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HomeMy WebLinkAbout2020-08-13 BOWC MINBOARD OF WATER ■ 4 COMVMM1SSIONERS rrF-� MEETING MINUTES THURSDAY, AUGUST 13, 2020 (VIA ZOOM - DUE TO COVID-19) 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, Commissioner Jensen, and President Speedling Absent: Councilmember Polehna Supervisor of Distribution Tibbetts Staff Present: Board Manager Benson APPROVAL OF AGENDA Commissioner Vania requested the following to be added to the agenda: • Safe Water Smart Controller Status • BeeHive - GIS/Bolton Menk - City GIS Work Plan Status • Water Department Website Responsibility after January 1, 2021 • Browns Creek Water Fountain Plaque • Well Head Protection Plan Responsibilities - T.K.D.A & Staff • Charter Commission Meeting Update Motion by President Speedling, seconded by Commissioner Jansen to approve the agenda as presented with additions. All in favor. APPROVAL OF BOARD MEETING MINUTES The Board commended Ms. Ward on the preparation of the Board's meeting minutes. Mr. Benson informed the Board that Ms. Ward will be unable to continue to do minutes after the end of this year. He stated that it is the intent to train Tracy to for this responsibility following the same format that Ms. Ward has developed. Motion by Commissioner Vania, seconded by Commissioner Jensen to approve the July 9, 2020 minutes. All in favor. APPROVAL RESOLUTION NO. 1546, DIRECTING PAYMENT OF BILLS Safe Water Smart Controller Status Commissioner Jensen asked if the $15,792 is for the entire project, not just the mailer. Mr. Benson stated that it is for the 47 meters installed as part of the program and there are 42 left which needs clarification. Mr. Benson will send a spreadsheet to the Board and Browns Creek Watershed District. Commissioner Jensen asked how many meters were installed in the BCWD. Mr. Benson stated that 47 has been installed in BCWD. Board of Water Commissioners August 13, 2020 President Speedling suggested that an update be available next month. Commissioner Jensen suggested one more push to get the rest of meters installed. Motion by President Speedling, seconded by Commissioner Vania to adopt Resolution 1546, directing payment of bills striking the mail notice description for the smart controllers. All in favor. DELAY CONNECTION TO CITY WATER SYSTEM - DALE & JENNIFER SHALLER Mr. Benson provided an update on the request to delay connection to the City Water System. He stated that in talking with Cindy Shilts, the City's Building Official, there must be a backflow preventor to attach the refrigerator to well water line that will be plumbed to the outside faucet and the well water line must be clearly marked "Well Water." He continued that using this option would eliminate the need for a second meter as there would not be water entering the sanitary sewer system. Mr. Dale Shaller indicated he was satisfied with the option but would like to discuss with his wife. Motion by President Speedling, seconded by Commissioner Vania to approve the connection of the well water line to the refrigerator. All in favor. The Board requested that Mr. Shaller come back to the next meeting to confirm his options. WHITE BEAR LAKE UPDATE - DAVID SIENKO, LEVANDER, GILLEN & MILLER Mr. David Sienko, Levander, Gillen & Miller provided an update on the White Bear Lake litigation by stating that that the latest order does not specifically address any of Stillwater's questions, therefore Stillwater must sit and wait. He provided an update on the history of the litigation that began in 2013 and that it wasn't until 2017 that the DNR discovered the impact to Stillwater was one well that was in the judge's order to amend well permits within 5 miles of White Bear Lake by only 5-10 feet give or take a few. He stated that the Supreme Court has referred it back to the Court of Appeals to answer seven issues and Stillwater is unable to respond to any of this. He continued by stating that he felt that the decision would not happen this year due to this case's legal complexity. President Speedling asked if the court will be reviewing Stillwater's information, Mr. Sienko indicated that amicus parties cannot add additional information. Commissioner Vania informed Mr. Sienko and the Board that the Browns Creek Watershed District has a report that shows that the lakes between Stillwater and White Bear Lake are rising and flooding areas because the water is flowing towards Stillwater. Mr. Sienko took note of that information for future use. SUPERVISOR OF DISTRIBUTION REPORT Mr. Tibbetts was unable to attend the meeting. COMMUNITY EDUCATION (INFOGRAPHIC) AND WEBSITE COMMISSIONER JENSEN Commissioner Jensen asked the Board's thoughts on the continuation of the work on the website. Commissioner Vania felt that a meeting with Commissioner Jensen and the person in charge of the City's website have a meeting regarding Water Department information and Page 2 of 7 Board of Water Commissioners August 13, 2020 then proceed from there. It was the consensus of the Board to have that meeting prior to continuing. Commissioner