2022-08-22 Joint Powers Water Board MinutesJoint Powers Water Board
Regular Meeting Minutes
August 22, 20�22
Page I
1.. Call to Order. The regular meeting of the Joint Powers Water Board was called to order by
Chairperson, Jillian Hendrickson, on Monday, August 22, 2022 at 6:00 p.m. at the Joint Powers
Water Board Water Treatment Plant, 11100, 50111 St NE, Albertville, MN 55301.
Board present: Tom Dierberger, Joe Hagerty, Jillian Hendrickson, Nadine Schoen, Robert Zagorski
(for Robert Olson).
Board absent: Chris Kauffman, Rob Olson,
Staff present: John Seifert, General Manager
Staff absent: Jennifer Thomas, Office Manager; Andrew Al"fles, Water, Department Supervisor
Facilities Manager; Dustin Carlson, Assistant Water Department Supervisor / Facilities Manager; lac
Foster, Project Manager,
Engineering present: None.
Engineering absent: Chris Larson, HDR Engineering.
2. Approve Agenda. Seifert asked the Board for approval to add all item under General Business
regarding authorization to submit Source Water Protection Pian Implementation Grant Application.
Schoen moved, Hagerty seconded, to adopt the Agenda as amended. Motion carried 5-0.
3, Approve Consent Agenda. Dierberger moved, Zagorski seconded, to approve the Consent
Agenda below. Motion carried 5-0.
3.1 July 25, 2022 Special Board Meeting Minutes
3.2 August 2022 List of Claims
3.3 August 2022 Budget Report
3.4 Joint Powers July 2022 Investment Summary Report
3.5 August 2022 Cash Balances Report
3,6 July 2022 Monthly Operations Report
33 Water Salesman Contract (Previously Approved)
4. Unfinished Business. None.
5. General Business.
5.1 Discussion on Items Affecting 2023 Draft Budget. Seifert provided a discussion
memo for members to take notes and provided information on the following:
A. Chemical Increases. Discussion was focused around increases to chemical prices
over the past two years. Joint Powers bleach supplier, Hawkins, has received over 45
letters from their suppliers announcing rate increases over the past two years. As all
example, bleach has had eight price increases since May 2021. The interruption in supply
chain and other impacts outside of the Water Treatment Plant and Wastewater Treatment
Plant chemical use have driven rate increases. Seifert told the Board that chemicals are
being managed as tightly as possible. Hendrickson asked for additional information on
what specifically is driving those costs.
Joint Powers Water Board
Regular Meeting Minutes
August 22, 2022
Page 2
B. Utility Rate Increases. The utility rate increases afforded Joint Powers through the
Public Utilities Commission (PUC) said gas was approved for a 3,9% rate increase arid
electricity has asked for a rate increase of 21.2% over the next three years. Their interim
rate they are asking for over the next two years is 8.9%. Hendrickson asked whether
solar panels Would be a way to save money for Joint Powers. Seifert said that is an area to
research and that there are offsite solar gardens, which require a pledge of entire energy
Use, is that may be more financially beneficial. Staff commit to follow PUC filings and
awards for gas and electrical as part of the budget process.
C. Supply Chain Issues. Seifert told the Board that there has been an interruption in
the Supply chain from COVID. This has been challenging for Joint Powers Water. Repair
parts that have normally been available are, seeing one year lead tirries. An example being
fleet vehicles that are taking significantly more time and higher costs to purcliase. Staff
are committed to research and acquire access to and have, critical parts on hand and to
continue with uninterrupted water supply for member Cities.
D. Labor and Hiring Challenges. Discussion focused on the labor increase across
markets. There was a brief diSCUSSiOri on neighboring cities rate increases. In the, last
year there has been a 12% increase in labor and benefit costs. Staff will continue to
monitor increases in labor market prices in neighboring communities and utility rnarket.
E. Service Level Requests. Seifert told the Board that there are some things that are
trending in the water supply. The people who are using online ACH payments are looking
for more information. As the communities grow there are a greater number of users who
are requesting service level enhancements. There are currently 8,500 accounts. Most of
those have a meter and reading device. Meters have a life span of 20 years and are
nearing the end of their useful life. Replacement of those meters will need to be discussed
in the near future. We currently use automated meter readings (AMRS) where Operators
drive around to collect meter information. There is also an automated meter information
(AMI) option that allows staff to look at what is available at a specific time. This allows
staff to give immediate attention to customer needs. Seifert also discussed utility billing
needs that will need to be addressed in the near future. Staff are committed to establish
the budget and timing for replacing meters.
F, Long Range Planning (CIP and Condition Assessment). Discussion ensued on
growth planning of member cities. Larson is Currently taking information from member
cities to forecast growth. Staff will work with Larson on condition assessment and the
current asset improvement schedule, as well as using growth (projections from member
cities, to forecast well capacity, storage capacity aind treatment capacity. Hendrickson
commented that she feels it is appropriate to continue to supply information to Larson to
provide an accurate CIP. There was then discussion on the trend by regulatory agencies of
investing in emerging contracts. Staff are committed to continue to monitor regulations
and the impact on long range planning,
5,2 Authorization to Submit Source Water Protection Plan Implementation Grant
Application. Seifert presented an application for a grant from the MN Department of Health
that is open from September 1 - 30. Most likely Joint Powers protection grant application would
be for well sealing. Zagorski inquired on amount of grant available. Seifert said the three
member cities could receive up to $30,000 of non -match grant funds. Hagerty moved, Schoen
seconded, to authorize submission of the Source Water Protection Plan Implementation Grant to
the MN Department of Health. Motion carried 5-0.
Joint Powers Water Board
Regular Meeting Minutes
August 22, 2022
Page 3
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10. Adjourn. Dierberger moved, Schoen seconded, to adjourn the Joint Powers Water Board
meeUng at-, 7:1.4 PM. Motion carried 5-0,