2019-06-050 fu (:L �-4 mac.,
Golden Valley • Crystal • New Hope
AGENDA
JOINT WATER COMMISSION
June 5, 2019 —1:30 pm
City Council Conference Room
Golden Valley City Hall
1. Call to Order
2. Approval of Revised Minutes — May 1, 2019 ;Approved 3-0)
3. Receive and File 2018 Financial Report and Management Letter (Virnig)
4. Approve 2020-2024 Capital Improvement Projects Resolution #19-03 (Virnig)
(Approved 3-0)
5. Approve 2020 General Fund Budget Resolution #19-04 (Virnig) (Approved 3-0)
6. TAC Update May 23, 2019 (Kakach)
7. Other Business
Next Scheduled Meeting July 3, 2019
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 May 1, 2019
The Golden Valley —Crystal — New Hope Joint Water Commission (JWC) meeting was called to order at
1:30 pm in the City of Golden Valley Council Chambers.
Commissioners Present
Anne Norris, City Manager, Crystal
Kirk McDonald, City Manager, New Hope
Tim Cruikshank, City Manager, Golden Valley
Staff Present
Joe Hansen, Utilities Supervisor, Golden Valley
R.J. Kakach, Engineer, Golden Valley
Randy Kloepper, Utilities Superintendent, Crystal
Dave Lemke, Operations Manager, New Hope
Marc Nevinski, Physical Development Director, Golden Valley
Mark Ray, Director of Public Works/City Engineer, Crystal
Tim Kieffer, Public Works Maintenance Supervisor, Golden Valley
Sue Virnig, Finance Director, Golden Valley
Bernie Weber, Public Works Director, New Hope
Approval of Revised Minutes — March 13, 2019
Moved by McDonald seconded by Cruikshank to approve the revised minutes of the March 13, 2019
Joint Water Commission Meeting. Motion carried.
Approve Golden Valley Reservoir (North and South) Repairs
Staff reported on the Golden Valley Reservoir Project. Staff stated the reservoir was down for
maintenance and this was the opportune time for other inspections. A third party was performing
inspections in order to install solar panels and staff was replacing mud valves and drain valves in the
reservoir.
Staff solicited a quote from KLM Engineering Inc which included to first rehabilitate and seal the cracking
on the inside of reservoir. By doing this first, will aid the contractor to better inspect the towers to
develop plans and specifications for the repairs at a later date.
Staff received a proposal from KLM Engineering, Inc. to perform the repairs on the North and South
Ground Storage Reservoirs. Staff reported these repair services will be provided for $25,418 which is
within budget. KLM also proposed to provide design and engineering services for the project.
Staff is requesting to begin crack sealing and professional services immediately. Then will provide a
detailed proposal to go out for bids later this year. Staff recommends approval of the KLM proposal
which is within the $300,000 budgeted amount.
Moved by Cruikshank seconded by McDonald to approve the Golden Valley Reservoir (North and South)
Repairs with KLM Engineering, Inc. in an amount not to exceed $25,418.
Approve Elevated Tower No 1 Inspections.
Staff stated an inspection was completed on Tower No 1 approximately two to three years ago and the
recommendation was to complete interior work, exterior pressure wash, and touch up paint as needed.
The intent of the repairs is to protect the structure form corrosion for an additional seven to ten years.
This will include spot coating repairs below the high-water line on the interior, complete removal and
f
Joint Water Commission
May 1, 2019
Page 2 of 3
replacement of the interior coatings above the high-water line, power wash the exterior of the tower,
and spot coating repairs on the exterior of the tower.
This is considered minimum maintenance as the Commission plans to take Tower No 1 to replacement
term. Towers typically require repainting once every 20 years. Staff is recommending to begin the
design phase and determine a detailed, long-term schedule so that the tower is not down over a winter
period.
The Joint Water Commission has budgeted $663,000 in the 2019 Capital Improvement project for this
project (#15-002).
Moved by McDonald seconded by Cruikshank to approve the Elevator Tower No I Recondition Services
with KLM Engineering in the amount not to exceed $46,700. Motion carried.
TA_ C Update
Staff reported on the following:
Elevated Towers
Final painting will take place in spring.
Reservoir Work
65-17: Golden Valley Project was awarded to Keys well Drilling, Keys ordering parts
Project will place place in fall/winter of 2019
Crystal pump and motor replacement design ongoing
KLM provided a formal proposal for repairs at Golden valley Reservoir, crack filling
Valve Replacement
Crystal will use 2019 dollars toward replacement near their pump house this year.
Tower Painting
KLM provided proposal for Golden Valley Tower Painting in 2020.
