CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS’ REGULAR MEETING

December 14, 2016 – 2:00 P.M.

CRANE LAKE CHAPEL FELLOWSHIP HALL

The meeting was called to order by Chairman Rob Scott at 2:00P.M.

Members present:  Mark Anderson, Bruce Beste, Bill Congdon, and Rob Scott

Members absent:  Darrell Scott

Also present: Jason Chopp of S.E.H., Clerk/Treasurer Jo Ann Pohlman, a reporter from the Cook News-Herald, and 1 member of the community.

OPENING COMMENTS:  Chairman Rob Scott stated that discussion of prevailing wage and contractors for ISTS work for the District would be first on the Agenda.

Chairman Scott explained to those present that the District was required to ask for two bids for each ISTS project that is related to State Grant Funds and is over $25,000.  He also stated that the prevailing wage is being followed.  The Board had previously agreed to offer the bid opportunity to local contractors in the Crane Lake and Buyck areas.  A motion was made by M. Anderson to extend the bidding area to contractors from Crane Lake to Cook.  The motion died due to lack of support.  Bidding will be tabled until the January meeting where M. Anderson will provide a list of contractors between Crane Lake and Cook that would be interested in bidding for the ISTS projects.

BUSINESS:

Minutes: A motion was made by B. Congdon, supported by M. Anderson, to approve the minutes of the 11/2/16 Board of Managers’ Meeting.

Correspondence:  The correspondence list was reviewed by the Board.  A motion was made by B. Beste, supported by B. Congdon, that the correspondence be placed on file and acted upon as required.

Treasurer’s Report:  Clerk/Treasurer J. Pohlman reviewed the Treasurer’s Report. The October 2016 Financial Statements were presented to the Board. November 2016 payroll:  Admin – $1,356.08; Operating – $2,369.59. October 2016 Tax Apportionment money was received from St. Louis County. Bills for payment:  Administrative:  Costin Group – $1,000.00; Crane Lake Chapel – $300.00; Fryberger – $1,513.20; Glorvigen – $266.00; LMCIT – $64.00; Lutefisk Tech. – $192.32; MN Rural Water Assoc. – $275.00; and Quill – $152.45.  IRRRB Fund:  Fryberger – $70.86; Quality Flow Systems – $1,715.00; and S.E.H. – $772.82. Plant Operations:  Lake Country Power – $619.42, $122.74, $73.15, $45.10, $46.00, & $50.00; Grand Rapids Public Utilities – $883.95; LMCIT – $2,041.00; Mountain & Co. – $3,840.00; Pace Analytical – $330.00; Udovich Electric – $1,096.84; and Terry’s Operational Services – $1,636.00. Final Payment to USA in the amount of $38,441.00 was made on 11/4/16.  A motion was made by B. Congdon, supported by R. Scott, to approve the Treasurer’s Report as presented and the payment of bills.  All voted in favor and the motion carried.

Fund Transfers:  A motion was made by B. Congdon, supported by B. Beste, to transfer $1,500.00 from the Operating Fund to S.A.R. Savings and $1,500.00 from the Operating Fund to C.R. Savings. All voted in favor and the motion carried.

Rate Review:  The Board discussed the need to raise the rates for 2017.  A motion was made by R. Scott, supported by B. Beste, that the rates remain the same for 2017.  All voted in favor and the motion carried.

Administration

• ESA & WSA Resolution:  A motion was made by B. Congdon, supported by M. Anderson, to adopt Resolution No. 2016-01 removing the terms ESA and WSA to describe certain areas of land within the District.  All voted in favor and the motion carried.
• CLWSD Advisory Rep. Update:  There was no update.

• Ordinance 1 – Article IV-Use of Public Sewer Required: The ordinance was reviewed for mandatory hook-up requirements. The Ordinance will remain the same. The Board will review on a case by case basis whether or not a property should be included in the system.  A variance procedure will be used to review exclusion of properties.
• DNR Cooperative Agreements (Bayside Drive & Handberg Rd.): Scott has received the Special Use Permit for District water usage at the DNR Public Water Access on Bayside Drive. The Permit is the same as in the past excluding the quarterly payments to the District by the DNR to compensate for lost revenue resulting from the purchase of the RV site by the DNR.  They had agreed to pay the District for four years and that term is completed.  A motion was made by B. Congdon, supported by R. Scott, to approve the Special Use Permit.  All voted in favor and the motion carried. Handberg Road Public Water Access:  The DNR plans to have the site operational by July 1, 2017 at which time the District will bill them as any other customer, with no contract needed.

CLWSD Meeting Minutes – December 14, 2016

Administration (Cont.)

• Levy Revisit: The District reviews the levy set in September each December with the option to increase or decrease as needed.  The Board agreed that the levy should remain at $40,000 for 2017, a 55% decrease since 2012.

• Board Designates:   A motion was made by R. Scott, supported by B. Congdon, to approve the following for 2017:

Fryberger, Buchanan Law Firm remains as primary council for the District with Cope & Peterson and Maki & Overom as needed.