Jensen stated that she will continue to gather information that should be on the website as the Well Head Protection Plan has a great deal of information. SAFE WATER SMART CONTROLLER Mr. Benson stated that 80 have been installed and there are 20 left to be claimed. Commissioner Jensen suggested that something different be put on the card to attract the last 20. Commissioner Vania suggested integrating the advertisement for the controllers that the Stillwater Patch used to promote the controllers in their article. It was the consensus of the Board that a second mailing should be pushed to complete the 100 controllers yet to be installed and that any further mailing would be at Mr. Benson's discretion. GIS WORK PLAN Mr. Benson stated that Bolton & Menk should have information to him by Friday. Commissioner Vania stated that a meeting regarding the GIS Work Plan should be held with Engineering Technician Theis and Public Works Director Sanders and an agreement on who will be doing what regarding the GIS plan. He felt that Bolton & Menk should finish the 2020 information. BROWNS CREEK WATER FOUNTAIN PLAQUE Commissioner Vania provided the history and update on the fountain plaque. He stated that the City has picked up the costs of the project and asked the Board if they wanted to put an AWWA Conservation Plaque near the fountain. Commissioner Jensen felt it was a good idea to promote the high -quality great drinking water Stillwater has. Mr. Benson felt that it would be best to wait. WELL NO. 9 - UPDATE- MATT ELLINGSON, T.K.D.A. Mr. Benson explained to the Board about a leak that required a valve replacement in Well No. 9. He stated being that there is a project at this Well house this would be the time to replace it. He continued by stating that the change order to the project would amount to approximately $6,500 as requested that the Board approve the change order to the Well No. 9 project. Motion by Commissioner Vania, seconded by President Speedling to approve Change Order No. 1 for a check valve replacement in Well House No. 9 for $6,500.00. All in favor. Mr. Matt Ellingson, T.K.D.A. stated that at the preconstruction meeting it was determined that the building plans for the generator will have to be submitted to the Heritage Preservation Commission (HPC) on Wednesday, August 19 with construction shortly after approval. He stated that they will be shifting the building 20 feet to north away from the street to allow for well drillers in the future. WELL HEAD PROTECTION PLAN - MATT ELLINGSON, T.K.D.A. Mr. Matt Ellingson, T.K.D.A. reviewed the proposal for T.K.D.A. to manage the Wellhead Protection Plan. He stated that The Wellhead Protection Plan (WHP) was approved by the Minnesota Department of Health in December 2019. He stated that part of the plan was Page 3 of 7 Board of Water Commissioners August 13, 2020 WELL HEAD PROTECTION PLAN - MATT ELLINGSON, T.K.D.A. Mr. Matt Ellingson, T.K.D.A. reviewed the proposal for T.K.D.A. to manage the Wellhead Protection Plan. He stated that The Wellhead Protection Plan (WHP) was approved by the Minnesota Department of Health in December 2019. He stated that part of the plan was Chapter 5 which includes the Objectives and Plans of Action for the next 10 years of the plan. T.K.D.A will work with the Board's staff and the Minnesota Department of Health (MDH) staff to complete the WHP Implementation Plan according to the requirements of Minnesota Rules 4720.5250. He informed the Board that a meeting with John Freitag, MDH planner, was held in July to discuss the implementation items and that they will manage the implementation measures and provide direction for items that the water department staff will need to complete. He stated that T.K.D.A. will provide documents and materials to be used for implementation items from the Minnesota Rural Water Association (MRWA) and other sources as required. Mr. Ellingson reviewed some of the educational material for the Board's website and would provide collaboration with the City's information as well. He requested $10,000 to cover implementation measures as a supplemental authorization to the existing Wellhead Protection contract. Mr. Benson explained that the $10,000 would be paid as time and materials and that Mr. Ellingson will be the Well Head Protection Plan Manager. Commissioner Vania questioned what would be the priority to the protection well areas. Mr. Ellingson provided an update on priorities noting that items checked in 2019 would be the first items to be addressed. He reminded the Board that this was a 10-year plan. Mr. Benson confirmed that there is $10,000 in the budget for the Well Head Protection Plan and that it is required to be included in the annual budget. Motion by Commissioner Vania, seconded by President Speedling to approve the payment of $10,000, on a time and materials basis, to manage the Well Head Protection Plan. All in favor. Commissioner Jensen asked how the Board would be informed on the activities done. Mr. Benson stated that in the past it has been an informal notification to the Board when bills are submitted. 