2000-10-23 JPWB Minutes
MINUTES
JOINT WATER BOARD REGULAR MEETING of
October 23, 2000
7:00 PM Albertville City Hall
7 00 PM Call to Order by Chair Olson
Present Olson, Kessler, Irvme, Gundersen, Duerr, Zimmerman
Absent None
MOTION BY IRVINE, SECONDED BY DUERR TO ADOPT THE AGENDA AS
PRESENTED MOTION CARRIED UNANIMOUSLY
There was no one present under CitiZen Forum
MOTION BY IRVINE, SECONDED BY KESSLER TO APPROVE THE MINUTES
OF THE SEPTEMBER 25TH REGULAR MEETING MINUTES MOTION CARRIED
UNANIMOUSL Y
MOTION BY KESSLER, SECONDED BY DUERR TO APPROVE THE CONSENT
AGENDA AS PRESENTED MOTION CARRIED UNANIMOUSLY
It was the consensus of the Board to address New Busmess first, smce there were ViSitors
present to address the New Busmess agenda items Mr Art Hagen of Hagen BUllders
and John Schlumpberger ofRJ Starr, Inc were present to diSCUSS therr request for a
vanance to the hydrant coverage speCification requlOng the addition of a fire hydrant m
conjunction With a buddmg addition The Jomt Water Board requrres a 250-foot radiUS
coverage from a hydrant to all areas of a bUlldmg pad Mr Hagen mtroduced hImself and
explamed that they were requestmg the vanance so that they would not have the added
expense of the addItIOnal hydrant He felt that the hydrant coverage m place was
sufficIent for adequate fire protection The water lme extenSion to the bUlldmg additIon
was bemg mstalled to provide water supply to a spnnkler system Mr Hagen provided
drawmgs of the proposed expanSIOn and showed the Board members the locatIon of the
eXistmg structures m relatIOn to the proposed expanSIOn
Mr Schlumpberger mtroduced rumself and expressed rus opIlllon that there was adequate
fire protection m place already and that the other busmesses m the park did not comply
With the 250-foot hydrant coverage reqUlrement Cathn and Browrung stated that the
hydrant coverage pohcy was for any new projects and that the eXlstmg buddmgs m the
park may have been constructed pnor to the pohcy implementatIOn Mr Cathn also
explamed that the Board, m the past, had not made exceptions to thiS pohcy smce he had
been servmg as the engmeer General diSCUSSion followed
CHAIR OLSON CALLED FOR A MOTION FOR A VARIANCE THERE WAS NO
MOTION HE THEN CALLED A SECOND TIME FOR A MOTION, AND THERE
WAS NO MOTION A THIRD TIME CHAIR OLSON CALLED FOR A MOTION
FOR THE VARIANCE, AND THERE WAS NO MOTION VARIANCE WAS NOT
GRANTED DUE TO LACK OF A MOTION
Mr Hagen asked who governs these polIcIes and who adnumsters the ImplementatIOn
Mr Catlm explamed the process and protocol between the Jomt Water Board and the
respectIve member CIties Mr Schlumpberger expressed IDS concern that the other
busmesses m the park, partIcularly Capnce Lumber and Paulson's, were not reqUIred to
comply wIth tIDS hydrant coverage polIcy The Board dIrected Browmng to look mto
those busmess' projects and dIrect the question to the appropnate party, whether It be the
CIty or the Jomt Water Board
Mr Bob Ehlers of Ehlers and AssocIates was present to dISCUSS the Jomt Water Board's
cash flow as It pertains to theIr eXIstmg water revenue bonds and the optIons avaIlable to
finance the proposed Well #5 project He presented a spreadsheet showmg revenues vs
the proposed drawdown schedule and dIscussed the varIOUS scenarIos that could develop
dependmg on the results of the bIds and the constructIon schedule Of pnmary
Importance was mamtaImng the revenue coverage for the eXIstmg bonds that IS reqUIred
The projected revenues and expenses shown m the cash flow were updated accordmg to
mformatIon supplIed by the CItIes, the engmeer and staff Mr Ehlers stated that the cash
flow mformatIon presented showed that the Board has sufficIent cash flow to finance the
Well #5 project With cash on hand rather than seekmg other fundmg sources Mr Ehlers
