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2024-03-25 Joint Power Water Board AgendaJoint Powers Water Board AGENDA Regular Meeting of March 25, 2024 Joint Powers WTP 11100 50th Street NE Albertville, MN 6:00 PM Chairperson Engineer Ryan Gleason Chris Larson, SEH Board Members Operations Tom Dierberger John Seifert, Veolia Joe Hagerty Jennifer Thomas, Veolia Chris Kauffman Dustin Carlson, Veolia Rob Olson Zac Foster, Veolia Bob Zagorski 1. Call to Order / Roll Call 2. Approve Agenda - Page 1 3. Consent Agenda - Page 2 3.1 Approval of February 26, 2024 Regular Board Meeting Minutes - Page 3 3.2 Approval of March 2024 List of Claims - Page 5 3.3 Approval of March 2024 Budget Report - Page 6 3.4 Approval of March 2024 Cash Balances Report - Page 7 3.5 Approval of February 2024 Monthly Operations Report - Page 8 3.6 Resolution Approving Weber Lawn and Landscaping's Bid for Landscape Maintenance - Page 21 3.7 MBI Pay App. No. 6 - Filter Rehabilitation - Page 26 4. General Business - Page 29 4.1 Abdo Audit Results - Page 30 4.2 AE2S Notice of Award of Watermain Looping Project - Page 70 4.3 Approval of Scope of Work for Proposal for Grant Funding for Future Water Treatment Plant - Page 74 5. Engineer - Page 79 5.1 Submittal of Increase in Joint Powers Water Board's Water Appropriations from the MN Department of Natural Resources - Page 80 5.2 Filter Rehabilitation - Change Order No. 1 - Page 82 6. Operations and Office - Page 88 6.1 GSR Update - Page 89 6.2 Filter Rehab Update - Page 90 7. Other Business / Announcements / Correspondence - Page 91 7.1 Locker Room Purchases - Page 92 8. Adjourn Pagel of 93 CONSENT AGENDA Page 2 of 93 Joint Powers Water Board Regular Meeting Minutes February 26, 2024 Page 1 1. Call to Order. The regular meeting of the Joint Powers Water Board was called to order by Ryan Gleason, on Monday, February 26, 2024 at 6:00 p.m. at the Joint Powers Water Board Water Treatment Plant, 11100 50th St NE, Albertville, MN 55301. Board present: Tom Dierberger, Ryan Gleason, Joe Hagerty, Chris Kauffman, Bob Zagorski. Board absent: Rob Olson. Staff present: John Seifert, General Manager; Jennifer Thomas, Office Manager. Staff absent: Dustin Carlson, Water Department Supervisor / Facilities Manager; Zac Foster, Project Manager. Engineering present: None. Engineering absent: Chris Larson, Short Elliott Hendrickson, Inc. (SEH). 2. Approve Agenda. Hagerty moved, Zagorski seconded, to adopt the Agenda as presented. Motion carried 5-0. 3. Approve Consent Agenda. General Manager Seifert told the Board that three additional payments were added to the list of Claims. Kauffman moved, Dierberger seconded, to approve the Consent Agenda with the three additional payments added to the list of Claims. Motion carried 5-0. 3.1 Approval of January 22, 2024 Regular Board Meeting Minutes 3.2 Approval of February 2024 List of Claims 3.3 Approval of February 2024 Budget Report 3.4 Approval of February 2024 Cash Balances Report 3.5 Receipt of January 2024 Investment Summary Report 3.6 Approval of January 2024 Monthly Operations Report 3.7 MBI Pay App No. 5 - Filter Rehabilitation 3.8 2023 DNR Water Conservation Report Filing - General Manager Seifert told the Board that the DNR increased its pricing, so the previously approved amount of $25,000 for filing the 2023 DNR Water Conservation Report ended up actually being $27,929.09. 4. General Business. 4.1 Filter Rehab Actuator Replacement. General Manager Seifert told the Board that a number of actuators had previously been repaired on the pressure filters to keep operations running. There are 96 actuators on the five filters and plant recirculation system. At this point, two of the actuators need repair. Since source parts are unavailable, staff recommends replacing the two actuators. Staff recommends authorizing the purchase of two new actuators from Novaspect in the amount of $13,120.69, plus shipping. Hagerty moved, Dierberger seconded, to accept Novaspect's quote for two new actuators in the amount of $13,120.69, plus shipping. Motion carried 5-0. 5. Engineer. None. Page 3 of 93 Joint Powers Water Board Regular Meeting Minutes February 26, 2024 Page 2 6. Operations and Office. 6.1 Hannah Hoekman Resignation. General Manager Seifert told the Board that Hannah Hoekman, a Joint Powers Water Operator, resigned effective February 16. Staff has posted ads on several sites to fill Hannah's position. We wish her well in her future endeavors. 6.2 Potential Generator Warranty Issue. General Manager Seifert explained to the Board that there are problems with the new Cummins generator located at the Water Treatment Plant. The motor had a leak between the block and oil was leaking onto the ground. Seifert took a video of the leak and had Kodiak Power Systems look at it and diagnose the problem. At this time the generator was under warranty and Cummins was contacted to come out and repair the issue. They came out and ran the generator at a lower speed and said that there was no leak. They were asked to run it at a higher speed, but said it wasn't needed because there was no leak. Kodiak came out a second time and found the leak again. Seifert contacted Cummins, but was told that the generator was no longer under warranty. Kauffman asked if this is covered under insurance. Seifert said he would look into that. The Board agreed that Seifert should contact its legal counsel, Scott Landsman, and ask him to draft a letter to Cummins to seek repair of the generator as provided under the warranty given the fact that Seifert had proof that the leak happened prior to the end of the warranty period. 7. Other Business / Announcements / Correspondence. 7.1 T-Mobile Certified Letter. General Manager Seifert told the Board that T-Mobile sent a Notice of Termination of Tower Lease informing Joint Powers Water Board that it would be terminating its lease on the West Tower effective July 31, 2024. Seifert also told the Board that he received an application from Dish Network for installation of a new antenna on the East Tower. 8. Adjourn. Dierberger moved, Zagorski seconded, to adjourn the Joint Powers Water Board meeting at 6:16 PM. Motion carried 5-0. Jennifer Thomas, Recording Secretary Page 4 of 93 JOINT POWERS WATER BOARD CHECK REGISTER SUMMARY MEETING DATE: 3/25124 Check # Vendor Check Date Amount Comments 17936e CITY OF ST MICHAEL 3118/2024 $338,668.22 February 2024 Receipt by Charge 17937e PAYMENT SERVICE NETWORK 3/18/2024 $5,823.70 Febmary 2024 Web Pay Fees 17938e MN DEPT OF REVENUE 31IM024 $772.00 February 2024 Sales Tax 17939e CENTERPOINT ENERGY 3/182024 $1,234.47 February 20241nvoices 17941e YOUR LOCKER STORE 321/2024 $3.990.00 Lockers for WTP Locker Room 20967 ABDO 321/2024 $4.890.00 2023 Audit 20968 CITY OF HANOVER 321/2024 $61,137.01 February 2024 Receipts by Charge 20969 FEHN COMPANIES 3212024 $2,250.00 Refund deposit RPZ#48661821 Meter # 19184515 20970 IFOREST GLEN TOWNHOME ASSOCIAT 3/212024 $2,200.141 Refund Overpayment 20971 HOFF, BARRY PA 3/212024 $321.00 February 2024 Invoice 20972 LENNAR 3212024 $76.77 Ref credit bal on 5049 Jana Ct NE 20973 MN DEPT OF HEALTH 3212024 $18,983.00 Safe Water Fee - March 2024 20974 MUNICIPAL BUILDERS INC 321/2024 5340,501.28 Fitter Rehabilitation 20975 OTTO DRYWALL 321/2024 $6.990.00 WTP Locker Room Drywall 20976 PETER/KELLY HAGBERG 321/2024 $9&55 Ref credit bal on 10171470, St NE 20977 PFC EQUIPMENT INC. 31212024 $2,423.00 Gnmu fos Pump 20978 PREMIUM PLANT SERVICES INC. 31212024 $9.914.00 Steam Clean and Vacuum WaterTank 20979 RED TECHNOLOGIES 321/2024 $250.00 Website Edge 20980 SHERWIN WILLIAMS 3212024 $362.52 Locker Room Paint 20981 Short Elliott Hendrickson Inc 3/21/2024 $14,805.13 March 2024 Invoices 20982 TEGRETE 321/2024 $462.00 May 20241nvoice 20983 VEOLIA WATER NA 3/2V2024 $101,528.00 April 2024 Contract Maintenance 20984 WILHELM PROPERTIES LLC 32l/2024 $52.35 Ref credit bal on 1345744th Cir NE 20985 WRIGHT COUNTY FINANCE 321/2024 $61.20 Overpayment 39.3381-00 20986 WSB 3212024 $180.00 GIB Services 20987 XCELENERGY 3212024 $17.304.07 Pump House and ASR 20988 WSB 3212024 $2.099.00 Misc As-Buills and Topo 20989 JEW HOLDINGS LLC 3222024 5433.89 Replace check #20859 20990 OSI BATTERIES 31222024 S633.45 Batteries for WTP 20991 RE[ REAL ESTATE & PROPERTY MGM 1 3122120241 $52.351 Ref credit bal on 13457 44th Cir NE 1 $938,497,101 Absent Ryan Gleason Rob Olson Joe Hagerty Bob Zagorski Chris Kauffman Tam Dierberger Page 5 of 93 Joint Water Board Budget - 2024 JPWB Board Meeting March 2024 2024 Account Desc, Budget 2021 Amt YiD Budget YTD Amt FUND 101 GENERAL FUND E 10140000-700 Advertising $200.00 $0.00 $200.00 $0.00 E 101-40000-702 Ucense/Fees $375.00 $250.00 $375.00 $850.00 E 101-40000-704 Bank Charges $500.00 $0.00 $500.00 $0.00 E 10140000-712 Contract Maintenance $1,247,045.00 $101,528.00 $1,247,045.00 $304,584.00 E 101-40000-730 Insurance $28,000.00 $0.00 $28,000.00 $0.00 E 10140000-734 Meeting Allowance $300.00 $0.00 $300.00 $0.00 E 10140000-748 Office Supplies $500.00 $0.00 $500.00 $0.00 E 1014000D-749 Credit Card Fees $30,000.00 $2,522.40 $30,000.00 $8,009.09 E 10140000-752 Audit Fees $24,000.00 $4,890.00 $24,000.00 $18,090.00 E 10140000-754 GIS Engineer fees $7,500.00 $2,279.00 $7,500.00 $3,466.50 E 1014000G-755 Pmject Engineering Fe $2,500.00 $14,805.13 $2,500.00 $15,102.18 E 10140000-756 General Engineering F $24,000.00 $0.00 $24,000.00 $0.00 E 10140000-757 Wellhead Protection En $400.00 $0.00 $400.00 $0.00 E 101-40000-758 Legal Fees $4,000.00 $321.00 $4,000.00 $593.00 E 1014000D-759 ASR-Mist $1,000.00 $0.00 $1,000.00 $1,136.00 E 10140000-770 System Maintenance $40,OD0.00 $11,781.92 $40,000.00 $751,322.47 E 10140000-771 Well Maintenance $100,000.00 $0.00 $100,000.00 $0.00 E 10140000-772 System Repairs $35,000.00 $2,423.00 $35,000.00 $2,423.00 E 10140000-773 Facility Mgmt $25,000.00 $11,804.52 $25,000.00 $17,826.81 E 10140000-774 Utilities $330,000.00 $17,304.07 $330,000.00 $26,031.26 E 10140000-785 DNR Water Usage $18,000.00 $0.00 $18,000.00 $27,929.09 E 10140000-795 Mix Expense $2,500.00 $0.00 $2,500.00 $0.00 E 10140000-796 EDA/RR Fees _ $1,100.00 $0.00 $1,100.00 $0.00 FUND 101 GENERAL FUND $1,421,920.00 $169,909.04 $1,921,920.00 $1,177,363.40 $1,921,920.00 $169,909.D4 $1,921,920.00 $1,177,363.40 0312PJ24 9:18 AM Page 1 Page 6 of 93 g a m g 3 a 0 mnp n o m - m n ni ai 0 0 0 N N N Q a' - m o' m 'O O O y R N of w m m C R U e U n p m $ m rc � N w N o h y _ m r Q h p � m M Page 7 of 93 O VEOIIA Orrice & P Locelion. 