Glorvigen, Theis remains as the accounting firm for the District.

Any bank may be used with American Bank being designated as the financial institution for the District.

Carl Brown Consulting remains as a financial consulting firm on an as needed basis for the District.

Costin Group remains as consulting firm for the District.

SEH remains as engineering firm for the District.

Terry Jackson of Terry’s Operational Service remains as Plant Operator.

Lance Ulen & Nichole Rutchasky remain as Maintenance Workers.

Rutchasky Enterprises remains on contract with the District.

Traci Bak remains to provide Administrative Work.

CNH remains as the official newspaper for the District.

All voted in favor and the motion carried.

• Administrative:  A motion was made by M. Anderson, supported by R. Scott, to approve the following for 2017:

Rental payment to the Crane Lake Chapel remains at $50 per meeting.

Meeting Date & Time & Location:  First Wed of each month, 7:30PM (2PM during winter months), Fellowship Hall.

Posting Places:  Church, Post Office, Fire Hall and area resorts when open with 1 posting annually.  Meeting             changes will be posted as they occur.

Minutes Distribution:  On website and mailed by written request.

Copy and Information Request Policy:  Charge of 25 cents per copy (includes labor) for copy requests and $25   per hour for other labor requests.

Salaries:  All employees will receive a 3% increase.

Mileage:  Follow state guideline which fluctuates and is currently 0.560 cents per mile.

All voted in favor and the motion carried.

• Contract Signatures:  A motion was made by B. Congdon, supported by M. Anderson to sign 2017 contracts for Terry’s Operational Services, Costin Group, Rutchasky Enterprises, and Orton Construction.  All voted in favor and the motion carried.
• New Customer Billing:  The Board agreed that when the work on an ISTS has been completed and the St. Louis County Certificate of Compliance has been received by the District, billing should begin.

JPB Update

• VNP Comprehensive Plan: The next planned meeting is for January 25, 2017 in Cook.
• Kicker Blvd. Annex:  A letter of support was received from Commissioner Rukavina.  R. Scott will request that the JPB approve a modification of the Comprehensive Plan to annex Kicker Blvd into the CLWSD.
• State & Federal Grant Funding:  Jason Chopp and B. Congdon will complete a list of future projects for grant funding.

S.E.H. Engineering Update

• Jason Chopp presented three agreements to the Board for consideration.  The Board agreed that the agreement for the Houseboat Grinder-Screening Evaluation and the agreement for the Wastewater Treatment Facility Hydraulic Evaluation would be tabled until more information could be gathered.  A motion was made by B. Congdon, supported by R. Scott, to approve signature of the Agreement for Professional Services between S.E.H. and the District.  The Agreement authorizes and describes the scope, schedule, and payment conditions for Consultant’s work on the Project described as:  Handberg Road Phase II Feasibility Study.  All voted in favor and the motion carried.
• MPCA/PFA Funding Status:  The Handberg Road CAR has been approved.  The District may now use funds for Phase II of Handberg Road.  R. Scott will confirm with Brian Fitzpatrick of the MPCA that expenses for a generator, the valve issue at the plant, and the VHB screening & dumping issues will be approved for grant reimbursement.

CLWSD Meeting Minutes – December 14, 2016

O & M Update (Decentralized)

• ISTS Program Status:  The Board reviewed the report. There have been 23 inquiries about the new program with four systems being completed.  The District has received responses to the letter sent offering the new program offering the option to be included in the ISTS Management Program.
• ISTS Inspections – Establish a Program:  A contract is being presented to Orton Construction to inspect properties for compliance throughout the decentralized portion of the District.  Jason Chopp will communicate with Jim Orton on compiling a list of properties to visit.   Orton Construction will also be requested to submit a contract to do the required inspections of the new ISTS systems installed by the District.

O & M Update (Centralized)

• Operations Report:  Terry Jackson submitted a report stating that plant effluent limitations were met during November.  Winterizing was performed in November including covering of the new lift station with foam and tarp; and covering grinders and primary/secondary grates at the plant.
• Terry provided history on the butterfly valve at the plant as well as a possible wiring solution.
• Eyewash & Shower Head:  Terry looked into the cost of installing both at the plant; the cost was near $4,000.  Grant reimbursement for these items should be considered.
• GPS Curb Stops:  Most curb stops have been located and are entered into the GPS.  The staff will try to locate the remaining curb stops in the spring.
• Water Infusion will begin after January 1, 2017.
• The heat tapes have been turned on.
• Manpower:  Terry Jackson has agreed to contract again with the District and will begin looking for a replacement with the appropriate licenses.
• Generator:  M. Anderson will review with Community Electric the options they have proposed and will get another proposal from another company.

PUBLIC COMMENTS (5 Minute Limit): There were none.

The meeting was adjourned at 4:40PM

Jo Ann Pohlman, Clerk

NEXT MEETING: BOARD OF MANAGERS’ MEETING – JANUARY 4, 2016 – 2:00PM, FELLOWSHIP HALL

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.