Miscellaneous
North Tower Altitude valve replacement will take place this spring, parts have been ordered,
working to hire contractor.
Staff working with Ziegler CAT on switch gear in Golden Valley generator
Working with SEH on water model Update
Capital Improvement Projects Items
TAC worked to update CIP for June JWC Meeting Approval.
Other Business
No other business at this time.
Adjournment
Moved by McDonald seconded by Norris to adjourn meeting. Motion carried.
Chair Norris adiourned the meetine at 1:30 om.
ATTEST:
�"
Sue Schwalbe, Recording Secretary
Chai nne Norris
Joint Water Commission Memo
June 5, 2019
lam,
Agenda Item #3
3. Receive and File 2018 Financial Report and Management Letter
Prepared by
Sue Virnig, Golden Valley Finance Director
Summary
Virnig will review and answer any inquiries regarding the 2018 Financial Statements and 2018
Management Letter.
Attachments
2018 Financial Statements (32 pages)
2018 Management Report (4 pages)
Recommended Action
Review and file the 2018 Financial Statements and 2018 Management Letter
I:Woint Water CommissionUM Memos12019-06-051Agenda Item #3.docx
GOLDEN VALLEY — CRYSTAL — NEW HOPE
JOINT WATER COMMISSION
Financial Statements
and Supplemental Information
Year Ended
December 31, 2018
THIS PAGE INTENTIONALLY LEFT BLANK
GOLDEN VALLEY — CRYSTAL — NEW HOPE
JOINT WATER COMMISSION
Table of Contents
INTRODUCTORY SECTION
Page
BOARD OF COMMISSIONERS I
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
9-15
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 16-17
Independent Auditor's Report on Minnesota Legal Compliance 18
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INTRODUCTORY SECTION
THIS PAGE INTENTIONALLY LEFT BLANK
Commissioner
Anne Norris
Kirk McDonald
Tim Cruikshank
GOLDEN VALLEY — CRYSTAL — NEW HOPE
JOINT WATER COMMISSION
Board of Commissioners
Year Ended December 31, 2018
Position
Chairperson
Vice Chairperson
Secretary/Treasurer
-1-
Governmental Unit
City of Crystal
City of New Hope
City of Golden Valley
THIS PAGE INTENTIONALLY LEFT BLANK
FINANCIAL SECTION
THIS PAGE INTENTIONALLY LEFT BLANK
MMKR
CERTIFIED PUBLIC
ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
To the Board of Commissioners and Management
Golden Valley— Crystal —New Hope Joint Water Commission
REPORT ON THE FINANCIAL STATEMENTS
PRINCIPALS
Thomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichten, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA/CMA
Jaclyn M. Huegel, CPA
We have audited the accompanying 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, 2018, 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 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 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 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 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com
OPINIONS
In our opinion, the 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, 2018, 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
Management has omitted the management's discussion and analysis that accounting principles generally
accepted in the United States of America require to be presented to supplement the basic financial
statements. Such missing information, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board, 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. 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,
2017, and we expressed unmodified audit opinions on the respective financial statements of the
governmental activities and each major fund in our report dated April 24, 2018. In our opinion, the partial
comparative information presented herein as of and for the year ended December 31, 2017 is consistent,
in all material respects, with the audited financial statements from which it has been derived.
OTHER REPORTING REQUIRED BY GovERNMENTAUDITING STANDARDS
In accordance with Government Auditing Standards, we have also issued our report dated May 24, 2019
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 solely 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 the effectiveness
of the Commission's 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.
