CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS’ REGULAR MEETING

September 7, 2005 – 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 Deena Congdon, Darrell Scott, Rob Scott, and Michael White.

Members absent: Bud Bystrom

Also present: Jim Pucel of RLK-Kuusisto, Jim Pohlman of NTS, Clerk Jo Ann Pohlman, reporters from the Voyageur Sentinel and the Timberjay, and 14 members of the community.

BUSINESS:

A motion was made by D. Scott, supported by M. White, to approve the minutes of the Regular Meeting of August 3, 2005 and the Special Meeting of August 17, 2005. Motion carried.

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.

D. Congdon reviewed the Treasurer’s Report and presented the invoices on hand for payment approval. A motion was made by D. Scott, supported by D. Congdon, to accept the Treasurer’s report as read. A motion was made by D. Scott, supported by M. White, to approve the payment of the following invoices: Administrative: League of MN Cities - $1,249.00; LMCIT - $2,075.00; Midwest Captions - $120.00; and The Costin Group - $250.00. Plant Operations: LMCIT - $1,220.00; Hawkins - $399.50; NTS - $407.48; Lake Country Power - $47.32 & $273.21; and St. Louis County Auditor - $196.50. Gold Coast Project: Cope & Peterson - $8,450.88 and RLK-Kuusisto - $4,392.05. Motion carried. There was discussion of bill payment for invoices related to the flooding incidents. A motion was made by D. Congdon, supported by D. Scott, to forward flood related invoices to RLK for the insurance claim. Motion carried.

2006 Budget/Levy - Administrative

• D. Congdon stated that the a levy amount needed to be approved and explained that the amount decided upon to be sent to the County by September 15^th could be adjusted downwards by December 20^th. She recommended a levy amount of $50,000 to be reviewed in December, the same amount as last year.
• M. White stated that he had done some research on the levy and confirmed that the Township must present their levy request to the public for approval while the District does not. He now understands from a telephone conversation with Mary Frances Skala of Fryberger that the approved levy amount may be adjusted either upward or downward before December 20^th. The Administrative balance is currently at $61,770.49; approximately $25,000 in levy monies will be received in November making an approximate total of $85,000. There should be about $70,000 to $75,000 in the fund at year’s end. It appears that that is double what is needed for one year.
• There was discussion with the Board and the public regarding the suggested levy amount.
• A motion was made by D. Congdon, supported by M. White, to approve a levy amount of $1,000 with the option to raise or lower that amount by December 20^th, and to review ruling on levy adjustment with Mary Frances Skala, and to hold a special meeting prior to September 15^th to modify the levy if necessary. Motion carried.

RLK/NTS – Treatment Plant Update

• J. Pucel received an initial assessment of damages from Nelson-Collie Electric and has met with another electrician to receive an additional assessment of damages requesting a quote for work, which has not been received to date.
• A temporary alarm system was installed on September 6^th .
• Quality Flow has provided a 5HP gas powered emergency pump and has delivered a rebuilt recirculation pump to the site.
• RLK is completing a final design of an effluent pump overflow.
• RLK has received a quote from Nelson-Collie for power conditioning equipment.
• A recommendation has been received to change the recirculation pump piping. Change will be scheduled with the contractor.
• A list of additional wastewater treatment facility improvements was presented.
• A report was received, via NTS, from Lake Country Power on power service monitoring.
• NTS & RLK met with Steve Michalski of Allied Adjusters; NTS provided a letter describing the flood events to the insurance adjusters and RLK is awaiting notice to proceed in damage repair.

RLK/NTS – Treatment Plant Update (Cont.)

• RLK recommended adding additional surge protection for $5,000 and will include in their forecast.
• A motion was made by M. White, supported by D. Scott, requesting RLK to provide a prioritized list for wastewater treatment facilities improvements showing the prioritized list versus remaining grant monies. Motion carried.

RLK-Kuusisto Project Status Report

• Project Status: Updated punch lists have been sent to the Contractors.
• Recording of Plat: J. Jamnick, J. Pucel, R. Scott and Alicia Cope met at Cope & Peterson’s office on September 6^th to discuss the Rural Development Loan Closing checklist. Recording of the plat is in process. Title insurance may be required before the September 27^th Loan Closing date.
• Wells: A letter was sent to Petersen Drilling requesting project status on the Zullick property well. No response has been received. Sandra Beck of the MN Department of Health will contact Petersen Drilling.
• New Connections: RLK is working with Sheldon Sokoloski on connections for the Hoff property. The MPCA directives have been met. RLK will do the inspections. Mr. Sokoloski is concerned about liability for bonding issues. Ordinances were reviewed to determine costs to the property owner. Expenses of the actual installed costs of the grinder pump station, service lateral, and related costs are to be paid by the property owner in addition to the hookup fee of $14,300.00.

