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2001-11-26 JPWB Minutes JOINT POWERS WATER BOARD MINUTES Regular Meetmg of November 26,2001 7:00 PM JPWT Plant Board Room Present Olson, Kessler, PaullIn, Kottke, Hagerty Absent 'fetsch The meetmg was called to order at 7 00 PM 2002 ConnectIon fees added to agenda and regular meetmg date corrected to say October 22, 2001 on the agenda MOTION BY PAULLIN, SECONDED BY KESSLER TO ADOPT AGENDA AS CHANGED MOTION CARRIED UNANIMOUSLY No one was present for the cItIzen forum MOTION BY KESSLER, SECONDED BY PAULLIN TO ACCEPT MINUTES AS PRESENTED MOTION CARRIED UNANIMOUSLY Corrected budget report was mserted MOTION BY HAGERTY, SECONDED BY PAULLIN TO ACCEPT CONSENT AGENDA AS CORRECTED MOTION CARRIED UNANIMOUSLY There was no unfinIshed busmess Bob Carlson of Gruys, Borden, Carlson, & ASSOCIates was mtroduced to present the 2000 AudIt Report Carlson went through the audIt report He stated that It baSIcally gIves Jomt Powers a clean OpInIOn relatIve to the finanCIal statements Carlson explamed that part of domg an audIt IS testmg transactIOns, but that they do not look at every transactIon, but dunng the audIt they found nothIng that made them feel that these financial statements were anythIng but accurate He stated that the balance sheet showed the organIZatIon's total fund eqUIty grew from last year by apprmamately $600,000 00 There was cash on reserve of two mIllIOn dollars and restncted cash of another two mIllIon dollars There were no adjustments of any consequences to the cash balances, If any at all The growth of the fixed assets IS detaIled m the footnote dIsclosure There are no real changes or surpnses on the balance sheet Assets are gOIng up faster than the lIabIlItIes are gomg up Smce thIS IS an Enterpnse Fund vs a Governmental Fund there should not be any capItal type Items on the mcome and expense sheet There were some Items such as constructIOn costs, ect , that should be on the balance sheet He pomted out the footnote regardmg DeposIts and Investments statmg that there was not suffiCIent pledged collateral at the end of the year He stated that apprmamately 75% of hIS governmental chents run mto trus problem, however, technIcally It IS not supposed to happen and It IS a departure from statutes Hagerty asked If It was consIdered a vIOlation on the statute Carlson stated that It was and that It was part of the comphance check they need to do when they audIt a government body Hagerty then asked what a governmental body can do Carlson's response was that Ifthere was a bond proceed come m or a bIg chunk of cash comes m we should Just work With them to make sure the funds are covered Olson asked If that was a partIcular bank Carlson stated It was at one, but he dIdn't have the detaIl wIth so could not say WhICh one Browmng commented that she thought It was probably HIghland Bank, as PMA dId a collateral pledge when we first got the bond and that Just keeps gettmg taken away from Browmng felt that It was probably connection fees that tipped It as they were commg m from the CItIes Kessler stated that was under HIghland's old reIgn and they have a new manager now that IS keepmg a closer eye on trungs Carlson moved on to the Restncted Assets and Retamed Earnmgs Reservation, statmg that the Board probably hasn't seen the current years reservatIons as part ofthese numbers were calculated dunng the audIt and It probably should reqUire Board actIon at some pomt to say that's how they want therr earnmgs reserved Carlson went on to Comphance and Internal Control statmg that the mam thmg m there IS under comphance The results of our tests, for comphance, show no mstances of reportable noncomphance Carlson talked about the hmlted SIze of the office staff, statmg that most smaller CIties do not have proper segregation of duty but that there IS notrung that can be done about It He stated that that completed the audIt and vanous audIt reports Carlson then presented what he called a management letter In trus letter they pomt out some thmgs that are requrred and some that they feel are helpful Carlson commented on and thanked Brownmg and Braunwarth for bemg open and helpful, but dId not want to go mto the audIt bemg dragged out and late, sImply statmg that office staff made It easIer on them to go through and get It done He stated that Brownmg and Braunwarth