2001-05-29 JPWB Minutes
JOINT POWERS WATER BOARD MINUTES
Regular Meetmg of
May 29, 2001
7:00 PM JPWT Plant Board Room
Call to Order at 7 15 PM by ChaIr Olson
Present Olson, Kessler, PaullIn, Kottke, Vetsch
Joe Hagerty stand-In for Tom Hagerty
Absent Tom Hagerty
The meetIng was called to order at 7 15 PM
MOTION BY VETSCH, SECONDED BY PAULLIN TO ADOPT THE AGENDA AS
PRESENTED MOTION CARRIED UNANIMOUSLY
CatlIn Introduced KeVIn Newman from H R Green, statIng that he would stand-In for
CatlIn at the next meetIng
MOTION BY KESSLER, SECONDED BY KOTTKE TO APPROVE THE MINUTES
OF THE APRIL 23, 2001 REGULAR MEETING MOTION CARRIED
UNANIMOUSLY
MOTION BY PAULLIN, SECONDED BY KESSLER TO ADOPT THE CONSENT
AGENDA MOTION CARRIED UNANIMOUSLY
ClOSIng of the Bauman property and the School Board property was conducted Just pnor
to tomght's meetIng
Browmng stated that JIm Conrad had asked the Board to address the water tower
overflow again She stated that JOInt Powers Insurance had demed the claIm It was then
sent to US FIlter Insurance that would In turn subrogate It to the contractor There IS no
further InformatIon at this time It was deCIded this matter would be dIscussed at a time
when there IS more Information aVailable
ChaIr Olson announced that Item 1 under EngIneenng, dIScussIon of sellIng of property
to MJM, would be brought forward at this time CatlIn presented an exlnbIt shOWIng the
property that was JUst purchased from Bauman's and had handed out a smaller blow-up
of the Bauman property broken Into three parcels (A, B, & C) He explaIned that well #6
would be on parcel B, allOWIng parcels A and C to be sold CatlIn explaIned that we
would want to retain a restnctlVe use covenant on those propertIes, to assure there was no
hazardous waste, pIt toIlets, ect on SIte, so we don't have any nsk of contamInatIng our
wells ThIs IS a well code requIrement CatlIn recommends thIs as a ffilmmum that the
Board should retain
Scott Dahlke wIth Quahty SIte DesIgn presented the concept that was JUst submItted to
the CIty of St Mtchael, on behalf ofMJM Dahlke handed out hIS own exlubIt of the
Bauman property They plan to be at the next St Mtchael planmng and zomng board
meetmg He explamed that the water mam proposal runmng along the north SIde of the
property IS what started them lookmg mto developmg tms property They would prefer
that It dId not run along the north SIde, as It would make It ddficult to develop the SIte
once the water mam was mstalled They propose the water mam run down the street and
have an easement across lots 15 and 16 onto Ivory Av and before runmng through the
school property as Cathn had proposed An eXIstmg house on the comer of Ivory A v
that IS proposed to stay was mentIOned Kessler saId he was comfortable WIth thmgs
under those plans as long as we're certam we haven't boxed ourselves m and we have
plenty of room around the tower, ect Cathn assured mm that that was the case and also
part of the reason bemnd making sure we have the restrIctIve use covenant on those
propertIes IfMJM IS the buyer ofthe propertIes we would also need to get a restnctIve
use covenant on what they show as lots 1 & 2 We need a 200' area around the wells for
the restrIctIve use covenant
Vetsch wanted to know whether there was a pnce m mmd or If It was to be hsted and
whether MJM had exclUSIve nghts Cathn and Olson explamed that we have no
arrangements WIth anyone at this pomt and MJM IS expressmg therr mterest m
purchasmg the property so the Board must detemnne whether or not tms IS sometmng
they're mterested m Kessler states that he has no ObjectIons to sellmg as long as we're
comfortable that we don't need any part of It Cathn agam stated that we've made sure
we have what IS needed and that It wouldn't make sense to have a thrrd well m that area
We would want to go at least a quarter mIle down the road for another well Ralph
MunsterteIger questIoned Cathn as to the reason why Cathn's concept was preferable to
MJM's concept as far as the well bemg located m the center versus to one SIde Catlm
stated that we must own a 50' ramus around the well and he felt It worked out better WIth
the access, and mamtammg the well, ect He's not saymg It'S unworkable to do It the
way MJM proposes, he Just feels It works out better the way he has It shown MOTION
BY KESSLER, SECONDED BY VETSCH TO SELL THE PROPERTY MOTION
CARRIED UNANIMOUSLY
Ralph MunsterteIger asked that the dIScussIon be carned a httle further as doesn't see that
anyone else would buy the property smce MJM owns everythmg else m the ImmedIate
area He would hke to work out further negotiations to move thtngs along If the Board
IS tmnkmg of gettmg pIpe m the ground by September or even thts year yet then he
doesn't feel anyone can afford to mISS any meetmgs MunsterteIger proposed the
possIbIhty that MJM run the pIpe through therr platt, at therr cost, m exchange for the
property or perhaps smce they're puttmg the street m, the Board wouldn't pay for the
street Olson dIdn't feel we were at the pomt where we were acceptmg offers or
negotIatmg, as MJM must still go through the CIty to get approval MunsterteIger stated
that was why he was trymg to come to further understandmg as It wouldn't make sense