111W 50" St NE IUtK`rtvine MN 66301 Office — 763 197-3611 F. — 763 97-3611 Emergency 763-219-5309 Monthly Operations Report John Seifert - General Manager Dustin W. Carlson - Supervisor & Facilities Manager Jennifer Thomas - Office Manager Ruth Klick - Project Associate Delena Daleiden - Admin. - Finance Jeri Stodola -Admin February 2024 Operators: Joseph Hill - Lead Operator Fred Hoilles - Operator Zach Blake - Operator Executive Summary Joint Powers effectively produced 67,459,000 gallons of water in the report month. All bacteriological samples were negative. The average fluoride concentration was 0.82 mg/L (Limits are 0.5 & 0.9). The total production to the disbibution system was 67,026,800 gallons and actual consumer use was 53,844,800 gallons, an average daily amount of 1.86 million gallons per day. Operations The standard operations of the facilities include: O Daily testing of fluoride and chlorine in the system. O Monthly performance inspections on wells. 4 Monthly bacteriological sampling (25 samples). O Bulk chemical deliveries. O ERT missed reads/ meter checks. O Chemical feed systems adjustments & maintenance. O Laboratory equipment calibrations. O Safety and training meetings. O MC Lite meter reading routes for Hanover & St. Michael. O Regularly scheduled operations & maintenance meetings. O Routine daily rounds, inspections, and security checks of the water treatment plant. O Routne weekly off -site facilities inspections and security checks. O Regular backwashing of filters, reclaiming and pumping of backwash sludge. O Monthly performance inspections of emergency generators. O Monitoring & regulating access to the water towers for telecommunications companies to make repairs & upgrades. Major Activities Uncommon Operations and Major Corrective Maintenance: O Filter Rehab Ongoing. O GSR Cleaned and Vacuumed Out. O Locker Room/ Bathroom Project Updated Pictures. of 93 Safety & Training Each month our staff performs inspections of all safety equipment such as fire extinguishers, eyewash stations, chemical showers, and emergency lighting. We also have safety meetings during the month that consist of both routine and non -routine topics. Call-0uts (After -Hours Emergency Calls) O None in February Regulatory Communications Our monthly regulatory communications were completed satisfactorily and on -time. These were: O The monthly fluoridation report to the MDH O The monthly bacteriological test results to the MDH O The monthly injection/recovery report to the EPA Major Client / Public Relations Issues O None In February Distribution System Statistics Total Hanover St Michael Joint Powers Comments Locates (GSOC) 132 42 89 1 Gopher State One Call, Tickets Received Hydrants Flushed 0 0 0 0 Spring/Fall(Joint Powers Are Albenville) Including water quality issues (Albertville), water Customer Service Visits 11 0 11 0 usage issues, curb stops oNog,waler main operations, special locates (not through GSOC)& misc. issues. Inspections 28 6 22 NA These include out -of bounds read checks, leaking Meter/ERT Issues/Repairs 26 7 19 NA meters, bad ERTafreplacements, wiring issues, missed reads, monthly meter reading, etc. Maintenance Work Orders 41 1 0 40 These include issues/repairs & regular maintenance for the dlst.systems &JP facilities. Finals 21 2 19 NIA Balance LIM 1 $356,472 1 $3.795 1 $352,1 Final reconciliation will occur after year-end finances have been processed.'No updates on available at time of report. Estimated Appendices Monthly Fluoride Report, Monthly Bacteriological Report, Monthly ASR EPA Report Page 9 of 93 - E c vc c 30 o 3 `b E c n -2 i a `x o_ r m' i v; �_ i 3 ry ^' Y ✓Q o 3 C c ,_ x `a b N a -_ � E m K - = ✓ dL c� ii 9� Y o N O- R U _n N O F m N w u c N qe�o a eaN e ane.eNv.� v.+a .� v Nn n E E E E E E LL _ o -. .... y n ^ rc 'O o n O ry N N e v N v m P n rv^ m n O� N.O. o e e e o e o P o e o 0 o e o 0 0 e o 0 e m ^ o e e P 3 v � D a ( O = o o e o o e e P e o o e e o e e m o e e o o e o o e o F l = o e e o e e P o e o o e m o e o 0 0 `o - z Cirri n P ;_ ^ nme ry ._ ^ ^ '° ro� 0 .:^ ^ ^ q a e O w N m m S. ^ N P a N u n m ^ 9 a Page 10 of 93 n e C O a 5 _ u ry = a Q OF�yyy NYe„ d q O�jS 'yU €� a 3FF y `° r k O > y m g E o'er me ti5 m e Y a c m= u fr m e a p m a 3 Q a � b Sf 9 333 a 6 E L 5 m CG efr - � 8 Z c 5 3 rr i S E G s€€€€€c3€€€€ MMMM E EF %�y2����yV yV�yC ey 6KKdu`CY33dNd ono�a nnaonav 6 6ticC �9v�v��aa�a zieeikrcX V UUUVVVVVVVV 1 �i . 3 C 1 _ gg 88_a �5 py$gpg�y 9.X�aAB SZ ii 6YS;R YYYYYYYYY• sx----------i ckE �����EEEc EE KKFFF 1=Yi-FFC UEHA 65d M ao goeee'�=o'oo aaaa u I I1%-172 ff ' _ciggv :�zrcrcrccadd VUVGUUUV VVV VV =air <g a z 06^Y Hen °"'YYYY�yuu Page 11 of 93 s' rc w O 6O 6 CD p E o G n 2 � 2 yU imp th �m M g o v r E o 0 00 N < V o C 0 E pO m n n N E O n 6 y 1p < YJ 9 , U O uf a M N 2 J y v n r r y m a` @ U N n mj O ri E• f E LLoi�f � of _ N O a a N ` N c 2 ;'o - m'S 3 3 3 3 3 3 = 3 Page 12 of 93 ) ! )§ ) k\ \� )� . ) � }���� ) |l:S2 ai !/E _ 13,s ) !O 70 !Zzz ` ) §mm ) ) N , fi ® ® !�C es EC! v . )�® 5 5 ~ ( �E~ } _ 14,e ) § \(ad _ ) k\ ƒ� ; !! ! \k \� �\ k§; ! \ | k CO |w § OR ° \ 2° : _ ° ) /2 § ` \* ! § )�§ Page 15,_ ) § !G ■ \m ( �\ |'v v / /!w ` ) v § ;flt § ) : ) )!, !4: .gs L !!!� � Page 16«_ r 0 0 2 m } w w z m w O Q Q Z Z U F w O x w w ag a (_ w 2 U Z) O 0) N N N Cl! N Cl! N N N N N N N t N N N N N 000, 00 �O i0 �O N i0 LO LO M 00 O Q Q Q Q Q a Q Q Q Q Q Q w w w w w w w w w w w w w w w w w w w w w d m� 10� m a c m y CO L C � ) ❑ r 8 d J r 0 U O 'O d c o o N O jr U N A a` c O _ m J m G 0 0 N J J J J J J J J J J J U (0 U a v U E E= a Q d a o O O E U V U U w m m U C Z E E t O f0 0 O E E m O O t p a l O �p -N O O O E H EE 0 m E E `o O 2 0 0 t c o N O O L .0 ` n U c O c O m U ❑ m m U O F O O H F Page 17 of 93 Year: 2024 (2024 Cycle) Month: February U.S. ENVIRONMENTAL PROTECTION AGENCY MONTHLY MONITORING REPORT FOR CLASS V INJECTION WELLS UIC PERMIT NUMBER: MN-171-5R21-0002 OPERATOR NAME: Joint Powers Water Board ADDRESS: 11000 50th St NE WELL NAME: CITY/STATE/ZIP: Albertville, MN 55301 WELL COUNTY: PHONE: (763) 497-3611 MONTHLY REQUIREMENTS Well 9 Wright Total Injection Period Total Report Total Injection Period Volume YTD Volume Month Volume Injection (Gallons) 26,675,000 1 13,182,000 1 29,321,000 Injection Pressure & GPM Average Highest Value Lowest Value Monthly Injection Pressure (psig) 8.5 10 8 Monthly Injection Flow Rate (GPM) 312.9 323 307 Total Recovery Period Total Report % of Injection Period Total Recovery (Gallons) YTD Volume Month Volume Volume 0 0 0.00% COMMENTS: The 2023 ASR cycle began in December 2023, with the injection phase. Test well 6 and ASR well 9 were flushed to waste and background testing & sampling was performed on both wells and the injection source, the Joint Powers distribution system, before injection was begun. 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 two, 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) Dustin W. Carlson, Water Operations Supervisor & Facilities Manager Name and Official Ti le Signature: ✓o .E Z Date Signed: , _ t,_ Zy Page 18 of 93 Year: 2024 (2024 Cycle) Month: February UIC PERMIT NUMBER: MN-1715R21-0002 OPERATOR NAME: Joint Powers Water Board ASR PTC-3 SAMPLE LOCATION: Well (Mt. Simon) Constituent Units Detection Limit Well 5% Recovery Well 30% Recovery Well 60% Recovery well 100% Recovery Federal Drinking Water Standard Method Date Temperature °C H Bid Units Conductivity u5/cm ORP mV Dissolved Oxygen DO m L Chlorine, Total Residual mg/L 0.01 HACH 8167 5th ED 2008 Aluminum u /L 4 200 EPA200.8 Arsenic u /L 0.5 10 EPA 200.8 Calcium ug/L 400 EPA 200.8 Copper u /L 0.5 1000 EPA 200.8 Iron u9/L 50 300 EPA 200.8 Lead u /L 0.1 EPA 200.8 Magnesium ug/L 100 EPA 200.8 Manganese u /L 0.5 50 EPA 200.8 Potassium u L 20 EPA 200.8 Sodium ug1L 50 EPA 200.8 Alkalinity, Total as CaCO3 m L 5 SM 23208 Chloride m 2 250 SM 4500Cl E Fluoride m /L 0.1 2 SM 4500F/C Nitrogen, Ammonia m /L 0.04 EPA 350.1 Phosphorous m /L 0.4 EPA 365.4 Silica, Dissolved m /L 1 EPA 200.7 Sulfate m /L 2.5 250 ASTM D516-02 Total Hardness by 2340B m /L 1420 EPA 200.8 Nitrogen, Neldahl, Total m /L 1 EPA 3512 Total Organic Carbon m /L 1 2 EPA 9060 Gross Alpha pCUL EPA 900.0 Adjusted Gross Alpha pCUL 15 Ra-226 pCVL 5 EPA 903.1 Ra-228 pCUL 5 EPA 904.0 Ra-226+Ra-228 pCUL 5 Total Uranium 238 pCUL 0.5 ERA200.8 Bromodichloromethane u /L 0.5 EPA 524.2 Bromoform u L 4 EPA 524.2 Chloroform ug1L 0.5 EPA 524.2 Dibromochloromethane ug/L 1 0.5 EPA 524.2 Total Trhalumethanes Calc. u /L 80 EPA 5242 Dibromoacetic Acid u /L 1 EPA 5522 Dichloroacetic Acid u /L 1 EPA 552.2 Monobromoacelic Acid u L 1 EPA 552.2 Monochloroaccetic Acid u9/L 1 EPA 552.2 Trichloroacelic Acid uglL 1 EPA 552.2 Total HaloaceBC Add u /L 60 EPA 552.2 Uranium -234 pCUL HSL300 Uranium -235 pCi2 HSL-300 Uranium -238 pCUL HSL300 ogc v �i v� Year: 2024 (2024 Cycle) Month: February UIC PERMIT NUMBER: MN-171-5R21-0002 OPERATOR NAME: Joint Powers Water Board ASR PTC-3 SAMPLE LOCATION: Test Well (Mt. Simon) Constituent Units Detection Test Well Background Injection Test Well 95Y Injection Test Well 1covWater Recovery Federal Drinking Stentlard MethodLimit Data 1/2/2024 Temperature °C 10.0 H Sld Units 6.47 Conductivity us/cm 0."1 ORP mV -68.10 Dissolved Oxygen (DO) m /L 1.81 Chlorine, Total Residual ug1l. 0.01 0.00 HACH 8167 5th ED 2008 Aluminum u L 4 <1.7 200 EPA 524.2 Arsenic u /L 0.5 1.00 10 EPA 524.2 Calcium u /L 400 77.000 EPA 524.2 Copper u /L 0.5 <0.57 1000 EPA 524.2 Iron ugIL 50 1.700.00 300 EPA 524.2 Lead ugiL 0.1 <0.13 EPA 5242 Magnesium uglL 100 28,000.00 EPA 524.2 Manganese u L 0.5 220.00 50 EPA 524.2 Potassium u /L 20 2,300.00 EPA 5242 Sodium u /L 50 5.200.00 EPA 524.2 ARalmity,Total as CaCO3 m /L 5 270 SM 2320E Chloride M91L 2 0.59 250 SM 4500-CI E Fluoride M91L 0.1 2 SM 4500F/C Nitrogen. Ammonia mpIL 0.04 0.14 EPA 350.1 Phosphorous m /L 0.4 <0.021 EPA 365.4 Silica, Dissolved m /L 1 9.70 200.7 MET ICP Sulfate mg/L 2.5 16.00 250 ASTM D516-02 Total Hardness by 23408 g1L 1420 310.00 EPA 200.8 Nitrogen, K'eldahl, Total mgIL 1 0.38 EPA 351.2 Total Organic Carbon m /L 2 0.682 1 EPA 9060 Gross Alpha pCVL 17.70 EPA 900.0 Adjusted Gross Alpha pCUL 15.52 15 Ra-226 pCill. 