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04-27-20 Joint Power Board AgendaJoint Powers Water Board AGENDA Regular Meeting of April 27, 2020 Joint Powers WTP 11100 50t" Street NE Albertville, MN 6:00 PM Chairperson Engineer Chris Kauffman Chris Larson, SEH Board Members Operations Joe Hagerty Larry Cook, Veolia Jillian Hendrickson Jennifer Thomas, Veolia Nadine Schoen Andy Ahles, Veolia Rob Olson Jon Roberts, Veolia Jim Zajicek 1. Call to Order / Roll Call 2. Adopt Agenda - Page 1 3. Minutes: March 23, 2020 Regular Board Meeting - Page 2 4. Consent Agenda - Page 6 A. Receipt of April 2020 Budget Report - Page 7 B. Receipt of March 2020 Investment Summary Report - Page 8 C. Receipt of April 2020 Cash Balances Report - Page 12 D. Receipt of March 2020 Monthly Operations Report - Page 13 5, Unfinished Business -- Page 22 A. COVID-19 Operational Response Update - Page 23 B. Engineering Services Proposal for Generator Project from SEH - Page 24 C. Automatic Water Salesman - Page 28 D. Emergency Back -Up Generator Project - Page 38 6. New Business -- Page 51 A. 2019 Audit - Page 52 B. Insurance Renewal - Page 111 C. May 2020 Board Meeting - Page 112 7. Departments A. Engineer B. Operations/Office 8. Approve List of Claims - Page 114 A. April 2020 Claims - Page 115 9. Other Business / Announcements / Correspondence 10. Adjourn PAGE 1 Minutes PAGE 2 JOINT POWERS WATER BOARD MINUTES (VIDEO CONFERENCE) Regular Meeting of March 23, 2020 6:00 PM Joint Powers WTP 6:01 PM CALL TO ORDER by Chairperson Kauffman. 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 Thomas, Andy Ahles, Jon Roberts - Veolia Water Staff Absent: None Engineering Present: Chris Larson - SEH Engineering Absent: None 1. CALL TO ORDER/ROLL CALL: Chairperson Kauffman called the meeting to order. 2. ADOPT AGENDA: Motion by Hagerty, second by Olson, to adopt the Agenda as presented. Motion carried unanimously. 3. MINUTES: FEBRUARY 24, 2020 REGULAR BOARD MEETING: Motion by Hagerty, second by Olson, to approve the Minutes of the February 24, 2020 regular Board Meeting. Motion tarried unanimously. 4. CONSENT AGENDA: Motion by Hagerty, second by Zajicek, to approve the Consent Agenda below. Motion carried unanimously. A. RECEIPT OF MARCH 2O20 BUDGET REPORT B. RECEIPT OF JANUARY 2020 INVESTMENT SUMMARY REPORT C. RECEIPT OF MARCH 2O20 CASH BALANCES REPORT D. RECEIPT OF FEBRUARY 2020 MONTHLY OPERATIONS REPORT UNFINISHED BUSINESS: A. CLARIFICATION OF FUNDING SOURCE FOR GENERATOR - Cook told that Board that the Joint Powers checking account has enough money to cover the cost of a new generator, so there is no need to use investment funds. Kauffman asked if this was the case after paying for water main repairs required in 2019. Cook confirmed that is correct. Olson asked if now is the time to purchase a new generator given the current economic status due to the COVID-19 pandemic. Kauffman agreed with Olson and confirmed with Cook that the Board would not be voting on the actual purchase of a new generator at this time. Cook confirmed and explained that Larson will discuss his engineering services proposal for the generator project under Agenda Item 5(B). With the Cities growth, Olson does see the need for a new generator but asked if this project could be done in a different delivery method versus the typical design bid build. For example, would it fit under a supplier design bid / contractor alternative versus the traditional method which is being presenters. This was covered more under Agenda Item 5(B). B. ENGINEERING SERVICES PROPOSAL FOR GENERATOR PROJECT FROM SEH - Larson. said there is not a lot of engineering work involved in the purchase of a new generator, but there is cost in connecting the generator with the existing service and work in moving the existing generator to Wells 5, 6 or 7. He said the vast majority of money spent will be in the purchase of a new generator. Olson asked if it made more sense to use grant money to pay SEH $5,000 for time incurred in providing a general description to 3 or 4 vendors and have SEH oversee the construction project at a savings of around $24,000. Kauffman asked Larson if the current generator is mobile since the proposed generator is not. Larson said the current generator is not mobile. Kauffman asked how multiple Wells run off of the current generator. Larson explained that the generator feeds the electrical service entrance that comes into the Wellhouse PAGE 3 JOINT POWERS WATER BOARD MINUTES (VIDEO CONFERENCE) Regular Meeting of March 23, 2020 6:00 PM Joint Powers WTP next to the Water Treatment Plant ("WTP") and Cook said all pumps located at the WTP, including the Plant itself, are wired into this service. Ahles told the Board that 4 Wells and the WTP would all run off of the new generator. Cook reminded Board members that part of the Wellhead Protection Plan is providing emergency generation for Wells 5, 6 and 7, and that the current generator would be repurposed for those Wells. Kauffman asked for a motion to table this topic for a future meeting. Schoen asked why this wouldn't be dealt with now since the current 18 year old generator should be replaced and repurposed for the benefit and welfare of customers. Other Board members felt this could be tabled at this time. Motion by Olson, second by Zajicek, to table the generator purchase topic and address it at a future meeting. Schoen voted against tabling this topic. The motion passed with 5 votes in favor and 1 vote against. Iillian Hendrickson joined the meeting at 6:14 PM during 5(B) discussions. 6. NEW BUSINESS: A. COVID-19 OPERATIONAL RESPONSE - Cook told the Board he is having a daily COVID-19 check in meeting with his staff followed by a situational report with Veolia's corporate leadership team, Staff is closely monitoring chemicals, staff conditions, and a weekly rotation of operators has been put in place to ensure a viable operator is on staff at all times. Cook told the Board that the Joint Powers office is staffed but is closed to customers. Customers are making payments via telephone, email, dropbox and mail. He also said all non -emergency customer visits are being documented and will be handled at a later time to minimize in -person contact. All Cities have provided a fetter to Joint Powers staff giving emergency access for all employees should a shelter in place order be put in place. Hagerty asked if there will be water shut -offs. Larry said late fees will be assessed, but there will be no shut offs. B. SOURCE WATER PROTECTION COMPETITIVE GRANT APPLICATION - Cook told the Board that Marilyn Bayerl with Bayerl Resources came to him with another $10,000 source water grant application. He asked for Board approval to hire Marilyn Bayerl to write the grant at a cost of $500. Motion by Hagerty, second by Olson, to hire Marilyn Bayerl with Bayerl Resources to write the $10,000 source water grant application at a cast of $500. Motion carried unanimously. 7. ENGINEER: None. 8. OPERATIONS/OFFICE: Ahles told the Board that the Water and Waste Water facilities have stockpiled food and bedding in case there is a need for an Operator to stay overnight. He also said the Department of Health has given leniency on when and how samples are done, so Operators do not have to go into businesses or homes to obtain samples. Those samples can be obtained at fire hydrants and similar locations where there is less contact with others. 9. APPROVE LIST OF CLAIMS: Motion by Hagerty, second by Hendrickson, to approve the March 2020 Claims as presented. Motion carried unanimously. 10. OTHER BUSINESS 1 ANNOUNCEMENTS_/ CORRESPONDENCE: Cook asked the Board how they felt about handling the meeting via video. Olson thought it worked well considering the circumstances. The Board thought it was a good way to hold the meeting given the COVID pandemic. PAGE 4 JOINT POWERS WATER BOARD MINUTES (VIDEO CONFERENCE) Regular Meeting of March 23, 2020 6:00 PM Joint Powers WTP 11. ADJOURN: Motion by Hagerty, second by Olson, to adjourn the meeting at 6:30 PM. Motion carried unanimously. Jennifer Thomas, Recording Secretary PAGE 5 Consent Agenda IMITO pro Joint Water Board Budget - 2020 JPWB Board Meeting April 2020 2020 Account Descr Budget 2020 Amt YTD Budget YTD Arnt FUND 101 GENERAL FUND E 101-40000-700 Advertising $200.00 $0.00 $200.00 $0.00 E 101-40000-704 Bank Charges $500.00 $0.00 $500.00 $115.00 E 101-40000-712 Contract Maintenance $998,328.00 $83,194.00 $998,328.00 $332,776.00 E 101-40000-730Insurance $20,000.00 $0.00 $20,000.00 $0.00 E 101-40000-734 Meeting Allowance $300.00 $0.00 $300.00 $0.00 E 101-40000-749 Web Pay Fees $25,000.00 $1,729.89 $25,000.00 $5,717.70 E 101-40000-751 Accounting Fees $10,000.00 $0.00 $10,000.00 $0.00 E 101-40000-752 Audit Fees $15,000.00 $2,300.00 $15,000.00 $13,300-00 E 101-40000-755 Construction Engineerin $43,000.00 $0.00 $43,000.00 $3,303.52 E 101-40000-756 General Engineering Fe $25,000.00 $1,272.22 $25,000.00 $5,764,12 E 101-40000-758 Legal Fees $3,00D.00 $0.00 $3,000.00 $112.00 E 101-40000-759 A5R-Mist $10,000.00 $0.00 $10,000.00 $0.00 E 101-40000-762 Property Taxes $50.00 $0.00 $50.00 $0.00 E 101-40000-771 Well Maintenance $70,000.00 $0.00 $70,000.00 $0.00 E 101-40000-772 System Repairs $290,000.00 $0.00 $290,000.00 $0.00 E 101-40000-785 DNR Water Usage $12,000.00 $0.00 $12,000.00 $10,645.82 E 101-40000-795 Misc Expense $2,500.00 -$2,352.10 $2,500.00 $792.20 E 101-40000-796 EDA/RR Fees $300.00 $0.00 $300.00 $0.00 FUND 101 GENERAL FUND $1,525,178.00 $86,144.01 $1,525,178.00 $372,526.36 $1,525,178.00 $86,144.01 $1,525,178.00 $372,526.36 04121 /20 12:40 PM Page 1 PAGE 7 a 0 01 c u No 2 a n ti [kl ' O m R Ol A + ri� c � A H n !mom N www w n cvu v 9 C i Q d m �s e y q O is 6 vi J m � w L y 7 Cy C] tl L m a va I ~ I 0 `w s F• Y M a Lu L a' ovvam en mti o w n m n cn �y IM M q C �a E p u w o r h 7 m r r r C- c [ 0 0 n o 8 d p v v t of co U ccm w p N L� N N N Q n m Q O N L� p la �l W o a• 6 Va p v v v sR ra ovvm00 -0'n o c to �c�'ui van^ c ry Cry (D m K10 cmv2 V v v r m M CRY [nY M N w wwwinww N ® co tD m C N_ A 0 m m y w w w C 3 _ 4 d otr,00nvvva G q O D m GI n W R N w Ln m O M W h Lo {O N [Q C Te w w m ca 0IDv0OD000 0 n 000CD0co 0 o w wfLwww C O IC] w w w F � CD m G C — IS1 t0 V N w w v � n 0 0 w L' a R a uNi m 4 4 �a tCa n O n v R o d m m n [] n fp c m a novmi cmi �" (sto m ova cn 5�n ts+ vi v1 A v o u� m ® W N N N N n N w w w W w w w g m M nvnm W vmtoo c o c n o o O$ a v 0 0 0 0 0 0 0 0 E u d n v v o n C7 4 v 0 0 o n p O v O at E ccLn ui vi ei ri vim omA RRv r-QR N N N ry ry N a � w w w w w to0) w w N V4 tvn mr`�.a cv niNs v o o n c n o 0 0 '� � `mmovn r Ru3n m N N N «- m N N 4 ❑ d7 Ri r4 al �i ❑+ Ca 4 n n 0 4 N N CY N N o Q a n o n0 o 0 e rnmceCtr�n m_ ww rrn`i��rf a� Y 7 } ozz Y N Y [G m 9 JCL ... 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VJ uu R J m w m t w .0 C Q yl CL d d❑ .1 L l] C Y G L' W E 9i Y J$❑ O E❑3 Ua m ® w mO m $ £Y wZM m Uu ❑u �x m,n YYx m+lm,,,�� aNmmm YC❑ C O Y C r C m m C m OT U a �i M w C.% w ,C Co C Z sc Ci T. m Y C l9 m m Gi CA i6 C Y W n� a . w wa 2cn E aS o �'v x el ute ar iw= c OD2 m y mu m�r w i s nl a m V+ •c �i m �' v' D P a o u c ti ; � a N `m F °a ' o i�urUwu3if.m n(7m� a ua m�U-,r-aUmiaw i� is o a U Y w a 0. ivr r- C]fl ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ uuuuuuuu�uuU Ursc�Uras�ul_tUUUUejUUUc]L�uUUUc3v u[�UULaU[�e�u u - ---- PAGE 9 Date Account 3/31/2020 2004 Revolving Project Investment Interest 3/31/2020 Revolving Fund Contra Investment interest Debit Journal Entries 3/31/2020 (Credit Reason $844.59 1 $345.38 1 Record interest earned for March PMA $84459 Record market change forMarch PMA $345.38 3/31/2020 Wells Fargo $1,040.90 Record interest earned for March WF Investment Interest $1,040.90 3/31/2020 Wells Fargo Contra $3,710.60 Record market change for March WF Investment Interest $3,710.60 3/31/2020 RBC $22,679.35 Record interest earned for March RBC Investment Interest $22,679.35 3/31/2020 RBC Contra $7,495.22 Record market change for March RBC Investment Interest $7,495.22 0 Q Lq 0 0 Ln t.n Ln C3 Ln rJ coi 00 00 rV N O N rl m m Ln c0 op N N N m 0 r-i r-i r-i to I cif Vl I V). Vl Z9 r u d ❑ r0 C u_ 0 LL- b ra 0 m Q1 ro L!L 3 r3 C C i7 u n: I C v v C E L Q v ¢� a � U _ v Ln E ar E � u a Lit 0 w Q N d Ln } eT 4 lD r� m Ln Q1 rn r" C H LD N ti 0 m n N m r- N N N to tf1 ill 'La 0 D O 0 r❑ C+ � Ca C? 0 d O d C7 d a ul 0 00 0 rn N 0 Ln -:tl N ri m w cl� H C71 n [� H fJ7 LD M r-i C3 Q x1 r- N rn n n ry N 0 s 713�13.r1��1� fit: O O T O r1i m m crti m r3 m m v rn 0 0 0 0 —4 —1 Ln x m tt LID u7 m a o0 00 w t.a m d m vR Ln rr Ln Lo r-1 N m r• i11 rV N CT ri 1^ ill Vl Vl Vl d 0 H Irr Ln d d 00 cr N 0 O tf3 C7 C7 h Lf1 r4 0 0 1 0 N -p Ill Ln rl N m C'� 0 m crF i/l il3 t!1 tlT L 4J s L 0 rn oo ❑ Z =) m- oo C 00 N CT Kr [^J 00 N rV 00 N 00 O r-I Q1 cn < Ln < 0 rr :m s -❑ L o O W a © a a LL LL F ^ PAGE 11 d m m m m m m m n m c c c c c c ch iL ry o CV CeY m NO CO W N t2 O (� N N iQR CLV 42 C�7 ry M LO o V M uU-3 r C7 M a) VI N F LQ N _ O d � d 0 b O E4 V3 (A. � FbA 613, LL m o b o a n b b � co M v IT,n � in ul) in cm m � m jw m w n w Sri I a � I N N N 4 CM Ul CR in V) V) V3. r/7 tl1 N ! N ryia W L. CL Q Ei M CD [7. �+ C C N M b O b 9 C7 ❑7 r (n fA V3 FH Q9. d N N n N ry r` o N v O bO O 4 4 V _a Cl) b l3 b co O�c N iC O rn cv cn b N 69 N at ff3 fA Ul U LO O p N V Lq OR ' C V N N 01 ti it3 ch C[3 CV U-j N _ u7 � co47 N CO N U) M qu m FA CA 00 V3 N FA CN c v N Cl) .. ea �cz z tzz LL z c z y z J C CO v ,m LL m Q LL D LL ll. L4 — d LL J IF to J C --! J J J "I cy L.. LIJ C Li L w W LLI N w R 0 m 3 LL ! LLCiM0 µJ m ui t30 ui n0 Lu O Lu 0 w 0 C o c o �n o rB o worn o o � o� r r r PAGE 12 OVEOLIA WATCH Office & Plant Location. 11100 5Dr St NE Albertville MN 55301 Office - 763A97-3611 Fax - 763-497-3611 Emergency 763-219-5309 WATER TREAD MENT PLANT Monthly Operations Report March 2020 Executive Summary Joint Powers effectively produced 61,053,000 gallons of water in the reportmonth. All bacteriological samples were negative. The average fluoride concentration was 0.73 mg/L (Limits are 0.5 & 0.9). The total consumption to the distribution system was 60,639,100 gallons, an average dailyamount of 1.96 million gallons per day. Actual consumer use was 47,102.100 gallons, or 1.52 million gallons per day. The injection phase of the ASR cycle was; 13,537,000 gallons, injected in March. Major Activities tfncommon Operations and Major Corrective Maintenance: COMD-19 pandemic response. & Monthly ASR injection sampling & testing completed 4 Service line repair on Welter Circle w/Meinys. Repairs made to VFD's for wells 6 & 7. Operations The standard operations of the facilities include: 4- Dailytesting of fluoride and chlorine in the system. 0 Monthly bacteriological sampling. ,r ERT missed reads/ meter checks. Ar Laboratory equipment calibrations. :P MC Lite meter reading routes for Hanover & SL Michael. Routine dailyrounds, inspections, and security checks r water treatment plant. ,i Regular backwashing of filters, reclaiming and pumpinc backwash sludge. Flow tested 2 hydrants in St. Michael. �:► Monthly performance inspections on wells. -e Bulk chemical deliveries. fr Chemical feed system adjustments & maintenance. 4- Safety and training meetings. -P Regularly scheduled operations & maintenance meetings. Routine weekly off -site facilities inspections and security checks. Monthly performance inspections of emergencygenerator� PAGE 13 Safety & Training Each month our staff performs inspections of all safety equipments uch as fire e;dinguishers, eyewash stations, chemical showers, and emergency lighting. We also have safetymeetings during the month that consist of both routine and non -routine topics. 6 Our safety training subject for March was fire extinguisher use. Call -Outs (After -Hours Emergency Calls) %% There were no call outs in March. Regulatory Communications Our monthly regulatory com munications were completed satisfactorily and on -time. These were: 4 The Monthly Fluoridation report to the MRH • The Monthly Bacteriological test results to the MDH • The monthly Injection/Recovery report to the EPA Client/ Public Relations 0 None in March Distribution System Statistics Total Hanover St Michael Joint Powers Comments Locates (GSOC) 126 15 107 4 Gopher State One Call, Tickets Received Finals 20 3 17 NA Customer Service 7 1 6 NA Including water quality issues, water usage issue curb stops onloff, and special locates (not through GSOC). Inspections 18 4 14 NA Meter/ERT Issues/Repairs 29 2 '27 NA These include out -of bounds read checks, leaking meters, bad IRTs/replacements, wiring issues, pissed reads, etc. Maintenance Work Orders 17 1 0 16 These include issuestrepairs & regular maintenance for the dist. system & JP facilities. Hydrants Flushed 0 0 0 0 Spring/Fall (Joint Powers Are Albertville) Collection Letters 173 37 136 NA Collection Emails 59 4 55 NA Collection Calls 137 26 111 NA Shut -Off Door Tags 0 0 0 NA Water Shut -Offs 0 0 0 NA YTD Reconcilable Limit Budget Budget Expenses Balance UM 1 468,528 51,288 417,240 'Based on numbers available at the time of this report -Applicable to change as new information is available. Final reconciliation will occur after vear-end finances have been Dmcessari. Appe Month Month Month C L1 Cr [g @ 0 _ 7. �1 7. 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Q Q Q a Q Q O C3 O Cp o 4:0 \ 1 7 fl �_J C�3] C � r o L Q n d e`o W Z Q Q ®c c Ca a p Q o N c p p Q Q Q Q Q Q o c c a a o a a Q a o N r us a - O m r N M It 1n co 1• Do Im W ti w M Q r SV M et U") co r` m 0 p r .� r y V CA Y r r r r r r r r r r N N N N N N N N N N M M r Q 1717 J U) h- PAGE 15 0 cv 0 cat I Rom v 4 Z a vt U a o U F' a L? �D J oc oC. m Ci to N 5 s u � V- r r K uo 1 _ x C7 O VI �a .a • Q M. � T. i � C m a f�' m � ��, r� ❑ z L ¢ Gl E C e a CL km N - - •� 5 FJ ro y a U eta •n'i � .� yP� ^ v/ 'G � a - V T r F :ELo E ❑ R, y F x c. y} C ❑ a in 77. E C1 CL - C C � a i � LE r t c u a CD ❑ i ax x f � - - © - r r - - - - N r xassssaxcezxx oarwr��nr c�i ociecc c ec co r �• �� Z' C 9� 4 4 aaaae a a`eacers�c u UdQ 4000000 L! 0 it Ir ,r n2!Z?2 Im itinro i aaaaxaxie.eaex u u 4 4 4 4 4 4 V 4 4] �/] u'] �/: ✓F N w: 4�9 V9i to IA y�� nVsas? ❑ s.7 G ❑ 19 Z] � 13 O Z1 b ZJ b a L'•, d 0 0 0 O G 4 4 C 4 � Q a g. c a E F a G }�hFEFFi`=FFFFF 8�E5� � aas'-'JYx C Y x oG Go N N In l' .0 i- rr- 7 O G-= G C® 6 C 0 0 0 0- �GSx�x Y=Y Ca34'ya 0U0:J0 U 00 U0 V U0 PAGE 16 Year: 2020 Month: March U.S. ENVIRONMENTAL PROTECTION AGENCY MONTHLY MONITORING REPORT FOR CLASS V INJECTION WELLS UIC PERMIT NUMBER: OPERATOR NAME: ADDRESS- CITY/STATE/ZIP: PHONE: MN-171-5R21-0002 Joint Powers Water Beard 11000 50th St NE WELL NAME: Well 9 Albertville, MN 55301 WELL COUNTY: Wright (763) 497-3611 MONTHLY REQUIREMENTS Total Injection Period Total Report Total Injection Period Injection (Gallons) YTO Volume Month Volume Volume 31.270,000 14,408,000 31,270,000 Injection Pressure & GPM Average Highest Value Lowest Value Monthly Injection Pressure (prig) 39 42 37 Monthly Injection Flow Rate GPM 301 308 297 Total Recovery Period Total Report % of Injection Period Recovery (Gallons) YTD Volume Month Volume Total Volume 0 0 0.00% COMMENTS: The 2020 ASR cycle began on January 22nd, 2020. All test results received to date have been included in this month's report. CERTIFICATION I certify under the penalty of law that I have personally examined and am familiar with the information submitted in this document and all attachments and that, based on my inquiry of those individuals immediately responsible for obtaiing the information, I believe that the information is true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and punishment. (Ref. 40 CFR Section 144.32) Andrew J. Ahles, Name and Offici Signature: Operatipns SupWipr & Facilities Ma Date Signed: PAGE 17 Year: 2020 UIC PERMIT NUMBER: MN-171-5R21-0002 OPERATOR NAME: Joint Powers Water Soard ASR PTC-3 SAMPLE LOCATION: Well 9 (Mt. Simon) Constituent Units Detection Limit General Injection Background Well Injection Background Well Injection Well Injection Well Injection Well Injection 95% Federal Drinking Water Standard Method Date 1/22/2020 112212020 2/12/2020 3/23/2020 Temperature °C 9 9.2 7 6.7 H Std Units 7.29 7.32 6.7 7.31 Conductivity us/cm 0.48 0.38 0.45 0.43 ❑RP my 776 -72A 701.1 757.7 Dissolved Oxygen DO mg1L 0.77 37.4 0.45 0,22 Chlorine, Total Residua! m IL 0.01 1.97 0.00 0.65 0.71 Field Tested Aluminum u 1L 4 a20.00 <20.00 <60.00 200 EPA 200,8 Arsenic u IL 0.5 0.39 1.3 0.41 10 EPA 200.8 Calcium u 1L 400 81,000 66.700 84,000 EPA 200.8 Copper u IL 0.5 0.6 0.6 0.39 1000 EPA 200.8 Iron u 1L 50 <50 340 a50 300 EPA 200.8 Lead u L 0.1 c1 <1 <1 EPA 200.8 Magnesium u IL 100 32.700 25,700 34,700 EPA 200.8 Manganese u IL 0.5 c1 40.8 c1 50 EPA 200.8 Potassium u L 20 3,000 2,200 3,210 EPA 200.8 Sodium u IL 50 11,300 5,200 11.100 EPA 200.8 Alkalinity, Total as CaCO3 m IL 5 383 310 <5 SM 2320B Chloride m IL 2 14 1.8 12 250 5M 4500-CI E Fluoride m 1L 0.1 0.8 0.54 0,73 2 SM 4500FIC Nitrogen, Ammonia m IL 0.04 c,1 C.1 a0.10 EPA 350.1 Phosphorous m IL 0.4 0.25 0.66 0.83 SM 4500-P E Silica, Dissolved m IL 1 25.7 19.0 17A EPA 200.7 Sulfate m 1L 2.5 9.7 11.2 9.9 250 ASTM 0516 Total Hardness b 2340B m 1L 1420 337,000 272,000 352,000 EPA 200.8 Nitrogen, Kjeldahl, Total m 1L 1 0.51 0,43 c.20 EPA 351.2 Total Organic Carbon m 1L 2 1.5 0.84 1.7 SM 5310C Grass AI ha pCVL 0.78 4.80 1.20 7100B Adjusted Gross Al p ha Ci1L ¢-.22 1.90 0,66 15 Ra-226 Ci1L 0.83 1.30 1 5 7500-Ra B Re-228 Ci1L 1.3 1.50 1.2 5 7500-Ra D Ra-226 + Ra-228 Ci/L 2.13 2,80 2.2 5 Total Uranium u 1L 0.5 c1 2,90 0.54 EPA 200.8 Sromodichloromethane u 1L 0.5 1.1 c.5 3 EPA 524.2 Bromoform u IL 4 e.5 c.5 a_5 EPA 524.2 Chloroform ugJL 0.5 4 1.5 8.8 EPA 524.2 Dibromochloromethane a IL 0.5 <.5 <.5 0.9 EPA 524.2 Total Trihalomethanes tCalc. u fL 5,1 1.5 12.7 80 EPA 524.2 Dibromoacetic Acid u IL 1 a1 c1 <1 EPA 552.2 DIcNoroacetic Acid a IL 1 2.6 <1 4.7 EPA 552.2 Monobromoacetic Acid u 1L 1 c1 c1 e1 EPA 552.2 Monochloroaccetic Acid u IL 1 c2 c2 c2 EPA 552.2 Trichloroacetic Add u 1L 1 3.9 <1 5,1 EPA 552.2 Total Haloacetic Acid u 1L 6.5 <2 9.8 60 EPA 552.2 Uranium - 234 Ci1L 0.546 3,700 0.320 HSL-300 Uranium - 235 pCilL 0.032 0.106 0.025 HSL-300 Uranium - 238 pCVL 0.239 0.793 0,206 HSL-300 / G . k Q % k m 6 2 2 k / 9 o < < z Z U k E -i \ / Q / 5 / / . . q q q 2 . r . r . # . 