CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS’ REGULAR MEETING

August 5, 2015 – 7:30 P.M.

CRANE LAKE CHAPEL FELLOWSHIP HALL

The meeting was called to order by Chairman Rob Scott at 7:35P.M.

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

Members absent:  Manager Darrell Scott

Also present: S.E.H. Engineer Randy Jenniges, ESA Representative John Connaker, Ron Rutchasky of Rutchasky Enterprises, Clerk/Treasurer Jo Ann Pohlman, and three members of the community.

Opening Comments:  Chairman Rob Scott recognized the loss of the Nevalainens;  Bob Nevalainen was the Kabetogama Township Chairman and an originator of the JPB.  Best wishes go out to the David Dill family during David’s illness.  Jim Orton of Orton Construction is on the mend and will hopefully be back to work on the CAR within a couple of months.  The District will continue expansion work discussions.  A reminder to all, all District information is public and is available – just contact a Board member.  Those with concerns of high costs are reminded that this is a small District with few members for the costs to be shared among.  The costs will always be higher than those in a large municipality.

BUSINESS:

Minutes: A motion was made by B. Congdon supported by M. Anderson, to approve the minutes of the Board of Managers’ Regular Meeting of July 1, 2015 – with the following change to Public Comments by Jerry Cornell – 15 (rather than 16) of the 25 properties in East Bay were newly installed since 2000.  All voted in favor and the motion carried.

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

Treasurer/Accountant Report:  Clerk/Treasurer J. Pohlman reviewed the Treasurer’s Report. July 2015 payroll expenses including payroll taxes: Administrative – $1,624.39 and Operations – $5,229.11. May Tax Apportionment monies received included:  Levy – $31,371.26; Fiscal Disparity – $420.20; Taconite Relief – $532.32; Special Assessment Revenue – $22,498.05.  The Special Assessment Revenues were transferred to the District savings account.  The 2^nd Quarter Quick Books entries were reviewed with Jennifer of Glorvigen.  $4,630.00 was transferred from Capital Reserve Savings to Checking to pay for a plant sludge pump.  A $347,409.35 pay request was submitted to the PFA for reimbursement for ESA expenses.  The Admin Levy will be approved at the September meeting.  The June 2015 Financial Statements were presented to the Board.  A motion was made by B. Congdon, supported by M. Anderson, to approve the Treasurer’s report as presented and the payment of bills as follows:  Administrative:  Costin Group – $1,000.00, and RVS Software – $281.00.  Settlement Fund:  Rutchasky Enterprises – $1,440.00.  Capital Reserve Fund:  Rutchasky Enterprise – $4,630.00.  ESA IRRRB Fund:  S.E.H. – $37,750.51.  Operations: Lake Country Power – $522.50, $143.53, $68.63, $88.31, & $46.00; Anderson Outfitters – $12.50; Randy Clemmer – $250.00; Ferguson Waterworks – $58.18; Grand Rapids Public Utilities – $1,110.15; Menards – $478.00; Pace Analytical – $452.00; Rutchasky Enterprises – $1,260.00; and Terry’s Operational Services – $1,679.00.  All voted in favor and the motion carried.

Fund Transfers:  A motion was made by B. Congdon, supported by M. Anderson, to transfer $2,000.00 from the Operations Fund to Capital Reserve Savings and $2,000.00 from the Operations Fund to Special Assessment Savings.  All voted in favor and the motion carried.

Administration

• Ordinance (ISTS Management): To be discussed under ESA Expansion & ISTS Management Projects
• East Bay Future Cost Concerns (Mark Berg Letter):  To be discussed under ESA Expansion & ISTS Management Projects.
• ESA Advisory Representative Update:  John Connaker reported that he is hearing more positive than negative comments.  People are pleased with the $7,500 hook-up option and are waiting to see how the first one goes. Most are happy to hear that the District is willing to work with property owners.  Property owners are anticipating the continuation of the CAR.

CLWSD Meeting Minutes – August 5, 2015

JPB Update

• VNP Comprehensive Plan: R. Scott was unable to attend the July 15^th meeting.  Bruce Beste did attend the meeting and stated that he was impressed with Gary Cerkvenik’s work for the JPB, especially his explanation of the $300,000 award to the DNR for bathroom facilities at the Public Access at the end of Handberg Road.
• State and Federal Grant Funding:  The JPB continues to work for both State and Federal level funds for all areas.  $2,000,000 in Legacy Funds has been awarded to Island View, Kabetogama and Crane Lake with Crane Lake receiving $45,000, to be used as matching funds.  Representative Nolan’s office is in support of the JPB.