then also dIscussed the fact that there are a lot of questIons hangmg out there as to the
long-term rate of development and how It WIll Impact the system demands He
recommends domg a senSItivity study to address the unknowns of the future so that the
Board Will be prepared to address mcreased (or decreased) demands on the water system
when they occur Mr Ehlers expressed that the Board needed to focus on buIldmg up
some cash reserves to be able to handle some of these Improvements/additions that would
be commg up m the near future Irvme thanked Mr Ehlers for respondmg to the Board's
request for the financial reVIew on such short notice Mr Ehlers stated that he would
contmue to work With Catlm and Brownmg regardmg the financial forecastmg under
varIOUS scenanos
The Board reviewed the 2001 proposed contract and budget from USFIlter BroWnIng
stated that she would be makmg the correctIOns that Chair Olson had pomted out m their
prevIous diSCUSSion regardmg replacmg "CITY" With "OWNER" m several locations
She also stated that the proposed budget, once reviewed by the Board, would be mserted
m the "COMPENSATION' sectIOn BroWnIng also lIsted the corrected numbers for the
2000 vs 2001 vanance column, due to an error m formulas for the spreadsheet
Brownmg then discussed the categones that show sIgmficant mcreases and explamed
why the mcreases were taking place Increases were pnmarIly due to the new water
treatment plant BroWnIng also stated that the "UTILITIES" and "CHEMICALS"
budgets would be set up as a reimbursable account, simIlar to the "REPAIR AND
MAINTNENANCE" IS now Some diSCUSSion regardmg water treatment chemicals used
m the new treatment plant followed Kessler asked how the proposed budget compared
With the revenue vs expenses projections m the finanCial forecastmg BroWnIng stated It
was sIgnIficantly lower than the Engmeer's estImate of O&M costs and the operatmg
costs used m the forecastmg and the rate study The Board then bnefly dIscussed the
water user rates m relatIon to the proposed budget When there were no further
questIons the Board dIrected BrownIng to have theIr attorney reVIew the contract
document pnor to final approval They stated that any attorney m theIr office that had
tIme would be fine They asked If they could have the final draft for approval at
November's meetmg Gundersen asked If the five (5) year term could be changed to
three (3) He stated that they have been happy wIth the way thmgs have been, but feels
that the future Board would be forced to be more mvolved m the future With the plannIng
process BroWnIng stated that would be acceptable MOTION BY GUNDERSEN,
SECONDED BY IRVINE, TO CHANGE THE TERM TO THREE (3) YEARS
MOTION CARRIED UNANIMOUSLY
Under the Engmeer's report, CatlIn dIscussed the Change Order #5 for Moorhead
ConstructIon The change mvolves the ancIllary pIpmg necessary at the treatment plant
SIte related to the Well #5 project MOTION BY IRVINE, SECONDED BY DUERR,
TO APPROVE CHANGE ORDER #5 OLSON QUESTIONED THE COST FOR
PAINTING THE CEILING AND WALLS IN THE CHEMICAL ROOMS AND WHY
IT WAS NOT IN THE ORIGINAL BID CATLIN STATED THAT IT WAS MISSED
IN THE SPECIFICATIONS THE COST ASSOCIATED WITH THIS IS
APPROXIMATELY $2,000, PRIMARILY MATERIALS MOTION CARRIED
UNANIMOUSLY
CatlIn then dIscussed a change order that would be commg up next month regardmg
mSIde changes for mtegratmg Well #5 mto the treatment plant, such as chemIcal feed
pumps and controls DIScussIon followed that the treatment plant IS deSIgned to easIly
add the addItIonal wells when needed
CatlIn addressed the letters recommendmg approval of the AdvertIsement for BIds on
Tower #2 and Well #5 Some dISCUSSIOn followed regardmg the tImelIne for publIcatIon
m relatIon to the project schedule MOTION BY KESSLER, SECONDED BY
