Loading...
HomeMy WebLinkAbout2019-12-13 BOWC MINA BOARD OF WATER a COMMISSIONERS MEETING MINUTES FRIDAY, DECEMBER 13, 2019 204 Third Street N Stillwater, MN 55082 651-439-6231 President Speedling called the meeting to order at 8:00 a.m. Present: Commissioners Vania, Jensen, and President Speedling Absent: Councilmember Polehna Staff Present: Board Manager Benson and Supervisor of Distribution Tibbetts APPROVAL OF AGENDA President Speedling suggested that the update from City Administrator Tom McCarty on the Operational Review be placed after the approval of the minutes. Motion by President Speedling, seconded by Commissioner Vania to approve the agenda as presented. All in favor. APPROVAL OF BOARD MEETING MINUTES Motion by President Speedling, seconded by Commissioner Jensen to approve the November 14, 2019 minutes. All in favor. UPDATE ON OPERATIONAL REVIEW - TOM MCCARTY, CITY ADMINISTRATOR City Administrator Tom McCarty provided a brief recap of the process for the operational review which is being done on Public Works, Recreation Center and Water Department, by GovHR USA who is a professional group that has done operational reviews at the department level or City level. He stated that the consultant did use 8-10 comparable operations based on population. He felt that the process is very close to being completed. He continued by stating that the first draft was reviewed for accuracy in November by the team, which consists of Mr. Benson, Public Works Director Sanders, Public Works Superintendent Moore, Assistant Public Works Superintendent Chaves, Finance Director Provos, and himself and sent back to the consultant. He stated that he just received the second draft and review by the team is tentatively set Monday, December 16th. He mentioned that he informed the consultant that the final report should be completed by the holidays so that the final study can be sent to the Council, Board, and staff between Christmas and New Year's, with a potential work session with the Board and Council on Tuesday, January 21, 2019 at 4:00 p.m. for the presentation of the study, questions and answers and discussion on the study. He does not anticipate any decisions to be made at that work session meeting. President Speedling spoke for the Board by stating that they want this study and process to remain fair and unbiased as they know there are Councilmembers that wish to see Board of Water Commissioners December 13, 2019 something different done with water operations. Commissioner Jensen expressed her concern of the comments made at a Council meeting that would insinuate bias on the study. She also stated she appreciated Mr. McCarty's update. Commissioner Jensen stated that she heard the City is redoing the City's website and hoped that the Board's new website, like the Library's, would feed into the City's site. Mr. McCarty did not see that it would be an issue and that the City is changing vendors to Granicus. It will be approximately four months for redevelopment of the site. Mr. McCarty provided an update on Sustainable Stillwater, Green Step Cities and its programs and resources. Mr. McCarty provided the Board information on Ameresco energy savings audit that was done on City buildings, should the Board be interested in doing an energy audit on their buildings. He stated that audit findings would be presented to Council soon. APPROVAL RESOLUTION NO. 1537, DIRECTING PAYMENT OF BILLS Expenditures Commissioner Jensen questioned the BeeHive charges, City's portion and what services were covered. Mr. Benson and Commissioner Vania explained that the Water Board's cost was for the water module portion and related services such as the configuration of the data. He did not know the City's costs, but stated that the annual cost will be 10% of the original cost which would be distributed between the water department and the City departments. Commissioner Jensen questioned the large payment to the City of Stillwater of $163,000. Mr. Benson explained that it was for work done on 3rd Street and Osgood. He continued by stating that approximately $135,000 were for repairs on the 3rd Street project and approximately $28,000 for new watermain and services on Osgood that is considered Capital Outlay. Commissioner Jensen asked if drug testing is done for all new employees. Mr. Benson responded in the affirmative. Commissioner Vania questioned what Insight was. Mr. Benson responded that it was the annual support cost software and maintenance for the water meter