07-03-2013 JWC MinutesJOINT WATER COMMISSION MINUTES
Golden Valley - Crystal - New Hope
Meeting of July 3, 2013
The Golden Valley — Crystal — New Hope Joint Water Commission meeting was called to order at
1:41 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
Randy Kloepper, Utilities Superintendent, Crystal
Guy Johnson, Director of Public Works, New Hope
Jeannine Clancy, Director of Public Works, Golden Valley
Dave Lemke, Utilities Supervisor, Golden Valley
Sue Virnig, Finance Director, Golden Valley
Pat Schutrop, Administrative Assistant, Golden Valley
Others Present
Scott Harder, Environmental Financial Group, Inc.
Minutes of June 5, 2013 Meeting
MOVED by McDonald, seconded by Norris to approve the minutes of the May 1, 2013 meeting as
presented. Motion carried.
Minutes of the May 23, 2013 Tri -City Council Meeting
MOVED by Norris, seconded by McDonald to approve the minutes of the May 23, 2013 Tri -City
Council meeting. Motion carried.
Minneapolis Negotiations
Scott Harder has been working with the City of Minneapolis regarding the Cost of Service Study on
behalf of the JWC. He discussed a letter received from the City of Minneapolis describing what the
JWC and the City of Minneapolis verbally agreed upon regarding the study. To accommodate all
rate structures, Minneapolis is basing rates on 7 hundred cubic feet units of water used. The rate
model shows a change of 2.84% for an average family monthly bill. Using the model, the rate for
JWC customers will be at $1.97 in 2014, up from $1.92 in 2013. Minneapolis also proposed
calculating the consumption and peaking rate on a 3 -year cycle versus the current 5 -year cycle.
There was customer consensus and the JWC contract will be amended to indicate that
understanding. Also negotiated was if Minneapolis starts drilling wells for its emergency backup
supply, the JWC will not be allocated any cost for the emergency wells.
The City of Columbia Heights has not agreed to Minneapolis' proposal and does not expect its city
council to take action until August. Columbia Heights does not agree with the 3 -year and the 7 -unit
benchmark. Minneapolis wanted to achieve customer consensus by July 1, 2013.
The commissioners asked how the City of Bloomington's water usage will affect the model.
Minneapolis assessed that Bloomington was a certain type of customer and based on that type,
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Bloomington and Minneapolis will enter into a new agreement. Bloomington is a big enough
customer to move the rates up by a few cents (up to 5 cents). One of Bloomington's main concerns
is that it does not want to pay for water it does not use. Currently, it pays for 2 mgd of water for
nine months and charged the actual amount of water used for the three summer months.
Bloomington has hired Harder to help with its negotiations with the City of Minneapolis.
Harder is hearing that Minneapolis may be adding some lending language in the amendments
regarding its proposal to build wells for its emergency backup water supply. He recommends the
JWC not issue any bonds or build wells until the JWC has seen this language in the amendment.
Minneapolis is also considering blending groundwater into the river water. If Minneapolis does
blend groundwater with river water, it could not be considered a true backup water supply system.
Burt stated that he will not approach Golden Valley City Council until an agreement is reached
stating the JWC will not pay for groundwater and if Minneapolis uses groundwater on an ongoing
basis and it is not for emergency purposes, the JWC will receive a credit.
Harder will continue to keep the JWC informed on the progress of the finalized amendment and its
submittal. He thought the amendment would be ready in about two weeks.
Norris noted the final obligation under the scope of services in the current contract with EFG, Inc., is
for Harder to prepare a financial management letter.
Recent Storms and Communications
The Commissioners discussed communication protocol during heavy thunderstorm events,
specifically during the recent June 20-21 storm events. They talked about ways to coordinate each
city's Communications teams to better convey technical information to the public in a uniform
manner. The JWC comprehensive plan does contain an emergency response plan. The first
individuals to contact are the public works directors from each of the three cities; Jeannine Clancy,
Guy Johnson, and Tom Mathisen. A PR kit should be developed for the Communications teams to
use in getting the word out to all three cities. The three city managers will forward updated contact
information to the City of Golden Valley staff.
2014-2018 CIP Projects
Virnig distributed the revised 2014-2018 CIP projects list. Due to the large amount of power outages
during the recent June 20-21 storm events and the need to restrict water supply usage, the JWC
discussed the need for a backup generator for the Crystal. Virnig will add the Crystal Generator
Program to the list of CIP projects. The TAC will review purchasing the generator and report back to
the JWC with a cost recommendation.
County Road 9 Trunk Watermain Project Update
Progress is ongoing.
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Other Business
• Meter Vault Project —The contractor is finishing up the project. The meters are operational;
however, they have not yet been calibrated. There are some outstanding change orders
amounting to about $9,000 for Magney Construction. Approximately $7,000 of that amount
is for work Minneapolis asked Magney to perform on its behalf. Stantec also requested an
increase in budget in the amount of about $5,000 to cover costs to coordinate
unanticipated construction meetings with Minneapolis and Magney. The JWC directed staff
to pay $5,000 more than the approved $80,341 to Stantec.
36 -inch Watermain Break — After the June 21 storm event, a JWC watermain ruptured on
42nd Avenue (County Road 9) between County Road 81 (Bottineau Boulevard) and West
Broadway in Robbinsdale. Degradation in the concrete and wire encasement most likely led
to the bottom of the 36 -inch pipe to corrode which weakened the steel pipe and caused the
pipe to rupture. When Tom Mathisen is back in the office, Randy Kloepper will have him
review the findings and issue a memorandum.
Next Meeting
The next scheduled meeting is August 7, 2013 at 1:30 pm.
Adjournment
Chair Burt adjourned the meeting at 1:33 pm.
s 4�
Thomas D. Burt, Chair
ATTEST:
Pat $chutrop, Recording Secretary
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