4 5 EPA 903.1 Re-228 pCVL 2.14 5 EPA 904.0 Ra-226+Ra-228 CVL 6.17 5 Total Uranium u 0.5 1.00 EPA 200.8 Bromodichloromethane u 0.5 <0.10 EPA 5242 Bromoform u L 4 <0.20 EPA 5242 Chloroform u L 0.5 <0.20 EPA5242 Dibromochluromethane ug/L 0.5 <0.10 EPA 524.2 Total Trihalomethanes(Calc.) u L <0.20 80 EPA524.2 DidwmosceOc Acid ugtL 1 <0.60 EPA 652.2 Dichloroace8c Acid u L 1 <0.60 EPA 6622 Monobramoacetic Add u L 1 <0.60 EPA5522 Monochloroaccelic Adtl u /L 1 <7.2 EPA 552.2 Trichloroacetic Acid u L 1 <0.50 EPA 552.2 Total Haloacelic Add U91L <1.2 60 EPA 552.2 Uranium -234 1 pCUL 1.710 HSL300 Uranium -235 1 pCVL. 0.056 HSL300 Uranium-238 1 PCVL OA10 HSL300 Page 20 of 93 RESOLUTION NO. 03-25-24-1 RESOLUTION TO AUTHORIZE A CONTRACT WITH WEBER LAWN AND LANDSCAPE FOR LAWN CARE WHEREAS, Joint Powers Water Board is in need of contract services for landscape maintenance at five properties; WHEREAS, Joint Powers Water Board solicited for competitive bids for landscape maintenance; WHEREAS, the low bid for landscape maintenance was from Weber Lawn and Landscape in the amount of $17,277. NOW THEREFORE, BE IT HEREBY RESOLVED that the Joint Powers Water Board of Albertville, Hanover and St. Michael, Minnesota will enter into a contract with Weber Lawn and Landscape in the amount of $17,277 to provide landscape maintenance at five of its properties. Adopted by affirmative vote of the Joint Powers Board this 25th day of March, 2024 La ATTEST Jennifer Thomas, Office Manager Ryan Gleason, Chairperson Page 21 of 93 Weber Lawn & Landscape 612-695-1274 Landscape Property Maintenance Snow Removal "Incorporating courtesy, dependability and integrity into everything we do." WEBER LgWN & LANDSCgpE Property Address: Property Name:Joint Powers water Contact info:-jennifer.thomas@veolia.com Project description: 1. Spring Clean-up in May as weather permits. Includes: removal of leaves and debris from around all buildings, curbs, walkways and steps. Including around Rock beds and shrubs. Dethatching where necessary. Starting at $265, includes 3 Man hours after 3 hours charged perhour$128 2. Fall Clean-up in October/November as weather permits. Includes: Removal of leaves and debris from around all buildings, curbs, walkways and steps. Blowing of leaves from Rock beds, shrubs and pathways. Trim all daylilies down to ground at front entries.Starting at $245, includes 3 Man hours after 3 hours charged per hour $128 3.Shrub Trimming Trim shrubs (1) Times in Spring and (1) Fall if needed. Charged $128/Hr Trim shrubs, Blow out landscape beds and around trimmed shrubs removing debris, Haul off debris. 4. Lawn Cutting and Trimming: Shall include weekly o Remove normal trash and debris located in lawn areas o Mowing, trimming all lawn areas o Trim around all trees, rocks, beds, buildings, mailboxes and along fences, etc. o All clippings must be blown from hard services from property after each cutting and may not be swept into street. o Edging along all sidewalks, curbs and drives monthly 5. Cbemical AnWication Page 22 of 93 Weber Lawn 8 Landscape 612-695-1274 Landscape Property Maintenance Snow Removal "Incorporating courtesy, dependability and integrity into everything we do." • Application #1 — Crabgrass pre -emergent with granular fertilizer • Application #2 — Granular fertilizer Weed & Feed A. Service Locations. Service Location 1 (Exhibit Al) JPWB Well House 2. 10690 15 St NE. St Michael MN 55376 Monthly Mowing - $248 Fertilizer (1 pre emergent App) $150 Service Location 2 (Exhibit A2) JPWB East Water Tower: 13458 50 St NE St Michael m;; 55376 Monthly Mowing - $384 Fertilizer (1 pre emergent App)- $250 Service Location 3 (Exhibit A3) JPWB West Water Tower. 101 Terrace Rd NE St Michael MN 55376 Monthly Mowing -$435 Fertilizer (1 pre emergent App) - $220 Service Location 4 (Exhibit A4) JPWB Wells 6 and 7: 376 Ivory Av NE St Michael MN 55376 Monthly Mowing -$385 Fertilizer(1 pre emergent App) -$185 Service Location 5 (Exhibit A5) 5. JPWB Water Treatment Plant, 11100 501h St. NE Albertville MN 55301 Monthly Mowing - $785 Fertilizer (3 App front of building) - $450 Total Cost for 5 Locations-$17,277 -Mowing, Fertilizer, Spring/fall cleanups, Weeding, Page 23 of 93 Weber Lawn & Landscape 612-695-1274 Landscape Property Maintenance Snow Removal "Incorporating courtesy, dependability and integrity into everything we do." 2) Weber Lawn & Landscape Responsibilities Weber Lawn & Landscape agrees: • To operate in a professional predictable manner, with a clean presentable image while on site. All employees have high vise uniforms while on the clock. • To use subcontractors as it sees fit to complete work orders and tasks with prior approval. • To hire only those workers legally authorized to work in the United States. • To maintain insurance and coverage deemed necessary by law including liability, workers comp, and auto. • Communication is one of our most important rules that our team needs to follow, Communication with customers, communication with employees is one great benefit of our company. 3) Payment Terms & Conditions • All services performed will be paid in full within Net 30 days. • Client will be billed monthly for all services including mowing / maintenance / and landscaping jobs. • Any landscaping work over $1000 will require a 50% deposit, including spring mulching services. • Payments may be issued via Check, or online invoice bill pay through quickbooks. • Payments made after 30 days may be subject to a $100/month late fee. 4) Legal Notices I Disclaimers • The client is advised and permits their property to be photographed and/or videographed for the purpose of site documentation and for social medialmarketing purposes. • Weber Lawn & Landscape agree that this contract is enforceable according to the laws of the state of Minnesota. • Any individual who signs this agreement on behalf of the property owner or Weber Lawn & Landscape, promises and guarantees that he or she is fully authorized to execute this agreement on behalf of his or her employer or company. In the case of an agent of the property owner, such agent represents, promises and guarantees that such agent is fully authorized to execute this agreement on behalf of the property owner. • This agreement will not be binding upon the contractor until a signed copy has been received by our office. No oral agreements will be accepted, whatsoever. Page 24 of 93 Weber Lawn & Landscape 612-695-1274 Landscape Property Maintenance Snow Removal "Incorporating courtesy, dependability and integrity into everything we do." Notice of Pre -Lien This notice is to advise you of your rights under the Minnesota Law in connection with the improvement to your property. Any person or company supplying labor or materials for this improvement may file a lien against your property M that person or company has not been paid for the wnbibutions. Under Minnesota Law, you have the right to pay persons who supplied labor or materials for this improvement directly and deduct this amount from our contract price or withhold the amounts due them from us until 120 days after completion of the improvement unless we give you a lien waiver signed by persons who supplied any labor or materials for the improvement and who gave you a timely notice. Weber Lawn & Landscape 24300 129th Ave North Rogers MN 55374 Www. Weberlandscapes.com Customer Name Customer Signature Date Zach Weber Contractor Signature Date Page 25 of 93 -o� SEH MEMORANDUM TO: Joint Powers Water Board FROM: Christopher Larson, P.E. DATE: March 18, 2024 RE: MBI Pay App No. 6 - Filter Rehabilitation Attached is Application for Payment No. 6 from Municipal Builders, Inc. This application for payment is for work on the Filter Rehab Project through March 10, 2024. I have reviewed this application for payment and believe it to accurately reflect work completed through the above referenced date. We recommend that the Board pay the requested amount of $340,501.28. Attachments: MBI Application for Payment No. 6 Short Elliott Hendrickson Inc., 3535 Vaanais Center any , St. P.W. MN 55110-51% SEH is an equal opportunity employer I www.sohInc.com 1 651.490,2000 1 800.325.2055 1 651.490.2150 tax Page 26 of 93 �I r Z W Q a 0 w a LL LU W U a Z Q a a 0 0 C� N m E O o � LL 0 O z a 2 O J Q a � a w w Z m LL Z 3 rc � N L N N OL w w 6 F d V1 W ~ O W QO F O U z O w Z N > M O w m N v M > y Z m N c w o O pf N M F VI U 2 'N 1� z 2 w 0 O O LL Lq p OI M �I Q O V Op N m� I z £ N a W i E e m � pF ,�j S. w Fp rXn Q S m o .- o M O N Z M 0 p 0 m m / N V1 0 O O m_ M p Q O M M p F O f a a o £ b � O o E o w U q t • 0 Q V V Q Z- 2 3 I F E N p �s a o a U O I a C U E FI Flk Page 27 of 93 W LL! 2 H z O Q z z O u Q o 0 o n o o M n m Q 0 0 O N O O m N M N p U OO OO OO I O b P N 2 m 0 H N Of m 0� vOi O n \ O M 0 N N X N M N O O O M O O O O O O O b O O O O �O 2_ OO OO OO R 0 0 2 m q 0 N O U m M^ M O o M a N w E o m o � O o o m m f ti 2 M� m 0 O N n O Ol O m o y a z o z O a O p S o S o . 0 o m b w + S 0 S Q 0 0 m O w ¢ ¢° Q O N O O O O n M N 6 O Q O O O O O S Q F O i Q O O w 0 0 0 00 O C O O ¢ w 6 � O 2 O i n o O O 0 0 n 0 O o m o O 0 0 0 z O O O M O M w o m o o m ry F H Oi O P b Ol d' m 0 F N VI � C q 6 c m o 0 o Q o 0 0 o Q v A O Z O O O l0 O O O O b O w O O O T O O O M M Iu ¢r O N O N O O b O d 3 n O b w N N E S m b lm0 T � d — d _ O z a N O O O 00 O O m m 0 0 0 0 0 0 o 0 0 O 00 O O LA S 0 M 0 M U C C U O m N O O O O ri Nv O 0 v N S > Ol m N ^ O1 M M Ol Oi a ¢ N V J Z N Z Z F a ° ° z m¢ r 3 O w q ; 3 z 0 n U N 'oo O z F s w Q a m« m O z F -u dz9 Z Q¢ W w ow z ¢tea F u a mm ? U M N M o m LA 0 00 x ¢'u¢ ZO m� u E m b> E x LL u a u. u u 0 q a U - « w 0 .- N N N m — O O C m¢ F 2 ¢ U Page 28 of 93 GENERAL BUSINESS Page 29 of 93 JOINT PC VVERS WATER BOARD `\ nc�rr$vrcGF HANOVCR • Sf- HfCHAEc Joint Powera Water Board Tel.: 763497-3611 11100 S& St NW Fax : 7634974908 Albertville MN 55301 wvnN.jointpowerswaterboard.org ■MEMO TO: Joint Powers Water Board FROM: John Seifert DATE : March 19, 2024 SUBJECT: Abdo 2023 Audit Results Staff has worked with Abdo on the annual audit process. The Board will receive a video presentation highlighting the 2023 audit. Pending direction by the Board, Staff is looking for approval of the 2023 audit as presented. Recommended Motion: Authorize the approval of the 2023 audit as presented. TNISTRANSMISSIONCOWMNSCONFIDEWU INFORMATIONIWENDED FOR USE ONLY BY THE MOVE NAMEDRECIPIENT READING, DISCUSSION, DISTRIBUr10N,ORCOPYINGOFTMSMESMGEISSTRICTLYPROHIBIIEOBYANYONEOTHERT THENAMEDRECIPIENT OR HIS OR HER EMPLOYEES OR AGENTS. IF YOU HAVE RECEIVED THIS FM IN ERROR, PLEASE IMMEDIATELY NOTIFY US BY TELEPHONE (COLLECTI.ANDRETURNTHEORIGINALMESS ETOUSATTHEABOVEADORESSVIAUS. POSTALSERVICE. Page 30 of 93 V Executive Governance Summary Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota For the year ended December 31, 2023 ■� Edina Office Mankato Office Scottsdale Office N 5201 Eden Avenue, Ste 250 100 Warren Street, Ste 600 14500 N Northsight Blvd, Ste 233 `N �d Edina, MN 55436 Mankato, MN 56001 Scottsdale, AZ 85260 ii. a jr rP 9528359090 P 507.625,2727 P 480.864.557 age 31 of 93 Ahap A _ ` Abdosolutions.com NEED DATE Board of Commissioners Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota 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 year ended December 31, 2023 and have issued our report thereon dated NEED DATE. 