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Minneapolis, Minnesota
May 24, 2019
-3-
BASIC FINANCIAL STATEMENTS
GOLDEN VALLEY — CRYSTAL — NEW HOPE
JOINT WATER COMMISSION
Statement of Net Position
as of December 31, 2018
(With Partial Comparative Information as of December 31, 2017)
Governmental Activities
2018 2017
Assets
Cash and investments $ 6,153,841 $ 5,074,672
Due from other governmental units 654,299 896,598
Prepaids 30,372 31,896
Capital assets
Not depreciated 1,215,506 1,031,477
Depreciated, net of accumulated depreciation 9,348,641 9,632,739
Total capital assets, net of accumulated depreciation 10,564,147 10,664,216
Total assets $ 17,402,659 $ 16,667,382
Liabilities
Accounts and contracts payable $ 17,600 $ 26,528
Deposits payable 8,915 8,915
Due to other governmental units 502,859 500,681
Unearned revenue 133,515 36,000
Total liabilities 662,889 572,124
Net position
Net investment in capital assets
10,564,147
10,664,216
Restricted for capital improvements
3,520,717
2,762,426
Restricted for emergency water supply
1,700,000
1,700,000
Unrestricted
954,906
968,616
Total net position
16,739,170
16,095,258
Total liabilities and net position
$ 17,402,659
$ 16,667,382
See notes to basic financial statements
SS
GOLDEN VALLEY — CRYSTAL — NEW HOPE
JOINT WATER COMMISSION
Statement of Activities
Year Ended December 31, 2018
(With Partial Comparative Information for the Year Ended December 31, 2017)
Program expenses
Water distribution
Water purchases
Administration and maintenance
Depreciation
Total program expenses
Program revenues — water distribution
Charges for services
Member assessments
Capital grants and contributions
Total program revenues — water distribution
Net program revenue
�., General revenues
Investment income
Rental income
Total general revenues
Change in net position
Net position
Beginning of year
End of year
See notes to basic financial statements -5-
Governmental Activities
2018 2017
$ 6,868,799 $ 6,382,395
557,607 645,095
393,848 389,541
7,820,254 7,417,031
7,238,368
6,826,748
1,000,000
923,000
8,238,368
7,749,748
418,114
332,717
88,434 —
137,964 143,787
226,398 143,787
644,512 476,504
16,095,258 15,618, 754
$ 16,739,770 $ 16,095,258
GOLDEN VALLEY - CRYSTAL - NEW HOPE
JOINT WATER CONBHSSION
Balance Sheet
Governmental Funds
as of December 31, 2018
(With Partial Comparative Information as of December 31, 2017)
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
Fund balances
Improvement
Capital Projects
General Fund Fund
Total Governmental Funds
2018 2017
$ 931,147 $
5,222,694 $
6,153,841 $
5,074,672
654,299
-
654,299
896,598
30,372
-
30,372
31,896
$ 1,615,818 $
5,222,694 $
6,838,512 $
6,003,166
$ 15,623 $
1,977 $
17,600 $
26,528
8,915
-
8,915
8,915
502,859
-
502,859
500,681
133,515
-
133,515
36,000
660,912
1,977
662,889
572,124
Nonspendable for prepaids
30,372 - 30,372
31,896
Restricted for capital improvements
- 3,520,717 3,520,717
2,762,426
Restricted for emergency water supply
- 1,700,000 1,700,000
1,700,000
Unassigned
924,534 - 924,534
936,720
Total fund balances
954,906 5,220,717 6,175,623
5,431,042
Total liabilities and
fund balances
$ 1,615,818 $ 5,222,694 $ 6,838,512 $ 6,003,166
Amounts reported for governmental activities in the Statement of Net Position differ because:
Fund balances - governmental funds $ 6,175,623 $ 5,431,042
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported as assets in governmental funds.
Cost of capital assets 18,881,808 18,588,029
Less accumulated depreciation (8,317 661) (7,923,813)
Net position of governmental activities $ 16,739,770 $ 16,095,258
See notes to basic financial statements -6-
GOLDEN VALLEY - CRYSTAL - NEW HOPE
JOINT WATER COMMISSION
Statement of Revenue, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended December 31, 2018
(With Partial Comparative Information for the Year Ended December 31, 2017)
Revenue
Member assessments
Charges for services
Nonoperating surcharge
Construction charges
Other revenue
Investment income
Rental income
Total revenue
Expenditures
Current
Water purchased
Insurance
Utilities
Labor
Maintenance
Professional services
Administrative charges paid to members
Rent remitted to members
Capital outlay
Total expenditures
Net change in fund balances
Improvement
Capital Projects
Total Governmental Funds
2018 2017
$ 7,228,610 $ - $ 7,228,610 $ 6,817,269
9,758 - 9,758 9,479
- 1,000,000 1,000,000 923,000
5,710 82,724 88,434 -
137,964 - 137,964 143,787
7,382,042 1,082,724 8,464,766 7,893,535
6,868,799
- 6,868,799
6,382,395
51,831
- 51,831
53,709
193,820
- 193,820
183,926
40,203
- 40,203
38,034
51,807
- 51,807
54,862
12,295
- 12,295
12,112
39,033
- 39,033
37,917
137,964
- 137,964
143,787
-
324,433 324,433
1,233,359
7,395,752
324,433 7,720,185
8,140,101
(13,710)
758,291 744,581
(246,566)
Fund balances
Beginning of year 968,616 4,462,426 5,431,042 5,677,608
End of year $ 954,906 $ 5,220,717 $ 6,175,623 $ 5,431,042
Amounts reported for governmental activities in the Statement of Activities are different because:
Net change in fund balances - governmental funds $ 744,581 $ (246,566)
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
Change in net position of governmental activities
See notes to basic financial statements
-7-
293,779 1,112,611
(393,848) (389,541)
$ 644,512 $ 476,504
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, 2018
(With Partial Comparative Information for the Year Ended December 31, 2017)
2018
2017
Original and
Over (Under)
Final Budget
Actual
Final Budget
Actual
Revenue
Charges for services
$ 8,283,985
$ 7,228,610
$ (1,055,375) $
6,817,269
Nonoperating surcharge
-
9,758
9,758
9,479
Other revenue
Investment income
-
5,710
5,710
-
Rental income
-
137,964
137,964
143,787
Total revenue
8,283,985
7,382,042
(901,943)
6,970,535
Expenditures
Current
Water purchased
6,739,860
6,868,799
128,939
