CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS’ REGULAR MEETING

March 1, 2006 – 7:30 P.M.

CRANE LAKE CHAPEL FELLOWSHIP HALL

The meeting was called to order by Chairman Rob Scott at 7:30P.M.

Members present: Managers Bill Congdon, Darrell Scott, and Rob Scott.

Members absent: None

Also present: Jim Pucel of RLK-Kuusisto, Kenny Winkler and Jim Pohlman of NTS, Clerk/Treasurer Jo Ann Pohlman, a reporter from the Cook News-Herald, and 25 members of the community.

BUSINESS:

Opening Comments: Chairman Rob Scott extended a welcome to all those present. His first comment referred to the need to fill the two vacant seats on the Board. He stated that there would be no decisions made this evening on the 2006/07 forecast or rates. He further stated that he would not ask for a motion to approve a rate structure change until all options had been received from Scott Harder, a Public Meeting had been held with Scott Harder present, and input from that meeting had been received and reviewed. Additionally, he stated that at the end of the business meeting the public would each have a 5 minute time period to address the Board and that a sign in sheet was being passed and to indicate yes/no if you desired to make a public comment.

A motion was made by B. Congdon, supported by D. Scott, to approve the minutes of the Regular Meeting of February 1, 2006. Motion carried.

The correspondence was presented to the Board. There was one request for a letter to be read aloud at the meeting. A motion was made by D. Scott, supported by B. Congdon, that the correspondence be placed on file and acted upon as required. Motion carried.

Clerk/Treasurer J. Pohlman presented the Preliminary Financial Statements for December 2005, January 2006, and February 2006 to the Board explaining that they were considered preliminary until end-of-year financial work had been completed contingent upon merging of the CLWSD books and accountant review. 2005 revenues and expenditures in the Operating Fund were stated as well as current Fund balances. A motion was made by B. Congdon, supported by D. Scott, to approve the Preliminary Financial Statements for December 2005, January 2006, and February 2006 and the Treasurer’s Report as presented. Motion carried. The invoices on hand were presented for payment approval. A motion was made by D. Scott, supported by B. Congdon, to approve payment of the following invoices: Administrative: Fryberger - $498.77; Lutefisk Tech. - $32.50; Glorvigen - $3,500.00; Jo Ann Pohlman - $42.43; and Midwest Captions - $120.00. Plant Operations: Lake Country Power - $31.76 & $608.83; NTS - $3,871.75; and Hawkins - $252.24. Flood Related: NTS - $1,511.89 & $1,152.00, GAP Engineering - $305.72; and RLK-Kuusisto - $1,006.25. Gold Coast Project: Cope & Peterson - $106.00; NTS - $3,711.78; and Architectural Resources - $685.00. Motion carried.

RLK/NTS – Treatment Plant Update and Corrective Actions

• Work Plan/Project Forecast: Jim Pucel reviewed the updated Work Plan with the Board stating that approval was received in writing from the insurance adjuster to go ahead with all flood related damage repair. Preventive improvements will be done in conjunction with the damage repair. Recommended project enhancements, adding redundancy to the system to prevent plant and environmental damage should another flood occur, were discussed. The updated Budget Summary was included in the discussion. Chairman Scott stated the importance of balancing RLK’s records with the Project records before all Project dollars were spent. A motion was made by B. Congdon, supported by D. Scott, to approve the By-pass Valve & Tank project enhancement for $11,000. Motion carried.

RLK-Kuusisto Project Status Report

• Wagner and Rice Lake Punch Lists were discussed. R. Scott requested that RLK write a letter to Rice Lake listing the punch list items and requesting a timeline for completion.

• Wells: The hydrofracking and test pumping of the Zullick well has been completed. A liner will be installed once the frost is out of the ground.
• Hilltop Road – Rock Pile/Excavation: All information was provided to Cope & Peterson regarding the Hilltop Road rock pile. Alice Cope will be sending a letter to the Board.
• Easements, Survey Pin: The survey pin issues are on the Wagner Punch List. RLK understands that Wagner will hire a surveyor to replace the pins.

CLWSD Meeting Minutes – 3/1/06

RLK-Kuusisto Project Status Report (Cont.)

• Bergemann IPS Replacement: Wagner Construction will complete the work when the weather is warmer but before the frost is completely out of the ground. Bergemann’s system is functional.
• Emergency Response Plan: J. Pucel will have the plan ready for the April meeting.
• Capital Asset Plan: RLK will complete the plan after plant improvements and enhancements are completed. RLK will begin the process by sending an asset list to Scott Harder of EFG and the Board.
• Engineer Services Amendment #5: The decision at the November meeting to address the Amendment upon completion of the Capital Asset Plan still stands.

