HomeMy WebLinkAbout2016-08-11 BOWC MIN
Stillwater, Minnesota August 11, 2016
Regular Meeting:
The regular meeting of the Board of Water Commissioners was held on Thursday
August 11, 2016 at 8:30 A.M.
All Commissioners were present, with President Speedling presiding. President
Speedling introduced new Commissioner Karen Jenson. Commissioner Jensen replaces
Vice President Nyberg, also present was Jim Tibbetts and Council Member Menikheim.
On motion of President Speedling, duly seconded by Commissioner Vania, all voting
“Aye”, the Agenda was accepted as presented.
On motion of Commissioner Vania, duly seconded by President Speedling, all voting
“Aye, the minutes of the July 14, 2016 regular meeting were read and approved as
written.
On motion of President Speedling, duly seconded by Commissioner Vania, all voting
“Aye”, Resolution No. 1491 was approved for payment.
Jim Tibbetts reported to the Board that watermain and hydrants are installed and in
service on the Osman Avenue project. They are replacing galvanized services from the
watermain to the stop on Olive Street, we also are replacing valves on Olive Street.
There is another project on Marylane called Rutherford Station, they had to move the
watermain to install the sewer, that has been reinstalled and is back in service and they
will start running watermain into the development as time goes on; Jim will check in with
them daily.
Verne Jacobson with T.K.D.A. talked with the Board about the requirements for the
Water Supply Plan, this is a ten year plan and is due by December 31, 2016. Verne
explained to the Board that the first Water Supply Plan was twenty pages and a service
area population was 25,000 in the year 2030 with an average day water demand of 2.9
million and a peak day demand of 7.5 million. The current version of the plan consists of
50 pages, 11 appendix pages and 12 pages that deal entirely with water conservation.
Current population projection of the service area is 22,800 in the year 2040 with an
average day water demand of 2 million a day and a peak day demand of 5.2 million, If
the Board meets that standard/desired water conservation goals for residential,
commercial and industrial customers of a 15% reduction in water use during the next ten
years, the Board’s water sales will be 660,000 billing units rather that 750,000 and it will
serve approximately 6,000 customers.
In 2013 the Board’s operating expenses were $1,541,000, if one projects a modest 3.5%
inflation rate for the next ten years, the expenses will be $2,100,000 and also add 10% for
reserves so the Board will need a revenue of approximately $2,300,000 to maintain
operations. For 2023, if one divides the $2,300.000 revenue requirements by 660,000
billing units the cost of water is $3.48 per unit. Without unusual or additional staff the
Board will need to increase the water rates by 7% each year for the next ten years. To
add a bit of perspective to the water rate issue, Verne currently pays $5.57 per 1000
gallons for water in St. Paul; 2.8% times the current rate in Stillwater.
In order to meet the goals and objectives during the future years the Board may need to
obtain a greater portion of the required revenue from fixed base fees for service rather
that from water volumes. After much discussion Council Member Menikhem
recommended that Manager Benson contact City Administrator Tom McCarty and invite
him to sit in on the next Board meeting as council will need to be aware of this as it will
tie in with the City’s Comp Plan and the Board will need to know what direction the city
will be moving because some the of information will need to be added to the Water
Supply plan. After meeting will City Administrator Tom McCarty the Board would like
to set up a sub-committee with city staff to talk about the Water Supply Plan and how it
relates to the City’s Comp Plan.
Manager Benson provided the Board with an additional quote for installing air
conditioners at Well #5 and Well #10 from Eichten’s Service and Repair. The quotes are
as follows:
Schwantes Heating & Air Conditioning, Inc.
Well #5 $5,350.00
Well #10 $4,950.00
Eichten’s Service & Repair
Well # 5 $3,073.50
Well #10 $3,073.50
After discussion, on motion of Commissioner Vania duly seconded by President
Speedling all voting “Aye”, Eichten’s Service & Repair was awarded the job, not to
exceed a cost $7,000.00.
Manager Benson updated the Board on the ice castle in Lowell Park and after discussion,
on motion of Commissioner Vania, duly seconded by President Speedling, all voting
“Aye”, the Board agreed to charge Ice Castle, LLC $2.00 per 1,000 gallons of water used.
Manager Benson informed the Board that the WAC charges for 312 Main St. S were
changed by Met Council from the last meeting. The new rates will be 4 WAC’S at the
1998 rate of $500.00 per WAC and 1 WAC at the current rate of $1,000.00 per WAC; for
a total of $3,000.00, therefore on motion of President Speedling, duly seconded by
Commissioner Jensen, all voting “Aye”, the Board agrees with the changes made by Met
Council.
The following items were discussed, with no action taken:
1. Accounts receivable balance as of July 31, 2016 was $293,714.02 with the actual
amount being $316,444.88; this is $70,000.00 higher than last years.
2. Manager Benson informed the Board that lead and copper sampling has been
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completed, we met the 90 percentile which is the goal. Letters were sent out to
the residents that participated in the testing showing their individual test results
and a form was sent to the Minnesota Department of Health indicating that the
resident received their test result and information provided by the Minnesota
Department of Health on the Lead and Copper Sampling.
3. Manager Benson updated the Board on the maps he received from Bolton &
Menk, after review of the maps he has a call into John Shane because the map
books were missing the index page and the wall maps were missing the year the
pipes were installed and he would like to increase the scale so the maps would be
larger. He is waiting to hear back from them. The GIS training will be postponed
until late fall when things slow down for the crew.
4. Manager Benson updated the Board on the bee lawn at the Laurel Street Station.
5. Manager Benson updated the Board on the position replacement. Application and
position descriptions are updated and he will get the job opening posted in the
Gazette within the next week. Commissioner Vania also suggested putting the
add in the Lo Down and the Stillwater Current.
6. The next Board meeting will be changed from Thursday September 8, 2016 to
Tuesday September 6, 2016 at 8:00 A.M. All future meetings will begin at 8:00
A.M.
7. President Speedling asked if the Water Department has an AED in the office and
stated he would like to have one in the office. Manager Benson will talk with the
Stillwater Fire Department about getting an AED.
There being no further business, on motion of President Speedling, duly seconded by
Commissioner Vania, all voting “Aye”, the meeting was adjourned.
Attest: Secretary