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 December 7, 2023. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings In planning and performing our audit of the financial statements, we considered the JPWB's internal control over financial reporting (internal control) as a basis for designing 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 JPWB's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the JPWB's internal control over financial reporting. A deficiency in internal 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. Amaterial weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that material misstatement of the JPWB's financial statements will not be prevented or detected and corrected on a timely basis. Asignificant 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 of 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 2023-001 and 2023-002 which we consider a significant deficiency. Lighting the path forward 2 Page 32 of 93 2023-001 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. Abdo Solu tions.coin Page 33,93 2023.002 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 JPWB's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests noted no instances of noncompliance or other matters that are required to be reported under 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, 2023. 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 for the financial statements are noted below. Management's estimate of depreciation is based on estimated useful lives of the assets. Depreciation is calculated using the straight-line method. Management's estimate of its lease receivable is based on the present value of lease payments expected to be received during the lease term. --- Abdo Solutions.com Page341 3 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. 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 yearend 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 NEED DATE. 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. Abdosolulions.com Page 35�P93 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 of our retention. Policies and Procedures During our audit it was noted that there are limited financial policies and procedures kept on file or available to the auditors. We recommend that the Board review all documented processes and procedures and review for updates as it appears they have not been reviewed in a number of years. We also recommend creating and adopting written policies and procedures specifically for purchasing and electronic funds transfers. 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. 100- Accounting Changes and Error Corrections Effective: 7213712024 GASB Statement No. 101 - Compensated Absences Effective: 1213112024 GASB Statement No. 102 — Certain Risk Disclosures Effective: 1213712025 Further information on upcoming GASB pronouncements 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. Abdo Minneapolis, Minnesota NEED DATE AbaoSolutions.com Page 36�93 Annual Financial Report Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota For the year ended December 31, 2023 ■ ■ Edina Office Mankato Office Scottsdale Office hN 5201 Eden Avenue, Ste 250 100 Warren Street, Ste 600 14500 N Northsight Blvd, Ste 233 `��0 Edina, MN 55436 Mankato, MN 56001 Scottsdale, AZ 85260 Lighting the path forward P 952.8359090 P 507.625. 2727 P 480.864.557�age 37 of 93 THIS PAGE IS LEFT BLANK INTENTIONALLY Page 38 of 93 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Annual Financial Report Table of Contents For the Year Ended December 31. 2023 Introductory Section Board of Commissioners and Administration Financial Section Independent Auditors Report Management's Discussion and Analysis Financial Statements Statements of Net Position Statements of Revenues, Expenses and Changes in Net Position Statements of Cash Flows Notes to the Financial Statements Other Required Report Independent Auditor's Report on Minnesota Legal Compliance Pace No. 11 15 20 21 22 23 35 Page 39 of 93 THIS PAGE IS LEFT BLANK INTENTIONALLY Page 40 of 93 INTRODUCTORY SECTION JOINT POWERS WATER BOARD OF ALBERTVILLE, HANOVER AND ST. MICHAEL ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 Page 41 of 93 THIS PAGE IS LEFT BLANK INTENTIONALLY Page 42 of 93 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Board of Commissioners and Administration For the Year Ended December 31, 2023 BOARD OF COMMISSIONERS Chris Kaufman Joe Hagerty Rob Olson Ryan Gleason Bob Zagorski Tom Dierberger ADMINISTRATION John Seifert Delena Daleiden Jennifer Thomas Title Chairman Vice -Chairman Treasurer Commissioner Commissioner Commissioner Project Manager Finance Assistant Customer Service Manager Page 43 of 93 THIS PAGE IS LEFT BLANK INTENTIONALLY Page 44 of 93 FINANCIAL SECTION JOINT POWERS WATER BOARD OF ALBERTVILLE, HANOVER AND ST. MICHAEL ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 Page 45 of 93 THIS PAGE IS LEFT BLANK INTENTIONALLY 10 Page 46 of 93 AbdoSolutions.com INDEPENDENT AUDITOR'S REPORT Board of Commissioners Joint Power Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Report on the Financial Statements Opinion 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 year ended December 31, 2023, and the related notes to the financial statements, which collectively comprise the JPWB's basic financial statements as listed in the table of contents. 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, 2023, and the respective changes in financial position and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GARS). Our responsibilities underthose standards are further described in the Auditor's Responsibilities forthe Audit of the Financial Statements section of our report. We are required to be independent of the JPWB and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the JPWB's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. — Lighting the path forwarA 11 Page 47 of 93 Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the JPWB's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. 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. AbdoSolutions.com 12 Page 48 of-93 Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory section but does not include the basic financial statements and our auditors report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Abdo Minneapolis, Minnesota NEED DATE AbdoSolutions.com 13 Page 490 3 THIS PAGE IS LEFT BLANK INTENTIONALLY 14 Page 50 of 93 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, 2023. Please read it in conjunction with the financial statements which follow this section. Financial Highlights • The assets of the JPWB exceeded its liabilities at the close of the most recent fiscal year by $33,123,559 (net position). • Net position increased $2,070,823 or 6.7 percent. The increase is mainly attributable to operating and nonoperating revenues exceeding operating expenses. Interest income increased $2,040,093 from the prior year mainly due to market value increases. • The cash and investment balance at the close of the current fiscal year totaled $19,278,969. 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 years revenues and expenses are accounted for in the Statements of Revenues, Expenses and Changes in Net Position. This statement measures the success of 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 cash came from, what was cash used for and what was the change in cash balance during the reporting period. 15 Page 51 of 93 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 years 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 on the net position of the JPWB 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 JPWB'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 Increase 2023 2022 (Decrease) Assets Current assets $ 20,259,807 $ 18,155,868 $ 2,103,939 Noncurrent assets Capital assets (net of depreciation) 13,995,252 13,846,245 149,007 Other assets 1,830,837 1,894,888 (64,051) Total Assets 36,085,896 33,897,001 2,188,895 Liabilities Current liabilities Deferred Inflows of Resources Deferred leases resources Net Position Net investment in capital assets Unrestricted 1,221,669 1,017,773 203,896 1,740,668 1,826,492 (85,824) 13,995,252 - 13,995,252 19,128,307 31,052,736 (11,924,429) Total Net Position S 33.123.559 S 31,052736 $ 2.070,823 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 $3.29/per 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 (1 B 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 rolls. 16 Page 52 of 93 Statements of Revenues, Expenses and Changes in Net Position While the Statements of Net Position show 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: TABLE A-2 Condensed Statements of Revenues, Expenses and Changes in Net Position Increase 2023 2022 (Decrease) Revenues Operating revenues Water sales $ 3,459,006 $ 2,949,437 $ 509,569 Nonoperating 881.035 (1,159,796) 2,040,831 Total Revenues 4,340,041 1,789,641 2,550,400 Expenses Bank charges 33,512 32,337 1,175 Contract maintenance 1,615,617 1,138,355 477,262 Depreciation expense 805,407 739,383 66,024 DNR - water usage fee 27,930 17,486 10,444 Engineer fees 56,090 69,353 (13,263) Insurance 27,377 20,429 6,948 Legal fees 3,817 3,827 (10) Miscellaneous expenses 1Z823 6,002 6,821 Professional services 30,200 14,925 15,275 Repairs and maintenance 403,204 140,831 262,373 Total Expenses 3,015,977 2,182,928 833,049 Income Before Contributions 1,324,064 (393,287) 1,717,351 Capital Contributions - Connection Fees 746,759 1,557,682 (810,923) Capital Contributions - Other 885,608 (885,608) Change in Net Position 2,070,823 2,050,003 20,820 Net Position, January 1 31,052,736 29,002,733 2,050,003 Net Position, December 31 $ 33,123.559 $ 31,052,736 S 2.070.823 • The change in revenues resulted directly from an increase in market value of investments during the year 2023 year as well as increased receipts from customer water sales. • Expenditures increased $883,049 during the year mainly due to the increase on contract maintenance costs and repairs and maintenance of the water system. 17 Page 53 of 93 Capital Assets The JPWB's investment in capital assets as of December 31, 2023, is described below. 