reading process. Commissioner Vania asked about Nelson Street repairs. Mr. Benson explained the Nelson Street Repairs from the watermain break. Commissioner Jensen questioned Safe Water Commission costs. This is the annual contract fee and was approved at the October 2019 meeting. Commissioner Jensen inquired about the GO Revenue Bond cost. Mr. Benson explained that this was the payment on the water meter project. Motion by Commissioner Vania seconded by President Speedling to adopt Resolution 1537, directing payment of bills. All in favor. Page 2 of 6 Board of Water Commissioners December 13, 2019 Revenues Commissioner Vania asked the Board to keep in mind that revenue is down $287,000 with expenses up $135,000 will be significant in the rate study. Mr. Benson stated it is anticipated that the rate increase would be approximately 4%. Mr. Benson informed the Board that it is his intension to have Mr. Chris Knopik at the January 16, 2020 meeting to answer questions on the rate study. SUPERVISOR OF DISTRIBUTION REPORT Mr. Tibbetts informed the Board that because of the hydrant flushing by the fire department and staff several hydrants needed repair. In response to a question on the raising of hydrant, Mr. Tibbetts stated that the low ones will be raised if it is easy to do so. He stated there is approximately 150 that are on the low side and the fire department lets the water department know if there is a problem and need to be fixed. Mr. Tibbetts stated that Pump House maintenance will begin this month for the winter work. President Speedling asked about vandalism and Mr. Benson responded that once the Emergency Study is complete and in place the Sunrise pump house will be fixed. Mr. Tibbetts stated that four of the main leaks, according to the Leak Survey, have been fixed. He informed the Board that were loose bolts on Homeward Way, Liberty Parkway, and Pine & Martha, and Martha and Skyview were cracks in the main. Another main leak that has not been fixed is on Cherry Street which will probably take place in the spring. Commissioner Jensen asked about savings. Commissioner Vania suggested that an annual savings report be done and Commissioner Jensen suggested putting that information on the website. Mr. Tibbetts informed the Board that there was a main break on Mid Oaks Avenue and has been fixed. Mr. Benson stated that this work has been entered into BeeHive and will check on the invoice aspect of BeeHive. Commissioner Jensen asked for a refresher on the pipes in Croixwood. Mr. Tibbetts and Mr. Benson explained that from 1960-1970s the pipes were more brittle. Many cities have the same issue with that era of pipe. These would be replaced during a total reconstruction project of the streets in Croixwood. COMMUNITY EDUCATION (INFOGRAPHIC) AND WEBSITE COMMISSIONER JENSEN Commissioner Jensen stated that she is unable to provide information at this time and requested that it be put on the next agenda. SMART CONTROLLER UPDATE Mr. Benson provided the Board the Safe Water Commission information for the flyer and City Newsletter. Commissioner Jensen suggested that it should read "is initiating a residential program". Add the sentence "The Board of Water Commission has retained Safe Water Commission with the assistance of Hunter Industries to implement this program". She felt that clarity should be given that 50 of the 100 controllers need to be in Browns Creek Watershed District. Page 3 of 6 Board of Water Commissioners December 13, 2019 Commissioner Vania felt that the residential portion should be $60. Mr. Benson reminded the Board that $30 was approved as part of the contract. Commissioner Vania stated that it should read "due to the funding participation of the Browns Creek Watershed District, a minimum of 50 controllers will be reserved for residents within Browns Creek Watershed District with the boundaries of the watershed district is described on the website". Commissioner Jensen will be doing the corrections for Mr. Benson. HISTORIC DRINKING WATER FOUNTAIN Mr. Benson stated that he found a file on the historic drinking water fountain and that it was called the Post Office Park. He reviewed the history of the historic drinking water fountain which was done in 1934 by the Board of Water Commissioners. The plaque in the park stated that it was in memory Henry Clay Farmer who dedicated the land. Mr. Tibbetts stated that his brother rebuilt the pool in 1985 and then it was put back into service. It will be a future Board item for