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2022-03-25 Joint Powers Water Board Minutes JOIN'r POWERS WA'fER BOARD MINt.71'ES Regular Meeting of March 25, 2022 6:00 PM Joint Powers WI'P 6:00 PM CALL TO ORDER by Chairperson Hendrickson, Board Members Present: Tom Dierberger, Joe Hagerty, Jillian Hendrickson, Chris Kauffman, Rob Olson, Nadine Schoen Board Members Absent: None Staff Present: Larry Cook, Jennifer Thomas, Andrew Antes - Veolia Water Staff Absent. Dustin; Carlson, Zac Foster - Veolia Water Engineering Present: Chris Larson - HDR Engineering, Inc. Engineering Absent: None. Auditor., Justin Ntlson, Abdo I CAI[1-, R/ROILL CALILChairperson Hendrickson called the meeting to order. 2, ADOPT AGENDA: Motion by Schoen, second by Olson, toadopt the Agenda as presented. Motion carried unanimously., 3. MINUTES: FEBRUARY 28, 2022 REGULAR BOARD MEETING: Motion by Schoen, second by Dierberger, to approve the Minutes of the February 28, 2022 regular Board Meeting as presented. Motion carried unanimously. 4,, CONSE......NT AGENDA: Motion by Schoen, second by Olson, to approve the Consent Agenda ---............... ... below. Motion carried unanimously. A RECEIPT OF MARCH 2022 BUDGET REPORT B. RECEIPT OF FEBRUARY 2022 INVESTMENT SUMMARY REPORT C. RECEIPT OF MARCH 2022...CASHm,BALAN ES MT D. RECEIPT OF FEBRUARY 2.022 MONTHLY OPERATIONS REPORT 5. UNFINISHED BUSINESS: ................... ........... A. SAFE DEPOSIT BOX SIGNERS - Cook informed the Board that Jillian Hendrickson, Chris Kauffman, Nadine Schoen, Delena Daleiden and Jennifer Thomas are all signers for, and have access to, the Joint Powers Water Board's safe deposit box at Community Developillent Bank. No action is required. 6. NEE-BUSINESS: A 2021 AUDIT - Cook introduced Justin Nilson of Abdo. Nilson presented Joint Powers Water Board's 2021 Audit by starting on page two of the management communication. He told the Board that Abdo is required to give an opinion on the financial statements and related internal controls that surround those statements. Abdo came to the Joint Powers' facility for a day and looked at invoices, how decisions are made, how things are paid and anything related to capital assets, Nilson directed the Board to the preparation of financial statements. Abdo's first finding is a common finding with a lot of organizations of this size that do not prepare their own statements or have qualified CPAs oil their staff. The second finding is the limited segregation of duties. Abdo recognizes that there are compensating controls! however, Abdo focuses on the fact that there is opportunity or there could be control over all four transaction cycles. This is mainly access to the accounting software and batik. He then went to page seven and referenced the financial results that look at water operations. The top chart on page seven looked at operating cash flows, Abdo looks for operating receipts to be at or above operating costs and payments in order to pay for sorne capital related activities. Joint Powers is unique because they don't have as many infrastructure costs as the Cities it works with. 1\10son said .JOINTPOWERS WATER BOARD MINUTES Regular Meeting of March 25, 2022 6:00 PM .Joint Powers WIT that in 2019 Joint Powers paid off all of its remaining debts, so that year's costs did exceed receipts. Nilson noted that without those debt payments, operating receipts significantly exceeded costs over the past two years. Nilson referenced the second chart where over the past four years the over-all cash balances went from about $12 million to around $17 million. Fie pointed out that the balance is increasing and recommended Joint Powers make a plan for tying those funds to a capital improvement plan or to a plan to be used in the future. The rest of the management comniunicabon is noting future standards. Nilson pointed out the lease standard that will become active next year may have a small impact on Joint Powers and the Cities it works with. Abdo"s advice is to compile all lease agreements as it may or may not add assets and offsetting liabilities to the government wide financial statements. Cook asked for Board approval to accept the 2021 audit report as presented by, Nilson. Motion by Hagerty, second by Dierberger, to accept the findings of the 2021 audit report as presented. Motion carried unanimously, BSAH 19 WATE:RMAIN MATERIALSLarson told the, Board that HDR has been designing -QUQTE two watermain projects that are, adjacent to one another. The first is ain intersection project at CSAR 19 and 241 that has Joint Powers Water Board's watermain that the County and WSB are handling. In order to make the final connection, the 6" waterrnain will be replaced from Chestnut to Oak. Larson said he started talking to watermain suppliers at the beginning of March. This project is scheduled to advertise for materials in the middle' of April and open bids in the middle of May. If the contract gets awarded at the May Board meeting, it will take about a month to get mateha0s. For a lot of the materials, the shortest lead time is eight to twelve weeks. The goal is to start the project on July 111. Ultimately it was decided that if the project is going to be done this year, some of the watermain parts are going to need to be p,reordered. The original memo that was in the packet was for $500,000 in parts, After talking to Joint Powers' attorney, Larson was told that if