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1999-06-28 JPWB Minutes . . JOINT POWERS WATER BOARD MEETING ~.. JUNE 28, 1999 ST. MICHAEL CITY HALL I PUBLIC WORKS FACILITY Present Ken Duerr, Robert Gunderson, Barb Irvme, Wayne Kessler and Tim Zimmerman Absent None Charr Kessler called the meetIng to order at 7 00 PM and declared a quorum present Kelly Browmng, actIng as secretary, added to the Consent agenda correspondence from Oakley National Bank concerning the Board's msurance prenuum reduction due to the office management changes OLSON MOVED TO ADOPT THE AGENDA AS PRESENTED DUERR SECONDED THE MOTION MOTION CARRIED UNANIMOUSLY > -~ "j ~" ~ ~ -<" :i ~~ 1 < i ~ "<I No one was present under citizen forum. Barbara Irvine requested it be noted m the mmutes that the executive committee of the three mayors did NOT meet to review Spnngsted's proposal for the previously scheduled meeting of Friday, May 28, 1999, at 12 IS PM at Albertville City Hall This was due to the fact that Sprlngsted communicated to staff that it was not practIcal for them to proceed WIth updating the rate study 1 ::; > DUERR MOVED TO APPROVE THE MINUTES OF THE MAY 24, 1999, REGULAR BOARD MEETING IVINE SECONDED THE MOTION MOTION CARRIED UNANIMOUSLY GUNDERSON MOVED TO APPROVE THE CONSENT AGENDA DUERR SECONDED THE MOTION MOTION CARRIED UNANIMOUSLY The Board revtewed the Psyk land purchase agreement Kessler noted that the Board's attorney had reviewed it (letter enclosed) and found It acceptable, as did he There was no further discussion. OLSON MOVED TO APPROVE THE PSYK LAND PURCHASE AGREEMENT AND AUTIlORIZE SIGNATURE ZIMMERMAN SECONDED THE MOTION MOTION CARRIED UNANIMOUSLY Allen Dye ofHR. Green was present to present the rate study Allen Dye summarized the study and discussed the dIfferent types of rate structures, the proposed increa~ing block rate structure, and how the proposed rates compared to surrounding communities He stated that the proposed rate would mcrease the overall rate by approximately $0 30 per 2 1,000 gallons Additionally, the study showed a proposed mcrease to the connection fee (Jomt Powers' portion) by $lOO,~~om $900 to $1,000 per hook-on Irvme clanfied that each member could add on to theIr portIon of the rate at any time All agreed this was the case Duerr asked for companson of a 30,000 gallon bill now versus a 30,000 gallon bdl With the proposed rate Kessler stated that It IS cheaper than cable " Chns Catlin ofHR Green stated that the Department of Health goes on record as preferrmg the mcreasmg rates with usage Duerr expressed some Interest in Minneapohs or St Paul rates Catlm stated that 30,000 gallons In a quarter IS almost $9100 for Mmneapohs St Paul's rate IS $63 00 for 30,000 gallons Chair Kessler stated that it is , good to have an automatIc mcrease annually of 2% so that there are no large increases in a gIven year Browning stated that lfthey had automatic mcreases the Board could move to not unpose the increase m a gIven year, if they so deSIred Allen Dye stated the recommendation IS to have a base rate of 10,000 gallons per quarter at $1 45 per thousand gallons ($2 03 bemg the total rate With the $0 58 City portion), increasmg to $1 50 per thousand for 10,001 through 20,000 gallons, $1 55 per thousand for 20,001 through 35,000 gallons then $1 60 per thousand for 35,001 and above The Cities' portIon of the rate would be added to thIs It was also recommended to increase the connection fee to $1,000 for Joint Powers' portion OLSON MOVED TO ACCEPT THE RATE STUDY RECOMMENDATION DUERR SECONDED THE MOTION MOTION CARRIED UNANIMOUSLY Browmng asked when the Board would hke thIs rate mcrease to take effect Cathn expressed that the study was done based on a January 1, 2000, date There was consensus that this would be appropriate With pubhc informatIon to go out prior to the rate mcrease taking effect George EIlertson of Juran & Moody was present to present the water treatment plant fmancmg tuneline With projected populatIon mcreases and debt servtce schedule Edertson presented an updated timelme for the treatment plant proJect, to include the engmeer's and Board's schedule for specific tasks to be completed Possible dates for settIng the bond sale, receivmg bids, and awardmg bids were discussed EIlertson discussed in further deta1l the financmg package being developed The projections include phasmg m of Well #4 and an addItiOnal water tower A reserve fund will have to be estabhshed in the amount of 1 ()O~ of the total project cost or the highest annual debt service, whIchever is less ThIs can be used for the final year debt service payment Estimated mIscellaneous admtwstratIve costs were discussed Total bond amount rounded for issuance totals $5,570,000 A bond package IS being put together by Juran & Moody In presentatIon form to be able to market the sale of the bond and get a good rating Zimmerman expressed concern With the poSSibility of the growth slowing ~-' 3 down below these projections Ellertson and Chair Kessler stated that population projections were COnservative, US!~g the Cities' mdlvldual projectiOns MOTION WAS MADE BY OLSON TO SET A SPECIAL MEETING TO SET THE BOND SALE DATE FOR JULY 8, 1999, AT 5 00 PM AT ST MICHAEL CITY HALL / PUBLIC WORKS FACILITY, THE DATE TO RECEIVE BIDS WOULD BE AUGUST 2, 1999 MOTIONWASSECONDEDBYZIMMERMAN MOTION CARRIED UNANIMOUSLY Kevin Newman ofHR. Green and Chns Catlin were present to present the plans and specIfications for the water treatment facIlity Cathn stated that the advertisement for bids is scheduled to go into the next Issue of the Crow River News OLSON MADE THE MOTION TO APPROVE THE PLANS AND SPECIFICATIONS AND AUTHORIZE ADVERTISEMENT FOR BIDS IRVINE SECONDED THE MOTION MOTION CARRIED UNANIMOUSLY Catlm presented the plans and specifications for Well #4 , "'" ~ ".I ~-~ .