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HomeMy WebLinkAbout2020-12-17 BOWC MINBOARD OF WATER COMMISSIONERS MEETING MINUTES THURSDAY, DECEMBER 17, 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: President Speedling, Commissioner Jensen, Commissioner Hudak and Councilmember Polehna Absent: Supervisor of Distribution Tibbetts Staff Present: Board Manager Benson APPROVAL OF AGENDA President Speedling inquired about an update on the Terra Springs billing issue. Mr. Benson stated that he has not had the opportunity to address this therefore it should not be on this meeting agenda. Commissioner Jensen inquired about an update on the generator building. Mr. Benson stated that Matt Ellingson will provide an update in his portion of the agenda. Motion by President Speedling, seconded by Commissioner Jensen to approve the agenda. All in favor. APPROVAL OF BOARD MEETING MINUTES Motion by President Speedling, seconded by Commissioner Jensen to approve the November 13, 2020 minutes with correction on: Page 2 of 6, Paragraph 7 regarding staff communication should read "and Commissioner Jensen have opened." replacing has. Page 3 of 6, Paragraph 1, should read "Polehna's" removing the space before the "s". Commissioner Jensen stated that she liked the meeting format and inquired if Tracy is now doing the minutes. Mr. Benson responded that Diane is doing the December minutes and Tracy will start after the 1st of the year. Commissioner Jensen suggested that a letter be sent to Diane thanking her for her assistance. Mr. Benson asked if staff has communicated with President Speedling or Commissioner Jensen. President Speedling has communicated with Jim Tibbetts and that there are some concerns relating to labor negotiations, medical insurance, union contract etc. It was also noted that the Board could filter questions to City Administrator McCarty as well. Commissioner Jensen stated that she has not because she has not been able to converse with President Speedling because of quorum issues. Board of Water Commissioners December 17, 2020 President Speedling explained the open meeting requirements to Commissioner Hudak. Councilmember Polehna also stated that advisory commissions have the same open meeting requirements. All in favor. BOARD MEETING DATES FOR 2021- DATE CHANGE Mr. Benson informed the Board that the November 11, 2021 meeting, Veterans Day, should be changed in the minutes to November 18, 2021. President Speedling asked about the time of the 2021 meetings. Mr. Benson felt that the time issue could be addressed when the full Utility Commission meets. Commissioner Jensen stated that it was brought up with Council as a possible change. Councilmember Polehna stated that all other advisory boards/commissions hold their meetings at 7:00 p.m. There was discussion on keeping the meetings at 8:00 a.m. instead of 8:30 as suggested by the City, Mr. Benson will discuss this with City Clerk Wolf. Commissioner Jensen stated that on Page 6 of 6, under New Board Member should read "Curt Hudak has his PhD in Geology with focus on soil and surface water." Motion by President Speedling, seconded by Commissioner Jensen to approve the November 13, 2020 minutes with correction on the Board Meeting date to November 18, 2021 and the update on Commissioner Hudak's professional qualifications. All in favor. APPROVAL RESOLUTION NO. 1551, DIRECTING PAYMENT OF BILLS Mr. Benson explained three of the large payment amounts on the projects. President Speedling asked about the office supplies increase. Mr. Benson explained that the postal permit needed to be paid to send out billings. President Speedling asked about the Stillwater Motors repair bill. Mr. Benson explained that there was an accident in the parking lot which damaged a truck. President Speedling inquired about the patching amount and how that process works. Mr. Benson stated that the amount is for patching 2019 watermain breaks. He stated that this year they had to get bids as the previous company went out of business with the new contractor being T.A. Schifsky & Sons, Inc. and the patching was done within their schedule. Commissioner Jensen asked about the G.O. Bonds. Mr. Benson stated that is for the water meters. Commissioner Jensen inquired if the commission would be looking at the bills starting in January. Mr. Benson stated that the Board will be looking at the bills in January as they will be December expenses. He stated that he still has questions on how the Utilities Commission will work and he has had conversations with Public Works Director Sanders. He continued by stating that Mr. Sanders will be attending the first few meetings to assist the commission on their job and responsibilities. Motion by President Speedling, seconded by Commissioner Jensen to adopt Resolution 1551, directing payment of bills. All in favor. Page 2 of 8 Board of Water Commissioners December 17, 2020 UPDATE - MATT ELLINGSON, T.K.D.A. Mr. Benson provided introduction of Matt Ellingson to Commissioner Hudak. Well #9 Generator Building Matt Ellingson, T.K.D.A. updated the Board that the generator building is substantially complete and they are working on the interior for the rest of the month with a