6,382,395
Insurance
60,000
51,831
(8,169)
53,709
Utilities
240,000
193,820
(46,180)
183,926
Labor
100,000
40,203
(59,797)
38,034
Maintenance
-
51,807
51,807
54,862
Professional services
100,000
12,295
(87,705)
12,112
Administrative charges paid to members
44,125
39,033
(5,092)
37,917
Rent remitted to members
-
137,964
137,964
143,787
Capital outlay
1,317,000
-
(1,317,000)
-
Total expenditures
8,600,985
7,395,752
(1,205,233)
6,906,742
Net change in fund balances
$ (317,000)
(13,710)
$ 303,290
63,793
Fund balances
Beginning of year
968,616
904,823
End of year
$ 954,906
$
968,616
See notes to basic financial statements -8-
GOLDEN VALLEY — CRYSTAL — NEW HOPE
JOINT WATER COMMISSION
Notes to Basic Financial Statements
December 31, 2018
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 Statutes § 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 interf ind activity is eliminated from the government -wide financial statements.
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, 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 fund
balances. 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. Grants and similar items are recognized when all eligibility
requirements imposed by the provider have been met. 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. Capital asset acquisitions are reported as
capital outlay expenditures in the governmental funds.
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 in
the basic financial statements. Actual results could differ from these estimates.
-10-
NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
G. Cash and Investments
Cash and temporary investments include balances from all funds that are combined and invested to the
extent available in various securities as authorized by state law.
Investments are generally stated at fair value, except for certain external investment pools stated at
amortized cost. Investment income is accrued at the Balance Sheet date.
When applicable, the Commission categorizes its fair value measurements within the fair value hierarchy
established by accounting principles generally accepted in the United States of America. The hierarchy is
based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices
in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3
inputs are significant unobservable inputs. Debt securities classified in Level 2 of the fair value hierarchy
are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the
securities' relationship to benchmark quoted prices.
H. Receivables
The Commission utilizes an allowance for uncollectible accounts to value its receivables; however, it
considers all of its current receivables to be collectible.
I. Prepaids
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaids, which are recorded as expenditures/expenses at the time of consumption.
J. 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 acquisition 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 40 years for the distribution system and 10 to 30 years for
storage facilities. Construction in progress is not depreciated.
K. 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. The 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
the LMCIT for insurance coverage. The LMCIT agreement provides that the 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 during the current fiscal year.
-11-
NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
L. Net Position
In the government -wide financial statements, net position represents 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 its 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."
The Commission applies restricted resources first when an expense is incurred for which both restricted
and unrestricted resources are available.
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.
The Commission's fund balance policy includes goals for maintaining minimums of $900,000 of
unassigned fund balance in the General Fund and $1,000,000 of fund balance restricted for capital
projects in the Improvement Capital Projects Fund.
-12-
NOTE 1— SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
N. Prior Period Comparative Information
The financial statements include partial prior year comparative information. Such information does not
include all of the information required or sufficient detail to constitute a presentation in conformity with
accounting principles generally accepted in the United States of America. Accordingly, such information
should be read in conjunction with the Commission's financial statements for the year ended
December 31, 2017, from which such partial information was derived.
NOTE 2 — CASH AND INVESTMENTS
A. Deposits
Cash balances of the Commission may maintain deposits as authorized by Minnesota Statutes. Custodial
credit risk is considered the most significant risk associated with deposits, which 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 and the balance on the bank records were
both $0. At December 31, 2018, all deposits were fully covered by federal deposit insurance.
B. Investments
At year-end, the Commission held investments in the Minnesota Municipal Money Market (4M) Fund of
$660,272, and in the 4M Plus Fund of $5,493,569. These funds are external investment pools regulated by
Minnesota Statutes not registered with the Securities and Exchange Commission (SEC) that follow the
regulatory rules of the SEC. The Commission's investments in these funds are measured at the net asset
value per share provided by the pool, which is an amortized cost method that approximates fair value. The
4M Fund has no restrictions on withdrawals; however, the 4M Plus Fund requires funds be invested for a
14-day period prior to withdrawal, subject to a penalty equal to seven days of interest on funds withdrawn
prior to the 14-day restriction period.