10 & . CN & & & . & £ ggqqN «omen£ ggqqqr Lr)ggrqq « « « < « « « < « « « 6- a a a. rL a- I I a- 0- a- ± L U L L L w& w 2 w. k m � =p / -J 2 2 � L 2. . � b m 0 (D $ k - . 2!1 CD � - . � � 0 / IL 77 g �qq 9. o d d a3 3 �_ �_ �_ / /\7/ _ \9/ ch cm 0D 2 . 3 c 0 7 0 / \ a)2 7 / 7 5 2 E E t « < D E m E g.o .g o 0 2 0 0 0 %%% 0 0/ \ ƒ [ [ / / Co cc 2 § v q % f o E/ E l f# 7 o k k § / / k $ / / \ / o $ U 2 m.£ U c R 6 5 w 12 R PAGEI9 Year: 2020 UIC PERMIT NUMBER: MN-171-5R21-0002 OPERATOR NAME: Joint Powers Water Board ASR PTC-3 SAMPLE LOCATION: Well 9 {Mt. Simon Constituent Units Detection Limit Well 5% Recovery Well 30% Recove Well 60% Recovea Well 100% Recovery Federal Drinking Water Standard Method Date Temperature °C H Std Units Conductivity us/cm ❑RP mV Dissolved Oxygen (D0) m IL Chlorine, Total Residual m IL 0.01 Field Tested Aluminum u 1L 4 200 EPA 200.8 Arsenic u IL 0.5 10 EPA 200.8 Calcium u 1L 400 EPA 200.8 Copper a 1L 0.5 1000 EPA 200.8 Iron u 1L 50 300 EPA 200.8 Lead u IL 0.1 EPA 200.8 Magnesium u 1L 100 EPA 200.8 Manganese u IL 0.5 50 EPA 200.8 Potassium u IL 20 EPA 200.8 Sodium u IL 50 EPA 200.8 Alkalinity, Total as CaCO3 m IL 5 SM 2320B Chloride m IL 2 250 SM 4500-CI E Fluoride m 1L 0.1 2 SM 450OF/C Nitrogen, Ammonia m 1L 0.04 EPA 350.1 Phosphorous m IL 0.4 EPA 365.4 Silica, Dissolved m 1L 1 EPA 200.7 Sulfate m IL 2.5 250 ASTM ❑516-02 Total Hardness by 2340B m 1L 1420 EPA 200.8 Nitrogen, K'eldahl, Total m IL 1 EPA 351.2 Total Organic Carbon m IL 2 EPA 9060 Gross Ai ha pCill- EPA 900.0 Ad'usted Gross Alpha pCi1L 15 Ra-226 CiIL 5 EPA 903.1 Ra-228 pCi1L 5 EPA 904.0 Ra-226 + Ra-228 Ci1L 5 Total Uranium 238 a 1L 0.5 EPA 200.8 Brornodichloromethane u IL 0.5 EPA 524.2 Bromoform u IL 4 EPA 524.2 Chloroform u IL 0.5 EPA 524.2 Dibromochloromethane u 1L 0.5 EPA 524.2 Total Trihalomethanes Catc. u fL 80 EPA 524.2 Dibromoacetic Acid u 1L 1 EPA 552.2 Dichloroacetic Acid u 1L 1 EPA 552.2 Monobromoacetic Acid u 1L 1 EPA 552.2 Monochloroaccetic Acid u IL 1 EPA 552.2 Trichloroacetic Acid u IL 1 EPA 552.2 Total Haloacetic Acid u IL 60 EPA 552.2 Uranium - 234 Ci1L HSL-300 PAGE 20 Year: 2020 UIC PERMIT NUMBER: MN-171-5R21-0002 OPERATOR NAME: Joint Powers Water Board ASR PTC-3 SAMPLE LOCATION: Test Well 6 {Mt. Simon Constituent Units Detection Limit Test Well 6 Background Injection Test Well 6 95% Injection Test Well 6 100% Recovery Federal Drinking Water Standard Method Date 1/2212020 Temperature C 10.1 H Std Units 7.34 Conductivity us/cm 0.36 ORP mV 113.6 Dissolved Oxygen DO m 1L 1.85 Chlorine, Total Residual u IL 0.01 0.00 Field Tested Aluminum u IL 4 <20:00 200 EPA 524.2 Arsenic u 1L 0.5 1.3 10 EPA 524.2 Calcium u 1L 400 70,000 EPA 524.2 Copper u IL 0.5 0.29 1000 EPA 524.2 Iron u IL 50 1,700 300 EPA 524.2 Lead u 1L 0.1 <1 EPA 524.2 Magnesium u 1L 100 26,200 EPA 524.2 Manganese u 1L 0.5 233 50 EPA 524.2 Potassium u 1L 20 2,000 EPA 524.2 Sodium u IL 50 4,900 EPA 524.2 Alkalinity, Total as CaCO3 m 1L 5 312 SM 2320B Chloride m 1L 2 =1 250 SM 4500-Cl E Fluoride m IL 0.1 0.13 2 SM 4500FIC Nitrogen, Ammonia_ m 1L 0.04 0.1 EPA 350.1 Phosphorous m 1L 0.4 <.05 EPA 365.4 Silica, Dissolved m 1L 1 12.2 200.7 MET ICP Sulfate m 1L 2.5 15.7 250 ASTM D516-02 Total Hardness by 2340B mg1L 1420 283,000 EPA 200.8 Nitrogen, K'eldahl, Total m IL 1 0,44 EPA 351.2 Total Organic Carbon m 1L 2 0.9 EPA 9060 Cross Alpha pCilL 11.9 EPA 900.0 Adjusted gross Alpha pCifL 10.8 15 Fla-226 Ci1L 5.4 5 EPA 903.1 Ra-228 Ci1L 3.7 5 EPA 904.0 Ra-226 + Ra-228 Ci1L 9,1 5 Total Uranium u IL 0.5 1.1 EPA 200.8 Bromodichloromethane u 1L 0.5 <.5 EPA 524.2 Bromoforrn u 1L 4 <.5 EPA 524.2 Chloroform u 1L 0.5 <.5 EPA 524.2 Dibromochloromethane u 1L 0.5 <.5 EPA 524.2 Total Trihalomethanes Calc. u IL 0 80 EPA 524.2 Dirbomoacetic Acid a 1L 1 t1 EPA 552.2 Dichloroacetic Acid u 1L 1 C1 EPA 552.2 MQnobromoacetic Acid u 1L 1 <1 EPA 552.2 Monochloroaccetic Acid u IL 1 a2 EPA 552.2 Trichloroacetic Acid u 1L 1 c1 EPA 552.2 Total Haloacetic Acid u 1L <2 60 EPA 552.2 Uranium - 234 Ci/L 1,610 HSL-300 Uranium - 235 pCi/L 0.0218 HSL-300 Uranium - PAGE 21 Unfinished Business PAGE 22 J JQPNT PawEzs WATER BoArm Joint Powers Water Board 11100 50" St NW Albertville MN 55301 TO: Joint Powers Water Board Tel.: 763497-3611 Fax : 763-497-4908 www.j of nt powe rswate rb oa rd. org FROM: Jennifer Thomas DATE : April 21, 2020 SUBJECT: COVID-19 Operational Response Larry Cook will provide an update on operations during the COVID-19 pandemic. Thank you. THIS TRANSMISSION CONTAINS CONFIDENTIAL INFORMATION INTENDED FOR USE ONLY BY THE ABOVE NAMED RECIP€ENT. READING, DISCUSSION, DISTRIBUTION, OR COPYING OF THIS MESSAGE.15 STRICTLY PROHIBITED BY ANYONE OTHER THAN THE NAMED RECIPIENT OR HIS OR HER EMPLOYEES OR AGENTS IF YOU HAVE RECEIVED THIS FAX IN ERROR, PLEASE IMMEDIATELY NOTIFY US BY TELEPHONE PAGE 23 Al .Y-)INT PCVVERS WATER BoA D Joint Powers Water Board 11100 5CP St NW Albertville MN 55301 MEMO Tel.: 763-497-3611 Fax: 763-497-4908 www.jointpowerswaterbDard.org TO: Joint Powers Water Board FROM: Larry Cook DATE : April 17, 2020 SUBJECT: Engineering Services — Emergency Back -Up Generator Attached is the memo from Chris Larson of SEH, regarding a proposal for the engineering services required for the design phase of the generator project and solicitation of bids for the construction phase of the project. PAGE 24 T}YIC TDhA9C4FIC CIYIRY I�✓�YTAIR]C !`f1RICYnCRlT1A1 YRYCl1AispTY(�R1 IAYTCRInCR C/1O Y ICC ARYY Y Ov TYSC AOR1�F RIA IICn GCf IOICRLT o�AnYur^_ -A SEH Building a Better World for All of Us'' April 17, 2020 Mr. Chris Kauffman Chairperson Joint Power Water Board 11100 501h Street NE Albertville, MN 55303 Dear Mr. Kauffman: RE: Generator Engineering Proposal - Revised SEH No. JPAHS 112815 Thank you for the opportunity to submit this revised proposal for professional engineering services to the Joint Power Water Board for design, bidding, and construction contract administration services for a new generator project. This letter serves as our understanding of the project scope, schedule, and fee. PROJECT UNDERSTANDING The Joint Powers Water Treatment Plant (WTP) currently has a 230kW diesel generator that was installed approximately 20-years ago. The existing generator is only cable of running one well pump and other miscellaneous loads. The plant currently has four well pumps, two booster pumps, and the plant miscellaneous loads. In addition to being undersized, the existing generator uses diesel as its fuel source with requires filling and is a potential contaminant. The existing genitor also lacks sound attenuation. This proposals is to provide design services to replace the WTP generator with a 500kW generator sized to run two wells, one GSR booster pump, and the WTP miscellaneous loads. The generator will be purchased through the Soucrewell Contract. The proposed generator will have a natural gas powered engine and would be serviced by either the WTP's existing natural gas service, or from a new service provided by the Utility. The new WTP generator will incorporate sound attenuation into the enclosure to help reduce noise. The existing WTP generator will be located to the Wells 617 site. The well site electrical service will be modified to add the generator to the electrical distribution to power Well #6. A new automatic transfer switch will be placed in a weathertight enclosure on a new concrete pad. The generator will be placed on a concrete pad. SCOPE OF SERVICES The generator will be purchased through the Sourcewell Contract. Quotes will be solicited to make electrical connections, pour concrete pads, and provide a new automatic transfer switch at Well 6. Task 1.0: Design Services The following services are proposed for the design phase of this project. Task 1.1. Kick -off -meeting Kick-off meeting at the Joint Powers WTP. Chad Westbrook will lead a kick-off meeting to discuss the project objectives, expectations, scope, schedule, and budget. Following the kick-off meeting„ we will perform necessary site investigation to verify existing conditions. Engineers I Architects. I Planners i Scientists SEH is 100% employee -owned I sehinc.com 1 651.490.2000 1 800.325.2055 1 888.908.8166 fax PAGE 25 Joint Powers Generator Proposal - Revised April 17, 2020 Page 2 Task 1.2 90% Design: SEH will prepare quote documents to a 90% level and deliver to the Joint Powers Water Board for design review. Following a 1-week design review period, Chad Westbrook will attend and lead a design review meeting at the WTP. 90% Design Deliverables: ■ Quote drawings ■ Quote specification package ■ Opinion of Probable Construction Cost Task 1.3 90% Design Review Meeting: Chad Westbrook will lead a review meeting on site to discuss outstanding issues and Owner comments. We anticipate that this meeting will last up to 2-hours. Following this review meeting, we will perform on -site field investigation in order to verify the information necessary to finalize the bidding documents. Task 1.4 fraternal Quality Assurance (QA): SEH will utilize an electrical engineer not involved directly with the project to provide a QA review of the documents and provide written QA comments for response by the SEH electrical engineer. Task 1.5 Final Deliverable: Final signed drawings and quote documents will be provide to Veolia staff. Task 2.0 Bidding/Quotes: 2-hours are included for bidding/quote questions that may arise. We will walk through the site with prospective Contractors to allow them to investigate the existing conditions and ask questions. Task 3.0 Construction Administration: Task 3.1 Pre -Construction Meeting: We will lead one -pre -construction meeting with the successful Contractor prior to work starting on -site. Task 3.2 Shop Drawings: We included 4-hours to review Contractor shop drawing submittals. Task 3.3 Construction Site Visits: We have included 8-hours for on -site construction meetings. Task 3.4 Punch list: We have included 4-hours to attend the final closeout meeting and punch list with the Contractor and Owner. Task 3.5 Project Closeout: We have included 4-hours to review and provide closeout documents. Task 3.6 Project Management: We have included 2-hours to review Contractor pay requests. Task 3.7 Project Record Drawings: We have included 4-hours to prepare final record drawings at the conclusion of the project. PROJECT SCHEDULE Task 1.0 Design — 6 Weeks 1-week after NTP - Project kick-off meeting 4-weeks after kick-off meeting -- 90% submittal 1-week after 90% submittal — 90% review meeting 1-week after 90% review meeting — Internal QIA 2-weeks after 90% review meeting — Final Design Deliverables PAGE 26 Joint Powers Generator Proposal - Revised April 17, 2020 Page 3 Task 2.0 and 3.0 schedule to be determined during design phase. COMPENSATION SEH is prepared to complete this scope of work and is prepared to begin these efforts upon receipt of your authorization. Based on the scope of services described above, SEH estimates the level of effort to complete the work at $15,600 as follows: $10,500 Task 1.0 Design 55 JaQ Task 2.0 Soliciting Quotes and 3.0 CA. $15,600 Total SUMMARY Please contact us with any questions or requests for additional information. Thank you for the opportunity to submit this proposal. We look forward to continuing our relationship with the Joint Powers Water Board. Sincerely, SHORT ELLIOTT HENDRICKSON INC. Chad Westbrook, PE Project Manager, Electrical Engineer cc: Chris Larson. PE - SEH Joint Powers Water Board By: Title: PAGE 27 POWERS WATERBoARD klll"� Al-�'Z - wl'Nove - 5 Joint Powers Water Board 11100 50" St NW Albertville MN 55301 h h TO: Joint Powers Water Board FROM: Larry Cook DATE: April 17, 2020 SUBJECT: Automatic Water Salesman Tel.: 763-497-3611 Fax: 763-497.4908 www.jointpowerswateftard.org Attached to this memo are two proposals to replace the current Automatic Water Salesman Bulk Fill Station. The current system has been in place for over twenty years and the main motherboard has failed and no longer available for replacement or repair. The system is utilized by numerous bulk water customers (construction, landscapers, etc) on a routine basis and is a convenient method for staff to securely supply bulk water, calculate actual usage, and collect payments for the bulk sales. Below are the two proposals broken down into base costs and total add -on costs. Vendor Base Cast Possible Add-Ons Max Total Vernon Manufacturing $5,275.00 $2,880.00 $8,155.00 EleMech $10,995.00 $2,150.00 $13,145.00 Staff recommends Vernon Manufacturing and requests authorization to execute the Vernon Manufacturing proposal. PAGE Z8 TF�IC TOkAICAdiCCIl1A1 f`etAfTtilAtG !'(CAI. CIf1CAITl✓11 IRICAGAIATIARI IAITL AIf1Cf1 Crtq i ICF Rhll V AV T4iC ARl1lIC AIAAICi'1 DCe^109CRIT pC�M1IRIe_ VERNON MANUFACTURING www.vernonmfg.com Established 1948 Steve@vernonmfg.com AUTOMATIC WATER SALESMAN The Automatic Water Salesman has been P: 785.536.4412 F: 4452 712 MAPLE GYPSUM, KS 67448 helping fill the need for water since 1956 Hours: 8/5 Central M-F IMPORTANT ADDRESS CHANGE Joint Powers Water Board Attn: Andrew Andrew, Please update your records QUOTE March 27, 2020 Prices are good for 30 days Shipping and mailing: 712 Maple. Thank you for this opportunity. Here are the specifics you asked for. You probably don't need the valve, so I am leaving it off. This is what you have, adding in the Credit Card acceptance. Automatic Water Salesman: Coin, Credit & Prepaid Card acceptance. No Valve Painted Streetside Box. Programmable blank cards. Additional Options Stainless Steel Streetside Box. Currency option. Accepts $1, $5, $10, $20 bills. Key Switch Override. Our most popular option. You do not have this now. Shipping to be determined without valve: Approx Steve Vernon, President Vernon Manufacturing $5275.00 Each: 4.50 Add: 1000.00 Add: 1600.00 +++ Please consider the environment before using fax cover pages. +++ $100.00 TERMS: Net 30 days from date of invoice. 1.5% per month slc added to accounts over 30 days. 20% restocking fee on returns. All special -order items are subject to a 50% deposit prior to ordering. No return of special -order items or any item(s) after 90 days. No refund on SfH. Min. order, $15.00. Min. SIH $10.00. Charge sales to bona fide dealers and municipalities only. COD or credit card sales to all others. Prices are subject to change without notice. Always call for up to date pricing. When possible, we use only US manufactured goods and proudly purchase only from US suppliers. PAGE 29 VERNON MANUFACTURING www.vernonmfg.com Established 1948 stave@vernonmfg.com AUTOMATIC WATER SALESMAN The Automatic Water Salesman has been P: 785.536.4412 F: 4452 712 MAPLE GYPSUM, KS 67448 helping fill the need for water since 1956 Hours: 815 Central M-F IMPORTANT ADDRESS CHANGE Please update your records. Shipping and mailing: to 712 Maple. To our valued distributors and customers, Vernon Manufacturing is pleased to announce a new water sales system that uses standard credit cards and proprietary (prepaid) cards. Working with InOne Technology and NAYAX, we bring you this new feature. The card swipe can be "freestanding", included with any new unit or can be adapted to some older units here in the factory. This new system requires that you have the NAYAX Card Management program installed on your computer. Using a password protected website, you can issue new prepaid cards and add money to them as needed. Vernon Manufacturing does not handle collections. NAYAX takes care of all the billing issues for the customer and deposits the money collected to your bank once a week. As with any card management system, a monthly fee is charged. The fees are shown below. These are charges incurred by the end user (city). If you prefer, you may use an existing merchant account. There is a one-time fee of $225.00 to set up this feature in addition to these fees. Monthly Fee. Visa/MC, etc.: Transaction Fees: $7.95 Under $4.95 5.95% Over $4.95 2.95% + 100 Monthly Fee using Prepaid Cards Only: $7.95 Transaction Fees: $0 Private Merchant Account: Additional 1.2% per transaction. The retail cost of this option is $1300.00 when delivered with a new unit. In shop, retrograde conversion, is $1600.00 and is only available on Flush -mount and Streetside Box Systems. Prepaid card only units are also available. Please note that the monthly fee of $7.95 still applies. Your clerk will access a password protected website to add new cards or add money to existing user cards. This will keep track of customer usage and allow them to receive a receipt by email as desired. If this sounds like something you or your customers might be interested in, please call me at the number shown above. Regards, Steve Vernon Vernon Manufacturing PAGE 30 LE ECr� ELECTRICAL AND MECHANICAL ENGINEERING SERVICES Veolia Water Minnesota Project, MN Phone: (763) 497-3611 - March 30, 2020 i 1905-021R Attention: Mr, Andrew Ahles From: Robert Gorder Email: andrew.ahles@veolia.com EleMech Inc. FS-20 - Bulk Water Station Controller 2275 White Oak Circle Aurora, IL 60502 Phone: (630) 499-7080 ext. 12 Fax: (630) 499-7760 Included Scope: itDescription Quantity Unit Price 1 FS-20 Bulk Water Filling Station, assembled and shipped 1 $10,995.00 $10,995.00 from Aurora, IL. Including: Station Controller with Kepyad Access and Display - Porta logic Software w/Portapay Online Portal Valve Open relay - Flow Meter Pulse input Module - Insulated enclosure, type 4X, Stainless Steel - Misc. controls and hardware, industrial grade - 12/18 Month Warranty - Commissioning and Training, priced below. -Shipping Expenses to Site Site Requirements: - Office PC to host software - Ethernet Network wl Internet Access - Working Water Meter with pulse output - Working Actuated Valve, solenoid controlled - Installation of FS-20 with electrical connection $10,995,00 Additional Options: Page 1 of 4 ELEMECH INC. . 2275 WHITE OAK CIR. . AURORA, IL 60502 . TELEPHONE (630) 499-7080 . FAX (630) 499-7760 PAGE 31 rLEMECtf � ELECTRICAL AND MECHANICAL ENGINEERING SERVICES FS-20 Information: Operating Instruction: 1. Site registers the user and assigns the station access code and PIN. 2. User logs into station with access code and PIN. 3. User enters amount of water needed, usually entered in Gallons. 4. Connections to truck are verified. 5. User presses Start and Stop buttons to control water flow. 6. Final volume is logged and deducted from the user's account or charged to the credit card 7. Receipt is emailed to the registered user. Water Payment Options: 1. Payment can be made in advance and debited from the balance each time the station is used 2. Credit Card can be used to pay each time that water is purchased. 3. Portapay Online Payment Portal, an included feature of the Portalogic software. "Portapay is free and is less expensive per use than station mounted credit card device. See brochure included with this quote. Explanation of Fees and a Extended Warranty Option: 1. Included for Year 1 2. Fees charged after Year 1 are optional. An extended warranty after Year 1 of $1,500 will include replacement of major parts, Software support and upgrades, monthly monitoring fees, and Portapay hosting fee. *Does not include the 2.9% transaction fee or any of the fees charged by the station mounted credit card device. Portapay only, Technical Specifications: Enclosure Size: 24"x24"x14"D Power Required: 120VAC, 60HZ Control Power: 24VDC Amperage: 1- 10A Circuit Breaker (Installed inside Enclosure) Material: 304 Stainless Steel Rating: Type 4X Certifications: UL, cUL (Canada Only) Keypad/Display: Vandal Resistant, IP65, Stainless, USB Optional - Receipt Printer: High Capacity, Auto -Cut, Low Paper Alarm, PDF report driver Insulated Enclosure side -panels with heater and thermostat Power Supply Receptacle with Surge Protection NOTES: 1, All external electrical interconnections, wirings, junction boxes and terminations between the equipment and electrical components are to be provided by installing contractor. 2. All piping to and from the equipment is to be supplied by the installing contractor. 3. Any Item not specifically listed above is not considered part of this scope of supply. Please contact our representatives listed above for further clarification. Page 2 of 4 ELEMECH INC . 