CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS’ REGULAR MEETING

Wednesday, March 4, 2020 –1:00 P.M.

CRANE LAKE CHAPEL FELLOWSHIP HALL

Members present:  Bonnie Caughey, and Rob Scott.  Darrell Scott (arrived at 1:18PM).

Members absent:   Mark Anderson, Bruce Beste.  

Also present:  Clerk/Treasurer Jo Ann Pohlman.

The meeting was called to order by Chairman Rob Scott at 1:10PM.

Opening Comments:  Chairman Scott stated that the beginning of the meeting would be informational only due to lack of quorum.  When Board Manager Darrell Scott arrives – providing a quorum, motions will be addressed.

Minutes: Wait for quorum

Correspondence:  Wait for quorum

Manager Darrell Scott arrived at 1:18PM – providing a quorum for the meeting.

Treasurer’s Report:  Clerk/Treasurer J. Pohlman reviewed the Treasurer’s Report. The December 2019 & January 2020 Financial Statements were presented to the Board.  January 2020 payroll:  Admin – $2,305.72, Operating – $2,452.54, and Payroll Taxes -$1,961.94.  February 2020 payroll:  Admin – $1,488.07, Operating – $2,117.16, and Payroll Taxes – $2,437.81.  Progress is being made on the 2018 Audit with Walker, Giroux, & Hahne.  The District most likely will owe back payments on PERA and is now paying each payroll period.  Fourth quarter 2019 QuickBooks entries were reviewed with Jennifer of Glorvigen.  $725.75 Tax Apportionment (Levy) and $1,118.69 Special Assessment Revenue was received the end of January from St. Louis County. The $1,118.69 S.A.R. was transferred from Checking to S.A. R. Savings. Monthly transfers were made as follows:  Transferred $6,000 from Operating Fund to Debt Service Savings; and $3,000 from Operating Fund to Capital Reserved Savings for the months of Aug., Sept., & Oct., 2019.  Transferred $7,850 from Operating Connection Fee Fund to Debt Service Savings (Smerillo Connection Fees).  A motion was made by B. Caughey, supported by D. Scott, to approve the Treasurer’s Report as presented and the payment of bills as follows:  January:  Admin:  Costin Group – $1,250.00; Fryberger, Buchanan – $1,380.80 & $404.60. Operations:  Lake Country Power – $1,633.69, $199.13, $281.60, $72.71, $242.00, & $14.53; Aqua-Pure – $399.92; Gopher State One Call – $50.00; Pace Analytical – $354.00; Rutchasky Enterprises – $330.00; Robert J. Scott, Jr. – $1,947.38 and USIC Locating – $5.00.  February:  Admin:  Costing Group – $1,250.00 and Fryberger, Buchanan – $691.20.  Operations:  Lake Country Power – $1,665.95, $279.76, $282.66, $73.76, $246.00, & $66.47; Pace Analytical – $329.00; Robert J. Scott, Jr. – $1,245.90; and Sertich Plumbing – $1,324.39.   All voted in favor and the motion carried. 

Minutes: A motion was made by B. Caughey, supported by R. Scott, to approve the minutes of the 1/8/20 Board of Managers’ Meeting.  All voted in favor and the motion carried.  There was no February meeting.

Correspondence:  The correspondence list was reviewed by the Board.  A motion was made by D. Scott, supported by B. Caughey, that the correspondence be placed on file and acted upon as required.  All voted in favor and the motion carried.

Funding Balances:  An accounting of the Legacy III Funds was provided to the Board.

