Loading...
HomeMy WebLinkAbout2020-01-22 BOWC MINBOARD OF WATER 204 Third Street N 0 Stillwater, MN 55082 COMMISSIONERS 651-439-6231 IL..adMW, MEETING MINUTES WEDNESDAY, JANUARY 22, 2020 Vice President Jensen called the meeting to order at 8:00 a.m. Present: Commissioners Vania, Jensen, and Councilmember Polehna Absent: President Speedling Staff Present: Board Manager Benson APPROVAL OF AGENDA Board Manager Benson informed the Board he had the following additions to the agenda: Resolution for Appreciation for Kellie Knowles (1539); note on retirement party; President Speedling's reappointment. Motion by Commissioner Vania, seconded by Vice President Jensen, to approve the agenda as presented. All in favor. APPROVAL OF BOARD MEETING MINUTES Vice President Jensen had the following corrections in the minutes. Savings from the leak study. Page 5, 2020 additional $21,000; delete "no" smart controller Motion by Commissioner Vania, seconded by Vice President Jensen to approve the December 13, 2019 minutes with corrections. All in favor. APPROVAL RESOLUTION NO. 1538, DIRECTING PAYMENT OF BILLS Motion by Commissioner Vania seconded by Vice President Jensen to adopt Resolution 1538, directing payment of bills. All in favor. SUPERVISOR OF DISTRIBUTION REPORT Mr. Tibbetts was not present for the meeting therefore an update will be given at the next meeting WATER RATE STUDY Mr. Chris Knopik, CliftonLarsonAllen, provide a presentation to the Board that contained information and strategies for the rates the next four years. He explained the last rate increase was done in 2014-15. He stated that surrounding areas have been included in the study and showed calculations of the Water Department using the comparison tiers of the other cities. Board of Water Commissioners January 22, 2020 Vice President Jensen noted that some of the surrounding cities have contamination plumes and that has increased the rates which fortunately Stillwater has not had. Commissioner Vania noted that St. Paul has increased their rates that cover some capital costs for replacement of old infrastructure. He felt that new rates should be included for replacement of Stillwater's old infrastructure. He recommended that Mr. Benson contact St. Paul and find out what percentage of the rate is the capital expense. Mr. Knopik reviewed the four scenarios that were prepared for the Board. Scenario 1 would be the same as it is done now with a 4% increase every year. Scenario 2 would be a flat rate with residents paying 100% of the usage with four tiers which would have an average of 5%. Lower users would pay less than higher users. On a question from the Board, Mr. Knopik suggested that the goal of rates should be 100% depreciation with a cash on hand. Mr. Knopik continued by stating that Scenario 3 keeping the rate structure as is but decreased the gallons by 1,000 which averages to a 5% increase. Commissioner Vania inquired on the rate for senior citizens. Mr. Knopik stated that rate would be $23.00 to $24.00 for low users. This would not cover 100% of the depreciation. Mr. Knopik stated that Scenario 4 would be a 10% increase for the flat fee with the tier system in Scenario 2 would be the same. Lower users would pay $2.00 more per quarter. Commissioner Vania requested that Stillwater's rate be included in the study. He also stated that he would like to see it plotted to show the water usage decrease. Vice President Jansen concurred and would like to see the per capita use. Commissioner Vania asked about the commercial rates. Mr. Knopik responded that commercial rates should be increased to the percentage the residential is increased. Vice President Jensen felt that Scenario 2 would address the conservation needs. Commissioner Vania would like to see what the commercial rates would be. Mr. Knopik stated he would prepare additional information on the four scenarios. Mr. Knopik stated he could attend the February 13th meeting and provide the updated information. COMMUNITY EDUCATION (INFOGRAPHIC) AND WEBSITE COMMISSIONER JENSEN No new information at this time it will be presented at the next meeting. REAPPOINTMENTS TO THE BOARD On a question from Commissioner Vania, Mr. Benson informed the Board that Commissioner Vania's appointment would be in tune 30, 2021. He also stated that President Speedling's term is up June 30, 2020 and that he would be contacting President Speedling on his intentions. BEE HIVE - UPDATE Mr. Benson provided an update on the BeeHive project. He stated that it can generate a work order but it must start at coordinates rather than clicking on a lot. Commissioner Vania wants to make sure it is a functional system and felt it is not at this stage. Mr. Benson stated he will be talking to IT staff on the changes that are needed. Page 2 of 4 Board of Water Commissioners January 22, 2020 GOV HR USA OPERATIONS ASSESSMENT PRESENTATION JANUARY 21, 2020 COUNCIL MEETING Commissioner Vania provided the following points from the joint meeting with the Council regarding the operations study. He requested that these points be part of the record. • Meeting was set up so that Water Board and City Council members were in Semi Circle so we were all at the same level. • Presentation was clear given the Consultants limited scope and funding. • The Report provided was Final. Consult did not have funding to make corrections or changes. • Council voted to accept report as provided. • Council voted to use Appendix E Table of Organization as a basis for an In-house Working Group, set up by Tom McCarthy, be used to recommend final organization. He insisted that an alternative be included that showed the Water Department as a unique Division under Public Works. He felt that the body language of the Council Members supported this modification. • This Working Group may recommend further study and consultant assistance to do a cost benefit analysis on the proposed alternatives given a functional analysis of department roles and responsibilities. The current GovHR Assessment study was only a Governance Analysis Study. • Mayor confirmed that Robert's job was safe. The sentence in the report meant that the Water Board Manager would be discontinued if the Water Department was moved into the Public Works Department. Councilmember Polehna stated that a change is not going to happen within a month a cost analysis will be done. Commissioner Vania suggested the following: • Water Board hold a special Workshop between now and the next Board Meeting with all members present to prepare our document for the Tom McCarthy Work Group. Water Board meeting on Feb 13th. We approve our Workshop Document. • We hold meeting with Tom McCarthy Workgroup after Feb 18th • Request Robert to recommend this process to Tom McCarthy. Commissioner Jensen suggested that the Board must meet to provide Mr. Benson direction on this issue and have the Board Workshop, the workshop date will be determined at the February 13th meeting. Mr. Benson was directed to contact Tom McCarty to attend the February 13, 2020 Board meeting to present the timeline and process (Tom McCarty's Work Group) and a Board workshop after the February 13th Board meeting to provide a consensus on steps and process. Commissioner Vania requested to be a part of the work group. Page 3 of 4 Board of Water Commissioners January 22, 2020 Commissioner Jensen and Councilmember Polehna expressed concerns about statements made at the joint meeting. APPROVAL RESOLUTION NO. 1539, APPRECIATION TO KELLIE KNOWLES Mr. Benson presented a resolution for adoption to acknowledge Kellie Knowles retirement and her 22 years of service to the Board of Water Commissioners. Motion by Commissioner Vania seconded by Vice President Jensen to adopt Resolution 1539, appreciation to Kellie Knowles, as amended. All in favor. RETIREMENT - KELLIE KNOWLES Mr. Benson stated that a retirement party will be on Friday, January 31, 2020 from 2-3:30 p.m. at the Water Department. This is similar to what the City does for its retirees. Mr. Benson will contact the City Clerk to prepare a Certificate of Appreciation on behalf of the City Council. NEXT MEETING DATE Next meeting is February 13, 2020 at 8:00 a.m. ADJOURNMENT Motion by Commissioner Vania, seconded by Vice President Jansen to adjourn at 9:47 a.m. All in favor. ATTEST: Robert G. Benson, Board Manager Karen lens Page 4 of 4 , Vice President