Investments are subject to various risks, the following of which are considered the most significant:
Custodial Credit Risk — For investments, this is the risk that in the event of a failure of the
counterparty to an investment transaction (typically a broker -dealer) the Commission would not be
able to recover the value of its investments or collateral securities that are in the possession of an
outside party. The Commission does not have a formal policy addressing this risk, but typically limits
its exposure by purchasing insured or registered investments, or by the control of who holds the
securities.
-13-
NOTE 2 — CASH AND INVESTMENTS (CONTINUED)
Credit Risk — This is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. Minnesota Statutes limit the Commission's investments to direct obligations or
obligations guaranteed by the United States or its agencies; shares of investment companies registered
under the Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in
one of the two highest rating categories by a statistical rating agency, and all of the investments have
a final maturity of 13 months or less; general obligations rated "A" or better; revenue obligations
rated "AA" or better; general obligations of the Minnesota Housing Finance Agency rated "A" or
better; bankers' acceptances of United States banks eligible for purchase by the Federal Reserve
System; commercial paper issued by United States corporations or their Canadian subsidiaries, rated
of the highest quality category by at least two nationally recognized rating agencies, and maturing in
270 days or less; Guaranteed Investment Contracts guaranteed by a United States commercial bank,
domestic branch of a foreign bank, or a United States insurance company, and with a credit quality in
one of the top two highest categories; repurchase or reverse purchase agreements and securities
lending agreements with financial institutions qualified as a "depository" by the government entity,
with banks that are members of the Federal Reserve System with capitalization exceeding
$10,000,000; that are a primary reporting dealer in U.S. government securities to the Federal Reserve
Bank of New York; or certain Minnesota securities broker -dealers. The Commission does not have a
formal policy that further restricts investing in specific financial instruments.
Concentration Risk — This is the risk associated with investing a significant portion of the
Commission's investment (considered 5.0 percent or more) in the securities of a single issuer,
excluding U.S. guaranteed investments (such as treasuries), investment pools, and mutual funds. The
Commission does not have a formal policy that limits the concentration of investments.
Interest Rate Risk — This is the risk of potential variability in the fair value of fixed rate investments
resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the
greater the risk). The Commission does not have a formal policy limiting the duration of investments.
NOTE 3 — CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2018 is as follows:
Beginning
Completed
Ending
Balance Additions
Retirements Construction
Balance
Capital assets, not depreciated
Construction in progress
$ 1,031,477 $ 293,779
$ — $ (109,750)
$ 1,215,506
Capital assets, depreciated
Distribution system
14,341,592 —
— 109,750
14,451,342
Storage facilities
3,214,960 —
— —
3,214,960
Total capital assets, depreciated
17,556,552 —
— 109,750
17,666,302
Less accumulated depreciation on
Distribution system (5,101,344) (368,956) — — (5,470,300)
Storage facilities (2,822,469) (24,892) — — i.2,847,361.i
Total accumulated depreciation (7,923,813) (393,848) — — 8� 31t 7,661)
Net capital assets, depreciated 9,632,739 (393,848) — 109,750 9,348,641
Total capital assets, net $ 10,664,216 $ (100,069) $ — $ — $ 10,564,147
Depreciation expense is included in the water distribution program in the govermnent-wide financial
statements.
-14-
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, system maintenance and improvement,
administrative expenditures generated in the ordinary course of business, and a nonoperating surcharge.
Revenue from charges to the member cities in 2018, along with any remaining receivable, is as follows:
Improvement
General Fund
Capital Projects
Receivable at
Revenue
Fund Revenue
December 31, 2018
City of Golden Valley $ 3,063,028
$ 418,000
$ 275,313
City of Crystal 1,902,705
270,800
203,697
City of New Hope 2,272,635
311,200
175,289
$ 7,238,368
$ 1,000,000
$ 654,299
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 2018, along
with any liability remaining at year-end, are as follows:
City of Golden Valley
City of Crystal
City of New Hope
NOTE 5 — COMMITMENTS
Expenditures
$ 65,455
99,437
248,629
Rental Included in
Revenues Payables at
Remitted December 31, 2018
$ 45,988 $ 6,085
45,988 12,814
45M8 960
$ 413,521 $ 137,964 $ 19,859
At December 31, 2018, the Commission is committed to various contracts for capital improvements. The
Commission's remaining commitment under these contracts is $533,827.