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 29 of this report. Increase 2023 2022 (Decrease) Land $ 904,232 $ 904,232 $ - Construction in Progress 910,691 - 910,691 Buildings 709,586 876,975 (167,389) Infrastructure 11,173,970 11,746,261 (572,291) Machinery and Equipment 296,773 318,777 (22,004) Total $ 13.995.252 $ 13.846.245 $ 149.007 Percent Increase/Decrease 1.08% 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 developments starting in 2022. Joint Powers has completed and reviewed a long range plan. This plan included a number of expensive infrastructure projects. Therefore, the board determined it was necessary to raise rates for the 2023 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 JPW8'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 John Seifert, Veolia Water, JPWB Project Manager, 11100 - 5& Street North East, Albertville, MN 55301. 18 Page 54 of 93 FINANCIAL STATEMENTS JOINT POWERS WATER BOARD OF ALBERTVILLE, HANOVER AND ST. MICHAEL ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 19 Page 55 of 93 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Statements of Net Position December 31. 2023 Assets Current Assets Cash and cash equivalents $ 717,397 Investments 18,561,572 Receivables Interest 40,709 Accounts receivable 618,015 Special assessments 15,225 Leases 75,467 Due from other governments 129,840 Prepaid items 101,582 Total Current Assets 20,259,807 Noncurrent Assets Connection charges 165,636 Lease receivable 1,665,201 Capital assets Land 904,232 Construction in progress 910,691 Buildings 4,199,522 Infrastructure 21,554,136 Machinery and equipment 422,644 Total Capital Assets, Cost 27,991,225 Less Accumulated Depreciation (13,995,973) Total Capital Assets, Net 13,995,252 Total Noncurrent Assets 15,826,089 Total Assets 36,085,896 Liabilities Current Liabilities Accounts payable 382,611 Due to other governments 837,558 Customer deposits payable 1,500 Total Liabilities 1,221,669 Deferred Inflows of Resources Deferred leases resources 1,740,668 Net Position Investment in capital assets 13,995,252 Unrestricted 19,128,307 Total Net Position $ 33,123,559 The notes to the financial statements are an integral part of this statement. 20 Page 56 of 93 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Statements of Revenues, Expenses and Changes in Net Position For the Year Ended December 31, 2023 Operating Revenues Water sales $ 3,459,006 Operating Expenses Bank charges 33,512 Contract maintenance 1,615,617 Depreciation expense 805,407 DNR - water usage fee 27,930 Engineer fees 56,090 Insurance 27,377 legal fees 3,817 Miscellaneous expenses 12,823 Professional services 30,200 Repairs and maintenance 403,204 Total Operating Expenses 3,015,977 Operating Income 443,029 Nonoperating Revenues (Expenses) Interest income (loss) 730,702 Antenna lease 145,377 Miscellaneous 4,956 Total Nonoperating Revenues (Expenses) 881,035 Income before Contributions and Grants 1,324,064 Capital Contributions - Connection fees 746,759 Change in Net Position 2,070,823 Net Position, January 1 31,052,736 Net Position, December 31 $ 33,123,559 The notes to the financial statements are an integral part of this statement. 21 Page 57 of 93 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Statements of Cash Flows For the Year Ended December 31, 2023 Cash Flows from Operating Activates Receipts from customers and users $ 3,570,470 Payments to suppliers (1,771,686) Net Cash Provided by Operating Activities 1,798,784 Cash Flows from Capital and Related Financing Activities Acquisition of capital assets (1,179,068) Connection fees received 746,759 Intergovernmental receipts 628,303 Net Cash Provided (Used) by Capital and Related Financing Activities 195,994 Cash Flows from Investing Activities Sale (purchase) of investments (2,319,764) Interest on investments 376,184 Net Cash Used by Investing Activities (1,943,580) Net Increase (Decrease) in Cash and Cash Equivalents 51,198 Cash and Cash Equivalents, January 1 666,199 Cash and Cash Equivalents, December 31 S 717.397 Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating income S 443,029 Adjustments to reconcile operating income to net cash provided by operating activities Other revenue 150,333 Depreciation 805,407 (Increase) decrease in assets Accounts receivable (72,162) Due from other governments 56,301 Special assessments receivable (9,508) Lease receivable 85,824 Prepaid items (3,166) Increase (decrease) in liabilities/deferred inflows of resources Accounts payable 333,574 Due to other governments 108,476 Deferred lease resouces (85,824) Customer deposits payable (13,500) Net Cash Provided by Operating Activities $ 1.798.784 Noncash Capital and Related Financing Activities Acquisition of capital assets on account $ Change in market value on investments $ 349.882 The notes to the financial statements are an integral part of this statement. 22 Page 58 of 93 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2023 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 ajoint 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 59 of 93 Joint Powers Water Board of Albertville, Hanover, and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 1: Summary of Significant Accounting Policies (Continued) C. Assets, Liabilities 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 Slates 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 "AA" 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 60 of 93 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 1: Summary of Significant Accounting Policies (Continued) The JPWB has the following recurring fair value measurements as of December 31, 2023: US Government Securities of $3,429,270 are valued using quoted market prices (Level 1 inputs) • Brokered certificate of deposits of $11,495,075 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 an 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 14day 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. 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. Lease Receivable The JPWB lease receivable is measured at the present value of lease payments expected to be received during the lease term. A deferred inflow of resources is recorded for the lease. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease. Capital 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. 25 Page 61 of 93 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December31,2023 Note 1: Summary of Significant Accounting Policies (Continued) 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: Buildings Machinery and Equipment Infrastructure Long-term Obligations Useful Lives in Years 20 5-20 30-40 Long-term debt and other obligations financed by the JPWB are reported as liabilities. Bond premiums and discounts are amortized overthe life of the bonds using the straight-line method. Bond issuance costs are reported as an expense in the period incurred. Deferred Inflows of Resources In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The JPWB has one type of item that qualifies for reporting in this category. The item, deferred lease resources, is reported only in the statement of net position and results from future lease receipts. Net Position Net position represents the difference between assets, deferred outflow of resources and liabilities. Net position is displayed in three components: a. Investment in capital assets -Consists of capital assets, net of accumulated depreciation reduced by any outstanding debt attributable to acquired 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 "Investment in capital assets'. When both restricted and unrestricted resources are available for use, it is the JPWSs policy to use restricted resources first, then unrestricted resources as they are needed. 26 Page 62 of 93 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2023 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 orthe 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, 2023, the JPWB's carrying amount of deposits was $717,397 and the bank balance was $1,052,418. 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. 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. 27 Page 63 of 93 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 2: Detailed Notes on All Funds (Continued) At December 31, 2023, 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 Level Level Pooled Investments at Amortized Costs 4M Fund N/A N/A $ 294,215 $ - $ - $ - BrokerMoneyMarketFunds N/A N/A 3,343.012 - - - Non -pooled Investments at FairValue Brokered Certificates of Deposit N/A Less than year 1,393,362 - 1,393,362 - BrokeredCertificalesofDeposit N/A 1-5 years 9,075,217 - 9,075,217 - BrokeredCertificalesofDeposit N/A 5.10 years 1,026,496 - 1,026,496 - GovemmentAgencySecurities AA+ Lessthanl year 565,428 565,428 - - GovernmentAgencySecurities AA+ 1-5 years 2863,842 2863,842 Total Investments $ 18.561572 S 3429. 770 $ 11 995.075 S (1) Ratings are provided 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. N/A Indicates not applicable or available. A reconciliation of cash and temporary investments as shown on the statements of net position follows: Cash and Cash Equivalents S 717,397 Investments 18,561,572 Total S 19.278.9 99 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. 28 Page 64 of 93 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 2: Detailed Notes on All Funds (Continued) • Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. B. Capital Assets Capital asset activity for the year ended December 31, 2023 was as follows: Beginning Ending Balance Increases Decreases Balance Business -type Activities Capital Assets not being Depreciated Land $ 904,232 $ - $ - $ 904,232 Construction in progress 910,691 910,691 Total capital assets not being depreciated 904,232 910,691 1,814,923 Capital Assets being Depreciated Buildings 4,199,522 - - 4,199,522 Infrastructure 21,510,413 43,723 - 21,554,136 Machinery and equipment 422,644 422,644 Total Capital Assets being Depreciated 26,132,579 43,723 26,176,302 Less Accumulated Depreciation for Buildings (3,322,547) (167,389) - (3,489,936) Infrastructure (9,764,152) (616,014) - (10,380,166) Machinery and equipment (103,867) (22,004) (125,871) Total Accumulated Depreciation (13,190,566) (805,407) (13,995,973) Total Capital Assets being Depreciated, Net 12,942,013 (761,684) 12,180,329 Business -type Activities Capital Assets, Net $ 13.846.245 $ 149.007 $ - S 13.995.252 Total depreciation for the year ended December 31, 2023 totaled $805,407. Construction Commitment The JPWB had the following outstanding construction commitment at December 31, 2023. Spent Remaining Project to date Commitment Project name Municipal Builders- Filter Rehaibilitation S 836.633 S 283,734 29 Page 65 of 93 Joint Powers Water Board of Albertville, Hanover and St. Michael Albertville, Minnesota Notes to the Financial Statements December 31, 2023 Note 2: Detailed Notes on All Funds (Continued) C. Lease Receivable The JPWB has multiple leases for rental of water tower space that allows others to place antennas on the towers. The lease payments are variable in nature. As of December 31, 2023 the JPWB's receivable balance is listed by individual lease as follows: Current Year Issue Interest Inflow of Balance at Description Date Rate Resources Year End UOK"1G1r1 Site# MPLSMN1418 5/1/2011 W-02 Sprint/T-Mobile Site# MS73XC207 7/30/2015 W-03 T-Mobile Site#Al 00720A-84880 7/1/2007 Verizon -MNC LaSeaux 5/1 /2009 Sprint/T-Mobile Site# MS70XC482A 10/1/2005 Total Lease Receivable Note 3: Other Information Risk Management 2.26 % $ 20,884 $ 487,211 2.26 20,138 254,497 2.26 13,424 497,794 2.26 11,197 250,213 2.26 10,252 250,953 S 1.740,668 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, 2023 and 2022 were $165,636 and $171,353, respectively. 