ESA Expansion & ISTS Management Project

• Ordinance:  R. Scott & B. Beste met with Mary Frances Skala and Mia Thibodeau of Fryberger Buchanan law firm to discuss Ordinance 3 changes related to the ESA.  Topics of discussion were; the sewer management concept, partial hook-ups to the system, and District and County standard differences.  Sewer management will include a new system at $7,500, plus application fee of $350 and a $80 monthly fee (it was suggested that the $80 monthly fee be tracked separately in the District books); or a fee for the District to manage a current compliant system.  There will be a process involved including an application request, an inspection and an easement. Partial hook-ups can be addressed under the variance portion of the current Ordinance 3 with a sunset date included.  District and County differences will need further discussion with St. Louis Environmental Services with County Commissioner Rukavina’s assistance.
• Engineering Update (S.E.H.): Handberg Road Extension: Randy Jenniges reported that the main line pipe installation is complete.  There are two services left to finish.  Air release areas and clean-up need to be completed.  The lift station at the DNR will be installed near the end of the month or the beginning of September. The DNR system will feed directly into the lift station.  It is anticipated that the DNR will be billed beginning in October.  The District will need to communicate with the DNR on billing process. A Change Order requesting a time extension for the September work will be presented to the Board at the September meeting.  A motion was made by B. Congdon, supported by R. Scott, to approve U.S.A.’s Pay Request No. 2 for $342,004.75 for work completed to date. All voted in favor and the motion carried.  The District will look into hooking up the M. Anderson, Tufte, Wheeler and Eggen properties if funds are available after completion of the Handberg Road Extension Project.  R. Jenniges will supply the Board with costs.
• Funding:  The Bonding Fund contract has been completed and an application for reimbursement has been submitted.  B. Congdon’s communication with Jim Anderson of the MPC confirmed that Legacy and Bonding monies can be used for failed or inadequate systems with an easement in place.  This information will be sent to Mia Thibodeau of Fryberger.  The District is determining the best option for easements without surveys to decrease expense and to expedite the process.
• ISTS Management Projects Update (U of M):  Sara Heger was not contacted for an update as the CAR is on hold awaiting Jim Orton’s recovery.
• ESA Sewer Requests:  Requests from properties on Federal land is being discussed with the USFS through Commissioner Rukavina.  A variance request, as explained in the current Ordinance 3, will need to be submitted by those wishing a partial hook-up to the system.  Partial hook-ups would have a sunset date with full participation on a hook-up or management level being required.  That variance would come before the Board for approval.  The current application process with be reviewed/revised within the next few days. B. Congdon will then be able to present an application to those interested, which then will be submitted to the District along with the $350 application fee.  A motion was made by B. Congdon, supported by B. Beste, approving the payment of the $7,5000 new system fee over time on a 5-year basis with 4% interest.  The $80 monthly fee would begin upon system hook-up.  All voted in favor and the motion carried.  A motion was made by B. Congdon, supported by R. Scott, to supply applications with application fee of $350 to property owners with compliant systems upon request to be included in the management system at $25 per month.  The $25 offer will have a 2 year time span. All voted in favor and the motion carried

Sewer Freezing

• Insurance Claim Status:  The work has been performed on the final tank related to the claim and submission to the Insurance Company will be considered.
• New Insurance Claim:  A new claim has been submitted for the grinder damage due to freezing at the Brenton property
• Water Infusion:  The water infusion last winter was considered successful; the amount of water infused may be decreased next winter to decrease the amount of flow to the plant, which affects the chemical balance.
• New Pump Issues (Valves, High Electrical Readings) Not addressed
• Beckmann Freezing Issue:  The District will dig up the line to determine if a new line needs to be laid to infuse water from the DNR site and/or to insulate the line.

CLWSD Meeting Minutes – August 5, 2015

O & M Update

• Operations Report:  Terry Jackson’s email report stated that all State and Federal standards were maintained during the month of June.
• Communicate has been sent to Nikki and Lance regarding observations at the plant in July.  The goal is for them to recognize problems and initiate resolutions.
• It is very unlikely that an on-land bio-solids amendment to our NPDES Permit will be approved this year.  Options will continue to be researched.
• One of the plant’s new recirculation pumps is making noise.  Electric Pump has been contacted to do repairs under warranty.
• One of the sludge pumps failed.  A new pump has been installed.
• A polymer to be used as a coagulant aid has been ordered to add to current chemicals, which is necessary with higher summer flows.
• There has been a request by Ferfons to connect a cabin to their grinder station.  The District will look into their additional base charge for this.
• Repair to the plant road and entrance to the plant will be performed.
• Manpower:  Nikki Rutchasky has completed 8 of 10 units of Volume 1 of the Sacramento State WWTP Operator Course with an overall average of 98%. After completing Volume 1, she will move on to Volume 2 for the final 10 units.  This course generally requires about a year of study.

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

The meeting was adjourned at 9:30PM

Jo Ann Pohlman, Clerk

NEXT MEETING:            BOARD OF MANAGERS’ MEETING – SEPT. 2, 2015 – 7:30PM, 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.