/2014
Project Overview Statement—Executive Summa
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: 54th Avenue Watermain Replacement (16-008) City: New Hope
Project Description
Directional drill watermain down 541h Avenue from Boone Avenue to Winnetka Avenue in
New Hope.
Project Justification
Existing watermain is a concrete pipe that needs to be replaced.
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
720,000
720,000
Funding Sources
2015
2016
2017
2018
2019
Total
J W C
720,000
720,000
Total
720,000
720,000
Prepared By BERNIE WEBER AND BOB PASCHKE
Confidential Page 18 6/26/2014
Project Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: Reroof Crystal pump station (17-002) City: Crystal
Reroof the Crystal pump station
The Pump station was replaced in 1994. In 2010 it was repaired. It will require replacement in
2017 to avoid leaks that would damage the building and the equipment.
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
90,000
90,000
Funding Sources
2015
2016
2017
2018
2019
Total
JWC
90,000
90,000
Total
I
1 90,000
1
1 1
90,000
Prepared By Randy Kloepper
Confidential Page 19 6/26/2014
Project Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: Replacements at Pump Station (17-003) City: Crystal
Kim
Replacement of one 300 hp. motor, pump, and motor starter for #3 pump at Crystal pump station
with a new energy efficient motor, pump, and "soft Start" starter.
Project Jul! I
The current motor and pump were installed in 1963. They will be replaced with an energy
efficient motor to reduce electrical demand on the station and the installation of a "soft start"
starter will allow the motor to ramp up to full operating speed decreasing stress on the motor.
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
175,000
175,000
Funding Sources
2015
2016
2017
2018
2019
Total
JWC
175,000
175,000
Total
175,000
175,000
Prepared By Randy Kloepper
Confidential Page 20 6/26/2014
Project Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: Replace Swamp Coolers (19-00?) City: Crystal
Replace swamp coolers at the Crystal Pump Station
The swamp coolers at the Crystal pump station provide the cooling of the interior of the pump
room and were installed in 1963 are reaching the end of their life cycle.
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
40,000
40,000
Funding sources
2015
2016
2017
2018
2019
Total
JWC
40,000
40,000
Total
40,000
40,000
Prepared By Randy Kloepper
Confidential Page 21 6/26/2014
Project Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: Douglas Drive Pipe Analysis (15-???) City: Golden Valley
Analysis of 16" and 18" JWC watermain on Douglas Drive.
Prior to just replacing the 16" and 18" JWC watermain on Douglas Drive with the 2016
reconstruction project, we will complete leak detection and spot condition analysis of the
pipe to determine whether or not the pipe needs replacement.
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
33,000
33,000
Funding Sources
2015
2016
2017
2018
2019
Total
JWC
33,000
33,000
Total
33,000
33,000
Prepared By: Mitchell Hoeft, P.E. and Bert Tracy
Confidential Page 22 6/26/2014
Project Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
Project Name: Arc Flash Hazard Analysis (15-00?) City: Golden Valley and
Crystal
Pr*dJustifica"Onl
A detailed visual and mechanical inspection, including an infrared themographic imaging,
ultrasonic, voltage and harmonics evaluations. The arc flash analysis will bring the city's
water system in compliance with the NFPA-70E Standard.
Expenditures
2015
2016
2017
2018
2019
Total
Infrastructure
20,000
20,000
Funding Sources
2015
2016
2017
2018
2019
Total
1wC
20,000
20,000
Total
20,000
20,000
Prepared By BERT TRACY AND RANDY KLOEPPER
Confidential Page 23 6/26/2014
Project Name:
Project Overview Statement—Executive Summary
Joint Water Commission Request
Capital Improvement Program
2015-2019
City:
Expenditures 2015 2016 2017 2018 2019 Total
Infrastructure
Funding Sources
2015
2016
2017
2018
2019
Total
JWC
Total
Prepared By
Confidential Page 24 6/26/2014
Resolution 14-04 July 2, 2014
Commissioner XXX introduced the following resolution and moved its adoption:
RESOLUTION OF THE JOINT WATER COMMISSION
ADOPTING THE 2015 GENERAL FUND BUDGET
NOW, THEREFORE, BE IT RESOLVED by the Joint Water Commission that the
appropriations for the General Fund Program for the calendar year 2015 as follows:
GENERALFUND
Expenditures Original Budget
Water Purchased $6,407,050
$46,430
Insurance $35,000
Utilities $240,000
Labor $46,000
Professional Services $115,000
Capital Improvement $2,005,000
$8,894,480
BE IT FURTHER RESOLVED by the Joint Water Commission that the sources of
financing the sums appropriated shall be:
GENERAL FUND
Revenue
City of Golden Valley
City of Crystal
City of New Hope
$3,877,104
$2,429,082
$2,588,294
$8,894,480
Resolution 14-04 - Continued
Thomas D. Burt, Chair
ATTEST:
Anne Norris, Vice Chair
July 2, 2014
The motion for the adoption of the foregoing resolution was seconded by Commissioner
XXX and upon a vote being taken thereon, the following voted in favor thereof: XXX, XXX,
and XXX; 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.