1999-03-22 JPWB Minutes
1A
JOINT POWERS BOARD
MARCH 22, 1999 MINUfES
ST MICHAEL CITY HALL 730 PM
MEMBERS PRESENT Kessler, Irvme, Gundersen, Olson, Duerr, Zunrnennan
MEMBERS ABSENf:
Clwr Kessler opened the meetmg at 7 37 pm
The mmutes of the February 22, 1999 and March 11, 1999 meetmgs were approved on a
motion by Zmunennan, seconded by Irvme AIl present voted aye
Olson stated that he needs to leave for personal family reasons but would like to strongly
express that the Ctty of Albertville recommends hmng an employee mstead of con1ractmg
the office out Olson left at 7 39 pm
A motion to approve the February financial statements and budget report as presented was
made by Znnmerman, seconded by Duerr AIl present voted aye
Klpka requested direction on payment of members for spectal meeUngs smce checks for
those were not included in the March biDs
A motion to contmue to reunburse the member cltles for Board special meetmgs was made
by Irvme, seconded by Duerr AIl present voted aye
A motion to approve the March biDs as presented was made by Irvme, seconded by
Zunmerman. An present voted aye.
Steve MacDonald, Abdo Elck & Meyers, was present to discuss the 1998 AudIt. Steve
stated that there were no ddficultles or dtsagreements WIth the financJa1 statements He
stated that the cash balance was 84% in 1998 compared to 148% in 1997 due to the large
payments to the member crties, water sales mcrease was 16% and the expenses were 61 %
m 1998 compared to 32% m 1997 Steve stated that the financJa1 position looks strong.
A motion to approve the 1998 audrt as presented was made by ZImmerman, seconded by
Irvme All present voted aye
The Board <hscussed the 3-19-99 Mwutech request for the use of DomestIc Foundry valve
boxes m the Royal Meadows addition. Cathn stated that the Board permitted the use of
these valve boxes m Higbwoods addtnon when the Tyler valve boxes were unavaJlable
A motion to approve the use of the Domestlc Foundry valve boxes m the Royal Meadows
addltlon as per Munitech'8 request was made by Irvme, seconded by Gundersen. All
present voted aye
The Board discussed the 2-25-99 Munitech request for the Board to approve the Ultra
Blue PVC water main for developments. Catlin recommended not to approve the water
mam smce Its use has been muumal and the cost is suniIar to Board approved water mam.
A monon to deny approval of the Ultra Blue PVC water main per Munitech's request was
made by Irvme, seconded by Gundersen. AIl present voted aye
JOINT POWERS BOARD
MARCH 22, 1999 MlMJTES
PAGE 2
The Board dJscussed Barb Dhern's request to refund the large credrt balance on the Old
Albertville Creamery account Klpka stated that the large credtt was due to the meter bemg
over estunated for several years and nusread two quarters ago
A mo1J.on to approve Dhern's request to refimd the large credit balance on the Old
AlbertvJlle Creamery account was made by Imne, seconded by Gundersen All present
voted aye
Gundersen dtscussed Ius conversa1J.on WIth Psyk regarding the land purchase and the
Board's counter offer Gundersen stated the Psyk demed the Board's offer of
$100,000 00 and that he IS fum on the $120,000 00 pnce for the 2 5 acres Gundersen
stated that Psyk has another party mterested m the property
Klpka stated that she receIVed the appraJSal from Lyle H Nagen & Company winch values
the property at $37,500 00 for the 2.5 acres ($15,000 00 per acre) Kipka stated that tJus
appraisal looked at compansons of other large acreage
The Board requested direction from their attorney, Paula Callies, regarding condemnation.
Calhes stated that a qwt take would probably take 90 days and that the Board may want to
consider that route smce the appraJSallS 4 tunes less than the askIng price for the land.
Callies stated that an approxunate cost for the condemnab.on would be $10,000 00 and that
a recent sale could affect the pnce of the condemna1J.on Calhes stated that each parties'
appraaser presents their Side to 3 COllll1USSloners and either party can appeal that decwon of
the property valuation if they disagree With the comnussioners
Gundersen stated that the property would need to be rezoned for a water treatment plant
and takes a 4/5 vote Gundersen stated that sewer availabihty of any property west of the
Psyk property would be affected by the development of that property Gundersen
discussed the 37/19 prOject costing $17,000 00 per acre for land With no utili1J.es
Catlm stated that the cost for plputg the water from MacIver to the pumphouse WIth a 16"
water main nearby, would be $30,000 00 when ques1J.oned by the Board.