costs exceed $175,000, then sealed quotes are needed. Larson took the particularly long lead time items and requested quotes on those not to exceed $175,000. He got quotes from CSG ($133,192), Core and Main ($145,402) and Ferguson ($153,748). The quotes include hydrants, 20" diameter butterfly valves and fittings, Larson said ISG does not have access to the Joint Powers specified hydrants. He also noted that the Ferguson quote is for domestic fittings and not imported fittings. Larson said the, Joint Powers Water Board's spec is for domestic fittings, but nobody could provide domestic fittings in time'. Hendrickson asked Larson if the domestic versus imported fittings is different. Larson said he thought that years ago there was some difference in quality, but now he believes they are the same. Larson said that ultimately Core and Main was the only company that could get hydrants, 20" diameter fittings and joint restraints on time. Kauffman asked if the road will be done this year and Larson said the intersection wiilll and that the road is only being done because the watermain is being done. Larson feels that if the watermain wasn't being done from Chestnut to Oak, then the road would not be done from Chestnut to Walnut. Larson said that this watermain material is for both projects. Hagerty asked if that part has to be done since the road is being done. Larson, said it makes sense to do that. Larson said there is a reasonable chance that we will be going Out for sealed bids for the rest of the watermain material and that he might bring those quotes to the April meeting. Kauffman asked what sealed vs. unsealed is, Larson said it is more formal and that bidders that couldn't meet the timeframe Would be considered non-responsive. He will issue a bid advertisement, following rules, and will have a public opening of the bids. Oson asked who would give a sealed bid. Larson was not Sure. Larson asked for Board approval to accept Core and Main's quote of $145,402 to order hydrants, 20" diameter butterfly valves, and fittings for the CSAR 19 watermain project. Motion, by Schoen, second by Hagerty, to accept Core and Main's quote of $145,402 to order hydrants, 20" diameter butterfly valves and fittings for the CSAH 19 watermain project. Motion carried unanimously. JOINT POWERS WATER BOARD MINUTES Regtilmr Meeting of March 25,, 2022 6zH0 PM Joint 0"o�mrermW7[P C. CSAH 19 WATERMAIN PROJECT BID ADVERTISING - Larson told the Board that the proposed bid date for the CSAH 19 w/aiLcrma|n project is set for May 17m. The project will be bid the same day the County Road project is bid. Tmgive the required time to prepare bids, the bid advertisement will be published in April. Larson said that the opinion of p�robable cause for the whole project is $1.9 million. The Joint Powers portion of that is $1.35 million, There are other parts of the project that will be Wright County's and SL Michael's costs, Where other watermain projects have been County project�s, th|swiN be Joint Powers' project and Joint Powers, will be awarding the watermaim and road portion of the project and thew the County and St. Michael mN| reimburse Joint Powers. Hagerty asked if the bidder would have all nnoteria|s. Larson said there will likely be incidentals and that wevvNl provide the contractors list of everything weare providing and that they need toprovide anything missing. Flagedyasked how wewill know it we areomderimg enough materia|s. Larson said there is no guarantee that wemi0 be ordering enough. Larson asked for Board approval'! to, authorize the advertisement for b�Yds for the CSAH 19 waitermma:in project. Motion by Olson, second by Dierberger, to approve the authorization ofthe advertisement for bids for the CSAH 19 vwat�erimain project. Motion, carried unanimously. NEEDS ASSESSMENT AND-STORAGE AND TREATMENT./...A,$.B.__CAEACITY - Larson told the Board that the water plant isabout twenty-two years old and that there are some things that are showing their age and mnayneed toberehabbed orreplaced. Larson said that filters and process piping are starting to rust and the filter room needs some power tool cleaning, sandblasting and painting. In three of the filters, the filter media �s twenty-two years old. It was last tested aboutfive years ago and met specs; however, the filter media is growing and Ah|esisnow having issues with the media clumping together. Larson said that itisn't uncommon for a facility to replace filter media after twenty years, so having the internals of the filters looked at and the filter media analyzed to make Sure it still meets specs orneeds t# be replaced is warranted. Kauffman asked if there were things that Veo|ia should be spearheading. Cook said that the condition of the pipe is also looked at to see if we are losing any of the pipe material onthe inside aindthat medon't have tuberou|ationaswell. Looking atamoverall project to add on the painting and cleaning of the pipe itself is very sma||. Kauffman asked if an engineer is needed tmfind these |mprovemenis. Larson said that the engineers are looking at the whole facility and recommending projec±s. Larson went over number ofproposed projects that are better handled by an engineer rather than Veo|8a staff. Hendrickson said that the auditor said theme needs to be a plan as to where money should be used and that this is e good p|em to find out where money should be spent. Hagerty asked if the