-15-
THIS PAGE INTENTIONALLY LEFT BLANK
r-'�
OTHER REQUIRED REPORTS
THIS PAGE INTENTIONALLY LEFT BLANK
PRINCIPALS
Thomas A. Karnowski, CPA
Paul A. Radosevich, CPA
MMKRWilliam J. Lauer, CPA
James H. Eichten, CPA
C E R T I F I E P P U B L I C Aaron J. Nielsen, CPA
ACCOUNTANTS Victoria L. Holinka, CPA/CMA
Jaclyn M. Huegel, CPA
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
To the Board of Commissioners and Management
Golden Valley — Crystal — New Hope Joint Water Commission
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 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, 2018, 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 24, 2019.
INTERNAL CONTROL OVER FINANCIAL REPORTING
In planning and performing our audit of the 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 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 a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the Commission's 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)
-16-
Malloy, Montague, Karnowski, Radosevich & Co., P.A.
5353 Wayzata Boulevard • Suite 410 - Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com
COMPLIANCE AND OTHER MATTERS
As part of obtaining reasonable assurance about whether the Commission's financial statements are free
from 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.
Minneapolis, Minnesota
May 24, 2019
-17-
MMKR
CERTIFIED PUBLIC
ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
ON MINNESOTA LEGAL COMPLIANCE
To the Board of Commissioners and Management
Golden Valley — Crystal — New Hope Joint Water Commission
PRINCIPAY S
Thomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichten, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA/CMA
Jaclyn M. Huegel, 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 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, 2018, 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 24, 2019.
MINNESOTA LEGAL COMPLIANCE
The Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to
Minnesota Statutes § 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 (TIF). Our audit considered all of the listed
categories, except that we did not test for compliance in the areas of public indebtedness and TIF, because
the Commission has issued no public indebtedness and does not utilize TIF.
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 Cities.
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.
PURPOSE OF THIS REPORT
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.
Minneapolis, Minnesota
May 24, 2019
-18-
Malloy, Montague, Karnowski, Radosevich & Co., P.A.
5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 • Fax: 952-545-0569 • www.mmkr.com
THIS PAGE INTENTIONALLY LEFT BLANK
MMKR
CERTIFIED PUBLIC
ACCOUNTANTS
May 24, 2019
To the Board of Commissioners and Management
Golden Valley — Crystal — New Hope Joint Water Commission
PRINCIPALS
Thomas A. Karnowski, CPA
Paul A. Radosevich, CPA
William J. Lauer, CPA
James H. Eichten, CPA
Aaron J. Nielsen, CPA
Victoria L. Holinka, CPA/CMA
Jaclyn M. Huegel, CPA
The following is a summary of our audit work, key conclusions, and other information that we consider
important or that is required to be communicated to the Board of Commissioners, administration, or those
charged with governance of the Golden Valley — Crystal — New Hope Joint Water Commission (the
Commission).
OUR RESPONSIBILITY UNDER AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED
STATES OF AMERICA AND GOVERNMENTAUDITING STANDARDS
We have audited the financial statements of the governmental activities and each major fund of the
Commission as of and for the year ended December 31, 2018. Professional standards require that we
provide you with information about our responsibilities under auditing standards generally accepted in the
United States of America and Government Auditing Standards, as well as certain information related to
the planned scope and timing of our audit. We have communicated such information to you verbally and
in our audit engagement letter. Professional standards also require that we communicate to you the
following information related to our audit.
PLANNED SCOPE AND TIMING OF THE AUDIT
We performed the audit according to the planned scope and timing previously discussed and coordinated
in order to obtain sufficient audit evidence and complete an effective audit.
AUDIT OPINION AND FINDINGS
Based on our audit of the Commission's financial statements for the year ended December 31, 2018:
• We have issued an unmodified opinion on the Commission's basic financial statements. The
Commission has elected not to present management's discussion and analysis, which 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 Commission's basic financial statements is not affected by this missing information.
• We reported no deficiencies in the Commission's internal control over financial reporting that we
considered to be material weaknesses.
• The results of our testing disclosed no instances of noncompliance required to be reported under
Government Auditing Standards.
• We reported no findings based on our testing of the Commission's compliance with Minnesota
laws and regulations.
Malloy, Montague, Karnowski, Radosevich & Co., P.A.
5353 Wayzata Boulevard • Suite 410 • Minneapolis, MN 55416 • Phone: 952-545-0424 1 Fax: 952-545-0569 • www.mmkr.com
Golden Valley — Crystal — New Hope Joint Water Commission
May 24, 2019
SIGNIFICANT ACCOUNTING POLICIES
Page 2
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the Commission are described in Note 1 of the notes to basic financial
statements. No new accounting policies were adopted, and the application of existing policies was not
changed during the year.