• Accessibility: A quote was received from Architectural Resources to perform an accessibility report for the Crane Lake Chapel - $475.00. They have been directed to perform the accessibility evaluation on the Groomer Garage instead.
• Project Forecast: The project forecast was sent to Scott Harder on July 22^nd. RLK anticipates receiving all quotes for the improvement items by September 14^th to update the Forecast.

NTS Project Status Report

• Status of Operations: Jim Pohlman reported that the plant is still being manually operated. On the last test, everything is at or below specification.
• NTS has the rebuilt recirculation pump and will install when the piping work is complete.
• The emergency pump from Quality Flow has been received. Hoses have been supplied for the pump. The cost to purchase new hoses would be between $300 and $325.
• Two grinder pumps were replaced last month. One due to check valve failure at the Klinefelter property; and one due to stator failure at the Pohlman/Courtney property. Both pumps have been repaired and returned.
• Grinder Station/Pipeline Maintenance: No inspections were reported. The inspections of all grinder pump stations will continue.
• Preventive Annual Maintenance Plan: No progress to date because of incidents at the plant.
• A Status Report will be sent to the Board from the NTS office.

EFG – Report

• Connection information for new properties was received from Scott Harder.
• A proposal to Conduct 2006 Rate Review and 2006-2007 Forecast was received from Scott Harder to complete for an amount not-to-exceed $1,250.00.
• A motion was made by M. White, supported by D. Scott, to approve Scott Harder’s proposal for the 2006-2007 Forecast and review overall budget for rates not-to-exceed $1,250.00. Motion carried.

Eastern Service Area

· Sewer System Inspections: J. Pucel has received quotes for survey work. He is also working with others to prepare a letter to be sent to property owners in the ESA. A draft of the letter should be ready for the next meeting.

• A copy of the updated Preliminary Engineering Report for the ESA was sent to Nancy Larson of the US Forest Service. She would like to have a meeting to review the plan.

RD Project & Loan Closing

• A preliminary meeting was held on September 6^th as stated above in the RLK Project Status Report.
• The Board discussed the need for Title Insurance and would pursue after further consultation with Cope’s office.

• A loan closing date was set for September 27, 2005 at the Cope & Peterson office.
• Bond Resolutions: A motion was made by M. White, supported by D. Scott, to adopt Resolution No. 080501 awarding the sale of the $390,000 Series A. Bond. Motion carried. A motion was made by M. White, supported by D. Scott, to adopt Resolution No. 050502 awarding the sale of the $1,000,000 Series B Bond. Motion carried.

OTHER BUSINESS

Michael R. Seigley submitted a letter to the Board to be read at the meeting regarding a missing survey pin on his property. The letter was read. RLK will review the matter and replacement of the pin.

Virginia Clifford submitted a letter to the Board to be read at the meeting regarding public disclosure and equitable rates. The letter was read. Her letter included a request that a monthly and YTD statement summarizing the commercial and residential volume flow and charges be included with monthly billing statements. Discussion followed. The Board determined that a copy of the letter should be sent to RLK and EFG and to refer to Mary Frances Skala as to the legality of including that report with the billing statements. More discussion followed. R. Scott recommended that anyone wishing to express their opinion/comments on the contents of Ms. Clifford’s letter should send a letter to the Clerk within the next two weeks to be forwarded to Scott Harder to be considered for his 2006/2007 Forecast. Scott Harder will be asked to attend the next meeting to explain the Forecast.

R. Scott stated that a letter was sent to Deb Lindlief of the MPCA regarding the flooding incidents. Her response to that letter will be coming.

PUBLIC COMMENT

Comments included: A suggestion that the insurance adjuster should be requested to send a letter outlining their coverage of the flooding incidents and if there is a cap on the coverage.

Concern was voiced about the sand filter being used for future emergency storage.

Review of base charges should be conducted.

Shortfall of the operating revenue presents a challenge and a concern related to the expense being spread to the whole District.

Why doesn’t the Board have fees, permits, and agreements for future hookups in place?

Concern about the Board being able to charge any fees they wish without consulting the public.

An Advisory Committee was suggested comprised of one Board member and two citizens to review permitting, rates, etc. The Board will have the Advisory Committee suggestion on the next agenda.

Suggestion was made that Scott Harder’s input be placed on the web site. Scott Harder will be asked to attend the next meeting to discuss his Forecast.

There being no other business the meeting was adjourned at 9:45PM.

J. Pohlman, Clerk

NEXT MEETING: OCTOBER 5, 2005, AT THE FELLOWSHIP HALL AT 7:30 P.M.