rehabilitation, preferably done by volunteers. WATER CONSORTIUM MEETING UPDATE - COMMISSIONER VANIA Commissioner Vania provided the Board with information from the Water Consortium Meeting. Met Council funded the study using 15 cities and their best practices and found that by following the recommendations, such as mowing your lawn low should not be done during a drought and best practices for water conservation, would save on the building of 21 new wells and save $21M. Commissioner Jensen stated that recommendations and information would be good for the website. BEE HIVE - UPDATE Mr. Benson stated that the department has started using BeeHive and entering the data. He stated that any staff costs associated with the water main break are entered and will enter invoices connected with the break. He would check with the staff on the hydrant repairs entries. 2020 BOARD MEETING DATES The Board consensus was to scheduled January 16, 2020 as the next meeting. The rest of meetings are scheduled for the second Thursday of the month at 8:00 a.m. Motion by President Speedling, seconded by Commissioner Vania to approve the 2020 meeting dates. All in favor. 2020 DEPOSITORIES Mr. Benson presented the Board with the Board's depositories of Midwest 1 Bank, 1st State Bank of Bayport and Lake Elmo Bank. Motion by President Speedling, seconded by Commissioner Vania to approve the 2020 Depositories. Page 4 of 6 Board of Water Commissioners December 13, 2019 2020 REVENUE BUDGET Mr. Benson reviewed an updated revenue budget that was different than what was sent to the Board. He stated that the adjustment is the increase in billing would be 4% percent for 3 quarters not the 1st quarter billing. Mr. Benson explained the million is historically the target for budget purposes. He continued that number could be adjusted based on the study when it is discussed at the January 2020 meeting, Commissioner Vania and Jensen stated that they have concerns that the rates do not cover the expenses and that the water rates are one of the lowest in the metro area. President Speedling questioned the actual amounts. Mr. Benson stated that he did not change that. Mr. Benson explained the rise in interest revenue which included assessment interest and that interest rates for accounts and CDs are rising. He also explained the sale of water revenue. Motion by Commissioner Vania, seconded by President Speedling setting the 2020 Revenue Budget. All in favor. 2020 EXPENDITURE BUDGET Mr. Benson reviewed the 2020 Expenditure Budget with the Board. Commissioner Vania questioned the decrease in front office salaries. Mr. Benson explained the amount reflects the retirement of a long-term employee and the hiring of a new person at a lower starting wage. Labor contract increase approximately $11,000. Mr. Benson explained that the Minnesota Department of Health has raised its test fees which have not changed in approximately 14 years or longer and went up an additional $21,000. Motion by Commissioner Vania, seconded by President Speedling setting the 2020 Expenditure Budget. All in favor. 2020 CAPITAL OUTLAY Mr. Benson reviewed the 2020 Capital Outlay Budget with the Board. Commissioner Vania questioned the remote smart controller amount. Mr. Benson will put the $20,000 smart controller amount to the 2019 Carry Over amount, he will double check this amount. President Speedling asked about backup generator/building amounts. Mr. Benson explained that it is $95,000 more if a building is added. He also explained that the Wilkins and 4th is a carry over and will be moved to the 2019 Carry Over amount, which is $134,000 in the carry over amount. Mr. Benson brought up adding $20,000 for hydrant painting he explained the process and explained that a larger company would have to do the painting. Commissioner Vania stated that the rating of hydrants could be done in the winter. This will be added to the 2020 Capital Outlay Budget. Page 5 of 6 Board of Water Commissioners December 13, 2019 Motion by Commissioner Vania, seconded by President Speedling approving the 2020 Capital Outlay Budget with the adjustments to the 2019 Carry Over. All in favor. RATE STUDY Mr. Benson distributed the Rate Study for the Board's review for the meeting in January. NEXT MEETING DATE Next meeting is January 16, 2019 at 8:00 a.m. ADJOURNMENT Motion by President Speedling, seconded byCommissioner Vania to adjourn at 10:02 a.m. All in favor. ATTEST: Robert G. Benson, Board Manager Steve Spec ing, President Page 6 of 6