We noted no transactions entered into by the Commission during the year for which there is a lack of
authoritative guidance or consensus. All significant transactions have been recognized in the financial
statements in the proper period.
CORRECTED AND UNCORRECTED MISSTATEMENTS
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management. There were no misstatements detected as a result of audit procedures that were material,
either individually or in the aggregate, to each opinion unit's financial statements taken as a whole.
ACCOUNTING ESTIMATES AND MANAGEMENT JUDGMENTS
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management's knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ
significantly from those expected.
The most sensitive estimate affecting the financial statements is management's estimate of depreciation
expense based on the estimated useful lives of the assets.
We evaluated the key factors and assumptions used by management to develop these estimates in
determining that they are reasonable in relation to the basic financial statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
DISAGREEMENTS WITH MANAGEMENT
For purposes of this report, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor's report. We are pleased to report that no such disagreements arose during the
course of our audit.
Golden Valley — Crystal — New Hope Joint Water Commission Page 3
May 24, 2019
MANAGEMENT CONSULTATIONS WITH OTHER INDEPENDENT ACCOUNTANTS
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves
application of an accounting principle to the Commission's financial statements or a determination of the
type of auditor's opinion that may be expressed on those statements, our professional standards require
the consulting accountant to check with us to determine that the consultant has all the relevant facts. To
our knowledge, there were no consultations with other accountants.
MANAGEMENT REPRESENTATIONS
We have requested certain representations from management that are included in the management
representation letter dated May 24, 2019.
OTHER AUDIT FINDINGS OR ISSUES
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the Commission's auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our retention.
OTHER MATTERS
We were not engaged to report on the introductory section, which accompanies the financial statements
but is not required supplementary information. Such information 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.
CLOSING
We would be pleased to further discuss any of the information contained in this report or any other
concerns that you would like us to address. We would also like to express our thanks for the courtesy and
assistance extended to us during the course of our audit.
The purpose of this report is solely to provide those charged with governance of the Commission,
management, and those who have responsibility for oversight of the financial reporting process required
communications related to our audit process. Accordingly, this report is not suitable for any other
purpose.
A.
Minneapolis, Minnesota
May 24, 2019
THIS PAGE INTENTIONALLY LEFT BLANK
Joint Water Commission Memo
-� June 5, 2019
Agenda Item #4
4. Approve the 2020-2024 Capital Improvement Program
Prepared by
Sue Virnig, Golden Valley Finance Director
Summary
The 2020-2024 Capital Improvement Program (CIP) has been reviewed by the Technical
Advisory Committee.
Attachments
Resolution 19-03 Approving the 2020-2024 Capital Improvement Program (1 page)
2020-2024 Capital Improvement Program (1 page)
Recommended Action
Approve the 2020-2024 Capital Improvement Program Resolution #19-03
IAJoint Water CommissionUM Memos\2019-06-051Agenda Item #4.docx
Resolution 19-03
June 5, 2019
Member introduced the following resolution and moved its adoption:
RESOLUTION APPROVING 2020-2024
CAPITAL IMPROVEMENT PROGRAM
WHEREAS, the Technical Advisory Committee reviewed the proposed 2020-2024
Capital Improvement Program; and
WHEREAS, the Golden Valley- Crystal — New Hope Joint Water Commission has
reviewed the 2020-2023 Capital Improvement Program at the June 5, 2019 meeting; and
WHEREAS, financing for projects outlined in the 2020-2024 Capital Improvement
Program will be reviewed each year and provided for by current approved budget.
NOW, THEREFORE, BE IT RESOLVED that the Golden Valley- Crystal — New
Hope Joint Water Commission approves the 2020-2024 Capital Improvement Program.
Anne Norris, Chair
ATTEST:
Kirk McDonald, Vice Chair
The motion for the adoption of the foregoing resolution was seconded by Commissioner
and upon a vote being taken thereon, the following voted in favor thereof:
and the following voted against the same: none;
whereupon said resolution was declared duly passed and adopted, signed by the Chair
and their signature attested by the Vice Chair.
Resolution 19-03
June 5, 2019
Member McDonald introduced the following resolution and moved its adoption:
RESOLUTION APPROVING 2020-2024
CAPITAL IMPROVEMENT PROGRAM
WHEREAS, the Technical Advisory Committee reviewed the proposed 2020-2024
Capital Improvement Program; and
WHEREAS, the Golden Valley- Crystal — New Hope Joint Water Commission has
reviewed the 2020-2023 Capital Improvement Program at the June 5, 2019 meeting; and
WHEREAS, financing for projects outlined in the 2020-2024 Capital Improvement
Program will be reviewed each year and provided for by current approved budget.