water treatment plant building will be added onto. He feels the office space istight and his opinion isthat we've outgrown the building. Larson said that a building expansion is in the discussions and that if we can figure out a way toadd office space tothe building it would be nice. Kauffman commented that these projects don't meed to happen right now. Larson said he would come tmthe Board with projects that would be necessary and mthmrrmcommendatiuns, as well as timing. Larson a3so told the Board that there is a need for an additional bathroom at the VVTIP since there are ten employees and one unisex bathroom. Hendrickson said she |sall for adding amadditional bathroom. Hagerty asked if there could be a, vvhn|e separate building for staff. Larson said that could be a possibility. Healso told the Board that water usage is trending upwards because of irrigation and new developments. Awater master plan was done in 2017 and said that when the average daily water demand exceeds 2.25 nngd, a new tower should be looked at. Last year we were at 3'2 rngd. Hendrickson asked if land had been purchased for a new water tower. Larson said that the question arises from whether or not the ASR site is suitab\efor a watertower site. Larson said there are five acmes of land at the ASR site and that it is a decent size for the elevation standpo|nt. Hagerty asked if the tower was somewhere else would we need another well. Larson said the wells shouldn't come into this right now. Kauffman asked if it is a good thing to have the tower atthe bottom of the hill. Larson said in a, perfect world you wouldn't have your tower bywhere your supply is, The ASR issupplying water for acouple af JOINT POWERS WATER BOARD MINUTES Regular Meeting of March 25, 2022 6:00 PM Joint Powers WTP months during the year. Larson said this is something that would be evaluated. Larson also said that we are getting close to treatment capadty, too. There are five filters at the WTP. The plant can't be run at more than 8 rngd for more than one day, because you need to backwash filters. Kauffman asked where a second ASR Would be located. Larson said lie doesn't know at this time. Ahles asked if we are looking at a different locaUon. Larson said it is possible. Larson asked for Board approval to authorize HDR's quote for $50,600 to produce a report to look for building and property improvement recommendations, as well as costs and timing of said projects. Motion by Hagerty, second by Olson, to accept HDR's quote for $50,600 to produce a report to look for building and property improvement recommendation, as well as costs and timing of said projects,. Kauffman voted against accepting HDR's quote for $50,600 to produce a report to look for building and property improvement recommendations, as well as costs and timing of said projects. The motion passed with 5 votes in favor, and 1 vote against. D, E. LANDSCAPING BID - Cook explaunied to the Board that Dan Dehrrier Landscaping provided a quote for $2,591 per month to do fertflizing, weed control, shrub care, spring and fall dean-up and weekly mowing frorn April I -- October 31 at all Joltit Powers Water Board locations. Cook asked for Board approval to move forward with Dan Dehmer Landscaping's quote of $2,591 per month to do landscaping for all Joint Powers Water Board locations. Motion by Hagerty, second by Schoen, to accept Dan Dehmer Landscaping's quote of $2,5911 per month to do landscaping at all Joint Powers Water Board locations from April 1 - October 31. Motion carried unanimously. F. INTERACTIVE TECHNOLOGY BOARD MEETINGS - Cook reminded the Board that any time there is an interactive Board meeting, members at all locations need to be able to see and hear one another. If a Board member is remoting in they have to be or) camera and audio. The public at the regular meeting location needs to be able to see and hear all discussions. At least one Board member needs to be present at the host location for it to be a legal meeting. If it is a complete virtual meeting with one person at the host location, all votes are completed by roll call. Each location where a Board member is present needs to be accessible to the public. To the extent practical, the public can monitor the meeting electronically frorn a remote location by dialing into the meeting. 7. DEPARTMENTS: ...................... A, ENGINEER - None, B. OPERATIONS - Ahles told the Board that they started removiing sludge from the garage and that two rolloffs were removed last week. This process will continue. 8, A.PP-ROVE--LIST-O.F.CLAIMS: A. MARCH 2022-C.L.A.1M S. - Motion by Schoen, second by Olson, to approve the March 2022 Claims as presented. Motion carried unanimously. 9. OTHER B CORRESPONDENCE - Cook told the Board that he accepted another position within Veolia and will be leaving the region and moving to California. We are recruiting for Cook's replacement. Kelly Irving will be returning as Vice President of Operations for the region and will oversee Minnesota, 0sconsin, Iowa, Illinois and Kansas, Hagerty told Cook that Steve Bot, the City of St. Michael and the Board have really enjoyed having him here and wished him the best. JOINT POWERS WATER BOARD MINUTES Regular Meeting of March 25, 2022 6:00 PM Joint Powers WIT 10. ADIOURN - Motion by Schoen, second by Kauffman, to adjourn the meeting at 6:56 PM. Motion carried unanimously. Jerftferl-hpja,>, Recording Secretary.