HomeMy WebLinkAbout2020-03-13 BOWC MINA
BOARD OF WATER
I II
COMMISSIONERS
MEETING MINUTES
FRIDAY, MARCH 13, 2020
President Speedling called the meeting to order at 8:00 a.m.
Present: Commissioners Vania, and President Speedling
Councilmember Polehna
Absent: Commissioner Jensen
Staff Present: Board Manager Benson
Supervisor of Distribution Tibbetts
204 Third Street N
Stillwater, MN 55082
651-439-6231
APPROVAL OF AGENDA
Commissioner Vania requested that the following be added to the agenda:
• Virus response - Employees
• Investments
• Smart Controllers
• Smart Controller prior 5-year History
Motion by President Speedling, seconded by Commissioner Vania, to approve the agenda. All
in favor.
APPROVAL OF BOARD MEETING MINUTES
Motion by Commissioner Vania, seconded by President Speedling to approve the February
20, 2020. All in favor.
APPROVAL RESOLUTION NO. 1541, DIRECTING PAYMENT OF BILLS
Commissioner Vania questioned the US Bank for $8,000 for supplies. Board Manager
Benson informed the Board that was for the yearly water permit fee.
President Speedling requested information on the Kellie Knowles disbursement. Mr.
Benson stated that is the payment of vacation, flex spending reimbursement and
unused sick time.
Motion by Commissioner Vania, seconded by President Speedling to adopt Resolution
1540, directing payment of bills All in favor.
ROGER RYAN 1016 N 3RD STREET- SERVICE LINE - NOT AT MEETING
Mr. Benson stated that he would be meeting with Mr. Ryan before the next Board
meeting and he will find out what Mr. Ryan is interested in. He stated that Mr. Ryan
is on the "Drip List" in the winter. He thought Mr. Ryan wanted to attend the next
meeting.
Board of Water Commissioners March 13, 2020
WATER RATE STUDY UPDATE - CHRIS KNOPIK
Mr. Chris Knopik, CliftonLarsonAllen, provided the Board with additional information
on the Rate Study that was requested at the January Board meeting on the four
scenarios presented and commercial rates should they be increased. Mr. Knopik
stated that under a tier system the commercial businesses would experience huge
penalties, which would amount to an excess of a 50% increase. He suggested that
keep the rate structure and increase the rate by a percentage in line with the
residential increase. He suggested that if a multi -family has one meter, it should be
commercial and that if it has individual meters it would be residential.
Mr. Knopik reviewed the options for the Board that were presented in January.
• 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.
Mr. Knopik stated that increasing the rate 5% would result with Stillwater being at
the lower end than other cities.
• Scenario 3 keeping the rate structure as is but decreased the gallons by 1,000
which averages to a 5% increase.
■ 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.
Mr. Knopik stated that even with the increase in rate in Scenario 2, there is still a
deficit, but in 2021-2022 the rates should be close to covering 100% of depreciation
if not all. He continued by stating that this will allow for the cash reserves not being
depleted after the water tower painting.
Mr. Benson stated that the rates would be effective on the July billing with notice
inserted into the April billing. Mr. Knopik will provide the information for that notice.
Commissioner Vania suggested notifying Mary Divine, Pioneer Press; Stillwater
Gazette; Tribune and place the notice on the City website.
It was the consensus of the Board that they present this information to the City
Council at their April 7th meeting at 7:00 p.m.
Commissioner Vania reminded the Board of the 4:30 Council meeting on April 7th
where City Administrator McCarty provides an update of the GovHR report/internal
consultant team process.
Motion by Commissioner Vania, seconded by President Speedling to adopt the Scenario 2 of
the CliftonLarsonAllen, Rate Study until 2023 and review every year after the audit. All in
favor.
SUPERVISOR OF DISTRIBUTION REPORT
In the absence of Supervisor of Distribution Tibbetts, Mr. Benson reported that staff
in continuing winter maintenance activities. There was a watermain break on 3rd
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Board of Water Commissioners March 13, 2020
street in front of the Library because of rusted bolts on the bonnet. On a question
from President Speedling, Mr. Benson indicated that this is not a common incident.
COMMUNITY EDUCATION (INFOGRAPHIC) AND WEBSITE COMMISSIONER JENSEN
This item will be addressed at the next meeting.
BEE HIVE ANNUAL REPORT 2019
Mr. Benson explained and provided the Board with the BeeHive annual report for
2019.
Commissioner Vania provided additional insight on the BeeHive program. He felt
there should be a contractor tab and have requested that. He stated that this is not a
report that comes directly from BeeHive, but it is an improvement to what the
department has used. Staff labor is not included at this time. The Board really
appreciates the staffs work on this project.
WELL# 9 GENERATOR
Mr. Benson provided an update on the status of the Well #9 generator and building.
PRV (PRESSURE RELIEF VALVE) -FOURTH & WILKINS
Mr. Benson provided history, reasoning, and update on the PRV Valve.
PRESIDENT SPEEDLING POSITION WITH THE BOARD
President Speedling's term ends June 30th and indicated he is willing to continue to
serve if he is meeting the needs of the Board and Board Manager. Commissioner
Vania and Mr. Benson felt that President Speedling should stay on the Board.
Mr. Benson stated he will present a memo to Council for the reappointment of Mr.
Speedling.
VIRUS RESPONSE - EMPLOYEES
Commissioner Vania asked what the City is doing on the virus response. He
requested that staff take extra precautions so that there is staff available to run the
water system. Councilmember Polehna read the City Administrator's email regarding
the virus. Mr. Benson stated that specific details have not been worked out yet (i.e.
hand sanitizers in trucks etc.) but will follow the any precautions that the City does
as well. The City is putting an employee portal for virus information.
INVESTMENTS
Mr. Benson explained what the Board can do and reviewed the investments with
Bayport and Midwestl. He stated that interest is low and will be reevaluated in 12
months.
SMART CONTROLLERS
Commissioner Vania asked for status update on the Smart Controllers. Mr. Benson
stated that the City newsletter, with the Smart Controllers information, should be
delivered to residents sometime next week. See if successful in the newsletter, then
inserting in the next building is an option.
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Board of Water Commissioners March 13, 2020
SMART CONTROLLER 5 YEAR HISTORY
Commissioner Vania requested that staff look at how a Smart Controller 5-year
history could be obtained. Mr. Benson suggested waiting to see how many customers
sign up and determine later how a report could be done.
NEXT MEETING DATE
Next regular meeting is April 9, 2020 at 8:00 a.m.
ADJOURNMENT
Motion by Commissioner Vania, seconded by President Speedling to adjourn at 9:07 a.m. All
in favor.
ATTEST:
CUI.,_1— 2A.s.w.
Robert G. Benson, Board Manager
teve Speedlin: 'resident
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