2275 WHITE OA K OR. e AURORA, IL 60502 . TELEPHONE (630) 499-7080 . FAX (630) 499-7760 PAGE 32 AFAffiEL M ECH ZINC. ELECTRICAL AND MECHANICAL ENGINEERING SERVICES Terms and Conditions The proposal is dependent on customer's acceptance of the attached EleMech, Inc. Standard Terms and Conditions Special Information and Exceptions • Price does not include any unloading or any applicable fees or taxes (Local, Federal, or Final Destination) • Prices are in U.S. Dollars unless noted otherwise • Freight is delivered with duty paid (D.D.P.) to Jobsite • Price does not include installation or building modifications Terms of Payment Payment terms shall be as stated below or as agreed upon terms: ■ 15% upon delivery of submittals (net 30 days) • 85% upon delivery of equipment (net 30 days) Submittals EleMech will provide documentation to the customer per the following schedule: • Drawings for approval including layouts, connection details, anchorage, and control panel • Complete Bill of Material of all products furnished, with part numbers. Shipment EleMech will maintain the following schedule: • Submittals 2 weeks after acceptance of a written purchase order if required. • Equipment delivery 6-8 weeks after approved submittals or notice to proceed • O&M manuals prior to equipment start-up. • For any delays in delivery which are beyond EleMech's responsibility, a finance charge of 1.5% of the contract value per month will be due and payable to EleMech. Accessories This proposal includes only those items specifically mentioned in the equipment descriptions, Any items which may be necessary for the operation of the equipment, but are not specifically mentioned, such as motors, meters, heat tracing, drives, additional controls, or supports, are to be supplied via additional quotation separate from this offering. Purchase Orders All purchase orders are to be faxed or mailed to: EleMech, Inc. 2275 White Oak Circle Aurora, IL 60504 Phone: (630) 499-7080 Fax; (630) 499-7760 All purchase orders are subject to acceptance by EleMech, Inc. Warran EleMech warrants the equipment and components furnished will be free from defects in workmanship and materials and perform the general process function intended solely under the operating conditions defined by EleMech for a period of 24 months from Shipment to site. Exclusions ■ Financing • Cranes and/or lifting devices • Unloading and/or storage of equipment on jobsite • Local, State or Federal taxes or fees • Foundation design and engineering (EleMech will furnish equipment drawings and data) ■ Utilities for erection, installation and operation • Interconnecting wiring, conduit, piping, tubing, valves, fittings, etc. between the equipment and other equipment and/or control Page 3 of 4 ELEMECH INC. . 2275 WHITE OAK CIR. . AURORA, IL 60502 . TELEPHONE (630) 499-7080 • FAX (630) 499-7760 PAGE 33 Li L.LEMECH �rpjlj Arlo. ELECTRICAL AND MECHANICAL ENGINEERING SERVICES devices and control panel. Project Management EleMech will appoint a Project Manager for the duration of the contract. Project Management services are included in this package and are as follows: ■ Coordination with EleMech manufacturing on materials procurement and fabrication to and with EleMech shipping logistics to ensure EleMech commitments are maintained. Training and Start-up assistance An EleMech Service Technician can normally be at the jobsite within two (2) weeks after customer's request to EleMech for equipment start-up and commissioning assistance. EleMech will provide additional start-up supervision, which is not specifically Included in the scope of our supply at the purchaser's request. For such additional services Purchaser shall pay $1,200.00 per day plus expenses, for eight hours per day. ■ At the request of the purchaser, overtime service will be provided at a rate of 1.5 times the regular rate for weekdays, and 2.0 times the regular rate for weekends. ■ Expenses are defined as the costs of travel from EleMech's location to the point of installation and return; together with accommodation and living expenses during the period of field service. ■ Charges for all time involved will be invoiced, including delays which are beyond EleMech's control. Equipment Standard Any deviations from the EleMech standard mechanical and electrical specifications must be discussed with the Purchaser and agreed upon. EleMech reserves the right to charge adders to the equipment price for any non-standard mechanical and electrical components required by the Purchaser and not explicitly stated in EleMech's scope of supply. Page 4 of 4 ELEMECH INC. ■ 2275 WHITE OA K OR. ■ AURORA, IL 60502 ■ TELEPHONE (630) 499-7080 ■ FAX (b30) 499-7769 PAGE 34 313112020 Portalogic I Water Filling Stations /146 PORTALOGIC About Products Installations Testimonials Contact us Support FS-20 Bulk Water Fill Station The FS-20 water fill station is tamper -proof and simple for haulers to use. This station provides secure hauler access by PIN or swipe card. It is on outdoor rated, wall or strut mounted enclosure that offers total flexibility. The FS-20 can interface with and control remote devices such as valves, meters, pumps and much more. Available with credit card terminal for easy customer payments, or with coin acceptor for a simple coin operated bulk water station. Options portalogic.iniolproducts water filling_stations.htmt PAGE 35 8111 3131/2020 Portalogic I Water Filling Stations dPORTALOGIC About Products v Installations Testimonials Contact us Support Stations can be powered by solar energy for remote installations Heaters, insulation, and meat tracing can be added to protect the station in cold climates Air conditioners and sunshields can be added to protect the station in hot climates The station can interface with automatic gates and doors if needed Station Operation PAGE 3b norlalnmc inlNornrlurts water fiIlino stations.html pill 313112U20 Fvrtalogrc I Water HNlrrlg Stations PRTALOGIC About v Products � Installations Testimonials Contact us Support Hauler connects truck to inlet and turns the switch to "'Start' Hauler uses swipe cord or enters PIN Hauler follows display prompts and enters information such as desired volume Inlet valve ovens, "System Ready' light illuminates, and hauler fills their truck Hauler turns the switch to "Clone" and a receipt is printed detailing the transaction 630.473,8685 630.499.7760 EleMech, Inc. p o r1a I og ic.inf o1prod u cts—wa terj Ikng_stat ions.hlml PAGE 37 101111 )OINT IADVVMS WATER. BoAm Joint Powers Water Board 1110050 5t NW Albertville MN 55301 MEMO Tel.: 763-497-3611 Fax: 763-497-4908 www.jointpowerswaterboard.org TO: Joint Powers Water Board FROM: Larry Cook DATE : April 17, 2020 SUBJECT: Emergency Back -Up Generator Attached is the memo from Chris Larson of SEH, regarding a request to purchase the Emergency Back -Up Generator for the Joint Powers Water Treatment Plant. PAGE 38 TNIC TDAAICIIIGCI hi rMITAMIC rnMCIRC►ITI AI MCr%01Ah TtnKI IKJT klnCn CMD I MC MMI V DV TWC ACMIr KIAAMM DCf IDICXIT DC AnIWM SEH MEMORANDUM l-Q: Joint Powers Water Board FROM: Christopher Larson, P.E, DATE: April 17, 2020 RE: Standby Generator The Joint Powers Water Treatment Plant currently has a 230 kW diesel standby generator that was installed approximately 20 years ago. The existing generator is only capable of running one well and other minor loads. There are 4 wells, two booster pumps, and other electrical loads at the water treatment plant site. In addition to being undersized, the existing generator runs off of diesel which requires frequent refilling and is a potential contaminant. The existing generator also lacks sound attenuation. A new 500 kW generator is proposed that would be capable of running two wells, one GSR booster pump, and the water treatment plant electrical loads. The proposed generator would be powered by natural gas which wouldn't require refueling. The proposed generator would also have sound attenuation to alleviate noise for potential future neighbors. The existing generator could be relocated to the Wells 6/7 location. At the March Board meeting the concept of adding a standby generator at the water treatment plant was discussed. Rather than issuing plans and specifications for the entire project, it was requested that quotes for the generator be solicited through the Soucewell Contract. Quotes were solicited through the Soucewell Contract from Cummins and Caterpillar for a new 500 kW natural gas generator with a level 2 sound enclosure. The quotes (attached) were as follows: Cummins $220,070.00 Caterpillar $287,595.24 SEH's electrical engineer reviewed the quotes and indicated that Cummins and Caterpillar were providing comparable products. Because the Cummins quote is significantly less expensive, we recommend purchasing the generator from Cummins through the Sourcewell Contract in the amount of $220,070.00. Joint Powers can utilize Albertville's Soucewell Contract or create their own Sourcewell account. Connecting the new generators at the water treatment plant and Well 6, pouring pads, and providing a new automatic transfer switch and control panel at Well 6 will be completed as a separate project. Short Elliott Hendrickson Inc„ 3535 Vadnais Center Drive, St. Paul, Mfg! 55110-5196 5EH is an equal opportunity employer I www.sehinc.com 1 651.490.2000 1 800.325,2055 1 651.490.2150 fax PAGE 39 Quotation Cummins Sales and Service 1600 Buerkle Road White Bear Lake MN 55110 United States April 1, 2020 Project Name: Water Plant Nat Gas Budget Quotation: 4975000000028827 Thank you for your inquiry. We are pleased to quote as follows: USD C50ON613 Genset Spark Ignited, Natural Gas, 60Hz, 500kW GTA28E, 701 HP, 8.5:1 Duty Rating - Standby Power Listing - UL 2200 Natural Gas Generator - 60Hz, Winding 311 - 12 Wire, 120C, 0.8pf Voltage - 277/480, 3ph Exciter 1 Regulator - PMG, 3 Phase Sensor Set Control - Power Command 3.3 MLD Controls Facing Left Radiator Cooled Shutdown - Low Coolant Level Coolant Heater - 240V 1400OW Sight glass on Radiator Engine Governor - Electronic, Isochronous Only Engine Starter - 24 VDC Motor Battery Charging Alternator - Normal Output Engine Air Cleaner - Normal Duty Lube Oil, Engine Filled Prior to Shipment Anti -Freeze - 50/50 Mix, System Filled Prior to Shipment Bar graph - AC Analog Meters Alarm - Audible, Engine Shutdown Annunciator (RS485) Manuals in English Batteries - 8D-3 Wet (OTY 2) Battery Rack Battery Charger, 120/240 VAC Input, 10A 124Vdc Output Fuel Strainer - Gaseous, Sin NPT Page I of 5 --- PAGE 40 Flexible Fuel Connection - Gaseous, Sin NPT Signals -Aux, Input / Output Control Kit, System Input / Output Crankcase Breather Switch - Emergency Stop, External Ground Fault Indicator wl Alarm Output Contact Standard Test Report Additional 4 Hour Load Bank Test Time Witness Test Circuit Breaker - LSi-800A-100%—RIGHT, 600/525V Enclosure — Sound Attenuated Level 2 Sound Level — 77.4 dBA @ 7 Meters (23 Feet) Enclosure - Sound Att, LEVEL 2, Galvaneal, Base Mtd, with Exh System Cummins Beige Enclosure Color Critical Grade Silencer, Carbon Steel Vibration Isolators DC tights Inside Enclosure Motorized Louvers on Enclosure Air Intake Side Motorized Louvers on Enclosure Air Outlet Side Distro Panel 100A 120/240V 1 P13W Perf Liner - Aluminum SLIP Startup and Load Bank Grand Total $220,070.00 Submitted by Doug Abrahamson, Commercial Power Gen Sales A2.q .a_brahamson(a)Cummins.com Mobile:612-297-9423 ---�- - age 2 o f 5 PAGE 41 TERMS AND CONDITIONS FOR SALE OF POWER GENERATION EQUIPMENT These Terms and Conditions for Sale of Power Generation Equipment, together with the Quote, Sales Order, and/or Credit Application on the front side or attached hereto, are hereinafter referred to as this "Agreement" and shall constitute the entire agreement between the customer identified in the quote ("Customer") and Cummins Inc. ("Cummins") and supersede any previous representation, statements, agreements or understanding (oral or written) between the parties with respect to the subject matter of this Agreement. No prior inconsistent course of dealing, course of performance, or usage of trade, if any, constitutes a waiver of, or serves to explain or interpret, the Terms and Conditions set forth in this Agreement. Electronic transactions between Customer and Cummins will be solely governed by the Terms and Conditions of this Agreement, and any terms and conditions an Customer's website or other internet site will be null and void and of no legal effect on Cummins. In the event Customer delivers, references, incorporates by reference, or produces any purchase order or document, any terms and conditions related thereto shall be null and void and of no legal effect on Cummins. QUOTE TERM; SCOPE. The Quote is valid for 60 days. The price is firm provided drawings are approved and returned within 60 days after submission and ship date is not extended beyond published lead times. Any delays may result in escalation charges. A Sales Order for Equipment is accepted on hold for release basis, The Sales Order will not be released and scheduled for production until written approval to proceed is received. The Quote is limited to plans and specifications section set forth in the Quote. No other sections shall apply. Additional requirements for administrative items may require additional costs. The Quote does not include off unit wiring, off unit plumbing, offloading, rigging, installation, exhaust insulation or fuel, unless otherwise stated. SHIPPING; DELIVERY. Equipment is quoted FOB origin, freight prepaid to first destination, unless otherwise stated. For consumer and mobile products, freight will be charged to Customer. A reasonable storage fee, as determined by Cummins, may be assessed if delivery of the Equipment is delayed, deferred, or refused by Customer, Offloading, handling, and placement of Equipment and crane services are the responsibility of Customer and not included in proposal, unless otherwise stated. All shipments are made within normal business hours, Monday through Friday. Any delivery, shipping, installation, or performance dates indicated in this Agreement are estimated and not guaranteed. Further, delivery time is subject to confirmation at time of order and will be in effect after engineering drawings have been approved for production. Cummins shall use best efforts to meet estimated dates, but shall not be liable for any delay in delivery, shipping, installation, or performance, however occasioned. Cummins may deliver in installments. Unless otherwise agreed to, packaging method, shipping documents and manner, route and carrier and delivery shall be as Cummins deems appropriate. PAYMENT TERMS; CREDIT; RETAINAGE. If Customer has approved credit, as determined by Cummins, payment terms are net thirty (30) days from the date of invoice unless otherwise specified in the Quote, without deduction or setoff. If payment is not received when due, in addition to any rights Cummins has under the law and charges that Cummins may levy against Customer under statute (including attorney fees and costs of collection), Cummins may charge Customer eighteen percent (18%) interest annually, or the maximum amount allowed by law, on late payments. Payment shall be due in advance if Customer does not have approved credit. Retainage is not acceptable nor binding, unless required by statute or accepted and confirmed in writing by Cummins prior to shipment. TAXES; EXEMPTIONS. Unless otherwise stated, the Quote excludes all applicable focal, state and federal sales and/or use taxes, permits and licensing. Customer must provide a valid resale or exemption certificate prior to shipment of Equipment or applicable taxes will be added to the invoice. TITLE;. RISK OF LOSS. Title and risk of loss for the Equipment shall pass to Customer with delivery made in accordance with the delivery terms set forth above. INSPECTION AND ACCEPTANCE. Customer shall inspect the Equipment upon delivery, before offloading, for damage, defects, and shortage. Any and all claims which could have been discovered by such inspection shall be deemed absolutely and unconditionally waived unless noted by Customer on the bill of lading. Where Equipment is alleged to be non -conforming or defective, written notice of defect must be given to Cummins within three (3) days from date of delivery after which time Equipment shall be deemed accepted. Cummins shall have a commercially reasonable period of time in which to correct such non -conformity or defect, If non -conformity or defect is not eliminated to Customer's satisfaction, Customer may reject the Equipment (but shall protect the Equipment until returned to Cummins) or allow Cummins another opportunity to undertake corrective action. In the event startup of the Equipment is included in the services, acceptance shall be deemed to have occurred upon successful startup. LIEN; SECURITY AGREEMENT. Customer agrees that Cummins retains all statutory lien rights, To secure payment, Customer grants Cummins a Purchase Money Security Interest in the Equipment. If any portion of the balance is due to be paid following delivery, Customer agrees to execute and deliver such security agreement, financing statements, deed of trust and such other documents as Cummins may request from time to time in order to permit Cummins to obtain and maintain a perfected security interest in the Equipment; or in the alternative, Customer grants Cummins a power of attorney to execute and file all financing statements and other documents needed to perfect this security interest. Cummins may record this Agreement, bearing Customer's signature, or copy of this Agreement in lieu of a UCC-1, provided that it shall not constitute an admission by Cummins of the applicability or non -applicability of the UCC nor shall the failure to file this form or a UCC•1 in any way affect, alter, or invalidate any term, provision, obligation or liability under this Agreement. The security interest shall be superseded if Customer and Cummins enter Into a separate security agreement for the Equipment. Prior to full payment of the balance due, Equipment will be kept at Customer's location noted in this Agreement, will not be moved without prior notice to Cummins, and is subject to Inspection by Cummins at all reasonable times. CANCELLATION; CHARGES. If Customer cancels all or a portion of this Agreement after its release to Cummins, Customer may incur a cancellation charge in accordance with current Cummins polity which is available upon request, in addition to the actual, non -recoverable costs incurred by Cummins. Written cancellation notice is required. MANUALS, Unless otherwise stated, electronic submittals and electronic 0 & M manuals will be provided, and print copies may be available upon Customer's request at an additional cost. TRAINING; START UP SERVICES; INSTALLATION. Startup services, load bank testing, and owner training are not provided unless otherwise stated. Site startup will be subject to the account being current and will be performed during regular Cummins business hours, Monday to Friday. Additional charges may be added for work requested to be done outside standard business hours, on weekends, or holidays. One visit is allowed unless specified otherwise in the Quote. A minimum of two -week prior notice is required to schedule site startups and will be subject to prior commitments and equipment and travel availability. A signed site check sheet confirming readiness will be required, and Cummins personnel may perform an installation audit prior to the startup being completed. Any issues identified by the installation audit shall be corrected at the Customer's expense prior to the start-up. Portable load banks for site test (if offered in the Quote) are equipped with only 100 feet of cable. Additional lengths may be arranged at an extra cost. Cummins is not responsible for any labor or materials charged by others associated with start-up and installation of Equipment, unless previously agreed upon in writing. Supply of fuel for start-up and/or testing, fill -up of tank after start up, or change of oil is not included unless specified in the Quote. All installation/execution work at the site including, but not limited to: civil, mechanical, electrical, supply of wall thimbles, exhaust extension pipe, elbows, hangers, expansion joints, insulation and cladding materials, fuel/oil/cooling system piping, air ducts, and louvers/dampers is not included unless specified in the Quote. When an enclosure or sub -base fuel tank (or both) are supplied, the openings provided for power cable and fuel piping entries, commonly referred to as "stub -ups", must be seated at the site by others before commissioning. All applications, inspections and/or approvals by authorities are to be arranged by Customer. WARRANTY. New and remanufactured Equipment purchased hereunder is accompanied by an express written manufacturer's warranty and is the only warranty offered on the Equipment. A copy of the express manufacturer's warranty is available upon request. Cummins' obligations under this warranty are limited to repair or replacement, at Cummins' option, of any defective component. WARRANTY PROCEDURE. Prior to the expiration of the applicable warranty, Customer must give notice of a warrantable failure to Cummins and deliver the defective Equipment to a Cummins location or other location authorized and designated by Cummins to make the repairs during regular business hours. Cummins shall not be liable for towing charges, maintenance items such as oil filters, belts, hoses, etc., communication expenses, meals, lodging, and incidental expenses incurred by Customer or employees of Customer, "downtime" expenses, overtime expenses, cargo damages and any business costs and losses of revenue resulting from a warrantable failure, age o PAGE 42 Version 6/2015 LIMITATIONS ON WARRANTIES Cummins expressly disclaims all warranties, either express or implied, including any implied warranty of merchantability and warranty for fitness of a particular purpose, to the extent permitted by law. The warranties set forth herein are the sale warranties made by Cummins. Some states d❑ not allow limitation on warranties, so these limitations may not apply to you. The limited warranty does not cover Equipment failures resulting from: (a) inappropriate use relative to designated power rating; (b) inappropriate use relative to application guidelines; (c) inappropriate use of an EPA -SE application generator set relative to EPA's standards; (d) normal wear and tear, (e) improper and/or unauthorized installation; (f) negligence, accidents, or misuse; (g) lack of maintenance or unauthorized or improper repair; (h) noncompliance with any Cummins published guideline or policy; (i) use of improper or contaminated fuels, coolants, or lubricants; a) improper storage before and after commissioning, (k) owner's delay in making Equipment available after notification of potential Equipment problem; (I) replacement parts and accessories not authorized by Cummins; (m) use of battle short mode; (n) owner