30 Page 66 of 93 OTHER REQUIRED REPORT JOINT POWERS WATER BOARD OF ALBERTVILLE, HANOVER AND ST. MICHAEL ALBERTVILLE, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2023 31 Page 67 of 93 THIS PAGE IS LEFT BLANK INTENTIONALLY 32 Page 68 of 93 AbdoSolutions.com 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, 2023, and the related notes to the financial statements, and have issued our report thereon dated NEED DATE. 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. Abdo Minneapolis, Minnesota NEED DATE — Ughfinq the pathforward 33 Page 69 of 93 JC]TNT PAS WATER BOARD ALXCM[ t • HANOUC_FZ' • 5T. "WHAEL Joint Powers Water Boats Tel.: 763497-3611 11100 50- 6l NW Fox: 7634974908 Albe&ille MN 55301 w JolntpowereweterboarD.or9 ■MEMO TO: Joint Powers Water Board FROM: John Seifert DATE: March 19, 2024 SUBJECT: AE2S Notice of Award of ASR / 15'n Street Watermain Looping Project At the January Board meeting the watermain project was recommended for a public advertisement for bid letting on March 5. The bid tabulation is attached to the letter of recommendation from the design engineer, Ursinio Puga, with AE2S. The bid package allowed for a base bid and an alternate material bid for two different pipe materials. The original design envisioned a continuous directional bored watermain constructed with high density poly ethaline (HDPE) and the second alternate was to directionally bore the watermain utilizing fusible poly vinyl chloride (PVC). As the bid tabulation demonstrates, the second alternate of PVC pipe was provided at an increased final bid of $50,200.50. The base bid specifications allows Joint Powers Water Board the option to have the apparent low bidders supply a bid qualification package post bid letting. AE2S requested from both Minger Construction Company and Burschville Construction to provide their qualification package for evaluating. Both evaluating responses were reviewed by the design engineer and were presented to Joint Powers TAG Committee on March 14. After meeting with the full TAG Committee and evaluating the two bids, it is recommended to the Board to proceed with the base bid and the first alternate of HOPE pipe. The low bid was provided by Minger Construction Company for $1,062,161.60. The engineers estimate for this bid package was $1,322,097.50. Recommended Motion: Staff is requesting the Board's support of the TAG Committee and design engineer's recommendation to award the watermain project to Minger Construction Company, Inc. in the amount of $1,062,161.50 and authorize the execution of the contract for said scope of work. THISTRANSMISSION CONTAINS CONFIDENTAL INFORMATION INTENDED FOR USE ONLY BYTHE ABOVE NMIED RECIPIENT. READING. DISCUSSION, DISTRIBUTION ORCOPYINGOFTHISMESSAGEISSMCTLYPROHIBNEDBYPNYONEOi ERTNANTHENPMEORECIPIENT OR HIS OR HER EMPLOYEES OR AGENTS. IF YOU HAVE RECEIVED THIS FAX IN ERROR, PLEASE IMMEDIATELY NOTIFY US BY TELEPHONE (COLLECT),ANORMRNTHEORIGIN MESSAGETOUSATTHEABOWMDRESSVNUS. POSTALSERNCE. Page 70 of 93 to Ads z, March 19, 2024 Mr. John Seifert General Manager Joint Powers Water Board 111000 50" Street N E Albertville, MN 55301 Re: Recommendation for Notice of Award ASR / 15" Street Watermain Looping Project Joint Powers Water Board Albertville, Minnesota Dear Mr. Seifert: Pursuant to the authority of the Joint Powers Water Board (JPWB) and following proper legal advertisement, the bid opening for the above referenced project was conducted on Tuesday, March, 5, 2024 at 2:00 PM CST online via a Microsoft Teams Meeting. Six (6) bids were received online via the QuestCDN vBid System. The bid opening was completed in accordance with the project specifications. The project consists of the following components: Installation of new trunk watermain infrastructure along 151h Street NE via a trenchless technology method (horizontal directional drilling -HDD) to connect the existing 16-inch DIP trunk watermain on 15^ Street NE with the existing 12-inch PVC trunk watermain on Kadler Avenue NE. The attached Bid Tabulation presents the details of the bids that were received. Bids were received from six (6) contractors including Burschville Construction Inc. from Hanover, MN, Northdale Construction Company, Inc. from Albertville, MN, Minger Construction Companies Inc. from Jordan, MN, Meyer Contracting Inc. from Maple Grove, MN, J.R. Ferche Inc. from Rice, MN, and New Look Contracting Inc. from Rogers, MN. The JPWB and Advanced Engineering and Environmental Services, Inc. (AE2S) received a list of qualifications and equipment/material source information via Specification Section 00450 - Information Requested from the Low Bidder from Burschville Construction Inc. (apparent low bidder for Base Bid and Bid Alternate No. 2) and Minger Construction Companies Inc. (apparent Low bidder for Base Bid and Bid Alternate No. 1). Upon review, Minger Construction Companies Inc. appears to be better qualified to complete the project considering the qualifications submitted for review included HDD projects resulting in over 36,000 linear feet of pipe installed over the past five (5) years, compared to the projects submitted by Burschville Construction Inc., being general utility construction projects and not necessarily related to HDD. The bidders' qualifications are attached for reference. Advanced Engineering and Environmental Services, Inc. 6901 East Fish Lake Road, Suite 184 • Water Tower Place Business Center • Maple Grove, MN 55369 • P/ 7613461 Mr. John Seifert JPWB Re: Recommendation for Notice of Award ASR I W Street Watermain Looping Project JPWB Albertville, Minnesota March 18, 2024 Page 2 of 2 Based on a review of the bids received, review of the qualifications submitted by both low bidders, discussion at the March 14, 20241PWB TAC meeting, and pending the JPWB acceptance of the contract price, AE2S recommends that the JPWB award the Base Bid and Bid Alternate No. 1 construction contract to Minger Construction Companies Inc. from Jordan, MN. Minger Construction Companies Inc. was the lowest responsive and responsible bidder for a total construction cost of $1,062,161.50. AE2S truly appreciates the opportunity to continue working with you on this very important project forthe JPWB. Should you have any questions or comments please feel free to contact me. Sincerely, AE2S 4 4. - Ursinio Pugs, P.E. Project Manager Attachment Bid Tabulation Specification Section 00450 from Minger Construction Companies Inc. Specification Section 00450 from Burschville Construction Inc c: file Page 72 of 93 45R/ ISP 5Y«I WalemXin tmPiy Pmjen IaFl Powers Waln B«N Rbemlllp MX FQSP Nn.Pm13xID NOmI Tnu:xM PMM CST Na pP«tWuy wmy««zy. maxn x xaxe 3 4.e 01a Bid Nlemn. xo.1 0.«Sla plu.0q Blaul.ma.xua «••eaywe ma a S j � NMmwxn.5 ul.m.l. xo.z cmw.npe Lj( anecMiveconnluNpn Fc J.M 5%051&W $1.00z.O09.a0NoM lcConpmclionComimny.lnc. 0.SS $BS1,05].01 51,p]J.J)p-05 59x4W0.95MInMCominclbnCmMc. ].f0 $dMM.W f1.p0J.101.W 39)0.310.W $,=..13.00MeplConlnnig O 30Jryfi10.2 51,0]3.990.]3 5913,1)tA)5.W WSZI3,743,W O.W 5.00 31,034,133.50 51,J)],K).50 St,t]S.fiJ0.c0 51AO3.SS.D3 :,; AEs PWarcM Eyineeay aM FnWmnmenW $em'ces LLC oro Nce Wureu Gntte 69p1 EFµ lake R45p« 10f Maple 6rwe MN $$J69 N, 5 I.wma Nn19nio PE .9M3 Page 73 of 93 KtNT POWERS WATER BOARD k� ,ncRrgvfuF • NFltVVCR - sr. rareHArc Joint Powers Water BORIC! Tel.: 763-497-3611 1110050, st NW Fax: 763-497-4908 Albertville MN 55301 w Jointpowerswaterboaro.org ■MEMO TO: Joint Powers Water Board FROM: John Seifert DATE: March 19, 2024 SUBJECT: Approval of Scope of Work for Proposal for Grant Funding for Future Water Treatment Plant After identifying the major capital improvements for the Joint Powers Water Board with adoption of the April 24, 2023 Capital Improvements Plan (CIP). At that time, the discussion by the Board and Staff was to look into future funding assistance for water treatment plant expansion which is the largest capital item in the CIP. The plant expansion in the CIP is estimated at a construction project cost of $20,000,000 for capital. At this time, the TAC committee has received and reviewed the attached scope of work from HR Green. The scope of services would assist Joint Powers with researching and submitting on three major funding opportunities. The three area focuses would be a (1) State bonding bill; (2) Public Finance Authority (PFA) grants and low interest loans from the State; and (3) the Federal Congressional Directed Spending (CDS) previously known as Federal earmarks. As large capital projects take an extended period of time to secure funding, Staff and the TAC committee are recommending accepting the attached scope of work as presented. Recommended Motion: Authorize the approval and execution of scope of work for proposal of grant funding for future treatment plant to HR Green. THIS TRANSMISSION CON RNNS CONFIOENTNL INFORM1NTION INTENDED FOR USE ONLY SYTHE ABOVE NAMED RECIPIENT. READING. DISCUSSION, DISTRIBUTION. OR COPYING OF THIS MESSAGE IS STRICTLY PROHIBITED BYPNYONE OTHER TUN THE NAMED RECIPIENT OR HIS OR HER EMPLOYEES ORAGENTS. IF YOU HAVE RECENEO THIS FAX IN ERROR, PLEASE IMMEDIATELY NOTIFY US SY TELEPHONE (OOLLECTI.PNDR MTHEORIGIW MESSAGETOUSATTNEABOVEADDRESSVUUS. POSTALSERVICE. Page 74 of 93 -3-u .A- .. ,r' �; i%ss K. Main 5i - Fax .,i� HRGreen February 16, 2024 John Seifert, General Manager Veolia/Joint Powers