The Board requested that Gundersen talk With Psyk agam and let bun know their posl1J.on
of the $100,000 00 pnce for the 25 acres In addt1J.on, they requested that Gundersen ask
Ius counetl to CODSlder condemnmg the Psyk property for the Board or authonzmg the
Board to condemn the property m question. The Board requested that Gundersen let
Calhes know the outcome as soon as posstble
A mo1J.on to authorize Calhes to proceed With the condemnatIon process contingent upon
Psyk's answer and the City of Albertville's answer to authonze the Board to condemn the
property was made by Imne, seconded by Duerr AU present voted aye
The Board dtrected CatIm to hold on the surveymg and soil bonngs of the Psyk land, but to
proceed with gettmg wen bids for winter construc1J.on.
JOINT POWERS BOARD
MARCH 22, 1999 MINUTES
PAGE 3
The Board dtscussed havmg a rate study done for thClr unprovement projects KIpka
requested dlrecnon from the Board on whether they wanted to ask Spnngsted (winch did
the last rate study) or Juran & Moody (who d1d the bond refinancIng)
A motIon to authonze Spnngsted to do a rate study for the Board's unprovement projects
was made by Duerr, seconded by Zunmennan. AU present voted aye
The Board agreed to schedule a meetmg WIth the three mayors when they can arrange a
date later
Calhes d1scussed the letter she recCIVCd from Lenhardt, St Michael's attorney, and
requested dn-echon from the Board on how to proceed Kessler stated that the City of St.
~chael would Hke more mfonnatton regarchng the legahty of an ordmance to authorize the
Board to place the contract charges on the records at the comty The Board agreed to
have Calhes respond m wntmg to Lenhardt.
The Board dtscussed AutomatIc Systems Co 2-24-99 letter regardmg the warranty ISSUe of
the gauge frozen at the tower Ktpka, CatIm and Jackson dtscussed the SItuatIon and
agreed that the box was placed at the tower to keep the gauges from freezmg and
recommends not paymg for the replacement gauge The Board agreed WIth that
recommendauon
The Board directed Catlin to contmue to proceed wttb. the water treatment plant design and
the water revolvmg fimd Jackson and CatIm stated that another wen should be placed m
Set'Vlce as soon as posstble
Zunmerman questIoned If the standptpe locaUon can be used for a wen SIte Catbn stated
that the standpipe locatIon was prOjected to be used as another tower SIte and that If used
as a wen SIte that another pumphouse would be needed, increasmg the cost CatIm stated
that an estunate cost of a wen placed at a remote locatIon would nm $200,000 00 for the
wen and $100,000 00 for a pumphouse CatIm stated that ISO' radms of land is needed
for wen and piping. The Board d1scussed purchasmg land by the water tower m St.
h-fichaeL
KIpka requested d1rectIon or approval of the Backflow preventorlHydrant penmt for
developments
A monon to approve the Backflow preventorlHydrant pernut as presented was made by
Irvme, seconded by Kessler All present voted aye
JOINT POWERS BOARD
MARCH 22, 1999 MINUTES
PAGE 4
KIpka dJscussed the lack of notdicanon and recapt of plans and specmcanons for new
developments from the member Clnes as drafted m the amended agreement dated
December 1998 K1pka stated that she recewed nonce of a pre-con meetmg for Maple
RIdge 3 and Royal Meadows, but no plans and specIficatIons were submrtted to the Board
or thctr engmeer for supply ISsues
PSG stated that they would talk WIth the CInes' engmeers
Jackson requested the purchase of a hydrant ddfuser at a cost of $1,000 00 with
attachments and expJamed that tlus device would be used m }ugh traffic areas whtch would
allow the hydrants to be fully opened and to nnnmuze the damage
A monon to approve the purchase of the hydrant d1ffuser discussed by Jackson at a cost of
$1,000 00 WIth attachments was made by Duerr, seconded by Irvme An present voted
aye
Peggy, PSG d1stnct manager, dJscussed their March 9, 1999 proposal for the mamtenance
and operanon of the water supply and EDA water mam and the contract of the office at a
cost of $238.089 00 per year She stated that flus does not mclude bond payments,
msurance, professional SCIVlces, meters and pressure reducing valves. Peggy mtroduced
Becky who handles the office for the Pme R.tver wastewater plant and does what Ktpka IS
domg cmrently They stated that their contract does not mclude bonding insurance.