startup date in February with restoration, driveway and sitework will wait until Spring. Mr. Ellingson reviewed a Change Order request, $16,763.98 which will be included in the contract with MBI to cover the check valve addition, moving the building to the northeast due to building and utility setback requirements and modifications to building design. He reminded the Board that the project was started late due to Heritage Preservation Commission review and Building Inspection changes along with changing the completion date to June 2021. He reviewed T.K.D.A.'s costs and it is over the limit; however, they would be willing to reduce the Board's costs by $4,000 due to the inefficiencies of the pandemic and contractor information. Commissioner Hudak asked Mr. Ellingson if T.K.D.A has a business interruption plan. Mr. Ellingson responded in the negative, however he explained what the company has done since March to improve the process during the pandemic. On a question from Commissioner Hudak he stated that the company does have off -site storage and the backing up of servers are done by IT. Commissioner Jensen asked Mr. Benson his feelings on the rising costs. Mr. Ellingson explained each item of the Charge Order. Mr. Ellingson stated he is requesting the approval of the Change Order in the amount of $16,763.98 and waiving the T.K.D.A. fees of $4,000.00. Mr. Benson stated he would approve the Change Order and the waiving of the charges to date and setting a not to exceed amount. Motion by President Speedling, seconded by Commissioner Jensen approving the Change Order for an additional $9,000 to the project which covers the additional costs to MBA and T.K.D.A. services not to exceed $4,000. All in favor. Tower Drive Water Tower Inspection Mr. Ellingson presented a proposal for the Tower Drive Water Tower Inspection using the technology of a drone. He also explained the project of the water tower inspection at a cost of $5,000 and that the inspection would be completed in the spring or summer of 2021. Mr. Benson explained the past practice for tower inspection and how the project would be funded to Commissioner Hudak. Commissioner Hudak stated that he would like to see money set aside for large projects. Commissioner Jensen asked if the report would provide costs for the painting and condition of the water tower. Mr. Ellingson stated that the report would include condition assessment, painting and any structural improvements and cost estimated if needed. Page 3 of 8 Board of Water Commissioners December 17, 2020 Motion by President Speedling, seconded by Commissioner Jensen approving the T.D.K.A. proposal for the water tower inspection at a cost $5,000. All in favor. Risk & Resilience Assessment Mr. Ellingson reviewed the reason for this assessment. He stated the proposal is for an assessment that is required by EPA for systems with over 3300 accounts serviced and due by the end of June 2021. This assessment evaluates security and cyber side such as the SCADA system. This assessment is used for the Emergency Response Plan. The assessment would look at the security of the entire water system. He stated that the proposal of $13,900 would cover the assessment completed by June 30, 2021, the certification to the EPA and preparation of the Emergency Response Plan completed by December 30, 2021. He stated that the items that must be looked at are stated in state law, enacted in 2018, and the EPA requires updates every five years. Commissioner Hudak asked how many of these assessments have been done by T.K.D.A. and how vulnerable those cities are. Mr. Ellingson responded that T.K.D.A. has done a few of these assessments and the last one that was done for Stillwater in 2004. He stated that the coastal cities are probably more vulnerable than the Midwest due to coastal storms etc. In Minnesota, notice was taken on the Blaine issue when that water system went down. These requirements are to have emergency operating plans in place should that happen again. Commissioner Jensen inquired about the security of the information for access, and the storage of the plan. Mr. Benson explained that the last report the engineer (T.K.D.A) could not keep the plan. Mr. Ellingson explained that in 2004 T.K.D.A had to destroy all the plan and its information and the only copy was given to the water department. He stated that it is up to the water department how they want to handle the security of the plan; however, it would remain private not for public view and there would be a limited amount of personnel that will have access to the plan. Commissioner Jensen wanted to make sure that this is coordinated with the City's Emergency Operations Plan. Mr. Ellingson stated that there are overlap areas that they will be working with the City. Commissioner Jensen asked that the assessment include cameras and monitoring in the water system sites. She takes the protection of the system very seriously. Motion by Commissioner Jensen, seconded by Commissioner Hudak approving the T.D.K.A. proposal for the Risk and Resilience Assessment and Emergency Response Plan at a cost not to exceed $13,900. All in favor. PRV Project Mr. Ellingson provided information to the Board