Clean Water Partnership Loan Program:  The District was awarded a CWP Loan for $1,110,500.00 at 0% interest.  The loan will be used to pay off the current match loan for the Legacy I Grant and current and future Legacy Grant matches plus additional ISTS installations and other approved District expenses.  The District will begin loan payments on a ten-year term beginning in 2024. The loan payment terms may be adjusted upon review when funds are fully disbursed, the Project has been fully completed or the Project Implementation Period has expired. The loan may be extended by one year.   A motion was made by D. Scott, supported by B. Caughey, to adopt Resolution #2020-04 designating Robert Scott as Project Representative for the implementation of the CLWSD Management and Expansion Program Project, and designating Robert Scott as Project Sponsor and Loan Sponsor for the District to enter into the MN CWP Loan Agreement with the MPCA, and authorizing Chairman Robert Scott to execute the CWP Loan Agreement, and authorizing Jo Ann Pohlman as Clerk/Treasurer to execute loan disbursement requests. D. Scott and B. Caughey voted in favor, R. Scott abstained and the motion carried.  The District will apply for $60,500 (Legacy 1 match) and $75,000 (Legacy III match) money as soon as all loan documents are executed.

2019 Audit Agreement:  A motion was made by R. Scott, supported by B. Caughey, to approve signature of the 2019 Audit Agreement with Walker, Giroux and Hahne.  All voted in favor and the motion carried.

CLWSD Meeting Minutes – March 4, 2020

O&M Update (Centralized)

• A motion was made by D. Scott, supported by B. Caughey, to approve Plant Operator Rob Scott Jr. to do any necessary work needed by the District to maintain operation of the sewer system without waiting for Board approval at the next meeting, unless bids are required.  The Board will be updated on any issues/expenditures that arise.  D. Scott and B. Caughey voted in favor, R. Scott abstained and the motion carried.

Administration

• Bonner variance:  A motion was made by B. Caughey, supported by D. Scott, to draft a letter to Joe Bonner regarding his past variances and possible future connection to the force main.  All voted in favor and the motion carried.
• Eggen Connection:  A motion was made by R. Scott, supported by B. Caughey, to draft a letter to the District attorney regarding the inclusion of the Eggen property in the District’s Management System.  All voted in favor and the motion carried.
• By-Laws Revision:  The Board is amending the By-Laws to allow Board Manager meeting attendance via interactive television.  Revisions have been sent to Board Managers for review prior to approval at the April meeting.
• User Rate Discussion:  The User rates have been reviewed and applied for the 2020 season.  The Board will be reviewing possible future rate structure changes.  A Committee has been formed consisting of two Board members – R. Scott and B. Caughey – and the Clerk/Treasurer to work on rate change options to present to the Board.

Joint Powers Board

• VNP Comprehensive Plan: R. Scott did not attend the last meeting.  There was no new report.
• Kicker Blvd. Annex:  The Board has reactivated the project. 
• State and Federal Grant Funding:  Crane Lake is included in the State Bonding bill request for funds.

S.E.H. Engineering  

• District Update:  Jason Chopp emailed the following:  Mia Thibodeau of Fryberger requested that S.E.H. make minor changes to the Kicker Blvd. legal description.  When complete, the results will be sent to Mia.  Rob Jr. requested a Proposal from S.E.H. to evaluate the potential need for an equalization tank upstream of the sand filters at the WWTP.  S.E.H. plans to provide the proposal by the April Board meeting.

O & M. Decentralized

• Management Program Update:  There were minor updates of new applicants.
• Cowden ISTS and Land Acquisition Request:  The process continues with an appraisal being required before land purchase can be completed.
• Peat Systems vs. Mound Systems:  There was no discussion.

O & M Centralized

• Operations Report:  Rob Scott Jr. provided the following reports:  February – There was not much new to report.  All MPCA effluent limits were met and the new chemical pump seems to be working fine.  March – All MPCA effluent limits were met.  The phosphorus levels from the analytical results are showing a steady increase.  Changes in the plant operations were made to lower the phosphorus levels.  The increases are due to increased usage during the snowmobile season.  Rob Jr. has been working with S.E.H. to make modifications and improvements to the plant to help with high influent flows and keep phosphorus levels down.  Upgrading is due because of the plant age.
• Other Agenda items were not addressed.

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

The meeting was adjourned at 2:15PM

Jo Ann Pohlman, Clerk

NEXT MEETING:  BOARD OF MANAGERS’ MEETING – APRIL 1, 2020 – 1:00PM, 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.