2019-08-26 Joint Powers Water Board MinutesJOINT POWERS WATER BOARD MINUTES
Regular Meeting of
August 26, 2019
6:00 PM
Joint Powers WTP
6:00 PM CALL TO ORDER by Vice Chairperson Chris Kauffman
Board Members Present: Joe Hagerty, Chris Kauffman, Nadine Schoen, John Vetsch
Board Members Absent: Jillian Hendrickson, Jim Zajicek
Staff Present. Larry Cook, Jennifer Thomas, Andy Ahles - Veolia Water
Staff Absent: None
Engineering Present: None
Engineering Absent: Chris Larson - SEH
1. CALL TO ORDER/ROLL CALL: Vice Chairperson Kauffman called the meeting to order.
2. ADOPT AGENDA: Motion by Vetsch, second by Hagerty, to adopt the Agenda as
presented. Motion carried unanimously.
3. MINUTES: JULY 22, 2019 REGULAR BOARD MEETING: Motion by Vetsch, second by
Hagerty, to approve the Minutes of the July 22, 2019 regular Board Meeting. Motion
carried unanimously.
4. CONSENT AGENDA: Motion by Vetsch, second by Hagerty, to approve the Consent
Agenda below. Motion carried unanimously.
A. RECEIPT OF AUGUST 2019 BUDGET REPORT
B. RECEIPT OF JULY 2019 INVESTMENT SUMMARY REPORT
C. RECEIPT OF AUGUST 2019 CASH BALANCES
D. RECEIPT OF JULY 2019 MONTHLY OPERATIONS REPORT
5. UNFINISHED BUSINESS:
A. AUDIT FOLLOW-UP QUESTIONS: At the July 22, 2019 Cook had Delena Daleiden ask
for any historical information the Board may have on a couple of funds that were
identified during the recent audit. Cook spoke with Kelly Irving and she suggested he
speak with George Illerson of Northland Securities. Illerson gave Cook the history on
the Federal Grant Contribution ($626,467) and Water Tower Reserves ($914,800) and
said they likely relate back to the $4.515 million General Obligation Water Revenue
Bond Series 2012A. That final bond payment was made in February 2019. The 2012A
bonds were issued for 2 purposes: (1) to refinance the $8.43 million Water Revenue
and Crossover Refunding Bond Series 2005A and (2) to finance complete renovation of
an existing water storage facility and chemical feed equipment for the water utility.
The 2005 bonds, which were refinanced during the 2012A bonds, were issued for 3
purposes: (1) to finance the expansion of the Water Treatment Plant, the construction
of 3 wells and the construction of an additional water storage facility to be located in
the City of St. Michael to serve the Cities of Albertville, Hanover and St. Michael, (2) to
establish a debt service reserve account in the amount of $330,490 and (3) to
crossover refund the $5.025 million Water Revenue Bond Series 1999. Cook told the
Board that they all correlate into the 2012A bonds which were paid off in February
2019. Kauffman asked if we need that reserve anymore. Cook confirmed we do not
and said those funds can be put back into the non -reserve funds. Cook asked for
additional time to research the Federal Grant Fund to ensure there aren't any
stipulations tied to it. He also asked for Board approval to move the Water Tower
Reserve Fund back into the non -reserve fund. Kauffman asked if the grant money
should have been used first when doing the actual construction. Cook said they likely
did, but that it didn't get reallocated into the funds once it was utilized. Motion by
Hagerty, second by Schoen, to approve moving the $914,800 Water Tower
Reserve Fund into a non -reserve fund. Motion carried unanimously.
JOINT POWERS WATER BOARD MINUTES
Regular Meeting of
August 26, 2019
6:00 PM
Joint Powers WTP
6. NEW BUSINESS:
A. VERIZON TOWER LEASE: Cook told the Board that Staff has been working on a Tower
Lease with Verizon for antennas on the East Tower. The proposed Lease is for
$23,500 annually for the first 5 years. For each 5 year renewal term after that there
is a 10% increase built into the Lease already. This is automatic for four additional 5
year terms, as well as an $8,200 escrow for anything we need to utilize for survey,
construction, inspections and other such items. If it is not used fully the remaining
portion will be returned to Verizon. There is a Lease review amount allowed up to
$2,500. SEH provided their lease review cost involvement for $1,280 (8 man hours at
$160 an hour). Cook needs to finalize what Joint Powers Lease costs were and asked
the Board to approve the Verizon Tower Lease for the East Tower as presented and
authorize Joint Powers Water Board Chairperson to execute the Lease Agreement.
Motion by Schoen, second by Hagerty, to approve the Verizon Tower Lease for
the East Tower and authorize Joint Powers Water Board Vice Chairperson
Kauffman (in Chairperson Hendrickson's absence) to execute the Lease
Agreement.
7. ENGINEER:
A. PARKING LOT CONSTRUCTION UPDATE: In Larson's absence, Cook told the Board
that there is a construction coordination meeting scheduled for August 27 for the
parking lot project, which is set to start in early September.
B. ASR CLASS 5 PERMIT: Cook told the Board that our ASR Class 5 Permit is out for
public comment. That comment period is open through September 11.
OPERATIONS/OFFICE:
A. OPERATIONS: Ahles gave a brief update on the ASR recovery and informed the Board
that we recently disposed of 13 barrels of grit. Ahles told the Board that extra parts
have been ordered as a precaution for any future water main breaks and that Staff
has found 2 closed gate valves thus far. Staff is still working to locate additional gate
valves.
OFFICE: Thomas informed the Board that the tax certification process will begin at the
end of the month and will continue through November 30. She will keep the Board
updated each month.
APPROVE LIST OF CLAIMS: Motion by Schoen, second by Hagerty, to approve the
August 2019 Claims as presented. Motion carried unanimously.
10. OTHER BUSINESS / ANNOUNCEMENTS / CORRESPONDENCE: There was nothing new to
report under Other Business / Announcements / Correspondence.
11. ADJOURN: Motion by Schoen, second by Vetsch, to adjourn the meeting at 6:21 PM.
Motion carried unanimously.
Jefinifer Thomas, Recording Secretary