Water 11100 50" St NE Albertville, MN 55301 Subject: Proposal for the Joint Powers WTP Expansion Feasibility Study and Grant Acquisition Dear John: We are pleased to present this proposal to you and the St. MichaeVAlbertville Joint Powers Water Board to complete a feasibility study to analyze the future upgrade and expansion of your existing water treatment plant (WTP) and assist with writing and acquiring grants to fund your project. PROJECT UNDERSTANDING Having designed your existing WTP, our firm is familiar with your facilities and understands the plant has served your customers very well over the past decades. We also understand due to the age of these facilities and due to the rapid development occurring in your service area, the plant is ready to be upgraded and expanded to meet your current and future needs. To assist with this eminent upgrade and expansion, we are proposing to assist you and your Board by completing a high-level budgetary and planning feasibility study to determine the expected design life remaining of the existing WTP and determine what needs to be expanded to meet your future 20-year design period. In addition, it is prudent that you and your Board aggressively pursue grant dollars to keep your user's rates at or near their current level. Applying for and acquiring grants can take several years and multiple iterations of funding cycles before you can secure enough grant dollars to proceed with the proposed project. Therefore, it is imperative to start this planning and grant process early while having patience with the grant process to deliver successful grants to your constituents. SCOPE OF SERVICES HR Green proposes to complete the following to address the goals and concerns for the project: Task 1: Kickoff meeting at the WTP. Conduct one onsite tour with your plant operators and others to understand any WTP issues that you are currently experiencing. We will obtain the information listed below from you to complete our research and complete the feasibility study. 1. Any reports or studies previously performed on the water system. 2. Drawdown and specific capacity calculations of existing wells serving the WTP. 3. Plans and specifications for the wells serving the WTP. Page 75 of 93 HRGreen 4. Plans and specifications for the original WTP; HR Green has the original plans. 5. Plans and specifications for any major upgrades to the WTP. 6. Shop drawings of pressure filters and other major WTP equipment. 7. Information on water quality at the influent and effluent of the filters. 8. Pressure measurements at the influent and effluent of the filters. 9. Operational data on the filters such as filter run times and hydraulic loading. 10. Plant flow rates over the past 5 years. 11. Future growth predictions. Task 2: Develop for submission and review a memorandum -style feasibility report on the observations made and provide options and budgetary costs for both refurbishing existing equipment and providing new WTP equipment to meet your current and future needs. The technical memorandum will primarily focus on refurbishing existing equipment, replacing existing equipment with new, expanding the plant to meet future needs, and briefly reviewing other technologies that could work within the existing building. Task 3: Grants —We proposed to assist you with acquiring grants to fund part of your proposed WTP project including the following — a) State Bonding Bill — We would assist with setting up a meeting with your local legislators and assist them with writing a Bonding Bill to fund part of your proposed WTP project. We have found that it can take serval years to be successful, so starting now is advisable to get your project in the Bonding Bill queue. Because this is a regional project, this type of collaborative project typically resonates well with Legislators and other funding agencies alike. b) PFA grant/low-interest loans — We would assist with filling out and submitting the applications to get your proposed project on the PPL and IUP in 2024. Again, this process can take time so starting the process in 2024 would expedite securing PFA dollars to assist with funding this project. c) Federal Earmark — We would assist you with setting up a meeting with your local Congressmembers to obtain their support for your project. We would assist in writing and submitting a Federal Earmark to obtain a grant fund for part of your proposed project. DELIVERABLES AND SCHEDULES HR Green will provide the following deliverables: 1. Provide a technical memorandum feasibility study summarizing deficiencies, proposed WTP upgrade and expansion and budgetary costs. 2. Grant application as described above. HR Green proposes the following schedule for the project: 1. Authorization for HR Green to begin - TBD 2. Kick-off meeting and Site Visit — within 2 weeks of authorization 3. Draft Tech Memo review meeting —within 2 months of the kickoff meeting Pa e76of93 °aeaa HRGreen 4. Submit Final Tech Memo Feasibility Study — within 1 week of draft review meeting ITEMS NOT INCLUDED IN AGREEMENT / SUPPLEMENTAL SERVICES Supplemental services may include any of the following: 1. Provide additional site visits not described in the scope of services. 2. Preliminary and final design of proposed improvements. 3. Meetings with other federal, state, and local agencies not listed above. 4. Topographic survey. 5. Hydrogeologic review of well field. 6. Distribution system modeling 7. Detailed tankage or equipment inspections other than what can be accomplished visually during the initial site visit. SERVICES BY OTHERS N/A CLIENT RESPONSIBILITIES The City shall be responsible for the following items: 1. Provide up-to-date information as outlined in task 1. PROFESSIONAL SERVICES FEE 2024 — For our work in 2024, we propose to perform the work outlined in the scope of services for a not -to -exceed fee of $24,000. 2025 — For our work in 2025, we propose to perform the work outlined in the scope of services for a not -to -exceed fee of $5,000. Total not -to -exceed fee of $29,000 PROJECTTEAM: Key staff who will be involved in the design work are located within the HR Green St. Paul office. The HR Green team includes the following personnel: Project Manager: Mark Hardie, PE Lead Engineer: Mark Stone, PE Client Service Manager/Grant Writer: Tim Korby, PE QA/QC: Alison Sumplion, PE Page 77 of 93 i HRGreen We appreciate the opportunity to provide engineering services on this project. Please contact me at 651-659-7733 with any comments or questions you may have. HR Green, Inc. 9� � Mark Hardie, PE Tim Korby, PE Senior Project Manager I Principal Regional Manager cc: file Pa a 78 of 93 ',u 3 ENGINEER Page 79 of 93 J JOINT Paw.ERS WATER BOARD �Ll;GNlVILCF - H/111mc-� - ST. Hft'HAEL Joint Powers Water Board Tel.: 763-497-3611 11100 50" St NW Fax : 763497-4908 AIbeNYille MN 55301 www.jointpowenswaterboard.org ■MEMO TO: Joint Powers Water Board FROM: John Seifert DATE: March 19, 2024 SUBJECT: Submittal of Increase in Joint Powers Water Board's Water Appropriations from the MN Department of Natural Resources Joint Powers Water Board's engineer, Chris Larson, together with Staff have initiated the water appropriation amendment with the MN DNR. This amendment looks to increase the allowable pumping capacity to accommodate current pumping levels as well as future volume through 2030. A verbal update will be provided at the meeting. Attached is the water permit invoice authorizing the initiation of the amendment. Recommended Motion: None. THIS TRANSMISSION CONTAINS CCNFIDENTML INFORMATION INTENDED FOR USE ONLY BYTHEABOVE NAMED RECIPIENT. READING, DISCUSSION, DISTRIBUTION. OR COPYING OF THIS MEBSAGE IS STRICTLY PROHIBRED BYANYONE OTHER THAN THE NAMED RECIPIENT OR HIS OR HER EMPLOYEES ORAGENTS. IF YOU HAVE RECENED THIS FA IN ERROR. PLEASE IMMEDIATELY NOTIFY US BY TELEPHONE (COLLECT),ANDRETUNNTHEORIGINALMESSAGETOUSATTHEABOVEP DRESSVNUS. POSTALSERVICE. Page 80 of 93 DEPARTMENT OF ` NATURAL RESOURCES MNDNR PERMITTING AND REPORTING SYSTEM (MPARS) WATER PERMIT INVOICE SEH INC. ATTN: CHRISTOPHER LARSON 3535 VADNAIS CENTER DRIVE ST. PAUL, MN 55110 PROJECT: Albertville, Hanover, St Michael Please pay the Total Due amount shown below: Permit Number 1979-3116 Invoice Date 02/28/2024 Payment Due Date 03/29/2024 ** PAYMENT DUE ** tion Amount #AM..dm.,ent Fee - Water Appropriation Individual Permit /Public Water Supply; T120N-R24W-S1, T120N-R24WS12; Wright County $150.00 TOTAL DUE $150.00 Payment for the Total Due amount is due within 30 days of the Invoice Date. If the due date falls on a weekend or holiday, payment must be received by the stands regular business day prior to the weekend and/or holiday. You can pay online or by mail. Please be advised that payment must be received before we can take any further action on your permit change request. PAY ONLINE (Visa, MasterCard, Discover, or automatic transfer from checking acccunt) E�R5" Sign -In to your MPARS account or create an account at MigsY/webaoosl lAm-statemn.us/mpars/public C€' Click on the Financial tab CV' Find the permit number "l979-3116" and select "Make Online Payment" from the "Action" column PAY BY MAIL QV` Make checks payable to: MN DNR Ecological and Water Resources ®' Mail a copy of this invoice and your payment of $150.00 to: MINNESOTA DEPARTMENT OF NATURAL RESOURCES - OMB 500 LAFAYETTE ROAD, BOX 10 ST. PAUL, MN 55155-4010 ®' A COPY OF THIS INVOICE MUST BE INCLUDED WITH YOUR If you have any questions, please contact the Minnesota DNR by telephone (651-259-5678) or by email - MPARS. dnr@state.mn.us mj peiiva M sesoueces DNR Use Only Payment Method: R29029 OMB EWR Waters permit# Code Amount 354 150.00 Received Deposited Entered 1979-3116 Amount Check # MPARS Revision 20200520. Invoice ID 409679. printed 02nW2024 vvn.98ge,$.