2020-04-27 Joint Power Water Board MinutesJOINT POWERS WATu',11 BOARD MINUTES
(VIDEO CONFERENCE)
Regular Meeting of
April 27, 2020
6:00 PM
Joint Powers WT P
11 4 MfOX01
Board Members Present: Chris Kauffman, Joe Hagerty, Jillian Hendrickson (joined at 6: 14 PM),
Rob Olson, Nadine Schoen, Jim Zajicek
Board Members Absent: None
Staff Present: Larry Cook, Jennifer -rhornas, Andy Ahles, Jon Roberts - Veoha Water
Staff Absent: None
Engineering Present. Chris Larson - SEH
Engineering Absent: None
Visitor(s): Justin Nilson, - Abdo, Eick & Meyers
Arlan Middleton - Middleton Insurance Agency
Dan Zachrnan -- Zachrnari Insurance Agency.
1. C-ALL TO ORDERIRQLL.CA, L: Chairperson Kauffman called the meeting to order.
2. ADOPT AGENDAook asked the Board to switch items SC'(Auto,matic Water
Salesman) and SDi (Emergency Back -Up Generator Project). Motion by Hagerty,
second by Zajicek, to adopt the Agenda with those changes. Motion carried
unanimously.
3. MINUTES: MARCH 23, 2020 REGULAR BOARD MEETING: Motion by Hagerty, second by
Olson, to approve the Minutes of the March 23, 20i2O regular Board Meeting. Motion
carried unanimously.
4. CONSENT AGENDA: Motion by Hendrickson, second by Zajicek, to approve the
Consent Agenda below. Motion carried un:ainimously.
A. RECEIPT OF APRIL 2020 BUDGETREPORT
. REPORT
B. RECEIPT OF MARCH 2020 INVESTMENT SUMMARY REPORT
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C RECEIPT OF APRIL 2020 CASH BALANCES REPORT
D. RECEIPT OF MARCH 2020 MONTHLY OPERATIONS REPORT
A. COVIDO -19 OPERATIONAL RESPONSE UPDATE - Cook told the Board that there is
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currently one office staff member manning the office and two employees are working
from home. The office remains closed to customer visits; however, customers can
make payments via mail, drop box, calling in or going online. Operations are on a
rotating schedule with one operator out a week at a time. On Monday, May 4, all
operators will be back onsite and Cook will continue to follow Veolia's directives. At
this time office staff will continue to follow Veolia Corporate's return policy.
B. ENGINEERING SERVICES PROPOSAL FOR GENERATOR PROJECT FROM SEH - Cook
referenced SEH's proposal in the amount of $15,600.00 to handle the engineering
services required for the design phase of the generator project and asked for Board
approval to proceed with said quote. Kauffman asked if this bid includes the
construction supervision and Larson said it includes the solicitation of quotes and
construction administration, Motion by Olson, second by Hagerty, to approve
SEH's quote for $15,600.00 to handle engineering services required for the
design phase of the generator project. Motion carried unanimously,
301M'POWERE WAI'ER BOARI) MINLJ'I'ES
(VIDEO CONFERENCE)
Regular Meeting of
April 27, 202,0
6:00 PM
,Joint Powers W'1'11
C. EMERGENCY BACK --U P--G.-E-N E.RAT10-,R PRQX,C,T,, - Cook referenced Larson's Memo
regarding purchase of a 500 kW natural gas generator with a level 2 sound enclosure,
Two quotes were solicited from Cummins ($220,070,00) and Caterpillar
($287,585.24). Cook asked for Board approval to move forward with the Cummins
quote in the amount of $220,070,00, Motion by Olson, second by Hendrickson,
to approve Cummins quote for purchase of a 500 kW natural gas generator
with a level 2 sound enclosure in the amount of $220,070.00. Motion carried
unanimously.