ZIMMERMAN, TO APPROVE ADVERTISING FOR BIDS FOR TOWER #2, AND
RECEIVING AND OPENING BIDS ON NOVEMBER 23RD MOTION ALSO
INCLUDED APPROVAL FOR ADVERTISING FOR BIDS FOR WELL #5, AND
RECEIVING AND OPENING BIDS ON NOVEMBER 21 ST MOTION CARRIED
UNANIMOUSLY
CatlIn presented the final draft paper copy of the bronze plaque for the Board's reVIew
Irvme pomted out that the month and year should defimtely be added to the plaque
Board members reVIewed the copy for typos and for content There was a consensus that
It was correct CatlIn then showed the prelImmary sketches of the office and Board
Room furmture layout All present thought that It looked good CatlIn stated that the
furmture fell mto a budgeted allowance wIthm the specIficatIOns/bId Staff would
contmue to look for an appropnate Board table Olson recommended checkmg WIth
BOise Cascade Office Products All agreed that the "U" shape was preferable
Cathn gave a bnef summary of project status MId-November was still the expected
start-up for the treatment plant
Under the Operator/Office departments, Browmng stated that she had met With the
member CIty staffs, and they agreed that we would use this upcommg wmter season as a
tnal penod to see how many meters could be replaced mternally wIth eXIstmg staff ThIs
would provIde more mformatIon about the tIme needed to Implement the program and
more accurate costs assocIated With a program
Brownmg addressed the DlstnbutIOn System portIon of the WAC fee for Jomt Powers
The Board had not dIscussed changmg theIr portIon of the DlstnbutIon System fee, as
there are so few requests to connect dIrectly to the EDA hne DIScussIon followed as to
how to come up wIth a fee Browmng hsted the CItIes' comparable fee, pomtmg out that
Jomt Powers' was the lowest MOTION BY ZIMMERMAN, SECONDED BY
KESSLER, TO USE AN AVERAGE OF THE THREE MEMBER CITIES' FEE
DISCUSSION FOLLOWED OLSON, IRVINE, AND ZIMMERMAN VOTED AYE
KESSLER, GUNDERSON, AND DUERR VOTED NA YE MOTION FAILED
MOTION MADE BY GUNDERSEN, SECONDED BY KESSLER, TO CHARGE THE
SAME FEE AS THE CITY'S FEE IN WIllCR THE CONNECTION IS TAKING
PLACE FIVE MEMBERS VOTED AYE, WITH ZIMMERMAN VOTING NA YE
Some dIScussIon regardmg mIscellaneous fees, such as mspectIon/permlt fee and copy
fees followed It was the consensus of the Board to address the other fees at the
December meetmg Standard specIficatIons have been requested frequently as of late,
Browmng stated, and asked that the Board set a fee for full sets of the Jomt Powers'
standard specIfications MOTION BY KESSLER, SECONDED BY ZIMMERMAN, TO
SET THE FEE FOR A FULL SET OF THE JOINT POWERS' STANDARD
SPECIFICATIONS AT $25 MOTION CARRIED UNANIMOUSLY
The Board then revIewed the hst of dehnquent bills to be certIfied to the 2001 property
tax rolls MOTION BY IRVINE, SECONDED BY KESSLER, TO CERTIFY THE
DELINQUENT BILLS AS PRESENTED TO THE 200 1 TAX ROLLS
MOTION BY ZIMMERMAN, SECONDED BY DUERR, TO APPROVE THE LIST
OF CLAIMS MOTION CARRIED UNANIMOUSLY
Under Other Busmess/ Announcements, ZImmerman asked about antenna leasmg m
regards to the new tower project Brownmg stated that she and Cathn had already
dIscussed that Issue, so that the tower deSIgn would be such that It would be sUIted for
addItional antennas and dedIcated space for antenna eqUIpment It was stated that Mr
Esterly, the SIte manager for the antennas, would be contacted so that he could start
marketmg the new tower SIte and look mto amendmg hIS current contract to add the new
SIte
Kessler dIscussed changmg the meter mstallatlOn polIcy to mclude hookmg up the phone
lmes at the tIme of constructIon, startmg nght away Browrnng was dIrected to look at
draftmg some language for the polIcy change to look at for the next meetmg
MOTION BY ZIMMERMAN, SECONDED BY DUERR, TO ADJOURN THE
MEETING AT 8 40 PM MOTION CARRIED UNANIMOUSLY
~A n~,~
Recordmg retary ,