4TH STREET PRESSURE REDUCING VALVE UPDATE - MATT ELLINGSON, T.K.D.A. Mr. Ellingson provided an update on the 4th Street Pressure Reducing Valve Project. He stated that he is waiting to get a construction schedule from Miller Excavating but hoping to start next week on the excavation of the watermain. 2020 RATE STUDY - CHRIS KNOPIK, CLIFTONLARSONALLEN (CLA) Chris Knopik, CliftonLarsonAllen (CLA) provided a presentation to the Board with updated information requested at the last Board meeting on the peer cities water rate information with the three (3) scenarios being discussed. He also provided the current rate and how the three (3) scenario rates compared to the peer cities rates. He presented three scenarios as follows: Page 4 of 7 Board of Water Commissioners August 13, 2020 • Scenario #1 Includes a tiered structure with an $9/per customer flat fee and all usage billed. Achieves an average increase of 13.1%. Based on average consumption of 19,300 gallons per quarter. Assumes 5% increase in rates each year afterwards. The current average quarterly bill is $42.89 and would increase to $47.58. • Scenario #2 Includes a tiered structure with an $10/per customer flat fee and all usage billed. Achieves an average increase of 18.6%. Based on average consumption of 19,300 gallons per quarter. Assumes 5% increase in rates each year afterwards. The current average quarterly bill is $42.89 and would increase to $49.88. • Scenario #3 Includes a tiered structure with an $10/per customer flat fee and all usage billed. Achieves an average increase of 22.9%. Based on average consumption of 19,300 gallons per quarter. Assumes 5% increase in rates each year afterwards. The current average quarterly bill is $42.89 and would increase to $51.70. Mr. Knopik stated that 35% of the customers would be in the lowest tier paying an average of $22.43 and 65% with overage charges paying an average of $59.17. He also reviewed the tier breakdowns and percentage of customers in each tier. Commissioner Vania suggested that this information should be used to present to Council. It is important to protect the lower users and encourage conservation to the larger users. Larger uses could go up 60%. President Speedling stated that conservation education will have to be done for the large users. Mr. Knopik stated that this may force customer that are technically commercial but put in the residential classification into the commercial classification. He provided information to Mr. Benson that looked unusual. President Speedling asked where Scenario #3 stands against peer cities with high use. Mr. Knopik's example was 400,000 gallons used, the bill for Oak Park Heights would be $1996.13 and Stillwater would be $1597.00, still less than Oak Park Heights. Commissioner Vania suggested using a bottom and top range with the other cities. Mr. Knopik stated that he will provide information on the high users in the different communities. Commissioner Vania asked about the asset base. Mr. Knopik stated that with all scenarios there will be deficit cash there. He stated that even though conservation is the goal, rates will have to be increased to cover the costs of depreciation. He felt that Scenario #1 would not be feasible, Scenario #2 would be $400,000 deficit, Scenario #3 would be a $200,000. President Speedling asked about the requirement for tower painting as that is the big -ticket item being used in the scenario. Mr. Benson responded that there is not a requirement however he thought the industry standard of painting was 10-15 years. Mr. Benson will provide information on the past painting to Mr. Knopik for Council presentation. President Speedling asked what was the driving force for the reduction of revenue. Mr. Knopik stated that water usage was down considerably in 2018-19 and expenses keep rising. Page 5 of 7 Board of Water Commissioners August 13, 2020 Mr. Knopik stated that the Board could look at a different increase after the first year once the full year data is known. Commissioner Jensen asked if the Stillwater customer could be listed as low, medium, and high. Mr. Knopik explained how he would present to the Council depending on the scenario chosen. Commissioner Jensen asked who used the 400,000 gallons. Mr. Knopik stated that it was an HOA and that Mr. Benson stated for the October billing which covers the summer period, they will reach 1M gallons. Seven users use 300,000 and 62 customers using 100,000 which is 10% of the total water use. President Speedling felt Scenario #2 allows for some flexibility if needed after looking at the end of year numbers and options to look at. Mr. Benson will bring back water tower information to the next meeting and felt there was enough time to put the notice in the October bill. Commissioner Vania felt that Scenario #2 should be done right away for the September 15 Council meeting. It was the consensus of the Board to proceed with Scenario #2, directing Mr. Benson to have information on the tower painting, and Mr. Knopik will have the Council presentation available for the September 