or operator abuse or neglect such as: operation without adequate coolant, fuel, or lubricants; over fueling; over speeding; lack of maintenance to lubricating, fueling, cooling, or air intake systems; late servicing and maintenance; improper storage, starting, warm-up, running, or shutdown practices, or for progressive damage resulting from a defective shutdown or warning device; or (a) damage to parts, fixtures, housings, attachments and accessory items that are not part of the generating set. INDEMNITY. Each party shall indemnify and hold harmless the other party, its affiliates, subsidiaries, officers, directors, agents and employees from and against any and all third party losses, costs, liabilities, damages and expense, including reasonable attorney and expert fees (collectively, "Losses"), subject to the Limitation of Remedies set forth below, attributable to bodily injury or property damage to the extent it is conclusively determined that such Losses were directly caused by the gross negligence or willful misconduct of such party. The party seeking indemnification shall give written notice to the other party promptly upon learning of the events giving rise to such claim; provided, however, that failure to provide such notice promptly shall only relieve an indemnifying party of its obligations hereunder to the extent it is prejudiced by such delay. The indemnifying party shall select counsel to control and manage the defense of a claim and the settlement thereof and shall keep the indemnified party apprised of all material developments with respect to such claim. The indemnified party may, at its expense, select additional co -counsel. The indemnifying party shall have no obligation to indemnify or hold harmless the indemnified party for any Losses conclusively determined to be caused by the negligence or willful misconduct of the indemnified party. LIMITATIONS ON REMEDIES THE MAXIMUM LIABILITY, IF ANY, OF CUMMINS FOR ANY DAMAGES, INCLUDING WITHOUT LIMITATION, AGREEMENT DAMAGES AND DAMAGES FOR PROPERTY, WHETHER ARISING FROM CUMMINS' BREACH OF AGREEMENT, BREACH OF WARRANTY, NEGLIGENCE, STRICT LIABILITY, OR OTHER TORT, IS LIMITED TO AN AMOUNT NOT TO EXCEED THE PRICE OF THE EQUIPMENT PAID BY CUSTOMER UNDER THIS AGREEMENT WHICH SHALL BE THE SOLE REMEDY UNDER THIS AGREEMENT. IN NO EVENT SHALL CUMMINS BE LIABLE FOR INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES OF ANY KIND (INCLUDING WITHOUT LIMITATION DOWNTIME, PROPERTY DAMAGE, LOSS OF PROFIT OR REVENUE, LOSS OF DATA, DAMAGE TO GOODWILL) HOWSOEVER CAUSED ARISING FROM THIS AGREEMENT OR THE BREACH OF THIS AGREEMENT, WHETHER IN INDEMNITY, TORT, CONTRACT, OR OTHERWISE. NOTHING IN THIS AGREEMENT EXCLUDES OR LIMITS LIABILITY FOR DEATH OR PERSONAL INJURY CAUSED BY CUMMINS' GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. BY ACCEPTANCE OF THIS AGREEMENT, CUSTOMER ACKNOWLEDGES CUSTOMER'S SOLE REMEDY AGAINST CUMMINS FOR ANY LOSS SHALL BE THE REMEDY PROVIDED UNDER THIS ENTIRE AGREEMENT. FORCE MAJEURE. Cummins is not responsible for the occurrence of any unforeseen event, circumstance, or condition beyond its reasonable control including, but not limited to, acts of God, actions by any government authority, civil strife, fires, floods, windstorms, explosions, riots, natural disasters, embargos, wars, strikes or other labor disturbances, civil commotion, terrorism, sabotage, fate delivery by Cummins' suppliers, fuel or other energy shortages, or an inability to obtain necessary labor, materials, supplies, equipment or manufacturing facilities. If any such cause results in delayed performance, the date of performance shall be extended for a period equal to time lost and shall be Customer's exclusive remedy. DEFAULT; REMEDIES. Customer shall be in breach and default if: (a) any of the payments or amounts due under this Agreement are not paid; (b) Customer fails to comply, perform, or makes any misrepresentation relating to any of the Customer's obligations or covenants under this Agreement; or (c) prior to full payment of the balance due, Customer ceases to do business, becomes insolvent, makes an assignment for the benefit of its creditors, appoints a receiver, commences an action for dissolution or liquidation, or becomes subject to bankruptcy proceedings, or the Equipment is attached, levied upon, seized under legal process, is subjected to a lien or encumbrance, or transferred by operation of law or otherwise to anyone other than Cummins. Upon the occurrence of any event of Customer's default, Cummins, at its sole option and without notice, shall have the right to exercise concurrently or separately any one or all of the following remedies, which shall be cumulative and not alternative: (a) to declare all sums due, and to become due, under this Agreement Immediately due and payable; (b) to commence legal proceedings, including collection actions and specific performance proceedings, to enforce performance by Customer of any and all provisions of this Agreement, and to be awarded damages or injunctive relief for the Customer's breach; (c) to require the Customer to deliver the Equipment to Cummins' branch specified on the face of this Agreement; (d) to exercise one or more of the rights and remedies available to a secured party under the Uniform Commercial Code, whether or not this Agreement is subject thereto; and (e) to enter, without notice or liability or legal process, onto any premises where the Equipment may be located, using force permitted by law, and there to disconnect, remove and repossess the Equipment, the Customer having waived further rightto possession afterdefault. A waiver of any event of default by Cummins shall not be a waiver as to any other or subsequent default. CUSTOMER REPRESENTATIONS; RELIANCE. Customer is responsible for obtaining, at its cost, permits, import licenses, and other consents in relation to the Equipment, and if requested by Cummins, Customer shall make these permits, licenses, and consents available to Cummins prior to shipment. Customer represents that it is familiar with the Equipment and understands operating instructions and agrees to perform routine maintenance services. Until the balance is paid in full, Customer shall care for the Equipment properly, maintain it in good operating condition, repair and appearance; and Customer shall use it safely and within its rated capacity and only for purpose it was designed. Even if Customer receives technical information, drawings, or advice, Customer has sole responsibility for intended use, for installation and design and performance where it is part of a power, propulsion, or other system. Limitation of warranties and remedies and all disclaimers apply to all such technical information, drawings, or advice. Customer acknowledges and agrees by accepting delivery of the Equipment that the Equipment purchased is of the size, design, capacity and manufacture selected by the Customer, and that Customer has relied solely on its own judgment in selecting the Equipment. CONFIDENTIALITY. Each party shall keep confidential any Information received from the other that is not generally known to the public and at the time of disclosure, would reasonably be understood by the receiving party to he proprietary or confidential, whether disclosed in oral, written, visual, electronic, or other form, and which the receiving party (or agents) learns in connection with this Agreement including, but not limited to: (a) business plans, strategies, sales, projects and analyses; (b) financial information, pricing, and fee structures; (c) business processes, methods, and models, (d) employee and supplier information; (e) specifications; and (f) the terms and conditions of this Agreement. Each party shall take necessary steps to ensure compliance with this provision by its employees and agents - GOVERNING LAW. This Agreement and all matters arising hereunder shall be governed by and construed in accordance with the laws of the State of Indiana without giving effect to any choice or conflict of law provision. The parties agree that the courts of the State of Indiana shall have exclusive jurisdiction to settle any dispute or claim arising in connection with this Agreement. Version 6/2 - age 4 of 5 PAGE 43 INSURANCE. During the period in which any services are to be performed, Cummins shall maintain in full force and effect the following insurance coverages set forth below, at its sole cost and expenses • Commercial General Liability. Commercial General Liability Insurance of not less than $2,000,000 per occurrence and $2,000,000 annual aggregate limit. • Automobile Liability. Business Auto Coverage with limits of $1,000,000 each accident for bodily injury and property damage combined single limit per occurrence, extending to all owned, hired, and non -owned vehicles. • Worker's Compensation. Workers' compensation, occupational diseases, and disability benefits required by statute. • Employer`s Liability. Employer's Liability with limits of at least $1,000,000 per accident per employee; $1,000,000 per disease per employee; and $1.000,000 per disease policy limit. • Umbrella Liability. Such insurance shall follow form on concurrent terms with and provide coverage with limits of not less than $1,000,000 per occurrence and $2,000,000 in the aggregate. Upon Customer's request, Cummins will provide to Customer a Certificate of Insurance evidencing Cummins' relevant insurance coverage. ASSIGNMENT. This Agreement shall be binding on the parties and their successors and assigns. Customer shall not assign this Agreement without the prior written consent of Cummins. Intellectual Property. Anyintellectuai property rights created by Cummins in the courseof the performanceof this Agreement orotherwise shall remain Cummins' property. Nothing in this Agreement shall be deemed to have given Customera licence or anyother rights to useany of the intellectual property rights of Cummins. Customer's rights in and to the Cummins' intellectual property are limited to those rights as expressly set forth in this Agreement. All rights not expressly granted to Customer under this Agreement are expressly reserved by Cummins. MISCELLANEOUS. Cummins shall be an independent contractor under this Agreement. All notices under this Agreement shall be in writing and be delivered personally, mailed via first class certified or registered mail, or sent by a nationally recognized express courier service to the addresses set forth in this Agreement. No amendment of this Agreement shall be valid unless it is writing and signed by the parties hereto. Failure of either party to require performance by the other party of any provision hereof shall in no way affect the right to require such performance at anytime thereafter, nor shall the waiver by a party of a breach of any of the provisions hereof constitute a waiver of any succeeding breach. Any provision of this Agreement that is invalid or unenforceable shall not affect the validity or enforceability of the remaining terms hereof. These terms are exclusive and constitute entire agreement. Customer acknowledges that the provisions were freely negotiated and bargained for and Customer has agreed to purchase of the Equipment pursuant to these terms and conditions. Acceptance of this Agreement is expressly conditioned on Customer's assent to all such terms and conditions. Neither party has relied on any statement, representation, agreement, understanding, or promise made by the other except as expressly set out in this Agreement. In the event of a conflict in the terms of this Agreement with any Customer terms or conditions or agreement (whether referenced in an order submitted by Customer as the terms that govern the purchase of the Equipment or otherwise) or any terms set forth in any other documentation of Customer with respect to the Equipment, the terms of this Agreement shall govern. MISCELLANEOUS CHARGES. Cummins may incur additional charges which will be passed on to the Customer, as applicable. COMPLIANCE. Customer acknowledges that the Equipment, and any related technology that are sold or otherwise provided hereunder may be subject to export and other trade controls restricting the sale, export, re-export and/or transfer, directly or indirectly, of such Equipment or technology to certain countries or parties, including, but not limited to, licensing requirements under applicable laws and regulations of the United States, the United Kingdom and other jurisdictions. It is the intention of Cummins to comply with these laws, rules, and regulations. Any other provision of this Agreement to the contrary notwithstanding, Customer shall comply with all such applicable all laws relating to the cross -border movement of goods or technology, and all related orders in effect from time to time, and equivalent measures. Customer shall act as the importer of record with respect to the Equipment and shall not resell, export, re-export, distribute, transfer, or dispose of the Equipment or related technology, directly or indirectly, without first obtaining all necessary written permits, consents, and authorizations and completing such formalities as may be required under such laws, rules, and regulations. In addition, Cummins has in place policies not to distribute its products for use in certain countries based on applicable laws and regulations including but not limited to UN, U.S., UK, and European Union regulations. Customer undertakes to perform its obligations under this Agreement with due regard to these policies. Strict compliance with this provision and all laws of the territory pertaining to the importation, distribution, sales, promotion and marketing of the Equipment is a material consideration for Cummins entering into this Agreement with Customer and continuing this Agreement for its term. Customer represents and warrants that it has not and shall not, directly or through any intermediary, pay, give, promise to give or offer to give anything of value to a government official or representative, a political party official, a candidate for political office, an officer or employee of a public international organization or any other person, individual or entity at the suggestion, request or direction or for the benefit of any of the above -described persons and entities for the purposes of inducing such person to use his influence to assist Cummins in obtaining or retaining business or to benefit Cummins or any other person in any way, and will not otherwise breach any applicable laws relating to anti -bribery. Any failure by Customer to comply with these provisions will constitute a default giving Cummins the right to immediate termination of this Agreement and/or the right to elect not to recognize the warranties associated with the Equipment. Customer shall accept full responsibility for any and all civil or criminal liabilities and costs arising from any breaches of those laws and regulations and will defend, indemnify, and hold Cummins harmless from and against any and all fines, penalties, claim, damages, liabilities, judgments, costs, fees, and expenses incurred by Cummins or its affiliates as a result of Customer's breach. Upon Acceptance of this Proposal, Customer accepts the proposed products as well as the attached Cummins Inc terms and conditions. Please sign and return this quotation to proceed. Company: Printed Name: Signature: Title: Date: Purchase Order: Ship to Address: Contact for Delivery: Phone Number: Special Delivery Instructions: Thank you for considering Cummins Sales and Service for this power generation project. Version l01 - Page 5 of 5 PAGE 44 Date: April 17, 2020 To: SEH Attn: Chris Larson Proposal by ZIEGLER Power systems 8050 County Road 101 East Shakopee, MN 55379 952.887.4516 Proposal No. EPG040920JCT Re: Caterpillar 50OKW NG Generator Package Sourcewell Budget Pricing H E PROPOSE TO FURNISH INACCORDrtr1 CE 1$1771 7711i FOLLOWING SPECIFIC 1 TIONS, TERMM l A7) C'0ADMO:1 S QUANTITY: One (1) New CATERPILLAR Gas Generator Set, Outdoor Cold Weather 75 dBA sound Level �}a 23 feet MODEL: G3412 TA, Tier 2, US EPA Certified for Standby Only RATING: 500 kW Standby Power Rating VOLTAGE: 480 volt, 3 phase, 4 wire, 60 HZ, 1800 RPM FUEL: Natural Gas CIRCUIT BREAKER: One (1) 800A, LSI, 100% rated, aux contacts, shunt trip TOTAL PRICE: $ 287 585.24* * Prices do not include State or Local Sales and/or use tax. Please refer to the attached Bill of Material. ** Price Shown above reflects additional Sourcewell Discounting. Official Sourcewell Quote will be provided once the end user's Name, and Source Well account number is listed on the quote APPROXIMATESHIPPING DATE 16-18 weeks F.aB. Job site on truck TERMS: NET 20 95% at delivery, 5% after start-up THIS PROPOSAL, SUBJECT TO ALL PROVISIONS OF THE CONTRACT AND WARRANTY ON REVERSE SIDE ACCEPTED: X Respectfully submitted, ZIEGLER INC. By Jeff TetBen Jeff Teigen, Sales Engineer Subjcct to approval by ZIEGLER INC. APPROVED: Its BILL OF MATERIAL EPG020920JCT -I- PACKAGED GENERATOR SET— 500 KW Engine - Prime mover Caterpillar heavy-duty natural gas Model G3412 Turbocharged-aftercooled V-12 cylinder configuration EPA SI New Source Performance Standards AIR INLET SYSTEM Air cleaner, regular duty, with service indicators Aftercooler core, copper nickel construction Turbochargers CONTROL SYSTEM Governor, Caterpillar ADEM A4, electronic Caterpillar Supplied air fuel ratio control COOLING SYSTEM Radiator, engine mounted, rated for lag° ambient capability at standby power rating Antifreeze, -40' F Low coolant level contactor Fan, blower type, fan guards, fan drive Thermostats and housing Jacket water pump, gear driven, centrifugal Jacket water heater One ( 1) 9 kW heater, circulating pump, 240 volt, single phase Isolation valves, High-pressure hose EXHAUST SYSTEM Exhaust manifold, dry, round flanged outlet, insulated Exhaust silencer, critical grade, 10", mounted within enclosure Exhaust flex connector, Bellows type, 18" OAL, stainless steel construction Rain cap FLYWHEEL AND FLYWHEEL HOUSINGS Flywheel, SAE, No. 0 Flywheel housing, SAE No. 0 SAE standard rotation FUEL SYSTEM Gas regulator Low pressure gas Impeo carburetor Flex gas connector, AGA approved PAGE 4b BILL OF MATERIAL EPG0209203CT -2- GENERATORS AND GENERATOR ATTACHMENTS Brushless Caterpillar SR4B generator, PMG Excited 592 Frame, Class H insulation, Caterpillar digital voltage regulator (CDVR) Main line circuit breakers: One (1) 800A, Aux. contacts, 100% rated, LSI trip unit INSTRUMENTATION (EMCP 4.2, DIGITAL CONTROL PANEL) Control panel, mounted on generator enclosure facing RH: Panel tights Auxiliary relay Digital (LCD) indication AC voltage (L.-L & L-N) AC amps kW (total & per phase) kV A (total) kV AR (total) kWhr (total) kV ARhr (total) PF (average total & per phase) %n of rated (total) Frequency DC voltage Coolant temperature Oil pressure RPM Hours run System diagnostic Standard generator controls and monitoring Auto start/stop Emergency stop Lamp test Cycle crank Voltage control Cooldown timer Phase selector switch Load demand relay Spare relay -programmable Enclosure NEMA 1, IP22 Vandal door Dust proof PAGE 47 BILL OF MATERIAL EPG0209203CT -3- INSTRUMENTATION (EMCP 4.2, DIGITAL CONTROL PANEL) - continued Indicating Lights Low oil pressure High coolant temperature Overspeed Overcrank Emergency stop Fault shutdown Fault alarms Three (3) spare lights/ four (4) spare inputs Customer programmable (shutdown or alarm) to spare alarm of fault LEDs Protective Relaying Programmable relays: Over/Under voltage Reverse power relay Over/Under frequency Overcurrent Protective Devices Low coolant level Oil temperature Miscellaneous Controls Electronic governor, PWM Isochronous speed control Local pre -alarm module, NFPA 99/110 Sixteen (lb) light NFPA 99/1 IO remote annunciator LURE SYSTEM Crankcase breather Oil cooler Oil filler and dipstick Oil filter, RH Oil pump, gear driven Oil pan Oil pan drain valve Lubricating oil, CAT CXP, NGEO MOUNTING SYSTEM Rail base, engine -generator -radiator length Vibration isolators, spring type PROTECTION SYSTEM Safety shutoff protection, energized to shut off (see control panel) PAGE 48 BILL OF MATERIAL EPG020920JCT _4- STARTING SYSTEM 45 amp charging alternator Starter motor, 24 VDC, dual, heavy duty Battery, lead acid, low maintenance CAT industrial batteries, (2) 4D series Battery rack, corrosion resistant Battery cables Battery disconnect switch Battery charger, float/equalize type, 10 ampere DC ammeter, voltmeter Charger failure alarm (CFA) wired to control panel WEATHERPROOF ENCLOSURE, SOUND ATTENUATED Designed for 78 dB(A) @ 23' Powder paint exterior finish - customer to specify color (12 Standard colors) Caulked seams Roxul 41b Acoustic/Thermal Insulation Galvanized perforated interior liner Fabricated doors, Standard doors 36"W x 72"H Standard Door hardware with pad lock/key lock and hinges (4) Enclosure Doors (Two Per Side of Enclosure) Stainless Steel spring loaded door hold back on every door Drip edge above all door openings Drip edge around exhaust opening (rain shield) Front discharge air plenum, rear air intake plenum 24V DC Motorized Air Intake and discharge Louvers Document holder mounted inside enclosure Critical grade (Internal mounted) silencer, exhaust system, rain cap 100 amp 120/240 volt 1 phase distribution panel (4) Incandescent vapor tight lights WI 100 watt bulbs and guards (2) GFI outlets, 2-3 way light switches Extend oil & coolant drains to exterior. Valves included on enclosure External E-Stop Station (Break Glass Style) Stub up for generator conductors, control wiring and fuel inlet/outlet I: hTeia[S7 BILL OF MATERIAL EPG020920JCT -5- PROJECT MANAGEMENT SERVICES Submittal drawings Dimensional drawings Technical data Electrical schematics Wiring diagrams (JIC) Component list Product specifications Note: CADD drawings available upon request Technical assistance Operation and Maintenance manuals Prototype testing Factory testing with certified test reports Coordinate installation Field start up, Field-testing, load bank Owner operator training Two (2) year generator set warranty included in base price. 