for them to go to the City If there wasn't some understandmg With the Board Cathn
added another aspect, wmch IS, that It IS m the Board's mterest to get the easement or
nght of way for the raw water mam so that we can get under construction Cathn stated
that we spearheaded tills effort, we've Jumped construction of well #5 ahead by a few
years due to the huge mcrease m water demand we saw last year Mlke Leuer saId he met
WIth Cathn a few months ago to talk about puttmg the water mam through MJM property
Leuer knew the problems of developmg tills property, as he's owned It smce the early
1980' s Cathn mentioned that the Bauman property was bemg purchased and Leuer told
illm that we should faCIlItate sometillng With O'Donnell's He stated that he had
attempted that several years ago, but nothmg came of It He dId make contact WIth the
O'Donnell's recently and was told that they had Just put the property on the market
Leuer then purchased the property nght away, as he knew the property was needed If tills
was gomg to work He says they went out on a 11mb purchasmg the property to make thIs
work He Just wanted to say that they were domg what they could to make the pIeces of
the puzzle fit Leuer saId he knew the Board had talked to EIcher's about sellmg therr
property and they weren't very frIendly He stated they had also talked to EIcher's and
was told they weren't mterested m sellIng and dIdn't want to be bothered Leuer JUst
wanted to gIVe the Board the illstory so they had some Idea and to let them know that he
has been trymg to faCIlItate tills whole project and feels that It can work Kessler asks
that CatlIn bnng to the next meetmg costs of easements, ect CatlIn suggests the Board
have the property appraIsed CatlIn also remInds the Board that there are steps to be
taken WIth the CIty of St Michael to speed the process along CatlIn suggests splIttmg
the lot With the CIty of St MIchael and the Board retains parcel B He then feels the
remammg property should be splIt Into three parcels Dalke stated that It could be done
as a Jomt platt The CIty could be assured that the splIt wouldn't take place unless tills
deal went through and Jomt Powers could be assured that the splIt wouldn't take place
unless the CIty approved It Olson thought that was some mformatIon that could be put
together for the next meetmg MOTION BY KESSLER, SECONDED BY VETSCH TO
SPLIT THE PROPERTY OUT MOTION CARRIED UNANIMOUSLY
MunsterteIger asked Olson Ifthere was a possIbIlIty, because of the time constramts, of
appomtmg a commIttee that they could work With Olson stated that It was typIcal to
work With the three Mayors, but It IS up to the rest of the Board as well Olson asked for
comments from the rest ofthe Board Vetsch stated that he felt It would take a month to
get all the facts and figures together and he doesn't want It to get rushed He states he
wants to sell the property, but feels there IS qUIte a lot of value m the land m the shape of
fill, splIttmg It out, ect Vetsch would also lIke to see what we're paying for easements
He feels that If It gets mto commIttee form by the time he gets here next month
everythmg wIll be cut and dned and he dIdn't get to dISCUSS any of It and he doesn't feel
that's nght MunsterteIger stated that they would have to go before the Planmng and
Zorung and the CIty CouncIl before that meetmg anyway and If they don't lIke It, It
doesn't matter Kessler thought the three Mayors could take It under adVIsement and that
Vetsch could stay m contact With Olson Olson wanted to know how much of a rush the
project was He asked Catlm If the desrre to move ahead was qUIcker on the part of the
Board than It was MJM and do we need to make some headway pnor to the next meetmg
CatlIn stated that It would seem that the Board should want to move ahead qUIckly as tills
whole process has a lot of potential mIlestones WIth long lead times The Board needs to
bnng Items before the St MIchael Planrung & Zorung and they have a long reVIew penod
and then we need to go before the St Michael CouncIl CatlIn states that the qUIcker we
start mto those dungs so we can get exlublts to Planrung & Zomng the better off we are
Olson asked If It meant we had to do anythmg pnor to the next meetmg CatlIn states that
we are startmg to press the summer constructIOn penod on the project so hts advIce
would be to start as qUIckly as pOSSIble so we can get the pIpe m before the snow flIes
and constructIOn gets shut down Browmng saId that she wanted to be sure It was clear
that we cannot use well #5 untIl thts raw water mam comes down from the tower to the
plant PaullIn asked If she mIght offer Vetsch her spot on the commIttee, but Kessler
stated that It was the polIcy that was set up to have the commIttee made up of the three
Mayors Olson stated that, If necessary, the three Mayors would get together and that It
would have to return to the Board anyway
Braunwarth explamed that there are credIt balances on two accounts for SuperAmenca
The credIt balances are $3481 67 and $283 47 These are due to the fact that there are
dIfferent types of meters that had to be read dtfferently Vetsch stated he preferred
wntten background mformatIon mcluded m the packet rather than a verbal explanatIon