NOW, THEREFORE, BE IT RESOLVED that the Golden Valley- Crystal — New
Hope Joint Water Commission approves the 2020-2024 Capital Improvement Program.
Kirk McDonald, Vice Chair
The motion for the adoption of the foregoing resolution was seconded by Cruikshank
and upon a vote being taken thereon, the following voted in favor thereof: Cruikshank,
'McDonald, Norris and the following voted against the same: none; whereupon said
resolution was declared duly passed and adopted, signed by the Chair and her signature
attested by the Commissioner.
A B
1
2
3 Joint Water Commission C
Projects
6 Replace Trunk Valve (2017, 2019, 2021) ($60,000/valve)
7 SCADA Updates
8 _ Security for All Towers, and Pump Stations
9 �\'Effluent Meters in Reservoir
LO Replace Swamp coolers
Ll Install 48" Gate Valve at GV Reservoir (2021)
.2 umps/Controls/Piping/VaIves at Pump Station (2019 &
.3 ynspect and Clean Reservoirs (Crys 2017, GV 2021)
.4 Water Supply Plan
.5 JWC Trunk Main Testing
.6 0 umps/Controls/Piping/VaIves at Pump Station (2019, 2
.7 Replace flow meters C P--cs"Z Al -
.8 eservoir Repairs
.9 Valve Exerciser
!0 Pump Houses
!1 Pipes and Valves
2 Golden Valley Road (CSAH 66) Project
3 42nd Avenue (CSAH 9) Project
A TOWERS:
Tower Inspections
Tower Rehabilitation
Interior & Exterior structure repairs to Elevated Tower
Blast and Repaint (2020)
Interior & Exterior structure repairs to Elevated Tower
Blast and Repaint (2018)
New Tower (1.5 MG) Hillsboro
New Tower
New Tower
AL
Security for All Towers, and Pump Stations
Joint Water Commission Memo
June 5, 2019
Agenda Item #5
S. Approve 2020 General Fund Budget Resolution #19-04
Prepared by
Sue Virnig, Golden Valley Finance Director
Summary
At this meeting, the Joint Water Commission will consider the resolution adopting the 2020
Budget. Staff has included actual numbers for 2017 and 2018 along with the adopted and
estimated budget for 2019.
Attachments
Resolution 19-04 2020 Budget (1 Page)
Recommended Action
Motion to approve the 2020 General Fund Budget, Resolution 19-04
1:1Joint Water CommissionWWC Memos12019-06-051Agenda Item #5.docx
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Joint Water Commission TAC Meeting
Thursday May 23, 2019 11:00 AM
1
1. Project Updates
a. Elevated Towers
+ Final painting will take place in spring.
b. Valve Work
c. Reservoir Work
■ 65-17: GV Project was awarded to Keys Well Drilling.
• Keys ordering parts.
• Project will take place in fall/winter of 2019.
■ Crystal pump and motor replacement design ongoing.
• KLM provided a formal proposal for repairs at GV
reservoir, crack filling.
+ Proposal was approved at May JWC
meeting.
d. Valve Replacement
+ Crystal will use 2019 dollars towards replacement
near their pump house this year.
e. Tower Painting
• KLM provided proposal for Golden Valley tower
painting in 2020.
• Proposal was approved at May JWC
meeting.
f. Miscellaneous
■ North Tower Altitude valve replacement will take
place this spring, parts have been ordered, working to
hire contractor.
■ Joe working with Ziegler CAT on switch gear in GV
generator
• Working with SEH on water model update.
g. CIP Items
TAC worked to update CIP for June JWC meeting
approval.
C:1UserslsschwalbelAppDatalLocal\Microsoft\WindowslTemporary Internet Files\Content.Outlookl6WUOGAUGIJWC TAC Meeting
Minutes_5.23.19 (003).docx
Joint Water Commission TAC Memo
June 5, 2019
Agenda Item #6
6. Receive and File the May 23, 2019 TAC Meeting Minutes
Prepared by
R.J. Kakach
Joint Water Commission Technical Advisory Committee
Summary
Kakach will review and update Commissioners on the May 23, 2019 TAC Meeting
Attachments
TAC Meeting May 23, 2019 (1 page)
Recommended Action
Review and file the May 23, 2019 TAC Meeting Minutes
IAJoint Water CommissionUM Memos12019-06-051Agenda Item #6.docx