24-hour parts and emergency service NOTES: Ziegler limits the scope of supply for this quotation to the equipment and services listed. It is assumed that equipment not listed is to be provided by others. Ziegler cannot provide air emission permits for customers. We will provide emission information on the Caterpillar engine to the owner to aid in the permitting process. Girders are subject to re -stocking charges if cancelled after release for production. Mechanical and electrical installation provided by others. State and local permits for fire, air, fuel tanks or building permits are not included. Rigging not included. PAGE 50 New Business ISM*0� J icuqT Powms WATER BoARD k4� • WW VC-iZ - 5 r, tiV III Yr. Joint Powers Water Board 11100 501" st NW Albertville MN 55301 MEMO TO: Joint Powers Water Board FROM: Larry Cook DATE : April 17, 2020 SUBJECT: JPWB 2019 Audit Tel.: 763-497-3611 Fax: 763-497-4908 www.jo In t powe rswaterboard. org Justin Nilson of Abdo, Eick & Meyers will discuss JPWB's 2019 Audit. Thank you. PAGE 52 TUIC TFJA\tC4AICClelnl Pn—APKIC I-nhICInCMT1Ai IKITC►InCn C"O I ICU nNII V WV TUC AMMIC •iAkoCn CCI^IRIFkIT OCAnlAlf_ Client Joint Powers Water Board ofAlbar vYlo, Hanover and St. AfichaW Engagement: JOINT POWERS WATER BOARD OFALBERTVRLE HANOVER AND ST. iWICHAEL Period Ending: 121JI12019 Workpaper, Account Description WIP Ref Debit Credit Adjusting Journal Entries JE P 1001 2500 Au it - E ntry to recon ul e f u no ba lance 101.25300 Unreserved Fund Balance 27.25D.00 101.21050 Equipment 12.tOD.00 101.21410 Tom #2 4,625.00 101.21780 Cty Rd 19 Watermain-Ph.I 10,A413,00 101-4DOOD-A0010 Interest Earned-Checkiag Zoo Total 27.250.00 27.250.09 Adjusting Journal Entries JE 9 1002 2053 Accounting - Entry to reverse PY APOTOG 101.20800 Due to Other Governments 59,609.00 101.29000 Accounts Payable 92.704.00 101.40DOOAOOQO Water Sales 59,W9.00 10 1-4 DOOD-702 License/Fees 10.868.00 1OIA0000-712 Contract Maintenance 22.811.00 101-40000-770 System Maintenance 46,125.00 101.40000-771 Wen Maintenance 12.980.00 Total 152.393,00 t52,393.00 Adjusting Journal Entries JE 01003 2500 Accounting - Entry to aliminate old equity balances 101-33001 Federal Grant Contribution 626,467,00 101-33011 Water Tower Reserves 914.800.00 101-33040 Retained EarNng5 Account 1.541.267.00 Total 1.641.267.00 1,541,267.00 Adjusting Journal Entries JE # 1004 1250 Accounting - Entry to rezancde undistributed receipts 101.10300 Undistributed Receipts 1.076.00 101-400DO-40000 Water $ales 1.076.00 Total 1,078.00 1,076.00 Adjusting Journal Entries JE 0 1005 2252 Accounting - Entry to adjust the debt activity. 101.21601 Amortization of Bond 8.505.00 101.308DO Interest Payable 9,917,00 101.31310 Current Bonds 1.190.0130.00 101-40ODC�-775 Interest Expense 11,900,00 101-40000-710 99 Water Rev Bond 11,900.00 101-40000-710 99 Water Rev Bond 1,190.000,00 101.40000475 Interest Expense 9,917.00 101-40DDO-797 Amortization o1 Premium 8.505.00 Tom 1,220,322.00 1,220,322.00 Adjusting Journal Entries JE a 1005 1253 Accounting - Entry to record add.bonal lease receivables and due from other govemments (REVERSE) 101-105W Accounts Receivable 32,653.DO 101.13200 Due From Other Governments 6D,065.00 101-40000ADODO Water Sales 32,051.00 101.40000-40046 St Michael Connection Fee 28,014.OD 101-40000-41000 Antenna Lease Sates 32.653.00 Total 92.718.0o 92,71&0o Adjusting Journal Entries JE 0 1007 1253 Accounting - Entry to reclassify NSF chedus to miscellaneous expense 101-40000-795 Misc Expense 589.00 101-10500 Accounts Receivable 589.00 Total 529.110 589.00 Adjusting Journal Entries JE # 1005 1253 Accounting - Entry to reclassify delinquent utility calfections to delinquent water revenue. 101-205M Delinquent Accts-Certified 368.00 101-4000040002 Del ingt)ent Water 368.00 Total 368.00 368.00 Adjus tang Journal Entriea JE # 1009 2053-1053 Accounling - Entry to reclassify AP items from Cash (REVERSE) 101.10000 Checking -Comm Dev 83,194.00 PAGE 53 101.10DW Cileckinq-Comm Dev 101-29000 Accounts Payable 101.40000-712 Contract Maintenance Total Adjusting Journal Entries JE 91010 Accounting - Entry to adjust DFOG 101.2D400 Accounts Receivable 101.30100 Safe Water 101.30400 Hanover Sewer 1D1.4DD0040000 Water Sales 101.30440 SIM Distribution Total Adjusting Journal Entries JE 01011 Accounting - Entry to adjust accrued interest to statement balances 101.4000040015 Interest Eamed-Investments 101.20420 Accrued Interest Receivable Total Adjusting Journal Entries JE 01012 Aocountng - Entry to record Accouts Payable (REVERSE) 101-40000-749 Web Pay Fees 101-40000-770 System Maintenance 10140000.765 IDNR Water Usage 101-29000 Accounts Payable Total Adjusting Journal Entries JE 01013 Accounting - Entry to adjust CSAH expense out of asset account and into the expense account 101.40000-755 Construction Engineerinq Fees 101-21760 Csah 16Imnrovement 101-21780 Cty Rd 19 WatermairrPh I Total Adjusting Journal Entries JE 0 1014 Accounting - Entry to adjust for CY do,predation. 101.40000.798 Depredation 101-21550 Accumulated Depredation Total Adjusting Journal Entries JE 01015 Accounting - Entry to adjust for candied assessments 101-4000440002 Delinquent Water 101.205n0 Delinquent Accis-CertEeied Total Adjusting Journal Entries JE 01016 Accounting - Entry to record due to Veolla for contract {REVERSE} 101-41000-712 Contract Matman once 101-29000 Accounts Payable Total Adjusting Journal Entries JE 01017 Accounting - Ertry to record antenna lease revenue for amounts related to engineering 101-30720 Plan Review Deposits 101-30720 Plan Review Deposits 101 400DO 41000 Antenna Lease Sales 101-40000410N Antenna Lease Sates Total 1253 1054 2053 16041 1605 1252 2050 272 89.5a9.00 09.589.00 83.194.0G 172,783.00 112, 783.00 13,42D.00 633.00 1.844,00 24,067,00 39.964.00 39,964.00 39.964,00 20A07,00 28.607.00 29,6W.QQ 28,607.60 4,068.00 24.256. D0 10,546.D0 38.990.00 38,990.90 38,990.00 58.D59.00 57,209.90 851.00 58,059.00 58,059.00 711.040.GQ 711.040.00 711.040.00 711,040,04 34.00 34.00 34.00 34.00 9,025.00 9.025.00 9,025.00 9,025.00 365.00 24.a50.00 365.00 24.850.00 25.215,00 25.215.00 PAGE 54 Client: Joint Powers Water Board of Albertville, Hanover and St. Michael Engagement: JOINT POWERS WATER BOARD OF ALBERTVILLE HANOVER AND ST. MICHAEL Period Ending: 12/31/2019 Workpaper: Account Description 1st PP -FINAL UNADJ 12131 /2018 12131 /2019 Group : [100] Joint Powers Water Board Subgroup : [1010D] Cash 101-10000 Checking -Comm Dev 1,122,926.00 1,145,743.00 101-10161 2004 Revolving Project Fund 1,891,322.00 1,254,690.00 101-10162 Revolving Fund Contra 14,913.00 19,215.00 101-10181 RBC Investments 7,928,995.00 8,436,274.00 101-10182 RBC Contra (188,578.00) 129,211.00 101-10191 WelisFargo Investments 1,055,055,00 1,325,545.00 101-10192 Wells Fargo Contra 12,353,00 19,250.00 101-10200 Petty Cash 275.00 275,00 101-10300 Undistributed Receipts 0.00 (1,078.00) Subtotal [10100] Cash 11,837,261.00 12,329,125.00 Subgroup : [10600] Interest Receivable 101-20420 Accrued Interest Receivable 47,564.00 47,564.00 Subtotal [1060D] Interest Receivable 47,564.00 47.564.00 Subgroup: [11500] Accounts Receivable 101-10500 Accounts Receivable 2,193.00 589.00 101-20400 Accounts Receivable 333,445.00 340.089.00 Subtotal (11500] Accounts Receivable 335,638.00 340,678.00 Subgroup : 112200] Assessments Receivable 101-20510 EDA Line Assessments 223.162.00 215,187.00 Subtotal (12200] Assessments Receivable 223.162.00 215,187.00 Subgroup : [12201] Assessments Receivable - Current 101-20500 Delinquent Accts-Certified 138.00 (230.00) Subtotal [12201] Assessments Receivable - Current 138.00 (230.00 Subgroup : [13200] Due From Other Governments 101-13200 Due From Other Governments 56,408,00 0,00 Subtotal [13200] Due From Other Governments 56.408.00 0.00 Subgroup : [16100) Land 101-21000 Land 702,919.00 702,919,00 Subtotal [16100] Land 702,919.00 702,919.0D Subgroup : [1620D] Buildings 101-21200 Office Building 14,809.00 14.809.00 101-21250 "treatment Plant 4,184,713.00 4,184,713.00 Subtotal [16200] Buildings 4.199.522.00 4,199,522.00 Subgroup : [164D0] Machinery and Equipment 101-21050 Equipment 46.620,00 58,800.00 101-21100 Office Equipment 35,094.00 35,094.00 Subtotal [16400] Machinery and Equipment 81,714.00 93,894.00 Subgroup: [16300] Infastructure 101-21300 Water System 3.261,064,00 3,261,064.00 PAGESS Client: Engagement: Period Ending: Workpaper: Account Joint Powers Water Board of Albertville, Hanover and St. Michael JOINT POWERS WATER BOARD OFALBERTVILLE HANOVER AND ST. MICHAEL 12/31/2019 101-21400 Water Tower 101-21410 Tower#2 101-21450 Well #3 101-21460 Well #4 101-21470 Well #5 101-21480 Well #6 101-21660 TP Expansion-2004 101-21670 Well #7 101-21680 Valve Station #7 101-21690 Tower#3 Site Improvements 101-21730 Well RehablMisc 101-21740 Wellhouse #9 101-21741 Well 99 101-21750 Well #10 101-21760 Csah 18 Improvement 101-21780 Cty Rd 19 Watermain-Ph P 101-21790 Cty Rd 19-Ph II Subtotal [16300] Infastructure Subgroup: [16900] Accumulated Depreciation 101-21550 Accumulated Depreciation Subtotal [16900] Accumulated Depreciation Subgroup : [15600] Deferred financing costs 101-21601 Amortization of Bond 101-31311 2012 Bond Premium Subtotal [156001 Deferred financing costs Subgroup : [20200] Accounts Payable 101-29000 Accounts Payable Description Subtotal [20200] Accounts Payable Subgroup : [20800] Due To Other Governments 101-20800 Due to Other Governments 101-30050 MIN Sales Tax 101-30100 Safe Water 101-30101 Safe Water -Penalty 101-30400 Hanover Sewer 101-30401 Hanover Sewer Only 101-30402 Hanover Sewer (billed) 101-30410 Han Sewer Penalty 101-30411 Han Sewer Only -Penalty 101-30420 Hanover Distribution 101-30421 Hanover Distribution -Penalty 101-30430 Hanover Distribution Combo lGl-30431 Hanover Distrib Combo -Penalty 101-30432 Hanover Storm Water 101-30433 Hanover Storm Water -penalty 101-30440 SIM Distribution list PP -FINAL UNADJ 12/31/2018 12/3112019 1,545, 919.00 1,545,919.00 1,770,967�00 1,775,592,00 256.565.00 256,565.00 226.796.00 226,796,00 576,777.00 576,777,00 663.155.00 663,155,00 4,111,915.00 4.111.915.00 232,354.00 232.354.00 332,888.00 332.888,00 49,366.00 49,366.00 70,527.00 70,527.00 2,007,510.00 2,007,510.00 973,262.00 973,262,00 11,891.00 11,891.00 904.717.00 961,925.00 443.126.00 454,420.00 820,410,00 820,410.00 18, 259,209.00 18, 332, 336.00 (10.292,691,00) (10,292,691.00) 120,504.00 (129.009.00) (8,505.00) (92,784,00) 120,504,00 (129,009.00) (8,505.00) (92,784.00) (92,784.00) 92,784.00 {59,609,00) (59,609.00) 166.00 297.00 (62.00) (770,00) (1.208.00) (1,447.00) (42,440.00) (46,782.00) (1,289.00) (1,300.00) (12,880.00) (12,880.00) 10.076,00 12,045.00 123.00 161.00 (16,946.00) (17,436.00) 1,714.00 2,013.00 228,00 224.Oo 3.00 3.00 (10,310,00) (12,346.00) 2.461.00 2.846.00 (137.833.00) (140,855.00) PAGE 5b Client: Engagement: Period Ending: Workpaper: Account Joint Powers Water Board of Albertville, Hanover and St. Michael JOINT POWERS WATER BOARD OF ALBERTVILLE HANOVER AND ST. MICHAEL 1213112019 Description 101-30441 StM Dist Combos 101-30442 SIM Dist Combo 101-30443 SIM Dist Residence Repair 101-30444 StM Dist -Penalty 101-30445 SIM Dist Com-Penalty 101-30446 SIM Dist Com1-Penalty 101-30447 SIM Recycle Carts 101-30448 StM Recycle Carts -penalty 101-30450 SIM Lakes Area Collection 101-30451 StM Lakes Area -Penalty 101-30460 SIM Sewer 101-30461 StM Sewer Combo 101-30462 StM Sewer Only 101-30463 StM Gr Sewer Only 101-30464 StM Sewer Residence Repair 101-30465 StM Sewer Combo -Penalty 101-30466 StM Sewer -Penalty 101-30467 SIM Sewer Only -Penalty 101-30468 StM Gr Sewer Only -Penalty 101-30470 Wright Cty Sewer 101-30472 Wright Cty Sewer -Penalty 101-30480 StM Grinder Pump 101-30481 StM Gr Pump -Penalty 101-30490 Wright Cty Gr Pump 101-30491 Wr Cty Gr Pump -Penalty 101-30511 SIM Sump Pump -Penalty 101-30540 StM Storm Water 101-30541 StM Storm Water -Penalty 101-30550 SIM Distribution (Billed) 101-30560 StM Kilian Grinder Pump Subtotal [208001 Due To Other Governments Subgroup : [21500] Accrued Interest Payable 101-30800 Interest Payable Subtotal [21500] Accrued Interest Payable Subgroup : [22000] Deposits 1 D1-30720 Plan Review Deposits Subtotal (22000] Deposits Subgroup : [22501] Current portion of LT Debt 101-31310 Current Bonds Subtotal [22501] Current portion of LT Debt Subgroup : [24000] Loss on refunding 101-21603 Bond Issuance Cast 101-21605 Amort of Lass/Band Refunding Subtotal [24000] Loss on refunding Subgroup: [25300] Net Position 101-25300 Unreserved Fund Balance 101-33001 Federal Grant Contribution 101-33011 Water Tower Reserves 101-33040 Retained Eamings Account 1st PP -FINAL 12/3112018 (1,244.00) (10,904.00) (1,332.00) 8,822,00 405.00 0.00 (62,006.00) 9,133,00 7,250.00 409,00 (125,418,00) (13,961.00) (13,219.00) (1,654,00) 469.00 33,00 61,047,00 1,024.00 805.00 (4,566,00) 1,502.00 (4,217.00) 630.00 (6,821,00) 937.00 2.00 (44298.00) 6,988.00 (56,418.00) (1,478.00) (515,886.00) (9,917.00) (15,365.00) UNADJ 1213112019 (1,247.00) (12,651.00) (4,794.00) 10,496.00 434.00 1.00 (64,341.00) 10,498.00 7,075.00 451.00 (137,937.00) (19,484,00) (13,535.00) (2,109.00) 469.00 49.00 73,404.00 1,235.00 932.00 (4,851,00) 1,720.00 (4,549.00) 650.00 (6,954.00) 976.00 2.00 (45,950.00) 8.320.00 (56.418.00) (1,530r00) (535,474.00) (9,917,00) (40,215.00) (1,190,000.00) (1,190,000.00) 223.907,00 223.907.00 0.00 (9,615,435.00) 0.00 0.00 (12,970,987.00) 223,907.00 (223,907.00) (10.674.650:00) (626.467.00) (914,800.00) (11.429,720.00) PAGE 57 Client: Joint Powers Water Board ofAlberrvilie, Hanover and St. Michael Engagement: JOINT POWERS WATER BOARS OF ALBERTVILLE HANOVER AND ST. MICHAEL Period Ending: 12/31/2019 Workpaper: Account Description 1st PP -FINAL UNADJ 12/3112018 12/3112019 Subtotal [25300] Net Position (22,586,422.00) (23.645,637.00) Subgroup : [37100] Water Sales 101-4000040000 Water Sales (2,359,660.00) [1,963,598J)0) 101-40000-40002 Delinquent Water (160.00) 0.00 101-40000-40005 JP Distribution (13,431.00) (11,899.00) 101AD000-40011 Water Sales -Penalty (13.662.00) (U62.00) 101-40000-40055 JP Distribution -Penalty 2.00 1.00 Subtotal [37100] Water Sales (2,386,911.00) (1,984,658.00) Subgroup : [37150] Water Access Charges 101-40000-40042 Albertville Connection Fee (115,693,00) (33,830.00) 101-40000-40044 Hanover Connection Fee (28.494.00) (32,016.00) 101.40000-40046 St Michael Connection Fee (338.530.00) (253,827.00) Subtotal [3715D] Water Access Charges (482,717.00) (319,673.00) Subgroup: [36220] Rents and Royalties 101-40000-41000 Antenna Lease Sales (119,001.00) (93,659.00) Subtotal [36220] Rents and Royalties (119.001.00) (93,659.00) Subgroup : [362101 Interest Earnings 101-40000-40010 Interest Earned -Checking (2,016.00) (1,409.00) 10140000-40015 Interest Earned -Investments 7.686.00 (559,175.00) Subtotal [36210] Interest Earnings 51669.00 (560,584.00) Subgroup: (36200] Miscellaneous Income 101-40000-40001 Hydrant Meter Rentals (1.170.00) (1,464.00) 101-40000-40040 Misc Income (500.00) (137.00) 101-41430-40049 SM Inspection Fee (100.00) 0.00 101-41430-40050 SM Dis/Re-Connection tee (200.00) 0.00 Subtotal (36200] Miscellaneous Income 1,970.00 .11.601.00) Subgroup : [140] LOSS 101-40000-799 Amortization of Loss 31,985.00 0.00 Subtotal [14D] LOSS 31,985.00 0.00 Subgroup : [200] Sank Charges 10140000-704 Bank Charges 326,00 272.00 10140000-749 Web Pay Fees 20,347.00 24,286.00 Subtotal 1200] Bank Charges 20,673.00 24,558.00 Subgroup : (300] Contract Maintenance 101-40000-712 Contract Maintenance 926.313.00 949,169.00 101-41000-712 Contract Maintenance (37227.00) 0.00 Subtotal [300] Contract Maintenance 889.086.00 949,169.00 PAGE 58 Client: Joint Powers Water Board of Albertville, Hanover and St. Michael Engagement: JOINT POWERS WATER BOARD OF ALBERMLLE HANOVER AND ST. MICHAEL Period Ending: 1213112019 Workpaper: Account Description 1st PP -FINAL UNADJ 12/3112018 12/3112019 Subgroup : [400] Depreciation and Amortization 101-40000-798 Depreciation 696.183.00 4.44 Subtotal [400] Depreciation and Amortization 696.183.00 0.00 Subgroup: [500] DNR - usage 10140000-785 DNR Water Usage 10.868.00 0.00 Subtotal 1500] DNR - usage 10,868.00 0.00 Subgroup: [600] Engineer fees 10140000-755 Construction Engineering Fees 2,371.00 111,529.00 10140000-756 General Engineering Fees 40,828.00 14,110.00 10140000-757 Wellhead Protection Engineer 1,636.00 1,127.00 Subtotal 1600] Engineer fees 44,835.00 126,766.00 Subgroup : [700) Insurance 101-40000-730 Insurance 15.768,00 16,654,00 Subtotal (7001 Insurance 15,768.00 16.654.00 Subgroup :[800] Legal fees 101-40000-758 Legal Fees 2,254.00 994.00 Subtotal [800] Legal Fees 2,254.00 994.00 Subgroup : [10001 Miscellaneous Expense 10140000-702 LicenselFees 163.00 11,708.00 10140000-714 Paying Agent Fees 1.250.00 0.00 101-40000-734 Meeting Allowance 300.00 0.00 10140000-759 ASR-Mist 2.037.00 888.00 101.40000-795 Misc Expense 0.00 1,250.00 101.41000-749 Web Pay Fees (300.00) 0.00 10141000-795 Misc Expense 626.00 0.00 Subtotal [1000] Miscellaneous Expense 4,076.00 13,846.00 Subgroup: [1100] Professional fees 101-40000-752 Audit Fees 13,260.00 13,675.00 Subtotal [1100] Professional fees 13,260.00 13.675.00 Subgroup : [1300] Interest Expense 101-4000G-710 99 Water Rev Band 0.00 1,201,900.00 1014000G-713 99 Refunding Bond 25,479.00 0.00 10140000-775 Interest Expense 0.00 0.00 101-40000-797 Amortization of Premium (18.430.00) 0.00 Subtotal [1300] Interest Expense 7.049.00 1,201,900.00 Subgroup : [1500] Repair and Maintenance 10140000-770 System Maintenance 119,906.00 65.363.00 10140000-771 Well Maintenance 90,61200 92.142.40 101-40000-772 System Repairs 6.410.00 0.00 10141000-715 AEM-Repair and Maintenance 0.00 0.00 PAGE 59 Ciient: Engagement: Penod Ending: Workpaper: Account Joint Powers Water Board of Albertville, Hanover and St, Michael JOINT POWERS WATER BOAR❑ OF A L815P TVIL LE HANOVER AND ST. MICHAEL 12/31/2019 101-41000-770 System Maintenance Subtotal [1500] Repair and Maintenance Total [100] Jaint Powers Water Board Description 1st PP -FINAL 12/3112018 0.00 216,928.00 0.00 UNADJ 1213112019 9,336.00 166,841.00 0.00 PAGE 60 JE Ref # AJE ADJ JE Ref # RJE WPRef n FINAL, 12/3112019 1213112019 172.783,00 1,318,526.00 0,00 1053 1.318,526,00 AJE - 1009 89,589.00 AJE - 1009 83,194.00 0.00 1.254,690.00 0.00 1053 1,254,690.00 0.00 19,215,00 0.00 1052 19,215.00 0.00 8.436,274.00 0.00 1052 8,436,274.00 0,00 129, 211.00 0,00 1052 129,211,00 0.00 1,325, 545.00 0.00 1052 1,325,545.00 0.00 19.250.00 0.00 1052 19,250.00 0.00 275.00 0.00 1052 275.00 1,078.00 0.00 0.00 0.00 AJE - 1004 1.078,00 173.861.00 12,502,986.00 0.00 12.502,986.00 (28.607.00) 18,957,00 0.00 1054 18,957.00 AJE - 1011 (28,607.00) (28,607.00) 18.957.00 0.00 18,957.00 32.054.00 32,653.00 0.00 1253 32,653.00 AJE - 1006 32,653.00 AJE - 1007 (589.00) 13.420.00 353,509,00 0.00 1253 353.509.00 AJE - 1010 13,420.00 45.484.00 386,162.00 0.00 386,162.00 0.00 215,187.00 0.00 1201 215,187.00 0.00 215.187.00 0.00 215,187.00 334.00 104.00 0.00 1253 104.00 AJE - 1008 368.00 AJE - 1015 (34.00) 334.00 104.00 0.00 104.00 60,065.00 60,065,00 0.00 1253 60.065.00 AJE - 1006 60,065.00 60,065.00 60,065.00 0.00 60,065.00 0.00 702,919.00 0.00 1605 702,919.00 0.00 702,919.00 0.00 702,919.00 0.00 14,809.00 0.00 1605 14,809.00 0.00 4,184,713,00 0.00 1605 4,184,713.00 0.00 4.199,522.00 0.00 4.199,522.00 (12.180.00) 46.620,00 0.00 1605 46,620.00 AJE - 1001 (12,180.00) 0.00 35,094.00 0.00 1605 35.094.00 (12.180,00) 81,714.00 0.00 81,714.00 0.00 3,261,064.00 0.00 1605 3,261,064.00 PAGE 61 JE Ref # AJE ADJ JE Ref # RJE 1213112019 0.00 1.545,919.00 (4.625.00) 1,770,967.00 AJE - 1001 (4,625.00) 0.00 256,565.00 0.00 226,796.00 0.00 576,777.00 0.00 663,155.00 0.00 4,111,915.00 0.00 232,354.00 0.00 332.888.00 0.00 49.366.00 0,00 70,527.00 0,00 2.007.510.00 0.00 973.262.00 0,00 11.891.00 (57.208,00) 904.717,00 AJE - 1013 (57,208.00) (11,294.00) 443,126.00 AJE- 1001 (10.443,00) AJE- 1013 (851.00) 0.00 820.410,00 J73,127.00) 18,259,209.00 (711,040.00) (11,003,731.00) AJE - 1014 711,040.00 (711,040.00) (11,003,731.00) 8,505.00 129.009,00 AJE- 1005 8,505.00 0.00 (129.009.00) 8,505.00 0.00 (44,820.00) (137.604.00) AJE - 1002 92,784.00 AJE - 1009 (89,589.00) AJE - 1012 (38,990.00) AJE - 1016 9,0( 25.00) (44,820.00) (137,604.00) 59,609.00 0.00 AJE - 1002 59.609.00 0.00 297.00 633.00 (137,00) AJE - 1010 633.00 0.00 (1,447.00) 1,844.00 (44,938.00) AJE - 1010 1,844.00 0.00 (1.300.00) 0,00 (12,880.00) 0.00 12.045,00 0.00 161.00 0.00 (17,436.00) 0.00 2,013.00 0.00 224.00 0.00 3.00 0.00 (12,346.00) 0.00 2.846.00 (39,964.00) (180,819.00) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0,00 0A0 0.00 0.00 0.00 0.00 0.00 0.00 n nn WPRef > FINAL 12/3112019 1605 1,545,919.00 1605 1.770,967.00 1605 256,565.00 1605 226,796,00 1605 576,777.00 1605 663,155.00 1605 4,111,915.00 1605 232,354.00 1605 332,888.00 1605 49.366.00 1605 70,527.00 1605 2,007,510.00 1605 973,262.00 1605 11.891,00 1505 904,717.00 1605 443,126.00 1605 820,410.00 18,259,209.00 1605 (11.003,731.001 0.00 (11,003,731.00) 0.00 2253 129,009.00 0.00 2253 (129.009.00) 0.00 0.00 0.00 2054 (137,604.00) 0.00 (137.604.001 0.00 0,00 0.00 297.00 0.00 (137.00) 0.00 (1,447.00) 0.00 (44,938.00) 0.00 (1,300.00) 0.00 (12,880.00) 0,00 12,045.00 0.00 161.00 0.00 (17.436.00) 0.00 2.013.00 0.00 224.00 0.00 3.00 0.00 (12,346.00) 0.00 2,846.00 0.00 (180.819,00) PAGE 62 JE Ref # AJE ADJ JE Ref # RJE WPRef > FINAL 12/31/2019 1213112019 AJE - 1010 (39,964,00) 0.00 (1,247.00) 0.00 (1,247.00) 0,00 (12,651.00) 0A0 (12,651.00) 0.00 (4,794.00) 0.00 (4,794.00) 0.00 10,496.00 0.00 10,496.00 0.00 434.00 0.00 434.00 0.00 1.00 0.00 1.00 0.00 (64,341.00) 0.00 (64,341.00) 0.00 10,498.00 0.00 10.498.00 0.00 7,075.00 0.00 7,075.00 0.00 451.00 0.00 451.00 0.00 (137,937.00) 0.00 (137,937.00) 0.00 (19,484.00) 0,00 (19,484.00) 0.00 (13.535,00) 0.00 (13,535.00) 0.00 (2,109.00) 0.00 (2,109.00) 0.00 469.00 0.00 469.00 0.00 49.00 0.00 49.00 0.00 73,404,00 0.00 73,404.00 0,00 1,235.00 0.00 1,235.00 0,00 932.00 0,00 932.00 0.00 (4,851.00) 0.00 (4,851.Oa) 0,00 1.720.00 0.00 1.720.00 0.00 (4,549.00) 0.00 (4,549.00) 0.00 650M 0.00 650.00 0,00 (6,954M) 0.00 (6,954.00) O.OG 976.00 O.00 976.00 0.00 2,00 0.00 2.00 0.00 (45,950,00) 0.00 (45,950,00) 0.00 8,320.00 O.00 8,320.00 0.00 (56,418,00) 0.00 (56,418-00) 0.00 (1,530.00) 0.00 (1,530.00) 22.122.00 (513,352.00) 0.00 (513,352.00) 9,917.00 0,00 0.00 0.00 AJE - 1005 9,917.00 9,917.00 0.00 0.00 0.00 25.215.00 (15,000.00) 0.00 2053 (15,000.00) AJE - 1017 24,850M AJE - 1017 365.00 25.215.00 (15,000.00) 0.aO (15,0QQ,48) 1,190,000.00 0.00 0.00 0.00 AJE - 1005 1,190,000.00 1,190,000.00 a.a0 0.00 0.00 0.00 223.907,00 0,00 2253 223.907,00 0.00 (223.907.00) O.00 2253 (223.907.00) 0.00 0.00 0.00 0.00 27.250.00 (10,647,400.00) 0.00 2502 (10.647,400.00) AJE - 1001 27,250.00 626,467.00 0.00 0.00 0.00 AJE - 1003 626,467.00 914,800,00 0.00 0.00 0.00 AJE - 1003 914,800.00 (1,541,267.00) (12,970,987.00) 0.00 2502 (12,970,987.00) PAGE 63 JE Ref # AJE ADJ JE Ref # RJE WPRef > FINAL 12/3112019 12/31/2019 AJE- 1003 (1,541,267,00) 27.250.00 (23,618,387.00) 0.00 23,618,387.00 (68,671.00) (2,032,269.00) 0.00 1253 (2,032,269.00) AJE - 1002 (59,609.00) AJE -1004 (1,078.00) AJE - 1006 (32,051.00) AJE - 1010 24,067.00 (334.00) (334,00) 0.00 (334,00) AJE - 1008 (368.00) AJE - 1015 34.00 0.00 (11.899.00) 0.00 (11,899.00) 0.00 (9,162.00) 0.00 (9,162,00) 0.00 1,00 0.00 1,00 (69,005,00) (2,053,663.00) 0.00 (2,053,663.00) 0.00 (33,830.00) 0,00 (33.830,00) 0.00 (32,016.00) 0.00 (32,016.00) (28.014,00) (281,841.00) 0.00 (281,841,00) AJE - 1006 (28.014.00) (28,014.00) (347.687.00) 0,00 (347,687.00) (57,868.00) (151.527.00) 0.00 273 (151,527.00) AJE- 1006 (32,653.00) AJE- 1017 (24.850.00) AJE - 1017 (365.00) (57,868.00) (151,527.00) 0.00 (151,527.00) (2.00) (1,411,00) 0,00 1053 (1,411.00) AJE - 1001 (2.00) 28,607.00 (530,568.00) 0.00 1054 (530,568.00) AJE - 1011 28,607.00 M605.00 (531,979.00) 0,00 (531,979.00) 0.00 (1,464,00) 0.00 (1,464.00) 0.00 (137.00) 0.00 (137.00) 0,00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (1,601.001 0.00 (1,601.00) 0.00 0,00 0,00 0.00 0.00 0.00 0.00 0.00 0.00 272.00 0.00 272.00 4.058,00 26,374.00 0.00 28,374.00 AJE- 1012 4,088A0 4,088.00 28,646.00 0.00 28,646.00 (106.005,00) 843,164.00 0.00 843.164.00 AJE - 1002 (22,811.00) AJE - 1009 (83,194.00) 9.025.00 9,025.00 0.00 9.025.00 AJE - 1016 9.025,00 (96,980.00) 852,189.00 0.00 852.189.00 FAG E 64 JE Ref # AJE ADJ JE Ref # RJE WPRef a FINAL 12/31/2019 12131/2019 71 1,040.00 711.040.00 0.00 1605 711,040,00 RJE - 1014 711.040.00 711,040.00 711,040.00 0.00 711,040.00 10,646.00 10,646.00 0.00 10,646.00 AJE - 1012 10,646.00 10.646.00 10,646.00 0.00 10,646.00 58,059.00 169,588.00 (81,960.00) 1604 87,628.00 AJE - 1013 58,059.00 RJE - 4 (81,960.00) a.00 14,110.00 0.00 14,110.00 0.00 1,127,00 O.Oo 1.127.00 58,059.00 184,825-0 (81,960.00) 102,865.00 0.00 16.654,00 0.00 16,654.00 0.00 16,654.00 0.00 16,654.00 0,00 994,00 0.00 994.00 0.00 994.00 0.00 994.00 (10,868.00) 840.00 0.00 840.00 AJE- 1002 (10,868.00) 0.00 0.00 0.00 0.00 Mo 0.00 0.00 0.00 0.00 888.00 0.00 888.00 589.00 1,839.00 0.00 1.839.00 AJE - 1007 589:00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (10,279.00) 3.567.00 0.00 3,567.00 0.00 13,675,00 0.00 13.675,00 0.00 13,675.00 0.00 13,675.00 (1,201,900.00) O.00 0.00 0,00 AJE - 1005 (11,900.00) AJE-1005 (1,190,000.00) 0.00 0.00 0.00 0.00 1,983,00 1.983.00 0.00 2253 1,983.00 AJE - 1005 (9,917,00) AJE- 1005 11,900.00 (8,505.00) (8,505.00) 0.00 2253 (8,505.00) AJE - 1005 (8.505.00) (1,208,422,00) (6,522.00) 0.00 (6,522.00) (21,869.00) 43,494.00 0.00 1604 43,494,00 AJE- 1002 (46,125.00) AJE - 1012 24.256.00 (12.980.00) 79,162.00 0.00 1604 79,162.00 AJE- 1002 (12,980.00) 0.00 0.00 0.00 0.00 0.00 0.00 81,960.00 81,960.00 PAGE 65 JE Ref# AJE ADJ 12/3112019 0.00 9,336M (34,849.00) 131,99100 -- 0.00 0.00 JE Ref # RJE WPRef > FINAL 1213112019 RJE-4 81,960.00 0,00 9,336.00 81.960.00 213.952.00 0.00 0.00 PAGE 66 Joint Powers water Board of Albertville, Hanover and 5t. Michael Albertville, Minnesota For the Years Ended December 31, 2019 and 2018 r SICK & People MEYERSLLP Mrllllu- ��__ PAG 15911,4.l.�.. ME�� i.l.l Onifled Alblic lfmulrtirw&' f'"riodlaw, Board of Commissioners Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota April 13, 2020 We have audited the financial statements of the Joint Powers Water Board of Albertville, Hanover and St. Michael (the JPWB), Albertville, Minnesota, as of and for the years ended December 31, 2019 and 2018 and have issued our report thereon dated April 13, 2020. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated October 15, 2019. Professional standards also require that we communicate to you the following information related to our audit. Our Responsibility Under Auditing Standards Generally Accepted in the United States of America As stated in our engagement letter, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, and are fairly presented in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement. As part of our audit, we considered the internal control of the JPWB. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures specifically to identify such matters. Significant Audit Findings In planning and performing our audit, we considered the JPWB's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Organization's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Organization's internal control over financial reporting. A deficiency in infernal control exists when the design or operation of a control does not allow management or employees. in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that material misstatement of the Organization's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit the attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did identify a deficiency in internal control, described on the following page as finding 2019-001 and 2019-002 which we consider a significant deficiency. 5201 Eden Avenue, Suite 250 Edina, M 952.835.9090 1 Fax 952 835 32f 1 2 PAGE 68 2019-001 Preparation of the Financial Statements Condition: As in prior years, we were requested to draft the audited financial statements and related footnote disclosures as part of our regular audit services. Auditing standards require auditors to communicate this situation to the Board as an internal control deficiency. Ultimately, it is management's responsibility to provide for the preparation of your statements and footnotes, and the responsibility of the auditor to determine the fairness of presentation of those statements. From a practical standpoint we do both for you at the same time in connection with our audit. This is not unusual for us to do with organizations of your size. However, based on recent auditing standards, it is our responsibility to inform you that this deficiency could result in a material misstatement to the financial statements that could have been prevented or detected by your management. Essentially, the auditors are not to be part of your internal control process. Criteria: Internal controls should be in place to provide reasonable assurance over financial reporting. Cause: From a practical standpoint we do both for you at the same time in connection with our audit. This is not unusual for us to do with organization of your size. Effect: The effectiveness of the internal control system relies on enforcement by management. The effect of deficiencies in internal controls can result in undetected errors in financial reporting. Recommendation: It is your responsibility to make the ultimate decision to accept this degree of risk associated with this condition because of cost or other considerations. As in prior years, we have instructed management to review a draft of the auditor prepared financials in detail for their accuracy; we have answered any questions they might have, and have encouraged research of any accounting guidance in connection with the adequacy and appropriateness of classification of disclosure in your statements. We are satisfied that the appropriate steps have been taken to provide you with the completed financial statements. While management is reviewing the financial statements we recommend a disclosure checklist is utilized to ensure all required disclosures are presented and management should agree its financial software to the numbers reported in the financial statements. Management Response: For now, JPWB's management accepts the degree of risk associated with this condition and thoroughly reviews a draft of the financial statements. 3 PAGht69i1 is •l - 2019-002 Limited Segregation of Duties Condition: During our audit we reviewed procedures over cash disbursements, cash receipts, and cash reconciliation and found the JPWB to have limited segregation of duties over those transaction cycles. Criteria: There are four general categories of duties: authorization, custody, record keeping and reconciliation. In an ideal system, different employees perform each of these four major functions. In other words, no one person has control of two or more of these responsibilities. Cause: As a result of the limited number of staff, in the disbursement cycle, the accountant has access to checks, ability to posts to the general ledger, and prepares bank reconciliations. The accountant also has the ability to set up/maintains customers, receives checks, records receipts, posts and approves journal entries, and prepares the bank reconciliation. Effect: The existence of this limited segregation of duties increases the risk of fraud. Recommendation: While we recognize the number of staff is not large enough to eliminate this deficiency, we recommend that the JPWB evaluate the current procedures and segregate duties where possible and implement any compensating controls. We are aware some compensating controls are in place; however, it is important that the JPWB Council is aware of this condition and monitor all financial information. Management Response: Management recognizes that it is not economically feasible to correct this finding, however is aware of the deficiency and is relying on oversight by management and the JPWB Council to monitor this deficiency. Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of compliance with certain provisions of Minnesota statutes. However, the objective of our tests was not to provide an opinion on compliance with such provisions. We noted no instances of noncompliance with Minnesota statutes. Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the JPWB are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies were not changed during the year ended December 31, 2019. We noted no transactions entered into by the governmental unit during the year for which there is a lack of authoritative guidance or consensus, All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates made relate to estimated historical cost of the capital assets and depreciation on capital assets. ■ Management's estimate of depreciation is based on estimated useful lives of the assets. Depreciation is calculated using the straight-line method. We evaluated the key factors and assumptions used to develop depreciation in determining that it is reasonable in relation to the financial statements taken as a whole. The disclosures in the financial statements are neutral, consistent, and clear. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. ri111l+i 4 PAG 17O i 1 [' 1'- Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole. We also assisted in preparing a number of year-end accounting entries. These were necessary to adjust the JPWB's records at year end to the appropriate ending balances. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting or auditing matter, whether or not resolved to our satisfaction that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated April 13, 2020. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Matters We applied certain limited procedures to the required supplementary information (RSI) (Management's Discussion and Analysis) is information that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were not engaged to report on the introductory section, which accompanies the financial statements but is not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Board's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. +I'tcu� [s FAG 74 I R TI Cash Flow Activity The results of the operations in terms of cash flows and the breakdown of the cash balances for the past four years are as follows: 53,000,000 s2,500,000 $2,000,000 $1,500,000 57 ,000,000 S500,000 S- ��cGptis Js001&ts .gyp �Q�6p�5 $14.000,000 $12, 000 ,000 $10, 000 ,000 $8 ,000, 000 $6 ,0 00, 000 $4,000,000 $2,000.000 S- Va 0 LS `5 �pls a Ly e`pi8 g��9 Operating Costs m Debt Payments ■ Operating Receipts $12.502,986 2016 2017 2018 2019 Restricted Cash** Unrestricted Cash --&rMinimum Target Balance (Following Year Debt Service Plus 50% of Operating Costs) The Organization's operating receipts (blue bar) are sufficient to cover operations (grey bar) and debt service requirements (green bar) in all years listed on the top chart with the exception of 2019 due to the debt being paid off in 2019. Cash balance remains strong, however, the Organization should continue to monitor cash balances to ensure rates and operating receipts are sufficient to cover operating costs, future debt services, and future replacementslexpansions. We recommend the Organization monitor future cash flow needs and evaluate needs consistent with the Organizations capital improvement plan. I 1-c )pV _L 1).....— -- . Fi IA1I r PAG UIJ 11 H T- Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future ,JPWB financial statements: GASB Statement No. 87 - Leases Summary The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments' financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right -to -use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments' leasing activities. Effective Date and Transition The requirements of this Statement are effective for reporting periods beginning after December 15, 2019. Earlier application is encouraged. Leases should be recognized and measured using the facts and circumstances that exist at the beginning of the period of implementation (or, if applied to earlier periods, the beginning of the earliest period restated). However, lessors should not restate the assets underlying their existing sales -type or direct financing leases. Any residual assets for those leases become the carrying values of the underlying assets. How the Changes in This Statement Will Improve Accounting and Financial Reporting This Statement will increase the usefulness of governments' financial statements by requiring reporting of certain lease liabilities that currently are not reported. It will enhance comparability of financial statements among governments by requiring lessees and lessors to report leases under a single model. This Statement also will enhance the decision - usefulness of the information provided to financial statement users by requiring notes to financial statements related to the timing, significance, and purpose of a government's leasing arrangements. GASB Statement No. 89 - Accounting for Interest Cost Incurred before the End of a Construction Period Summary The objectives of this Statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. This Statement establishes accounting requirements for interest cost incurred before the end of a construction period. Such interest cost includes all interest that previously was accounted for in accordance with the requirements of paragraphs 5-22 of Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre - November 30, 1989 FASB and AICPA Pronouncements, which are superseded by this Statement. This Statement requires that interest cost incurred before the end of a construction period be recognized as an expense in the period in which the cost is incurred for financial statements prepared using the economic resources measurement focus. As a result, interest cost incurred before the end of a construction period will not be included in the historical cost of a capital asset reported in a business -type activity or enterprise fund. This Statement also reiterates that in financial statements prepared using the current financial resources measurement focus, interest cost incurred before the end of a construction period should be recognized as an expenditure on a basis consistent with governmental fund accounting principles. 7 PAGh i7G i } Ft T- Future Accounting Standard Changes (Continued) Effective Date and Transition The requirements of this Statement are effective for reporting periods beginning after December 15, 2019. Earlier application is encouraged. The requirements of this Statement should be applied prospectively. How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by providing users of financial statements with more relevant information about capital assets and the cost of borrowing for a reporting period. The resulting information also will enhance the comparability of information about capital assets and the cost of borrowing for a reporting period for both governmental activities and business -type activities. GASB Statement No. 91 - Conduit Debt Obligations Summary The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. All conduit debt obligations involve the issuer making a limited commitment. Some issuers extend additional commitments or voluntary commitments to support debt service in the event the third party is, or will be, unable to do so. An issuer should not recognize a conduit debt obligation as a liability. However, an issuer should recognize a liability associated with an additional commitment or a voluntary commitment to support debt service if certain recognition criteria are met. As long as a conduit debt obligation is outstanding, an issuer that has made an additional commitment should evaluate at least annually whether those criteria are met. An issuer that has made only a limited commitment should evaluate whether those criteria are met when an event occurs that causes the issuer to reevaluate its willingness or ability to support the obligor's debt service through a voluntary commitment. This Statement also addresses arrangements - often characterized as leases - that are associated with conduit debt obligations. In those arrangements, capital assets are constructed or acquired with the proceeds of a conduit debt obligation and used by third -party obligors in the course of their activities. Payments from third -party obligors are intended to cover and coincide with debt service payments. During those arrangements, issuers retain the titles to the capital assets. Those titles may or may not pass to the obligors at the end of the arrangements. This Statement requires issuers to disclose general information about their conduit debt obligations, organized by type of commitment, including the aggregate outstanding principal amount of the issuers' conduit debt obligations and a description of each type of commitment. Issuers that recognize liabilities related to supporting the debt service of conduit debt obligations also should disclose information about the amount recognized and how the liabilities changed during the reporting period. Effective Date and Transition The requirements of this Statement are effective for reporting periods beginning after December 15, 2020. Earlier application is encouraged. rt 1111°+ 8 PAGhr/1411 It•I•, Future Accounting Standard Changes (Continued) How the Changes in This Statement Will Improve Accounting and Financial Reporting The requirements of this Statement will improve financial reporting by eliminating the existing option for issuers to report conduit debt obligations as their own liabilities, thereby ending significant diversity in practice. The clarified definition will resolve stakeholders' uncertainty as to whether a given financing is, in fact, a conduit debt obligation. Requiring issuers to recognize liabilities associated with additional commitments extended by issuers and to recognize assets and deferred inflows of resources related to certain arrangements associated with conduit debt obligations also will eliminate diversity, thereby improving comparability in reporting by issuers. Revised disclosure requirements will provide financial statement users with better information regarding the commitments issuers extend and the likelihood that they will fulfill those commitments. That information will inform users of the potential impact of such commitments on the financial resources of issuers and help users assess issuers' roles in conduit debt obligations. (') Note. From GASB Pronouncements Summaries. Copyright 2019 by the Financial Accounting Foundation, 401 Merritt 7, Norwalk, CT 06856, USA, and is reproduced with permission. Restriction on Use This communication is intended solely for the information and use of the Board of Commissioners, management and the Minnesota Office of the State Auditor and is not intended to be and should not be used by anyone other than these specified parties. The comments and recommendation in this report are purely constructive in nature, and should be read in this context. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the continued opportunity to be of service, and for the courtesy and cooperation extended to us by your staff. 