D. AUTOMATIC WATER SALESMAN- Cook explained to the Board that there is a water
salesman located on the side of the water plant that is Utilized by vendors
(construction, landscapers, etc.) to purchase bulk water. The current systern has been
in place for over twenty years and the main motherboard has faded and is no longer
available for replacement or repair, Cook presented two bids to replace the existing
system. One bid from Vernon Manufacturing ($8,155.00) and one from EleMech
($13,145.00). Cook asked for Board approval to proceed wiith Vernon Manufacturing's
quote of $8,155.00 to replace the existing water salesman equipment, Motion by
Olson, second by Zajicek, to proceed with: Vernon Manufacturing's quote of
$8,155.00 for purchase of a new automatic water salesman system. Motion
carried unanimously.
NEW BUSINESS:
A. 2019 AUDIT - Justin Nilson of Abdo, Eick & Meyers presented Joint Powers Water
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Board's 2019 Audit. Abdo, Eick & Meyers gave Joint Powers a clean unmodified
opinion, which is the best audit opinion an organization can receive. Nilson told the
Board that Abdo is required to give an opinion based on Minnesota Legal Compliance
for Joint Powers. Fie directed the Board to the Management Communication document
in the Board packet and informed the Board that it is responsible for the preparation of
financial statements even though Abdo, Eick & Meyers prepared them,, He also
pointed Out there was one ping against Joint Powers on the separation of duties, which
is normal for organizations of Joint Powers' size. Abdo also tests a number of different
things relating to MN statutes and MN legal cornpHance and found no findings relating
to either. Nilson went over Joint Powers' cash flow activity and said that Joint Powers
operational receipts compared to operational costs look good, The past few years the
operating receipts exceeded operating costs and overall debt payments. In 2019,
those receipts were lower largely due to a wet year and a bigger debt payment that
was made. He noted that there was still an increase of approximately $700,000 in
cash. He also noted that the referenced debt has been paid off, so will not be a part of
the 2020 audit. He recornmends monitoring the capital improvement plan for what
funds may be used for in the future.
B. INSURANCE RENEWAL - Arlan Middleton with Middleton Insurance Agency introduced
Dan Zachmain with Zachman Insurance Agency, Middleton reminded the Board of his
retirement and that Zachrnain took over this account. Middleton explained that the
only change to the insurance renewal with the League of Minnesota Cities ("LOMC") is
an approximate 4% increase on property insurance. Middleton said he feels the LOMC
stifl provides the best coverage and asked for Board approval to move forward with
the LOMC policy, Kauffman asked what is covered under Section 6 - Equipment
Breakdown Coverage. Middleton said this covers equipment failure inside our
buildings from things like a power surge or lightning strike, Motion by Hagerty,
second by Hendrickson, to approve the 2020 League of Minnesota Cities
insurance renewal as presented., Motion carried unanimously.
JOIN I'POWERE WAI'ER BOARD MINUFES
(VIDEO CONFERENCE)
Regular Meeting of
April 27, 2020
6:00 PM
.Joint Powers W'1 I'I'
C' MAY 2020 BOARD MEETING - Thomas told the Board that the May meeting is
scheduled for Memorial Day and asked if the Board would like to reschedule or cancel
that meeting. The Board dliiSCUssed moving the meeting to Monday, May 18tn at 6;00
PM. Motion by Hendrickson, second by Olson, to move the Monday, May 25
Board meeting to Monday, May 18 at 6:!00 PM. Motion carried unanimously.
7, ENGINEER* Larson let the Board know that the CSAH-19 project is Underway and that the
watermain part of the project will likely start in early June,
& OPERATIONSIDE Cf_ None.
9. AP-PROVE11-S T - OF - CLAI " MS " . Motion, by Schoen, second by Hagerty, to approve the April
2020 Claims as presented. Motion carried unanimously.
101, OTHER TS : None,
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11. ADJOURN: Motion by Zajicek, second by Olson, to adjourn the meeting at 6:43 PM.
Motion carried unanimously.
Jonifer Th as, Recording Secretary
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