on the Change Order for Miller Excavating for bollards and gate valves at a cost of $13,599.57. The total contract $128,864.97 for the project Motion by President Speedling, seconded by Commissioner Jensen approving a not to exceed amount of $15,000 for the PRV Project. All in favor. Page 4 of 8 Board of Water Commissioners December 17, 2020 RATE INCREASE NOTICE - CHRIS KNOPIK, CLIFTON LARSON ALLEN (CLA) Mr. Chris Knopik and Commissioner Hudak introduced themselves to each other. Mr. Benson and Mr. Knopik reviewed the proposed notice that will be going out in January 2021. Commissioner Jensen stated that this notice should say "Revised Notice" and should be corrected as follows: "The Stillwater Board of Water Commissioners is solely funded by the sale of water to residents. The work of the Water Department is critical for providing safe drinking water and to support the industries and businesses in Stillwater. The Board has approved changing the rate structure and rates." "Effective starting on January 1, 2021 and will be used on the April 2021 billing." "These changes are being made to provide additional operating and capital reserves to help with maintaining the water system." Commissioner Jensen requested a final copy. Mr. Benson suggested that the commercial information be shown so that commercial properties who believe they should be charged under the residential rate have information of the full cost to be considered residential. He stated he would send his spreadsheet to Mr. Knopik for his use. Councilmember Polehna requested that the underlining of numbers be consistent. Commissioner Jensen stated that the Commercial and Residential information needs to be clearly identified and a key for this information so that customers can look at their bills and convert this information. She also asked Mr. Benson to investigate changing the billing from units to gallons in the future. Mr. Knopik stated that it may be a software issue, but they would investigate that. He also stated that he would make it clear that it is Water Bill instead of Utility Bill and indicate that it is quarterly as well. He would make sure 10,000 gallons is added. Mr. Benson and Commissioner Jensen felt that the last paragraph should read: "These rate increases are designed to help foster the Water Board goal of continuing to provide capital reserves necessary for future capital improvements, conserving water and provide continuing high quality of services to the residents of Stillwater." Commissioner Jensen questioned the Increase Precent on the chart. Mr. Knopik stated that it is the blended rate between the old structure and new structure. He suggested that adding 19,000 (average user) line to show the increase. He will change the percentage header to "Percent Increase." He explained why the 25,000 gallons dip to 10.27%. Commissioner Hudak suggested putting a graph in the notice that showed the different levels of usages by the residents. He was surprised at the high number of gallons some residents use. Page 5 of 8 Board of Water Commissioners December 17, 2020 Commissioner Jensen suggested the table include a low user and high user so that the high users will see that their bill is really going to increase. Commissioner Hudak stated the low user should get recognition. Mr. Knopik stated he would do the graph according to the new tier structure and include the number of users in that tier. President Speedling requested the removal of the percentage on the first page and reference the table instead. Councilmember Polehna suggested the line "In addition the Water Commission will continue to monitor rates charged for water sales in relation to the need for future capital improvements" be replaced with "The Water Board will continue to monitor the rates for water sales." President Speedling and Councilmember Polehna felt that the last paragraph should be removed. "These rate increases are designed to help foster the Water Board goal of continuing to provide capital reserves necessary for future capital improvements, conserving water and provide continuing high quality of services to the residents of Stillwater." Commissioner Hudak felt that there should be more detail on the table and suggested 4,000, 7,000, 11,000, 15,000, etc. to reflect more of the customers. Mr. Knopik stated that a high user amount will be placed because 62 billings use 100,000 gallons or more and they will be seeing the big increase. President Speedling stated to stick with the tiers for the graph. Mr. Knopik would provide the updated versions by the end of the day. Commissioner Jensen suggested that the commissioners review and get any comments to Mr. Benson quickly for changes. 