~ ->l ~J~ IRVINE MADE THE MOTION TO APPROVE THE PLANS AND SPECIFICATIONS FOR WELL #4 OLSON SECONDED THE MOTION MOTION CARRIED UNANIMOUSLY The Board reviewed a letter from Bob Rego concermng temporary water I construction use of water at the middle school site Mr Rego IS requestmg a reductIon in the fee for usmg the water, hydrant meter, and bacldlow preventer due to the longevity of the project Browning presented a list of what other commumtles charge for sunilar uses Browning also explamed that the Board has s1D11lar requests from JMJ Outlet Mall and Buffalo Bituminous General diSCUSSIOn followed about options such as a rental charge for the meters and bacldlow preventers Catlm stated there are Cwater salesman" units that are used m some cases where anyone can dnve up to the plant and put money in (such as in a car wash) and receive water Kessler stated that this would be easier to manage when the treatment plant IS budt and staff are on-site to monitor the loading Irvme stated that the problem is the length of time that the contractor has possession of the equipment prevents other contractors from being able to use It Consensus was to have PSG look at more poSSible options Browmng asked the Board about thell" VIew on eStImatIon of water bills Browning stated that the billmg software is currently set up to estImate bIlls 111gb (1100..10) when no meter readmg IS received She stated that tins seems to be serVIng no purpose except to make admtnistrative tune and cost more for the Board and the Cities (for sewer billmg correctIons) than anytl11ng else When a readmg is over estImated, once a good reading is received by the owner or staff: a credit must be gIven for the overestimation. Therefore, there really is no benefit to the Board Browning asked the Board if there were any objectiOns to lowering the estimatIon to 1000..10 and worlang on approaclung the issue more proaCtlvely from a public relations I informatIon standpoint Browning also stated 4 that a new more customer mendly meter card had been developed for the next meter card Issuance There was a consensus that changmg the estunatmg was agreeable to the Board ~.. Browrung stated that she was worlang With Juran & Moody on schedulIng the IDvestments to coIDclde With the water treatment plant project Brownmg, Chair Kessler, and Ellenson had met to discuss The 6-month CD's at First NatIOnal in Elk RIver have matured Browning requested direction on how to proceed With temporary investment of these momes until a schedule could be developed that coIDclded with the project The Board directed Brownmg to attain the highest yield on a short term account locally Browmng stated she' had already looked IDte this and It appeared that First National could offer a money market account at 4 75 % With IDterest calculated and earned dally Mr Denms Esterly was present to present the Antenna Site Management Agreement The Board reVIewed the contract and the attorney's comments regardmg thts There were no legal issues, only Board pohcy issues, such as terms The Board asked Browning if she had looked at the contract and if she bad any comment Browning stated that she agreed that there seemed to be only Board pohcy decisions on the thmgs such as term. Browning stated that Esterly had addressed all other issues brought forth by the attorney, except for the term and the compensation Esterly stated that there is many thousands of dollars worth of equipment IDvested 10 a site, and that long-term contracts were standard for antennae sites He also stated that the straight percentage for the compensation seemed the best incentive for all parties, s10ce the site manager and Board would receive mcome dIrectly proportional to the amount of rent charged ':> MOTION WAS MADE BY ZIMMERMAN TO APPROVE THE ANTENNAE SITE MANAGEMENT AGREEMENT DUERR SECONDED THE MOTION Gunderson asked for clarification on whether all of the attorney's comments had been addressed 10 the document before them Esterly saId that they had been addressed and changed accordmgly Brownmg agreed this had been done Kessler asked about assigning a Board member as the lIaison to reVIew mmVlduaIlease agreements as specified in the contract Irvme stated the chair of the year should be that person MOTION WAS AMENDED BY ZIMMERMAN AND SECONDED BY DUERR TO APPOINT THE CHAIR AS THE LIAISON TO REVIEW INDIVIDUAL LEASE AGREEMENTS MOTION CARRIED UNANIMOUSLY '" ~ ~'" -~... } Browmng was present to answer questions regarding the PSG contract amendment There were no questions or diSCUSSion Browmng stated that PSG was 10 the red by at least $30,000 due to the delays in getting the amendment approved and requested approval of payment according to the annual fee and the Apnl th start date IRVINE MADE THE MOTION TO APPROVE THE CONTRACT AMENDMENT AND PAYMENT OF THE OUTSTANDING INVOICE AMOUNTS OLSON SECONDED THE MOTION MOTION CARRIED UNANlMOUSL Y co 5 MOTION WAS MADE BY GUNDERSON TO APPROVE THE LIST OF CLAIMS, CHECK #'S 8721 THROUGH 8724 AND CHECK #'S 8727 TIlROUGH 8729 MOTION SECONDED BY OLsON MOTION CARRIED UNANlMOUSL Y MOTION WAS MADE BY ZIMMERMAN TO ADJOURN THE ~TlNG AT 900 PM OLSON SECONDED THE MOTION MOTION CARRIED UNANIMOUSLY , Recordmg Secretary" - - ~ 4