CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS REGULAR MEETING

August 18, 2004 – 7:30 P.M.

CRANE LAKE CHAPEL FELLOWSHIP HALL

The meeting was called to order by Chairman Michael White at 7:33 P.M.

Members present: Managers Bud Bystrom, D. Congdon, D. Scott, Rob Scott and Michael White.

Members Absent: None

Also present: John Jamnick and Jim Pucel of RLK Kuusisto, Clerk Jo Ann Pohlman, reporters from the Cook News-Herald, the Voyageur Sentinel and the Timberjay, and 8 members of the community.

BUSINESS:

Motion by D. Scott, supported by B. Bystrom, to approve the minutes of the Regular Meeting of August 4, 2004. Motion carried.

Correspondence

• The correspondence was presented to the Board.
• A motion was made by D. Congdon, supported by D. Scott, that the correspondence be placed on file and acted upon as required. Motion carried.

RLK-Kuusisto Project Status Report

• Wastewater Collection System
• Contractor has completed the installation of the grinder pumps and service lines.
• The Contractor is completing the restoration and punch list items.
• RLK has met with the Minnesota Department of Health to verify measurements. They are investigating potential problem areas. RLK has provided solutions for several of those areas. RLK is waiting for the MDH to finish their investigation. R. Scott asked if there would be any added costs to the District. RLK assured the Board that expenses would be incurred by RLK and the Contractor. R. Scott asked if the timeline would be affected. RLK responded that there would not be a delay in the plant operation. RLK also assured the Board that there is no negative impact on the environment at the potential problem areas.
• Rural Development Closing was originally scheduled for 9/2/04. Changes to and completion of the plat and issuance of new easements have pushed that date back. A new date has not been set.
• The date for sodding and bituminous completion has been extended to 9/30/04.
• J. Pucel reviewed Change Order No. 2 in the amount of $6,199.00, which added Running Time Meters for $6,325.00, Re-staking Access Road for $1,765.00, and an Extended Contract Completion Date to September 30, 2004 for restoration items only; and a deduct for an Add-A-Phase Converter for $1,891.00. The Completion Date portion of the Change Order was approved at the last meeting.
• J. Pucel reviewed Change Order No. 3 in the amount of a negative $15,995.00, which included additions and deletions to property owner grinder pump stations.
• Wastewater Treatment System
• Start up has been completed.

o Contractor is completing the punch list items.

o J. Pucel reviewed Change Order No. 3 in the amount of $1,851.00, which added Installation of Weatherproof 400-amp 250 Volt Safety Switch with 225 amp fuses for $1,831.00, an Electrical Change for Alum Tank Relocation for $520.00 and an Extended Contract Completion Date to August 1, 2004; and a deduct to install a Standard Laundry Tub rather than a Cast Iron Laundry Tub for $500.00. The Alum Tank Relocation portion of the Change Order was approved at the last meeting.

RLK-Kuusisto Project Status Report (cont.)

• A motion was made by B. Bystrom, supported by D. Congdon, to approve Change Order Nos. 2 and 3 for the Collection System and Change Order No. 3 for the Treatment System as reviewed by J. Pucel. Motion carried.
• J. Pucel will check on the water line problem reported by Borderland Resort. He will also speak to Mr. Hunter about grinder pump placement.
• A list of easement changes during construction was included in the Project Status Report. M. White requested that RLK provide the date that each change was made to determine who is responsible for the expense.
• R. Scott asked that RLK repeat for the press present that they had not received a response from the MDH, that they felt all potential problems were correctible and that there would be no expense for the District. RLK confirmed that statement.

Sewer Connections/Abandonment Proposal

• Drafts have been received from RLK and NTS for sewer connections and abandonment.
• A motion was made by B. Bystrom, supported by D. Congdon to authorize RLK and NTS to proceed with the sewer connections and abandonment process. A letter will be sent to property owners within ten days. Motion carried.
• RLK & NTS will work with J. Pohlman to establish inspection schedules.

Remote Operation

• To be addressed with the NTS Contract.

Project Closure

• The As-Built survey has been done. The Engineers will provide the As-Built drawings for the project.
• There was discussion about the end of the project. J. Jamnick explained that the warranty period would continue one year after substantial completion of the project.
• M. White requested a letter be written by RLK stating when the construction phase of the project will be completed. This is required to advise the users that there will be no further construction changes after an agreed upon date.

Houseboat Rates

• Samples are being taken and analyzed by NTS to arrive at a fair and accurate way to determine the charge for houseboat waste.
• One houseboat waste sample has been received to date. RLK will have a recommendation for the Board for an Extra Strength Waste Rate within the next month.

NTS Contract

• D. Congdon brought to M. White’s attention that meter reading had not been included in the contract. M. Appelwick said it was probably included in the over all rate, but he would review the contract for the Board.
• There are non-project related items needed to run the plant that must be provided by the District; such as a security system, an alarm monitor with pagers, supplies, replacement parts and tools. A meeting will be set up with Scott Harder, Mike Appelwick, RLK, R. Scott and M. White to review these items and determine when to build them into the plan and how to finance them.
• A decision must also be made regarding remote operation of the plant to allow completion of the operating plan.

Accounting/Billing Procedures

• Base Charge billings will begin by September 1^st.

2005 Levy

• The levy is for administrative expenses, which relate to the entire District.
• The 2004 levy was $77,000. M. White’s recommendation to the Board for the 2005 Levy is $50,000. Action will be taken by the Board at the next meeting to advise the County of the recommended amount by September 15^th. That amount may be reduced in December, but cannot be increased.

OTHER BUSINESS

Tufte’s asked for their EDU’s to be reviewed. RLK submitted their review and felt there should be no change. A motion was made by D. Congdon, supported by B. Bystrom, to accept the Engineer’s recommendation on the number of EDU’s assigned to the Tufte property. Motion carried.

R. Scott asked RLK about the grinder change on the Dave Adams property. It was included in Change Order No. 3 for the Collection System.

PUBLIC COMMENT

Regarding sewer connections – How will contractors other than Wagner Construction know when connection work can begin. Property Owners will contact contractors after receipt of their letter.

What will the $50,000 levy be used for? Attorney fees, engineer fees, clerical service, insurance are some of the items.

How much land will be needed for waste application? 20 acres would be more than adequate. The District will not own the land.

There was concern about property owners being able to complete hook-ups to the system before freeze up.

There being no other business the meeting was adjourned at 8:45P.M.

J. Pohlman

Clerk

NEXT MEETING: SEPTEMBER 1, 2004, AT THE CRANE LAKE FELLOWSHIP HALL AT 7:30 P.M.