2020 AUDIT AGREEMENT Mr. Knopik addressed the Audit Letter in the packet that this would be the last audit for the Board of Water Commissioners and the 2021 audit will be included with the City's audit. TRANSITION UPDATE - CITY ADMINISTRATOR TOM MCCARTY & PUBLIC WORKS DIRECTOR SHAWN SANDERS Mr. Tom McCarty, City Administrator that this has been a huge project. He stated that they had a ZOOM meeting with staff yesterday for questions and answers. President Speedling introduced Commissioner Hudak to Mr. McCarty and Public Works Director Sanders and they introduced themselves. Mr. McCarty reviewed the history of this transition and the onboarding process of Water Department staff. He continued by stating that Water Department staff will become City employees, however the labor agreements are different for 4 employees therefore the City will be honoring the provisions of the Water Department labor agreement as of Page 6 of 8 Board of Water Commissioners December 17, 2020 January 1st. The two non -represented employees will fall under a labor contract of the Manager's (Robert) and AFSCME (Tracy). Mr. McCarty shared a spreadsheet on the transition plan that shows tasks and that the financing tasks that will be taking place in 2021. He stated that the Board will be doing dual roles for the closure of the Board of Water Commissioners and the new Utilities Commission. He will be sending that spreadsheet to Mr. Benson for distribution to the Board members. He presented the new organization chart and Mr. Sanders explained where the Water Department staff would be placed. Mr. Sanders explained there will be 3 different superintendents, Parks Superintendent, currently being advertised, Utility Superintendent which would be Mr. Benson and a Street Superintendent. There will be an Assistant Public Works Superintendent which will help Mr. Benson understand the sewer system and Mr. Tibbetts would help the Assistant Public Works Superintendent understand the water system. Each superintendent will have a lead worker. He stated that the Administrative Assistant for Engineering/Public Works will move permanently out to Public Works and the Water Department Administrative Assistant will work at the Water Department building 3 days a week and 2 days a week in the Utilities/Engineering Department to learn the Engineering aspect. Mr. McCarty stated that some of the job descriptions will change but that would probably continue through January. The City must update its financial software so that the billing can be done through the finance department therefore a couple of billing quarters will be handled as they are now. It may not change until late 2021. Mr. McCarty stated that the 4th member Utilities Commission is Jon Whitcomb with one more being recruited. He informed the Board that the City Attorney is preparing an ordinance outlining the job and responsibilities of the Utility Commission. This draft ordinance will be forwarded to the members and then the Council would adopt the ordinance. He stated in January there will be training for commission members on open meeting, data practices etc. by the City Attorney. Mr. Sanders will be attending the Utilities Commission meetings because the commission's scope will be broader than just water. Mr. McCarty stated that the City is welcoming 6 new employees and that the City's website will include the Water Boards information on January 1 as well as the City newsletter can include information previously discussed regarding the rates or other information on the water system. President Speedling asked if the Utilities Commission goes into effect in January. Mr. McCarty responded in the affirmative. President Speedling asked about payment of bills. Mr. McCarty stated that the commissions do not review or approve the payment of bills. That will be the responsibility of the Council. President Speedling asked about who would go to the Council. Mr. McCarty state it would be up to the Commission Chair and Public Works Director on who or when information would be presented to Council. Page 7 of 8 Board of Water Commissioners December 17, 2020 Commissioner Jensen stated that she understood the Water Department is an enterprise fund and asked if the Sanitary and Storm Water are enterprise funds as well. Mr. McCarty responded that they are but under the umbrella of the City. Commissioner Jensen stated that she wanted to acknowledge Mr. Benson's hard work and that if he is taking on more responsibility under the City that he is compensated for that. Mr. McCarty stated that there will be things that come up but he is confident that the high - quality standards will continue. ANONYMOUS DONATION Mr. Benson stated that an individual dropped off a check for $2,000 to help people if they need assistance with their water bills. He stated that this has never happened before and he will need to contact Mr. McCarty or the City Attorney to determine what steps are necessary to accept this donation. CAPITAL OUTLAY BUDGET Mr. Benson reviewed the proposed Capital Outlay Budget. He explained that Scada Systems Updates to VHF Radios have limitations and need to look at other options. He placed a 2022 placeholder for a PRV project on West & Willard Street. Mr. Benson requested carry over of hydrant painting, Well #6 repair and Office Repainting and Copula. Motion by Commissioner Hudak, seconded by President Speedling to approve the Capital Outlay Budget and 2020 Capital Outlay Carry Over. All in favor. NEXT MEETING Next meeting date is January 14, 2021 at 8:00 a.m. Motion by President Speedling, seconded by Commissioner Hudak to adjourn at 11:08 a.m. ATTEST: -eirA obert G. Benson, Board Manager R teve Spe dlin'esident Page 8 of 8