01Ab&k4M",ue ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota April 13, 2020 I'et yl( + ��t cac°c�ti Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota For the Years Ended ❑ecember 31, 2019 and 2018 ABDO E1CK & MEURSi.1.r -- PAGE 75 THIS PAGE IS LEFT BLANK INTENTIONALLY PAGE 77 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Annual Financial Report Table of Contents For the Years Ended December 31, 2019 and 2018 _Page No. Introductory Section Board of Commissioners and Administration Financial Section Independent Auditor's Report 11 Management's Discussion and Analysis 15 Financial Statements Statements of Net Position 20 Statements of Revenues, Expenses and Changes in Net Position 21 Statements of Cash Flows 22 Notes to the Financial Statements 23 Other Required Reports Independent Auditor's Report on Minnesota Legal Compliance 35 - — --- PACE 78 THIS PAGE IS LEFT BLANK INTENTIONALLY PAGE 79 INTRODUCTORY SECTION JOINT POWERS WATER BOARD OF ALBERTVILLE, HANOVER AND ST. MICHAEL ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2019 AND 2018 PAGE 80 THIS PAGE IS LEFT WAI PAGE 81 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Board of Commissioners and Administration For the Year Ended December 31, 2019 and 2018 BOARD OF COMMISSIONERS Name Chris Kaufman Nadine Schoen Jillian Hendrickson John Vetsch Jon Hagerty Jim Zajicek ADMINISTRATION Jennifer Thomas Larry Cook Title Vice -Chairman Treasurer Chairman Board Member Board Member Board Member Office Manager Project Manager PAGE 82 THIS PAGE IS LEFT BLANK INTENTIONALLY PAGE 83 JOINT POWERS WATER BOARD OF ALBERTVILLE, HANOVER AND ST. MICHAEL ALBERTVILLE, MINNESOTA FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 PAGE 84 THIS PAGE IS LEFT BLANK INTENTIONALLY PAGE 85 ABDO EICK (-' r7ificrl f'uLlic !tcxuurrrcrrits & ("on-whorai INDEPENDENT AUDITOR'S REPORT Board of Commissioners Joint Power Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the Joint Powers Water Board of Albertville, Hanover and St. Michael {the JPWB), Albertville, Minnesota, as of and for the years ended December 31, 2019 and 2018, and the related notes to the financial statements, which collectively comprise the JPWB's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the JPWB's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate In the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the JPWB's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Joint Powers Water Board of Albertville, Hanover and St. Michael (the JPWB), Albertville, Minnesota as of December 31, 2019 and 2018, and the respective changes in financial position and cash flows for the years then ended in accordance with accounting principles generally accepted In the United States of America. 5201 Eden Avenue. Suite 250 Edina. VIN _ 952 835.9090 1 Fax 952.835 3261 PAGE 86 THIS PAGE IS LEFT III ON qwd 12 PAGE 87 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis starting on page 15 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other- knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Joint Powers Water Board of Albertville's basic financial statements. The introductory section is presented for the purpose of additional analysis and is not a required part of the financial statements. The introductory section has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. 01),b JA 4" 1 V ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota April 13, 2020 f IM1111 13 PAGb 691 P �� r THIS PAGE IS LEFT BLANK INTENTIONALLY 14 PAGE 89 Management's Discussion and Analysis This section of the Joint Powers Water Board of Albertville, Hanover and St. Michael (the JPWB), Albertville, Minnesota annual financial report presents our analysis of the JPWB's financial performance during the fiscal year that ended December 31, 2019. Please read it in conjunction with the financial statements, which follow this section. Financial Highlights • The assets and deferred outflows of resources of the JPWB exceeded its liabilities at the close of the most recent fiscal year by $24,757,138 (netposition). Net position increased $1,138,751 or 4.8 percent. The increase is mainly attributable to operating and nonoperating revenues exceeding operating expenses. The cash and investment balance at the close of the current fiscal year totaled $12,502,986. Overview of the Financial Statements This annual report consists of three parts; Management's Discussion and Analysis, Financial Statements, and Supplemental Information. The financial statements also include notes that explain in more detail some of the information in the financial statements. Required Financial Statements The financial statements of the JPWB report information about the JPWB using accounting methods similar to those used by private sector companies. These statements offer short- and long-term financial information about its activities. The Statements of Net Position includes all of the JPWB's assets and liabilities and provides information about the nature and amounts of investments in resources (assets) and the obligations to JPWB's creditors (liabilities). It also provides the basis for computing rate of return, evaluating the capital structure of the JPWB and assessing the liquidity and financial flexibility of the JPWB. All of the current year's revenues and expenses are accounted for in the Statements of Revenues, Expenses and Changes in Net Position. This statement measures the success of the JPWB's operations over the past year and can be used to determine whether the JPWB has successfully recovered all its costs through its user fees and other charges, profitability and credit worthiness. The final required financial statement is the Statements of Cash Flows. The primary purpose of this statement is to provide information about the JPWB's cash receipts and cash payments during the reporting period. The statement reports cash receipts, cash payments and net changes in cash resulting from operations, investing, financing activities and provides answers to such questions as where did cash come from, what was cash used for and what was the change in cash balance during the reporting period. PAGE 90 Financial Analysis of the JPWB Our analysis of the JPWB begins on page 20 in the financial section. One of the most important questions asked about the JPWB's finances is "Is the JPWB as a whole better or worse off as a result of this year's activities?" The Statements of Net Position, and the Statement of Revenues, Expenses and Changes in Net Position report information about the JPWB's activities in a way that will help answer this question. These two statements report the net position of the JPW B and changes in corresponding net position. You can think of the JPWB's net position as one way to measure financial health or financial position. Over time, increases or decreases in the JPW B's net position are one indicator of whether its financial health is improving or deteriorating. However, you will need to consider other non -financial factors such as changes in economic conditions, population growth, zoning restrictions, and new or changed government legislation. Net Position To begin our analysis, a summary of the JPWB's Statements of Net Position is presented in Table A-1 TABLE A-1 Condensed Statements of Net Position Assets Current assets Noncurrent assets Capital assets (net of depreciation) Other assets Total Assets Liabilities Current liabilities Long-term liabilities outstanding Total Liabilities Net Position Net investment in capital assets Restricted for Debt service Capital projects Unrestricted Total Net Position 2019 2018 Increase decrease $ 12,968,274 $ 12,277,009 $ 691,265 12.239,633 215,187 25.423,094 665,956 665.956 12,239,633 12.517.505 12,950,673 223,162 25,450,844 1,823,952 8,505 1 na9 ar�7 11,752,168 464,401 159.329 11,242,489 (711,040) (7,975) (27.750) (1,157,996) (8,505) 1,166,501 487,465 (464,401) (159,329) 1.275,016 $ 24,757,138 $ 23,618,387 $ _1,138,751 16 PAGE 91 Water Rates The JPWB bills customers a base charge as well as a usage charge. Usage charges are intended to cover the cost of providing water to the customers. The base charge is intended to cover the cost of installing new infrastructure as well as maintaining the current infrastructure used to provide the water to each customer. Without these base charges, the amounts from usage charges would not be able to cover the needed repairs and maintenance, and the system would eventually deteriorate.. Residential customers are charged a monthly base fee of $3.63. Residential customers are then charged a usage fee based on the number of gallons used by each individual customer. In an effort to make customers conscious of the amount of water they are using, the usage fee progressively increases as the gallons used increase. Usage fees range from $2.18/per 1,000 gallons (0 to 3,500 gallons used) to $3.291per 1,000 gallons (above 16,500 gallons used). The JPWB requires payment of all utility bills by the due date stated on the bill. A 1.5 percent (18 percent annual) penalty is assessed for payments not received by the due date. In addition, there is a $5 minimum late fee per month for each Supply Water service connection. The JPWB certifies delinquent utility bills annually to Wright County property tax ro€ls. Statements of Revenues, Expenses and Changes in Net Position While the Statements of Net Position shows the change in financial position of net position,. the Statements of Revenues, Expenses and Changes in Net Position, provides answers as to the nature and source of these changes. A closer examination of the individual categories affecting the source of changes in net position is discussed below: Revenues Operating revenues Water sales Nonoperating Total Revenues Expenses TABLE A-2 Condensed Statements of Revenues, Expenses and Changes in Net Position Increase 2019 2018 (Decrease) 5 2,053,663 $ 2,386,911 $ (333,248) 1,032,794 598.019 434,775 3,086,457 2,984,930 101,527 Bank charges 28,646 20,673 7,973 Contract maintenance 852,189 889,086 (36,897) Depreciation expense 711,040 696,183 14,857 DNR - water usage fee 10,646 10,868 (222) Engineer fees 102,865 44,835 58,030 Insurance 16,654 15,768 886 Legal fees 994 2,254 (1,260) Miscellaneous expenses 3,567 4,076 (509) Professional services 13,675 13,260 415 Repairs and maintenance 213,952 216,928 (2,976) Nonoperating (6,522) 39,034 (45,556) Total Expenses 1,947,706 1,952,965 (5,259) Change in Net Position 1,138,751 1,031,965 106,786 Net Position, January 1 23,618,387 22,586,422 1,031,965 Net Position, December 31 S 24,757,138 $ 23,618,387 $ 1.138,751 17-- - PAGE 92 Revenue Table A-2 shows operating revenue decreasing from the prior year by S333,248. The change in revenues resulted directly from a decreased water usage compared to prior year. Expense Table A-2 lists total expenses. The most significant change in expenses was the increase in engineer fees of $58,030. The main reason for the increase was for parking lot rehabilitation in 2019. Nonoperating Revenues Table A-2 shows nonoperating revenue increased $434,775 from the prior year. The increase is mainly due to interest income increasing from prior year due to an increase in market value of investments. Capital Assets The JPWB's investment in capital assets as of December 31, 2019, amounts to $12,239,633 (net of accumulated depreciation). This investment in capital assets includes land, buildings, infrastructure, machinery and equipment. Additional information on the JPWB's capital assets can be found in Note 2B starting on page 30 of this report. Long-term Debt In the year 2019, JPWB paid off remaining debt. There is no debt remaining. Economic Factors and Next Year's Budget and Rates Joint Powers Water Board supplies water to the cities of Hanover, St. Michael and Albertville. The local housing markets continue to be strong with several new ones started in 2019. There are two projects scheduled for 2020 with a combined spend of approximately $900,000. Both projects are for upgrading current infrastructure. These costs will be spread over several months. With these factors in mind, the board decided not to increase rates for the 2020 year. Contacting the JPWB Financial Manager This financial report is designed to provide our citizens, customers, investors and creditors with a general overview of the JPWB's finances and to demonstrate the JPWB's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Larry Cook, Veolia Water, JPWB Project Manager, 11100 - 501h Street North East, Albertville, MN 55301. 18- PAGE 93 Iai21►102M]F►W-1rr9zi LTA i:101�� JOINT POWERS WATER BOARD OF ALBERTVILLE, HANOVER AND ST. MICHAEL ALBERTVILLE, MINNESOTA FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 PAGE 94 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Statements of Net Position December 31, 2019 and 2018 2019 2018 Assets Current Assets Cash and cash equivalents $ 1,873,458 $ 2,032,184 Restricted cash - 159,329 Investments 10,629,528 9,181,347 Restricted investments - 464,401 Receivables Interest 18,957 47,564 Accounts receivable 386,162 335,638 Special assessments 104 138 Due from other governments 60,065 56,408 Total Current Assets 12,968,274 12,277,009 Noncurrent Assets Connection charges 215,187 223,162 Capital assets Land 702,919 702,919 Buildings 4,199,522 4,199,522 Infrastructure 18,259.209 18,259,209 Machinery and equipment 81,714 81,714 Total Capital Assets, Cost 23,243,364 23,243,364 Less Accumulated Depreciation (11,003.731) (10,292,691) Total Capital Assets, Net 12,239,633 12.950,673 Total Noncurrent Assets 12,454.820 13,173,835 Total Assets 25,423,094 25,450,844 Liabilities Current Liabilities Accounts payable 137,604 92,784 Due to other governments 513,352 515,886 Accrued interest payable - 9,917 Customer deposits payable 15,000 15,365 Bonds payable - current portion - 1,190,000 Total Current Liabilities 665,956 1,823,952 Long-term Liabilities Bonds payable, less current portion - 8,505 Total Liabilities 665,956 1,832,457 Net Position Net investment in capital assets 12,239,633 11,752,168 Restricted Debt service - 464,401 Capital projects - 159,329 Unrestricted 12, 517.505 11, 242,489 Total Net Position $ 24,757,138 $ 23,618.387 The notes to the financial statements are an inte ral part of this statement. 20 PAGE 95 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Statements of Revenues, Expenses and Changes in Net Position For the Years Ended December 31, 2019 and 2018 Operating Revenues Water sales Operating Expenses Bank charges Contract maintenance Depreciation expense DNR - water usage fee Engineer fees Insurance Legal fees Miscellaneous expenses Professional services Repairs and maintenance Total Operating Expenses Operating Income Nonoperating Revenues (Expenses) Connection fees Interest income (loss) Antenna lease Miscellaneous Interest expense and other Total Nonoperating Revenues (Expenses) Change in Net Position Net Position, January 1 Net Position, December 31 2019 9n1A $ 2,053,663 $ 2,386,911 28,646 852,189 711,040 10,646 102,865 16,654 994 3,567 13,676 213,952 1,954,228 99,435 20,673 889,086 696,183 10,868 44,835 15,768 2,254 4,076 13,260 216,928 472,980 347,687 482,717 531,979 (5,669) 151,527 119,001 1,601 1,970 6,522 (39,034) 1,039,316 558,985 1,138,751 1,031,965 23,618,387 22,586,422 $ 24,757.138 23,618,387 The notes to the financial statements are an inte ral part of this statement. 21 PAGE 96 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Statements of Cash Flows For the Years Ended December 31. 2019 and 2018 2019 2018 Cash Flows from Operating Activates Receipts from customers and users $ 2,160,254 2.513,855 Payments to suppliers _ S1_,200,902) (1,114,955) Net Cash Provided by Operating Activities 959,352 1,398,900 Cash Flows from Capital and Related Financing Activities Acquisition of capital assets - (904,718) Connection fees received 347,687 482.717 Principal paid on bonds (1,190,000) (710,000) Interest and other payments on bonds 11,900 (31.395) Net Cash Used by Capital and Related Financing Activities _ (854,213) (1,163,396) Cash Flows from Investing Activities Sale (purchase) of investments (654,792) (384,727) Interest on investments 231,598 140,350 Net Cash Used by Investing Activities 423,194 (244,377) Net Increase (Decrease) in Cash and Cash Equivalents (318.055) (8,873) Cash and Cash Equivalents, January 1 2,191,513 2,200,386 Cash and Cash Equivalents, December 31 $ 1,873,458 $ 2,191,513 Reconciliation of Cash and Cash Equivalents to the Statement of Net Position Cash and cash equivalents $ 1,873.458 S 2,032,184 Restricted cash - 159,329 Total Cash and Cash Equivalents $ 1.873.458 S 2,191,513 Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating income $ 99,435 $ 472,980 Adjustments to reconcile operating income to net cash provided by operating activities Other revenue 153,128 120,971 Depreciation 711,040 696,183 (increase) decrease in assets Accounts receivable (50,524) 11,861 ❑ue from other governments (3,657) (17,140) Special assessments receivable 8,009 13,802 Increase (decrease) in liabilities Accounts payable 44.820 17,459 Due to other governments (2,534) 85,334 Customer deposits payable (365) (2,550) Net Cash Provided by Operating Activities $ 959,352 $ 1,398,900 Noncash Capital and Related Financing Activities Amortization of loss on refunding and bond premium $ 8,505 S 13,555 Change in market value on investments S 328,988 5 (113,823] The notes to the financial statements are an integral part of this statement. PAGE 97 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2019 and 2018 Note 1: Summary of Significant Accounting Policies A. Nature of Business and Reporting Entity The Joint Powers Water Board of Albertville, Hanover and St. Michael (the JPWB), Albertville, Minnesota was established under a joint powers agreement between the Cities of Albertville, Hanover and St. Michael to provide water service to the local area. The JPWB operates as an enterprise and provides water service to the general public, with the majority of its costs being paid by various fees and charges to users of the water system. The JPWB consists of a six -member Board of Commissioners (the Board), Two individuals, the Mayor and another City Council member from each City, are appointed by their respective City Council to serve on the Board of Commissioners. The JPWB does not have any component units. Beginning in 1999, the JPWB modified its agreement with the members. The charges billed and collected for water supply will remain with the JPWB, while the charges for distribution will be billed by the JPWB but the collections are owned by each member city and will be remitted to them upon collection. B. Measurement Focus Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenue and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenue of the JPWB enterprise fund is charges to customers for sales and services. The JPWB also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenue and expenses not meeting this definition are reported as nonoperating revenue and expenses. The JPWB has the following fund type: Proprietary fund. The JPWB activities are recorded in a proprietary fund and are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. The JPWB has only one fund as listed below: The Water enterprise fund accounts for those operations that are financed and operated in a manner similar to private business or where the JPWB has decided that the determination of revenues earned, costs incurred and/or net income is necessary for management accountability. Non -exchange transactions, in which the JPWB receives value without directly giving equal value in return, include grants, entitlement and donations. On an accrual basis, revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the JPWB must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the JPWB on a reimbursement basis. 23 PAGE 98 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2019 and 2018 Note 1: Summary of Significant Accounting Policies (Continued) C. Assets, Liabilities, Deferred Outflows of Resources and Net Position Cash and Cash Equivalents The JPWB's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. The proprietary funds' portion in the government -wide cash and temporary investments pool is considered to be cash and cash equivalents for purposes of the statements of cash flows. The JPWB may also invest idle funds as authorized by Minnesota statutes, as follows: 1. Direct obligations or obligations guaranteed by the United States or its agencies. 2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a final maturity of thirteen months or less. 3. General obligations of a state or local government with taxing powers rated "A" or better; revenue obligations rated "AX or better. 4. General obligations of the Minnesota Housing Finance Agency rated "A" or better. 5. obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to statute section 126C.55. 6. Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System. 7. Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less. 8. Repurchase or reverse repurchase agreements and securities lending agreements with financial institutions qualified as a "depository" by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker -dealers. 9. Guaranteed investment contracts (GIC's) issued or guaranteed by a United States commercial bank, a domestic branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt obligations were rated in one of the top two rating categories by a nationally recognized rating agency. Broker money market funds operate in accordance with appropriate state laws and regulations. The reported value of the pool is the same as the fair value of the shares. The JPWB categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The JPWB's recurring fair value measurements are listed in detail on page 28 and are valued using quoted market prices (Level 1 inputs) and brokered certificate of deposits using a matrix pricing model (Level 2). 