10, 2020 Board meeting and presentation to the City Council on September 15. Commissioner Vania reminded Mr. Knopik of the change of scope on the contract. He will provide an amount at the next meeting. CHARTER COMMISSION MEETING UPDATE President Speedling provided an update on the Charter Commission meeting regarding the Charter change. He stated that the main point was that the funding for the water department remain separate from the general fund and be ran like the four other enterprise funds which can only be used for certain purposes. He and Councilmember Polehna confirmed that statement. He stated that the City Attorney stated that a part of the process is a resident open hearing. Commissioner Jensen stated she would like to know the step by step process. President Speedling requested Mr. Benson contact City Attorney Land to see if she is available for the next meeting to explain the process. President Speedling stated that if Commissioner Jensen wishes to attend any meetings to work with Mr. Benson to make sure it is published for quorum attendance. President Speedling and Commissioner Vania felt that the support for the department personnel is protected in the proposed transition, as well as the benefits of shared information, and have been assured by the Council and City Administrator that there will not be a reduction of staff. He stated that the Charter Commission was part of the process and it will go back to the Council. Page 6of7 Board of Water Commissioners August 13, 2020 be a reduction of staff. He stated that the Charter Commission was part of the process and it will go back to the Council. Commissioner Jensen felt that the sanitary sewer fund was mismanaged and does not want any of that to fall on the water department personnel. She also felt that the decision of the residential vote done in 2003 should stand. Commissioner Vania noted that the Charter change includes a five -member utility commission for both sewer and water and hoped that people with sanitary sewer experience joins the commission. NEXT MEETING DATE Next regular meeting is Thursday, September 10, 2020 at 8:00 a.m. ADJOURNMENT Motion by President Speedling, seconded by Commissioner Vania to adjourn at 11:18 a.m. All in favor. ATTEST: Robert G. Benson, Board Manager Page 7 of 7 RESOLUTION NO. 1546 RESOLVED BY THE BOARD OF WATER COMMISSIONERS OF THE CITY OF STILLWATER THAT THE FOLLOWING BILLS BE, AND THEY ARE, HEREBY ALLOWED AND WARRANTS ORDERED DRAWN ON THE TREASURER FOR SEVERAL AMOUNTS, VIZ: NAME DESCRIPTION _ Payroll No. 2440 Payroll No. 2441 Payroll No. 2442 Bayport Bank Bayport Bank Soc. Sec. Fund Bayport Bank Medicare Cont. Commissioner of Revenue State Treasurer Delta Dental Financial Secretary, Local #49 MN NCPERS Life Insurance Nationwide Retirement Solutions SW/WC Service Cooperative The Lincoln Financial Life Insurance Ace Hardware Arrow Building Center Automatic Systems Banyon Central Phone Century Link Cintas City of Stillwater Comcast Commissioner of Revenue Core & Main Delta Dental Ferguson Group Medicare Blue RX Hawkins Inc Heritage Printing Instrumental Research James McGath Menards Metro Sales Payment Service Network Praxair Quadient Quill Safe Water Commission SW/WC Service Cooperative Stillwater, City of Salaries, Labor June 7 - 20, 2020 Salaries, Labor June 21 - July 4, 2020 Salaries, Labor July 5 - 18, 2020 Withholding Tax Federal - July 2020 Social Security Dues - July 2020 Medicare Dues - July 2020 Withholding Tax State - July 2020 PERA Dues - July 2020 Dental Premium Dues for July 2020 Life Insurance - Tibbetts, Benson, Deferred Compensation Plan Employee Health Insurance Voluntary Long Term & Disability Shop Supplies Wood lath Servie Call - System Crash Support -Fixed Assets, Fund Invoice Bill, PSN Module, Annual Maintenance protection Plan Telemeter Circuits Uniforms Truck Exp, Locates, Attorney Fees, IT Internet & Phones Sales Tax Hydrant Parts Dental Premium Repairs & Supplies, Hospital Repair Retired Employees Health Insurance Chemicals Office Expense Water Samples Wook Boots Shop Supplies Lease Fee Credit Card Fees Repairs & Supplies Stuffing Machine Monthly Fee Office Supplies Mailing Notices - Smart Irrigation Program Retired Employees Health Insurance GO Revenue Bond 2013A Straus $10,949.29 $11,016.87 $11,889.51 $4,290.31 $6,083.88 $1,422.84 $2,248.15 $6,997.59 $417.40 $140.00 $48.00 $1,470.00 $6,686.00 $62.96 $100.45 $42.81 $289.90 Fund $1,480.00 $554.00 $724.59 $91.72 $2,892.49 $99.16 $1,557.00 $2,501.82 $716.98 $509.84 $517.50 $1,273.14 $112.35 $200.00 $200.00 $410.67 $44.00 $735.93 $58.00 $646.69 $9.98 $15,792.47 $1,075.50 $9,939.58 Stillwater Motors Truck Exp-Dump, Colorado TKDA Well 9 Generator, 4th St PRV The Lincoln Financial Life Insurance Employee Life Insurance Twin Masonry Inc Assessment Exp Verizon Wireless Cellular Phone Ward, Diane Office Exp Xcel Energy Power, Gas, Lights Adopted by the Board of Water Commissioners this !'' day of S ,20 �Y. Steven Speedling, Board resident Robert G Benson, Board Manager $541.66 $6,135.95 $21.60 $2,520.00 $308.88 $408.50 $11,616.70 $127,852.66