Gundersen strongly stated that the Albertville CIty Council prefers hiring someone part-
tune to handle the office tnStead of contracting the office out to prOVIde more
accountabthty and permanency
Ktpka dIScussed the contparJSOD she compiled from the PSG proposal and the 1999 budget
figures Kipka stated that she finds a dtscrepancy of approximately $30,000 00 m the
operanon and mamtenance portion and asked for clanficanon from PSG Ktpka stated that
the office portIon of the PSG proposal is lugher when the Board takes into account that the
1999 Budget allows for one full-tune person at $1550 per hour and one part-tune person
at $8 75 per hour
Ktpka and Browmng, PSG, discussed the d1screpancy WIth the mamtenance and operation
of the supply Brownmg stated that the $30,000 00 IS for the management of the
mamtenance and operal1on of the supply KIpka stated the $30,000 00 dtscussed by
Brownmg would be mcluded m the 1999 Budget wages.
KIpka recommended that the Board contract WIth PSG to do the mamtenance and
operanon of the supply system at the $44,295 00 annual fee
JOINT POWERS BOARD
MARCH 22, 1999 MINUTES
PAGES
GWldersen asked If the proposals to the three cIties and the Board were stand alone
proposals PSG agreed that they were
Irvme stated that she was happy WIth PSG's 1998 perfonnance and thmks that haVIng PSG
contract the office would be more stable than hnmg a part-tlme employee
GWldersen stated that the Board should COnsIder gettmg other proposals hke they were
dJscussmg when Middleton was present to discuss changing Insurance agents
A motion to approve PSG's proposal for the mamtenance and operation of the supply
system and the office WIth the monthly amOlmt bemg 1/12 of $238,089 00 was made by
Irvme, seconded by Duerr All present voted aye except Gtmdersen.
Ktpka asked what the terms of the contract are and when they start. The Board and PSG
agreed to negotiate the terms and/or have an amendment to the current 3 year contract to
mclude the addiDons
Catbn stated that he 18 deSJgning plans and spect1icatlons for the Hanover Booster Pump as
authonzed at February 1999 meetIng. Catlm requested authonzatlon to proceed WIth
surveying and soil bonngs of the Psyk property if an agreement 18 made
A motion to authorize Catlm to proceed WIth surveymg and soil bormgs of the Psyk
property If an agreement 18 made was made by Irvme, seconded by Kessler All present
voted aye
Catlin stated that Olson's completed thetr work on the Chenucal Feed project and he wtll
be out tomorrow to mspect
The Board directed PSG to contact the compames that handle antennas on the tower and
request thetr presence at the April meeting
Ktpka stated that she has receIVed 5 or 6 mspectlon reports where the hook on fees were
not patd and asked that the Board go back to thetr respectIve CIties to resolve the problem.
Ktpka stated that she met WIth Peggy, Oakley Nattonal Agency, regarding the msurance for
May 1999 to May 2000 Ktpka stated that needs direction m the form of a motion on
whether the Board wants to watVC the hablhty msurance whIch they did not m 1998 and If
they wanted to have coverage for legal expenses for Vlolatton of open meettngs whtch they
turned down m 1998
A motion not to WaIve the hability msurance as they did m 1998 was made by Zimmerman,
seconded by Irvine All present voted aye
JOINT POWERS BOARD
MARCH 22, 1999 MINUTES
PAGE 6
A motion to deny the legal coverage regardmg Vlolat1on of the open meetings was made by
Zunmennan, seconded by Gundersen. An present voted aye
The Board d1rected PSG to be bonded and prOVide a cerbficate of msurance for the
bondmg.
A motion to adJOlUD was made by ZImmerman, seconded by Duerr An present voted aye.
The meetmg was adJOlUDed at 11'00 pm
RespectfuDy subnmted,
Donna M KJpka