24 - PAGE 99 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2019 and 2018 Note 1: Summary of Significant Accounting Policies (Continued) The JPWB has the following recurring fair value measurements as of December 31, 2019: ■ US Government Securities of $390,016 are valued using quoted market prices (Level 1 inputs) • Brokered certificate of deposits of $9,455,809 are valued using a matrix pricing model (Level 2 inputs) The JPWB has the following recurring fair value measurements as of December 31, 2018: US Government Securities of $1,038,065 are valued using quoted market prices (Level 1 inputs) Brokered certificate of deposits of S8,607,683 are valued using a matrix pricing model (Level 2 inputs) The Minnesota Municipal Money Market Fund is regulated by Minnesota statutes and the Board of Directors of the League of Minnesota Cities and is an external investment pool not registered with the Securities Exchange Commission (SEC) that follows the regulatory rules of the SEC. In accordance with GASB Statement No. 79, the City's investment in this pool is valued at amortized cost, which approximates fair value. There are no restrictions or limitations on withdrawals from the 4M Liquid Asset Fund. Investments in the 4M Plus must be deposited for a minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period will be subject to a penalty equal to seven days interest on the amount withdrawn. Seven days' notice of redemption is required for withdrawals of investments in the 4M Term Series withdrawn prior to the maturity date of that series. A penalty could be assessed as necessary to recoup the Series for any charges, losses, and other costs attributable to the early redemption. Financial statements of the 4M Fund can be obtained by contracting RBC Global Management at 100 South Fifth Street, Suite 2300, Minneapolis, MN 55402-1240. Accounts Receivable Accounts receivable include amounts billed for services provided before year end. The JPWB annually certifies delinquent water accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful accounts established. Special Assessments It is the JPWB's policy to assess delinquent balances to the County for collection. No substantial losses from present receivable balances are anticipated. Capita! Assets Property, plant and equipment are recorded at cost. Capital assets are defined as assets with an estimated useful life in excess of one year. Property, plant and equipment donated, are recorded at their acquisition value at the date of donation. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets is reflected in the capitalized value of the asset constructed, net of interest earned on the invested proceeds over the same period. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Property, plant and equipment are depreciated using the straight-line method over the following estimated useful lives: Useful Lives Assets in Years Buildings 20 Machinery and Equipment 5 - 20 Infrastructure 30 - 40 PAGE100 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2019 and 2018 Note 1: Summary of Significant Accounting Policies (Continued) Deferred Outflow of Resources In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The JPWB only has one item that qualifies for reporting in this category. It is the deferred charge on refunding reported in the statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Due to Other Governments The JPWB does the water and sewer billing for the cities of Hanover and St. Michael. The amounts billed are remitted to the cities as payments are received from the residents. Amounts not received are removed from the accounting records and certified to the County by each of the cities. Long-term ©Migrations Long-term debt and other obligations financed by the JPWB are reported as liabilities. Bond premiums and discounts are amortized over the life of the bonds using the straight-line method. Bond issuance costs are reported as an expense in the period incurred. Net Position Net position represents the difference between assets, deferred outflow of resources and liabilities. Net position is displayed in three components: a. Net investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquire capital assets. b. Restricted net position - Consists of net position balances restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors, laws or regulations of other governments. c. Unrestricted net position - All other net position balances that do not meet the definition of "restricted" or "net investment in capital assets". When both restricted and unrestricted resources are available for use, it is the JPWB's policy to use restricted resources first, then unrestricted resources as they are needed. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Restricted Assets Certain resources set aside for the repayment of revenue bonds and future capital projects are classified as restricted assets on the statement of net position because its use is limited by applicable bond resolutions. In accordance with these resolutions, reserve accounts have been established for the retirement of outstanding debt and capital needs. 26 PAGE 101 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Motes to the Financial Statements December 31, 2019 and 2018 Note 2: Detailed Notes on All Funds A. Deposits and Investments Deposits Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the JPWB's deposits may not be returned or the JPWB will not be able to recover collateral securities in the possession of an outside party. In accordance with Minnesota statutes and as authorized by the Board of Commissioners, the JPWB maintains deposits at those depository banks which are members of the Federal Reserve System. Minnesota statutes require that all JPWB deposits be protected by insurance, surety bond or collateral. The market value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds, which the exception of irrevocable standby letters of credit issued by Federal Home Loan Banks as this type of collateral only requires collateral pledged equal to 100 percent of the deposits not covered by insurance or bonds, Authorized collateral in lieu of a corporate surety bond includes: • United States government Treasury bills, Treasury notes, Treasury bonds; • Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; • General obligation securities of any state or local government with taxing powers which is rated "A" or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated "AA" or better by a national bond rating service; • General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; • Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank's public debt is rated "AA" or better by Moody's investors Service, Inc., or Standard & Poor's Corporation; and • Time deposits that are fully insured by any federal agency. Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The selection should be approved by the government entity. At December 31, 2019, the JPWB's carrying amount of deposits was $1,318,836 and the bank balance was $1,367,797, Of the bank balance, $250,000 was covered by federal depository insurance. The remaining balance was covered by collateral held by the JPWB agent in the JPWB's name. At December 31, 2018, the JPWB's carrying amount of deposits was; 1,123,201 and the bank balance was $1,253,060. Of the bank balance, $250,000 was covered by federal depository insurance. The remaining balance was covered by collateral held by the JPWB agent in the JPWB's name. `��--- PAGE 102 Joint Powers Water Board of Albertville, Hanover and St, Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2019 and 2018 Note 2: Detailed Notes on All Funds (Continued) Investments The broker money market investment pool operates in accordance with appropriate State laws and regulations. The reported value of the pool is the same as the fair value of the pool share. At December 31, 2019, JPWB had the following investments that are insured or registered, or securities held by the JPWB's agent in the JPWB's name: Credit segmented Quality/ Time Fair Value Measurement Using Ratings (1) Distribution (2) Amount Level 1 Level 2 Level 3 Pooled Investments at Amortized Costs 4M fund NIA N/A S 783,703 $ - S $ Broker money market funds NIA N/A 554,622 - Non -pooled Investments at Fair Value Brokered certificates of deposit NIA Less than 6 months 975,177 - 975,177 - Brokered certificates of deposit NIA 6 to 12 months 637,062 - 637,062 - Brokered certificates of deposit NIA 1 to 3 years 3,961,793 - 1961,793 - Brokered certificates of deposit NIA More than 3 years 3,881,777 - 3,881,777 - Government Agency Securities AAA 1 to 3 years 390,016 390,016 - - Total Investments 11184150 S 390.016 _S_ 9.455,809 S - (1 ) Rating are provide by Moody's credit rating agency where applicable to indicate associated credit risk (2) Interest rate risk is disclosed using the segmented time distribution method. NIA Indicates not applicable or available. A reconciliation of cash and temporary investments as shown on the statements of net position follows:. 1)n i rx and n Cash and Cash Equivalents $ 1.873,458 $ 2,032,184 Restricted Cash - 159,329 Investments 10,629,528 9,181,347 Restricted Investments - 464,401 Total $ 12,502,986 5 11,837,261 Cash and Investments Deposits $ 1,318,836 $ 1,123,201 Investments 11,184,150 10,714,060 Total 12,502,986 11.837 261 28 FAGE103 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2019 and 2018 Note 2: Detailed Notes on All Funds (Continued) At December 31, 2018, JPWB had the following investments that are insured or registered, or securities held by the JPWB's agent in the JPWB's name: Credit Segmented Quality! Time Ratings 1 Distribution (2) Pooled Investments at Amortized Costs Broker money market NIA N/A Non -pooled Investments at Fair Value Brokered certificates of deposit NIA Less than 6 months Brokered certificates of deposit NIA 6 to 12 months Brokered certificates of deposit NIA 1 to 3 years Brokered certificates of deposit NIA More than 3 years United States Government Securities AAA i to 3 years Total Investments Fair Value Measurement Using Amount Level Level Level $ 1,068,312 $ - 5 - $ 820,890 486,693 3,276,636 4,023,464 - 1,038,065 1,038,065 820,890 486,693 3,276,636 4,023.464 $ 10.714.060 S 1,038,065 8,60T683 $ - (1) Rating are provide by Moody's credit rating agency where applicable to indicate associated credit risk. (2) Interest rate risk is disclosed using the segmented time distribution method. NIA Indicates not applicable or available. The investments of the JPWB are subject to the following risks:. + Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Ratings are provided by various credit rating agencies and where applicable, indicate associated credit risk. Minnesota statutes and the JPWB's investment policy limit the JPWB's investments to the list on page 24 of the notes. ■ Custodial Credit Risk. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. It is the policy of the JPWB to require that time deposits in excess of FDIC insurable limits be secured by collateral or private insurance to protect public deposits in a single financial institution if it were to default. Third party safekeeping is required for all collateral. • Concentration of Credit Risk. Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. In accordance with the JPWB investment policy, investments shall be diversified to eliminate the risk of loss resulting in over concentration in a specific maturity, issuer, or class of securities. • Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. 29 PAGE 104 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2019 and 2018 Note 2: Detailed Notes on All Funds (Continued) B. Capital Assets Capital asset activity for the year ended December 31, 2019 was as follows: Business -type Activities Capital Assets not being Depreciated Land Capital Assets being Depreciated Buildings Infrastructure Machinery and equipment Total Capital Assets being Depreciated Less Accumulated Depreciation for Buildings Infrastructure Machinery and equipment Total Accumulated Depreciation Total Capital Assets being Depreciated, Net Beginning $ 702,919 4,199,522 18,259,209 Ending Decreases Balance S - $ - $ 702,919 22, 540,445 - (2,652,994) (167.389) (7,584,834) (538,694) (54,863) (4,957) 10.292,691 (711,040) 12,247,754 (711,040) - 4.199,522 18,259,209 81,714 22,540,445 (2,820,383) (8,123,528) (59,820) (11,003,731) 11,536,714 Business -type Activities Capital Assets, Net $ 12,950,673 $ (711,Q40] $ - 5 12,239,633 Total depreciation for the year ended December 31, 2019 totaled $711,040. -- 30 PAGE 105 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2019 and 2018 Note 2: Detailed Notes on All Funds (Continued) Capital asset activity for the year ended December 31, 2018 was as follows: Beginning Ending Balance Increases Decreases Balance Business -type Activities Capital Assets not being Depreciated Land $ 702,919 $ - $ - $ 702,919 Capital Assets being Depreciated Buildings 4,199,522 - - 4,199,522 Infrastructure 17,354,491 904,718 - 18,259.209 Machinery and equipment 81,714 - - 81,714 Total Capital Assets being Depreciated 21,635.727 904,718 - 22,540,445 Less Accumulated Depreciation for Buildings (2,485,605) (167,389) - (2,652,994) Infrastructure (7,060,997) (523,837) - (7,584,834) Machinery and equipment (49.906) _ (4,957) - 54,863 Total Accumulated Depreciation (9,596,508) (696,183) - 10,292,691 Total Capital Assets being Depreciated, Net 12,039,219 208,535 - 12,247,754 Business -type Activities Capital Assets, Net _$_ 12,742,138 $ 208,535 $ - $ 12,950,673 Total depreciation for the year ended December 31, 2018 totaled $696,183. 31 PAGE 106 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2019 and 2018 Note 2: Detailed Notes on All Funds (Continued) C. Long-term Debt Changes in Long-term Liabilities Long-term liabilities activity for the year ended December 31, 2019 was as follows: Business -type Activities Bonds Payable Revenue bonds Plus bond premium Net Bonds Payable Beginning Ending Due Within Balance Increases Decreases Balance One Year S 1,190,000 $ 8,505 $ (1,190,000) $ (8,505) $ 1,198,505 $ - (1,198,505) $ - - Long-term liabilities activity for the year ended December 31, 2018 was as follows. Beginning Ending Due Within Balance Increases Decreases Balance One Year Business -type Activities Bonds Payable Revenue bonds $ 1,900,000 $ - $ (710,000) $ 1,190,000 $ 1,190,000 Plus bond premium 26,935 - _ (18,430) 8,505 - Net Bonds Payable $ 1,926,935 $ - $ (728,430) a 1,198,505 $ 1,190,000 Note 3: Other Information Risk Management The JPWB is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters for which the JPWB carries commercial insurance. The JPWB obtains insurance through participation in the League of Minnesota Cities Insurance Trust (LMCIT) which is a risk sharing pool with approximately 800 other governmental units. The JPWB pays an annual premium to LMCIT for its workers compensation and property and casualty insurance. The LMCIT is self-sustaining through member premiums and will reinsure for claims above a prescribed dollar amount for each insurance event. Settled claims have not exceeded the JPWB coverage in any of the past three fiscal years. Liabilities are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities, if any, include an amount for claims that have been incurred but not reported (IBNRs). The JPWB management is not aware of any incurred but not reported claims. Note 4: Connection Charges A water main was installed in 1978 and properties along the main were not assessed at that time. These fees were recorded with the County on August 1, 2001, but have not been certified. The amount recorded as receivable at year end December 31, 2019 and 2018 were $215,187 and S223,162, respectively, — 32 PAGE 107 OTHER REQUIRED REPORTS JOINT POWERS WATER BOARD OF ALBERTVILLE, HANOVER AND ST. MICHAEL ALBERTVILLE, MINNESOTA FOR THE YEAR ENDE❑ DECEMBER 31, 2019 AND 2018 -- 33 - - PAGE 108 THIS PAGE IS LEFT BLANK INTENTIONALLY 34 PAGE 109 ABDO EICK & NMURS UP (.'ertifieel Pultlir Accoutairtals &- GnIsub zala INDEPENDENT AUDITOR'S REPORT ON MINNESOTA LEGAL COMPLIANCE Board of Commissioners Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, the financial statements of the Joint Powers Water Board of Albertville, Hanover and St. Michael (the JPWB), Albertville, Minnesota as of and for the year ended December 31, 2019, and the related notes to the financial statements, and have issued our report thereon dated April 13, 2020. In connection with our audit, nothing came to our attention that caused us to believe that the JPWB failed to comply with the provisions of the contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, and miscellaneous provisions sections of the Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, insofar as they relate to accounting matters. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the JPWB's noncompliance with the above referenced provisions, insofar as they relate to accounting matters. This report is intended solely for the information and use those charged with governance and management of JPWB and the State Auditor and is not intended to be and should not be used by anyone other than these specified parties. abb� &� 4"j . 4 ABDO, EICK & MEYERS, LLp Minneapolis, Minnesota April 13, 2020 5201 Eden Avenue, Suite 250 Edina, 1.1N 952835909 o 1 r ax 952 835.3281 PAGE 110 ,joiNTFtnvERs WATEI oARD k*%� - - S7, F-00144(71- Joint Powers Water Board Tel.: 763-497-3611 11100 60"' St NW Fax: 763497-4908 Albertville MN 55301 www.jointpowerswaterboard.org MEMO TO: Joint Powers Water Board FROM : Larry Cook DATE: April 16, 2020 SUBJECT: Insurance Renewal Dan Zachman with Zachman Insurance Agency will provide an insurance update to the Board and will ask the Board for its approval to adapt the renewal as presented. Thank you. PAGE 111 TNIC TDANIC1A1CCInR1 a nmTAI%IC rnkPU1nCRITIAI II.ICnia RA nnm IAITCAl11CP1 Cn0 I me nm V my TwF AWnwc \IAiAC11 CCf .OICkrr Pp Anpkr . JCKNT POWERS WATER BoA D A[ F R7Vr[. t.E • iNAV) VC-iiZ - 57, �IWHA FE. Joint Powers Water Board Tel.: 763-497-3611 11100 50" St NW Fax : 763.497-4908 Albertville MN 55301 www.jointpowerswaterboard.org MEMO TO: Joint Powers Water Board FROM : Jennifer Thomas DATE: April 21, 2020 SUBJECT: May Board Meeting and Claims List I would like to discuss the May meeting which is scheduled for May 25, 2020 (Memorial Day). The attached calendar shows St. Michael, Hanover and Albertville's schedules. I'm looking for a decision on how the May 2020 meeting should be handled. Thank you. THIS TRANSMISSION CONTAINS CONFIDENTIAL INFORMATION INTENDED FOR USE ONLY BY THE ABOVE NAMED RECIPIENT. READING, DISCUSSION, DISTRIBUTION, OR COPYING OF THIS MESSAGE IS STRICTLY PROHIBITED BY ANYONE OTHER THAN THE NAMED RECIPIENT OR HIS OR HER EMPLOYEES OR AGENTS. IF YOU HAVE RECEIVED THIS FAX IN ERROR. PLEASE IMMEDIATELY NOTIFY US BY TELEPHONE PAGE 112 3ti el vi : LL Ln L 4 ON co cn H IO LN us ej a LO eq V wq I IA 2 C vi }' PAGE 113 Claims IM11"MI V JOINT POWERS WATER BOARD CHECK REGISTER SUMMARY MEETING DATE: 4/27120 Check # Vendor Check Date Amount Comments Paid Chk# 017591E MN DEPT OF REVENUE 4/20/2020 $663,00 March 2020 Sales Tax Paid Chk# 017592E PAYMENT SERVICE NETWORK 4/20/2020 $3,943.61 March 2020 Web Pay Fees Paid Chk# 017593E CITY OF ST MICHAEL 412012020 $243,549,74 March 2020 Receipt by Charge Paid Chk# 019134 BENZINGER HOMES 3123/2020 ($86.48) Ref cr bal on 4542 Landmark Dr Paid Chk# 019151 JOSHUA JESBERG 4/212020 $105.66 Refund of overpayment Paid Chk# 019152 ABDO EICK & MEYERS 412712020 $2,300.00 2019 Audit Services Paid Chk# 019153 ANGELA MUNSON 4/27/2020 $111.27 Ref cr bal on 300 Edgewood Dr Paid Chk# 019154 BARBARA OLSON 4/2712020 $17.57 Ref cr bal on 11515 Riverview Paid Chk# 019155 CHRISTOPHERIANNE OLSON 4/27/2020 S11239 Ref cr bal on 224 Cherrywoad A Paid Chk# 019156 CITY OF HANOVER 4/2712020 S40,290.66 March 2020 Receipts by Charge Paid Chk# 019157 COLETTEIHANS BERSIE 412712020 $23.53 Ref cr bal on 814 Mallard St N Paid Chk# 019158 DEREK BOSTROM 4/27/2020 $60.00 Ref cr bal on 10449 Kalen Dr N Paid Chk# 019159 DRAKE CONSTRUCTION 4/27/2020 $16.18 Ref cr bal on 9872 Jordan Av Paid Chk# 019160 HOUSTON HOMES 4/27/2020 S26,09 Ref cr bal on 10755 Settlers L Paid Chk# 019161 JAMESISANDRA BRAUN 4/27/2020 S134.37 Ref cr bal on 10329 Kalen Ln N Paid Chk# 019162 JASON WERLINGER 4/27/2020 S37.15 Ref cr bal on 547 Kayla Ln NE Paid Chk# 019163 KIM WESTRUP 4/27/2020 $44.50 Ref cr bal on 10305 Kaitlin Av Paid Chk# 019164 MATT HEDTKE 4/27/2020 $144.26 Ref cr bal on 415 Ash Av NE Paid Chk# 019165 MICHAELIROBIN REINKING 4/27/2020 $258,25 Ref cr bal on 11560 Riverview Paid Chk# 019166 MIKEIMARGO MONSRUD 4/27/2020 $116.33 Ref cr bal on 10165 441h Ct NE Paid Chk# 019167 MILISSA MARTENS 4/27/2020 $114.79 Ref cr bal on 3803 Larabee Av Paid Chk# 019168 NATHANIANDREA ZACHMAN 412V2020 S138.39 Ref cr bal on 117 Summit Dr NE Paid Chk# 019169 PATRICK MCLAUGHLIN 4/27/2020 $23.71 Ref cr bal on 830 Mallard St N Paid Chk# 019170 RANDYIDAWN RUNGE 4/27/2020 S75.00 Ref cr bal on 11396 17th PI NE Paid Chk# 019171 ROBERT THOMAS HOMES 4/27/2020 S36.48 Ref cr bal on 14779 47th St NE Paid Chk# 019172 RONALDILISA WACHER 4/27/2020 $82.83 Ref cr bal on 562 Kayla Ln NE Paid Chk# 019173 ROOF DOCTOR 4127/2020 $50.00 Ref cr bal on 4542 Landmark Dr Paid Chk# 019174 RYANIHEIDI CAREY 4/27/2020 $94.95 Ref cr bal on10599 108th Av N Paid Chk# 019175 RYANIJILL ROSS 4/2712020 $73.06 Ref cr bal on 10630 106th Av N Paid Chk# 019176 Short Elliott Hendrickson Inc 4127/2020 $1,272.22 March 2020 Invoices Paid Chk# 019177 SYONVSA-AWA VIDAVONE 4/2712020 $178.431 Ref cr bal on 10080 42nd St NE Paid Chk# 019178 VEOLIA WATER NA 4127/2020 S83,194.00 May 2020 Contract Maintenance 1 $377,202.34J Jillian Hendrickson Rob Olson Chris Kauffman Nadine Schoen Joe Hagerty Jim Zajicek PAGE115