Braunwarth stated It was bemg presented from notes she took as the customer called in
therr request Kessler asked why there were two meters Brownmg answered that one IS
a htgh use meter and pOSSIbly they Installed two so one could be used for spnnklmg, we
don't know, but they dId mstall two dtfferent SIZe meters Browmng also added that the
credIt IS parttally due to the fact that they never read therr meter and It has been
estImated Vetsch thought there should be some paperwork Included In the packet that
explaInS the Items, statmg he probably wouldn't remember next week otherwIse Olson
agreed WIth Vetsch that there should be a memo on thts Kessler commented that It has
been thts Board's polIcy to pay back credIt balances, but the prevIous Board had thought
It best to have the customer work It off Vetsch stated we should Just pay the credIt, but
he wants to see It m wntmg Browmng added that relmbursmg the credIt be based
somewhat on the amount, statmg that the smaller amounts would be worked off qUIckly
and It may not pay to wnte a check, but larger amounts would be paId MOTION BY
KESSLER, SECONDED BY PAULLIN TO APPROVE REFUNDING THEIR MONEY
ON BOTH ACCOUNTS, WITH PAPER TRAIL TO FOLLOW MOTION CARRIED
UNANIMOUSLY
Browmng suggested scheduhng the open house for the water plant on a Saturday so more
resIdents would be able to come and tour, ect Olson stated a motIOn was not needed
The date was set for July 14,2001 from 9 AM to 1 PM
CatlIn recommends approval of Change Order # 1 - Well #5 CatlIn stated that the
formatIon was even better than they had ongmally thought, therefore, he recommends
Increasmg the qualIty of the screen that holds back the sand and gravel depOSIts Tills
recommendatIon would be to change to a hIgh-flow deSIgn at a cost of $660 MOTION
BY VETSCH, SECONDED BY KESSLER TO APPROVE CHANGE ORDER #1
MOTION CARRIED UNANIMOUSLY
CatlIn explamed that Change Order #6 was a collectIon of Items wrappIng thtngs up
Some of the bIgger Items mcluded addItIonal landscape work and screemng that was
requIred by the CIty of AlbertvIlle for complIance wIth theIr regulatIons Some of the
mcrease m cost due to the connectIon of the raw water mam The contract was modIfied
last fall to allow connectIons of future wells #5 and #6 ahead of schedule Those were
pushed up by a few years due to the mcreased demand Some new doors were mstalled at
the pump house as they were m pretty bad shape Vetsch stated that he does not consIder
these Items a change order He defined a change order as a change after the plan has
been submItted, but when somethmg was mcluded up front It would not be a change
order He stated someone m desIgn dId not do theIr Job The dIScussIon that followed
mcluded some clanficatIon of the sequence of events concludmg that although plans were
submItted to the CIty of Albertville pnor to the bId being submItted by the contractor, the
buildmg mspector dId not receIve them until after the bId He then brought up a number
of Items that needed to be addressed That put thmgs m a bmd WIth the contractor havmg
the bId ready to go and the bUIldmg mspector not allowmg the permtt untIl he went
through the plans Kessler asked If thts sort of change order was normal Cathn stated
that for a project thIS SIze you could expect 3% of constructIOn costs for errors and
OmISSIOnS Thts project has mcurred some faIrly large change orders due to work
begmmng on wells #5 and #6 bemg accelerated The total change orders on thts project
to date are approXimately $140,000, With the maJonty of that bemg due to wells #5 and
#6 Olson thought It would be a good Idea for CatlIn to clarIfy, the sequence of events,
ect , m wntmg, how thts process went down, at least for the landscapmg portIon
MOTION BY KESSLER, SECONDED BY PAULLIN TO APPROVE CHANGE
ORDER #6 MOTION CARRIED UNANIMOUSLY CatlIn stated there Will be another
change order m the next couple of months due to screernng of the heatmg! air
condItIomng umts
CatlIn stated that Moorhead ConstructIon has completed much of the punch hst that was
dIscussed at last month's meetmg The asphaltmg and landscapmg are a couple of the
Items that remam undone CatlIn has taken the estImate of the value of the remammg
Items to be completed and doubled It and WIll use that as the new figure for retamage
CatlIn requests approval of payment of the retamage reductIon of$245,233 98 Kottke
and Vetsch thought there should be more dollars held Further dIscussIon showed
calculatIons for tWIce the amount held for remaIrnng work would be suffiCIent to assure
completIon of work Catlm remmded the Board that we also have the Bond for leverage
Newman calculates we are holdmg approXImately $29,850 MOTION BY KESSLER,
SECONDED BY KOTTKE TO APPROVE PAY REQUEST #15 MOTION CARRIED
UNANIMOUSLY
Browrnng stated that spnnkhng restnctIon notIces were put m the Crow River News
MOTION BY VETSCH, SECONDED BY PAULLIN TO APPROVE THE LIST OF
CLAIMS MOTION CARRIED UNANIMOUSLY
Vetsch requested an emergency plan m case of a catastrophe Browrnng stated she would
try to have that prepared for the next meetmg
MOTION BY PAULLIN, SECONDED BY VETSCH TO ADJOURN THE MEETING
AT 8 35 PM MOTION CARRIED UNANIMOUSLY
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