engaged them to help get the finanCIal statements m order He stated they would also be helpmg wIth more trammg so that thmgs would be m a better format He explamed that they had seen a number of cash reports that showed a huge negative/net losses that really weren't there because they mcluded a lot of capItal acqUisItion costs and bond and pnnclpal payments and stated that those are easy thmgs to clean up He corrected the name "Frankhn Townsrup" where Jomt Powers should have been mserted Carlson stated there IS a sIgmficant GASB 34lmplementatlon GuIde that Will Impact Jomt Powers, although not for a few years, but stated that they wIll help to assure we're ready The only change wIth any consequence IS as we phase out fixed assets It Will need to be tracked The other thmg IS that the financial statements wIll be requrred to have an mtroductIOn and an analytIcal overvIew called a MONA He apologIzed that the report was Just bemg presented today and explamed that IS why It IS m rough draft form Carlson stated that they were open to questIOns now or later and when that was completed they would pIck a date and Issue the audIt formally, have them bound and get them over to the Jomt Powers Office Hagerty venfied that the ImplementatIon of the GASB change IS January 1,2004 Carlson beheves trus to be correct If the State of Mmnesota does not overrIde It Browmng stated we would hke to Implement the changes sooner rather than later and asked Carlson If they had any InfOrmatIon on It for us to use as a gUIdehne He stated he would put us on hIs hst of chents that would prefer to do thIs sooner than later MOTION BY HAGERTY SECONDED BY KOTTKE TO ACCEPT THE 2000 AUDIT DRAFT MOTION CARRIED UNANIMOUSLY Browmng stated that the Department of Health requIres a wellhead protectIOn plan One of the fIrst thIngs that must be done IS to appoInt a manager, whIch they thought made the most sense that It be Brownmg The next step would be to appomt a commIttee Olson asked what the tIme lIne to appomt the commIttee was Browmng stated It could be dIscussed at next month's meetIng Olson suggested that everyone make a lIst of pOSSIbIlItIes for the commIttee and brIng them to the next meetmg MOTION BY HAGERTY, SECONDED BY PAULLIN TO APPOINT BROWNING AS MANAGER MOTION CARRIED UNANIMOUSLY PaullIn asked how many members strong the commIttee should be, venfied that It wIll be called "Wellhead ProtectIon Plan CommIttee", and suggested puttmg an announcement m the Crow RIver News to recruIt commIttee members Browmng responded to the questIon of numbers WIth SIX to eIght and stated that there would not be a problem puttmg the ad m the Crow RIver News BroWnIng stated that St MIchaelIS sendmg a letter to theIr buIlder/contractors to gIve them a heads up as to what fees they may encounter, therefore, the 2002 ConnectIon Fees must be determmed MOTION BY KESSLER, SECONDED BY HAGERTY TO INCREASE THE CONNECTION FEE BY $50 00 MOTION CARRIED UNANIMOUSLY MOTION BY KESSLER, SECONDED BY KOTTKE TO APPROVE CBI PAY REQUEST #4 MOTION CARRIED UNANIMOUSLY Olson brought It to the Board's attentIon that CBI has mIsspelled "St MIchael" several tImes In CatlIn's absence, BrownIng stated that he recommends approval of the Moorhead ConstructIon FInal Pay Request be contmgent upon receIpt ofIC-134 forms and LIen WaIvers are turned m by Moorhead ConstructIOn MOTION BY KESSLER, SECONDED BY PAULLIN TO APPROVE FINAL PAYMENT CONTINGENT UPON RECEIPT OF FINAL PAPERWORK MOTION CARRIED UNANIMOUSLY Kottke notIced Gary RoeW was on the lIst to the certIfied to taxes He new that Mr RoeW had had an aCCIdent where he fell off a roof and was pretty banged up He asked If there was any way some ofthe amount could be waIved After some dISCUSSIon It was determmed that It would be more benefiCIal for hIm to have It applIed to taxes MOTION BY KESSLER, SECONDED BY PAULLIN TO ADOPT RESOLUTION 11/26/01 MOTION CARRIED UNANIMOUSLY Brownmg stated she has not had the tIme to gather more mformatIon on wells for spnnklIng, but figured It was somethIng that could be looked mto over the slower, wmter perIod ThIS Item was tabled MOTION BY KOTTKE, SECONDED BY HAGERTY TO CHANGE THE DECEMBER MEETING TO DECEMBER 26,2001 AT 5 P M MOTION CARRIED UNANIMOUSLY MOTION BY PAULLIN, SECONDED BY KESSLER TO ADJOURN THE MEETING AT 8 10 P M MOTION CARRIED UNANIMOUSLY ,Yd/ L~.;;zfl Recordmg Secretary