��Iaf��his A SEH MEMORANDUM TO: Joint Powers Water Board FROM: Christopher Larson, P.E. DATE: March 25, 2024 RE: Filter Rehabilitation— Change Order No.I A few unforeseen conditions have been identified in the Filter Rehab Project. These include removal of the welded filter backwash troughs, providing new gaskets for the filter viewing glass windows, and doing some welding repairs. A change order reflecting these changes is attached. The total cost of the changes is $34,305.31. Because the work is necessary and prudent for the filter rehab project, we recommend approval of this change order. It should be noted that the total amount of filter media disposal for this project is significantly less than originally anticipated. Therefore, the total cost of the changes on this project should be a net credit. The credit for the filter media disposal will be included on the reconciliation change order at the conclusion of the project. Attachments: Change Order No. I Short Elliott Hendrickson Inc., 3535 Vadnaie Canter Drive, St. Paul, MN 5511051% SEH is an equal opportunity employer I w .sehlnc.com 1 651.490.2000 1 800.325.2055 1 651A90.2150(ax Page 82 of 93 A SEH CHANGE ORDER NO.1 Filter Rehabilitation Joint Powers Water Board Description of Work The IolldMng items are deemed to he neasaryto behold(, the Project according to the intended design.Ina rdaa Mth Metermson Mls Contmd,Me Conoape is nereby authorized and inconated W Pddonn M, work as abered by the loiywng pmvtaons. Contract Unit Total Ref. No. Itam Unit Quantity Pace Amount CPR18 Filter Trough Removal Sand busting any painting Me header or the fibers restfulness arsevino the fiber backwash troughs. Heading, the traugns boned whereas Una finer loughs ware welded. The cost inapdes moving Ind VOWhs aM adding boned mnneclieu. "1.300.50 CPR2 Fitter Viewing Glen Windows Mier removing the sight Mndow, it wa discovered that Use gd5kels Wuld halt W mused. The best is to replare the eight weather gaskets on Fibers la. Fibers 4 and 5 do not lave sight wMows. $2.3c0.00 CPR Filter S Wald Repair 4 was becipmecol net an CxisS, way needed to be repaired in Filer S. The cost is to grind put pad of an existing weld and rexeld It. $704.81 Original Contract Amount $1,957,000.00 Previous Change Orders $0.00 This Change Ortlar 53 M5.31 Revised Contract Amount (including this change ender) $1.991.305.31 CHANGE IN CONTRACT TIME The Contract Compuhon data Is not adjusted as a hash 0Me items included in Change Order No. 1. Recanmended(ar Approval by. SHORT ELLIOTT HENDRICKSON. INC. I 11812024 Date Approved by Owner: JOINT POWERS WATER BOARD Date Approved by Contractor MUNICIPAL BUILDERS. INC. Data a: Jam Poean Water Eoard Municipal Builders. Inc. United Fire S Casualty Company SEH, Inc. Page 83 of 93 LJ� � Municipal Builders,:::. February 27, 2024 Mr. Chris Larson SEH 3535 Vadnais Center Dr St. Paul, MN 55110 Re: Joint Powers Water Board Filter Rehabilitation CPR 1 B Filter Trough Removal Dear Mr. Larson, As we removed the media from Filter 3 we found that the trough at the top of each cell had additional media retention baffling. This baffling restricts access to the top portion of the inside of the filter for blasting and coating. Typically, this whole trough can be unbolted and pulled down to gain adequate access. After further investigation this filter has the trough and baffles welded in place leaving us no way to access those areas with blasting equipment. The price below is for the additional work to cut the supports in each cell to allow the trough to be dropped down for access. After the blasting and coaling is completed, the mounting brackets will be modified so they can be bolted back into place for future maintenance. All 5 filters have been confirmed to have the same condition. See the unit pricing and total costs below. Subcontractor: Champion Coatings $5,962.00 Contractor Markup: 298.10 Sub Total: $6,260.10 Per Filter 5 Filters Total: $31,300.50 Please review the pricing above and if accepted, approve in the form of a change order. Sincerely, � 4�-I Nathan Neubauer Project Manager Municipal Builders, Inc. 7900 Old Viking Blvd Nowthen, MN Phone: (763) 421-8790 Fax: (763) 421.1028 Page 84 of 93 AMuniIVA cipal B October 17, 2023 Mr. Chris Larson SEH 3535 Vadnais Center Dr St. Paul, MN 55110 Re: Joint Powers Water Board Filter Rehabilitation CPR 2 Viewing Window Gaskets Dear Mr. Larson, Filters 1-3 have a viewing window in each cell for a total of 12 windows. Upon closer inspection the viewing windows appear to have been leaking. Each viewing window needs to be removed for the blasting work and I am concerned that reusing the gaskets would result in small leaks that we wouldn't be able to stop. Below Is the cost to have Kurile supply a replacement gasket set for 10 of the viewing windows (Joint Powers has 2 sets for the other 2 windows). Each set consists of a fiber gasket and an EPDM Gasket. Supplier Kurile 10 Kits @ $200 $2,000.00 Contractor Markup: 300.00 Total: $2,300.00 Please review the pricing above and if accepted, approve in the form of a change order. Sincerely, 4, Nathan Neubauer Project Manager Municipal Builders, Inc. 7900 Old Viking Blvd Nowthen, MN Phone: (763) 421-8790 Fax: (763) 421-1028 Page 85 of 93 LJ� � Municipal Buildersrinc. J March 11, 2024 Mr. Chris Larson SEH 3535 Vadnais Center Dr St. Paul, MN 55110 Re: Joint Powers Water Board Filter Rehabilitation CPR 3 Filter 5 Weld Repair Dear Mr. Larson, There was some streaking found in the under drain of filter number 5. Upon further inspection it was determined there a pocket in the weld that was holding moisture preventing the coating from sealing things up. To repair this that portion of weld was ground out and filled back in with new weld. The area was cleaned up and recoated. Subcontractor: A&B Welding $ 671.25 Contractor Markup: 33.56 Total: $ 704.81 Please review the pricing above and if accepted, approve in the form of a change order. Sincerely, Nathan Neubauer Project Manager Municipal Builders, Inc. 7900 Old Viking Blvd Nowthen, MN Phone: (763) 421-8790 Fax: (763) 421-1028 Page 86 of 93 cipal Builders Inc Old Viking Blvd NW hen, MN 55303 NOTE FOLLOWING CHANGES*" DATE INVOICEk 3/6/2024 50757 C A 16 e'y2MC1t915 PROJECT Repair Tank Weld 11100 50th Street NE St Michael, MN �\ Credit card payments will still be accepted as a convenience, but a 3 % processing tee will be I charged. TERMS P.O. NO. Net 30 612-232-7876 Service Date Description Quantity Rate Amount 3/42024 Boilermaker Foreman Straight Time Service Truck 3.5 1 137.50 190.00 481.25 190.00 Thank you for your business. Total $671.25 8021 199th Avenue NW, Nowthen, MN 55330 * Office: 763-757-7191 a Fax: 41—gi-H-911W9 OPERATIONS AND OFFICE Page 88 of 93 JCXNT PQWERS WATER BOARD • a AIIX rvr-tf aAAlovc_� - sr. Mrc!♦firl Joint Powers Water BoaM Tel.: 763-497-3611 11100 5W St NW Faz : 763-4974908 AlbeMille MN 55301 www.jointpomrswaterboard.org MEMO TO: Joint Powers Water Board FROM: John Seifert DATE: March 19, 2024 SUBJECT: GSR Update The ground storage reservoir (GSR) located on the Water Treatment Plant site has been out of service since 2019. In an attempt to maximize water storage capacity and operating flexibility prior to the pumping season, Staff has undertaken the process of cleaning and sanitizing this existing asset for water storage. The Board initially authorized the contract with Utility Service Co., Inc. in the late fall of 2023. Supervisor of Operations, Dustin Carlson, and Staff worked with the contractor to efficiently recondition the storage tank and pumping equipment during the last two weeks in February following the American Water Works Association (AW WA) standard for disinfection of water -storage facilities. The GSR was officially placed back in service on February 29, after successful Bac-T tests confirmed the sanitizing procedure outlined in the AW WA procedures. Additionally, Staff discovered the water level monitoring system initially installed needed to be replaced. Supervisor Carlson and his Staff utilized a creative solution to replace the level sensor with new radar measuring equipment that has improved the accuracy and operation of the GSR automatic operation. Recommended Motion: None. THIS TMNSMISSIONCONTAINSCONFIOEN INFOR TION INTENDED FOR USE ONLY BY THEOBOVENAMEDRECIPIENT REDOING, DISCUSSION, DISTRIBUTION, OR COPYING OF THIS MESSAGE IS STRICTLYPROHIBREU BY ANYONE OTHER THAN THE NAMED RECIPIENT OR HIS OR HER EMPLOYEES ORAGENTS. IF YOU NAVE RECEIVED THIS FA IN ERROR, PLEASE IMMED ATELY NOTFY US BY TELEPHONE ICWLECD,M'DRMRNTIEORIGIN MESUGETOUSATTHEMOWAOORESSMUS. POSTALSERVICE. Page 89 of 93 fC�1T PAS WATER BOARD k%_ ALJXF tff • HANOVCk • ST. MreHALL Joint Powers Water Boad Tel.: 763497-3611 1110050` st NW Fan: 7634974908 Albertville MN 55301 www.jointpowerswaterboard.org MEMO TO: Joint Powers Water Board FROM: John Seifert DATE: March 19, 2024 SUBJECT: Filter Rehab Update Verbal update will be provided at the meeting. Filters 1, 2 and 3 are fully completed and 4 and 5 are nearing completion. Recommended Motion: None. THIS TR INWISSION CONTNNS CONFIDENTIAL INFONMnON INTENDED FOR USE ONLY BY THE MOVE NMAED RECIPIENT. READING. DISCUSSION,DISTRIBUTION, OR COPYING OF THIS MESSAGE IS STRICTLY PROHIBITED BY ANYONE OTHER THAN THE N Eo RECIPIENT OR HIS OR HER EMPLOYEES OR AGENTS. IF YOU HAVE RECEPOEO THIS FM IN ERROR PLEASE IMMEDUITELY NOTIFY US BY TELEPHONE (COLLECT), AND RETURN THE ORIGINAL MESSAGE TO US AT THE ABOVE ADDRESS VIA US, POSTAL SERVICE. Page 90 of 93 OTHER BUSINESS / CORRESPONDENCE Page 91 of 93 JOINT POWERS WATER BOARD k\ ALRrwvfftF. • HANOVCR SST. "K HAEL Joint Powers Water Board 11too sop St NW AlbeMille MN 55301 MEMO TO: Joint Powers Water Board FROM : John Seifert DATE: March 22, 2024 SUBJECT: Locker Room Lockers Tel.: 763-697-3611 Fax: 7634974908 www.jointpowerswaterboard.org The Board previously gave Staff the approval for the construction of a new locker room at a cost not to exceed $20,000. That price did not include physical furnishings and fixtures such as lockers. Staff is asking for Board approval to purchase lockers from Your Locker Store for $3,990. Recommended Motion: Authorize Staff to purchase locker room lockers from Your Locker Store for $3,990. THIS TRANSMISSION CONTAINS CONFIDENTIAL INFORWTION INTENDED FOR USE ONLY BY THE MOVE NANED RECIPIENT. READING. DISCUSSION, DISTRISOMN.OR COPYING OF THIS MESSAGE IS STRICTLY PROHISRED BYMYONE OTHER THAN NE NMIED RECIPIENT OR HIS OR HER EMPLOYEES OR AGENTS. IF YOU HAVE RECEIVED THIS FM IN ERROR, PLEASE IMMEDATELYNOTIFY US BYTELEPHONE (CMLECT.ANDRETURNNEORIGIW MESSAGETOUSATNEMOW£ RESSVNU.S. POSTALSERVICE. Page 92 of 93 Your Locker Store Your Locker Store quotes@yourlockerstore.com Bill To: Dustin Carlson Joint Powers Water 11100 50th St NE Albertville MN 55301 dustin.carlson@veolia. com Ship To Dustin Carlson Joint Powers Water 11100 50th St NE Albertville MN 55301 (763) 497-3611 Open Access Metal Locker 8 72" H x 24" W x 18" D / Blue / Unassembled Salsbury Industries #70018BL-U Built-in Key Lock 8 Factory Installed Salsbury Industries #77715 Payment Terms: ACH INVOICE 1322 Date: Mar 12, 2024 Balance Due: US$3,990.00 US$420.75 US$3,366.00 US$30.00 US$240.00 Subtotal: US$3,606.00 Discount: US$400.00 Shipping: US$784.00 Total: US$3,990.00 Page 93 of 93