NTS Status Report

• K. Winkler reported that the plant is running well and all quality standards are being met at the plant.
• Gopher State One Call: Forms were sent to Clerk J. Pohlman and Bob Patrick of N& R Services for completion.
• Installation of the Effluent Dissolved Oxygen Controller & Sensor is complete. The instrument functioned for two days with the sensor failing. NTS is currently working with Hach and Tech Sales for a replacement sensor.

• Preventive Annual Maintenance Plan: Inventory of equipment with O & M manual review is completed and a Plan is being drafted.
• Work is being done on the piping for the blowers.
• Attendance at Monthly Meetings: R. Scott and Mike Appelwick of NTS discussed the necessity of Kenny Winkler’s presence at each meeting. It was determined that Jim Pohlman would attend the monthly meetings as the NTS Representative and K. Winkler would attend on an as needed basis.

EFG – Report

• 2006/2007 Forecast & Rate Review & Process Flow Volumes: Chairman Scott and Township Chairman Jerry Pohlman met with Scott Harder of EFG in Duluth to discuss the 2006/07 forecast and rate structure. They discussed options suggested by Scott Harder. Following that meeting, Scott Harder began review of those options and will have the options, including advantages and disadvantages, available for the April Board of Managers’ meeting. Each option is used in other Sanitary Districts.
• EFG Public Meeting: An April target date for a Public Meeting with Scott Harder is being considered. After the Public Meeting, the input and comments from that meeting will be discussed by the Board.

Eastern Service Area

• The District currently has the RLK April 2005 Revised Preliminary Engineering Report for the ESA. Last November the Board moved to establish an Advisory Committee and agreed in January to form that committee after the consulting options were presented.

• R. Scott met with Bridget Chard, Small Communities Project Coordinator, on February 7^th to discuss consulting work. R. Scott plans to meet with a representative from the University of Minnesota Extension Service regarding options for the ESA.
• A letter was received from the MPCA with the rescoring for the proposed wastewater project with our project rank being 138. The project must be in the top 50 to qualify for funding.

Capacity Reservation Fees

· Letters were written to Voyageur Lakes Development and Scott’s Resort regarding reservation of plant capacity. No response has been received to date.

Fellowship Hall Accessibility

• D. Scott spoke to Roger Clapp of Rural Development who confirmed that the same procedure must be followed for the Chapel Fellowship Hall as was required for the Groomer Garage – A transition plan must be provided. D. Scott will continue to work with RLK and Rural Development on this project.

Computer Purchase

• The purchase price for the new computer system and printer for the District was slightly above the budgeted amount of $2,500 previously approved. A motion was made by B. Congdon, supported by D. Scott, to approve $3,000 for the total purchase with the purchase to be reviewed by R. Scott. Motion carried.

CLWSD Meeting Minutes – 3/1/06

Oliver Eggen Information Request

• A letter was received from Mr. Oliver Eggen requesting information on Special Assessments, number of system users, etc. A response was sent to Mr. Eggen on 2/27/06. Mr. Eggen requested that the letter be presented to both the CLWSD and the Township Boards.

Other Business

• R. Scott read Stuart McKie’s letter of February 21, 2006 regarding the residency status of Bill and Deena Congdon as requested.

PUBLIC COMMENT (5 Minute Limit)

Charlie Crockett recommended scheduling the Public Hearing for May, rather than April, when more summer residents would be able to attend. Mr. Crockett also remarked on Bill Congdon’s residency status, suggesting the Town Board would need to consider other residents with similar circumstances for the CLWSD Board to provide more opportunity for Manager selection to create a more diverse Board.

Paul Hamblin requested clarification of the transfer of interim interest payment between funds. R. Scott explained that the interim interest amount of approximately $105,000 was paid from Project Funds; but it could be paid from Pre-Paid Special Assessments. Part of that amount will be moved from Project Funds to Pre-Paid Special Assessment Funds to allow remaining Project grant monies to be spent on plant enhancements to prevent future flooding. Paul also asked about reserve funds. There is currently $14,300 in the Capital Reserve Fund. Mr. Hamblin also stated that he is aware of firms that specialize in managing sewer districts and that some of them should be considered.

R. Scott stated that he had spoken to Mary Frances Skala of Fryberger about an outline structured toward an additional ordinance or a modification to an existing ordinance to include capacity reservation fees.

Richard Dinter requested that Scott Harder’s options be placed on the website when they become available. R. Scott agreed.

There being no other business the meeting was adjourned at 8:55PM.

J. Pohlman, Clerk

NEXT MEETING: APRIL 5, 2006 AT THE CRANE LAKE CHAPEL FELLOWSHIP HALL AT 7:30 P.M.

This draft of the CLWSD minutes has been posted solely for preliminary informational purposes. Minutes are unofficial and subject to change until they have been approved by the CLWSD Board of Managers.