CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS’ REGULAR MEETING

September 4, 2013 – 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 Bill Congdon, Darrell Scott & Rob Scott

Members absent:  Managers Mark Anderson & Bruce Beste

Also present: Greg Kimman of S.E.H., Inc., Sewer Operator Terry Jackson and Anne, Clerk/Treasurer Jo Ann Pohlman, a reporter from the Cook News-Herald, and 15 members of the community.

Opening Comments:  Chairman Rob Scott stated that a working budget, funding and S.E.H. expansion proposals would be discussed.

BUSINESS:

Minutes:  A motion was made by B. Congdon, supported by D. Scott, to approve the minutes of the Public Meeting and the Board of Managers’ Regular Meeting of August 7, 2013.  All voted in favor and the motion carried.

Correspondence:  The correspondence list was reviewed by the Board.  A motion was made by D. Scott, supported by B. Congdon, 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.  August 2013 payroll expenses were as follows: Administrative – $657.00 and Operations – $2,628.13.  $2,559.15 CSAH24 funds were transferred from the ESA Fund to S.A.R. Savings.  $689,586.00 was deposit in the ESA Fund from Taconite Production/IRRR for expansions.  The July 2013 Financial Statements were presented to the Board.  A motion was made by B. Congdon, supported by R. Scott, to approve the Treasurer’s report as presented and the payment of bills as follows:  Administrative:  League of MN Cities – $1,611.00; Lutefisk Tech. – $15.95; Jo Ann Pohlman – $14.90; Quill – $109.97; and S.E.H. – $1,064.75.  Operations:  Lake Country Power – $529.76, $101.53, $44.89, $44.89 & $45.00; Citi-Lites – $50.00; Electric Pump – $191.57 & $359.15; Gopher State One Call – $4.35; Pace Analytical – $452.00; Range Electric – $1,699.42; St. Louis County – $441.00; and Terry’s Operational Services – $1,269.40.  All voted in favor and the motion carried.

• Fund Transfers:  There were no transfers approved.
• Budget Forecast:  The budget will be reviewed in November with projections through 2018.
• Admin Levy:  A motion was made by B. Congdon, supported by D. Scott, to certify to St. Louis County $72,000 for the 2014 levy; a 10% decrease from 2013.  All voted in favor and the motion carried.  The Levy amount will be reviewed at the December meeting for possible increase or decrease.

Administration

• Ordinance Review:  B. Beste was not present to discuss the Ordinance.  The Board will be prepared to finalize the ordinance work at the October meeting.
• Insurance Acknowledgment & Liability Coverage Waiver:  A motion was made by R. Scott, supported by B. Congdon, to sign the acknowledgement instructing Wells Fargo Insurance to place insurance coverage with the League of Minnesota Insurance Trust and the CLWSD accepts coverage limits of $1,500,000 from the League of MN Cities Insurance Trust and the CLWSD does not waive the monetary limits on municipal tort liability established by MN Statutes 466.04.  All voted in favor and the motion carried.
• Decision Notice for the Crane Lake Land Exchange Project:  The District, as a permit holder did not wish to appeal the USFS Decision Notice.

Legal Issues

• RLK Arbitration:  The District has received word that RLK has ceased doing business.  The attorneys are consulting on the arbitration issue.

JPB Update

• VNP Comprehensive Plan: The next meeting will be on October 4^th.  R. Scott will request support for the CSAH24 extension and costs for compliance inspections on Bear Island at the next meeting. State Rep. David Dill and Gary Cervenik of the Costin Group confirmed that the interpretation of the Legacy Funds the District will receive may be used anywhere within the District.  The District is applying for funding through the 2014 State Bonding Bill.
• Engineering Services Grant Request:  Work continues on the funding for the Preliminary Engineer Report.

CLWSD Meeting Minutes – September 4, 2013

S.E.H. Update

• Voyageur Lakes Development:  There was nothing new to report.
• CSAH 24 Expansion Phase II:  S.E.H. presented an option to extend another 300 feet beyond Anderson Outfitters to provide service to two lots and the potential for future lots by using a heat tape rather than blasting through rock as a cost savings alternative. The Butch Eggen property is also being considered.  Estimated project cost would be $95,460.00
• Handberg Road Expansion:  This extension would provide service to Handberg’s Marina and connect individuals along that corridor with a project cost of $943,775.00
• Bear Island Expansion:  S.E.H.has recommended Bob Bartel to do a field inspection of all of the ISTS systems on Bear Island to determine compliance, non-compliance, etc.  Each system would be documented and photographed. The fee for this service would be $7,550.00.  Mr. Bartel is St. Louis County certified and is independent of the County.  S.E.H. will send a letter to Bear Island property owners advising them of the inspection, anticipated date and with Mr. Bartell’s qualifications.  The inspection should take two to three days.  A motion was made by R. Scott, supported by B. Congdon, to hire Bob Bartel to do the inspection, with S.E.H.’s input and support, with results to be provided to the Board prior to the October meeting.  All voted in favor and the motion carried.

Treatment Plant and Operations Report

• Terry Jackson reported that problems were encountered with meeting the effluent coliform bacteria standard early in the month.  The UV tubes and glass covers were replaced to remedy the problem.  The problem is believed to be resolved.  A report will be sent to the MPCA.
• Problems continue with the recirculation pumps.  T. Jackson will communicate again with Electric Pump.
• An injector pump was rented to remove a build-up of solids in the recirculation tank.  The tank will be drained and cleaned once daily flows go down in October.  A-1 Sewer Service disposed of solids at the Grand Rapids WWTP.
• Ranger:  B. Congdon is researching the purchase of a Ranger to assist in the lifting of heavy pumps.
• Plant monitoring:  A call will be made to T. Jackson each day to report on plant operation.
• Ziegler Cat Proposal:  T. Jackson will review the preventive maintenance proposal prior to acceptance.

PUBLIC COMMENTS (5 Minute Limit):  Some of the comments were:  The engineer’s proposals included capital expansion costs only, no operating cost.  Two new peat systems were recently completed on the Island.  It is understood that an underwater pipe may be installed at a price of two and a half million dollars, this averages to $50,000 per property.  Why is the inspector independent of St. Louis County?  It is hoped that the Board will assess the need for expansion on Bear Island and happy to hear that the Board is looking at all options.  Why are 42 locations being inspected when there are only 21 systems?  New systems shouldn’t need to be inspected, saving the District money.  The Board is encouraged to use option 1 from the previous meeting of ISTS’s.   System inspection is supported.  Ongoing monitoring of Bear Island systems is a good idea.  Will the inspector be paid as much for inspecting a lot with no system as he would for inspecting a lot with a system?

The meeting was adjourned at8:45PM

Jo Ann Pohlman, Clerk

NEXT MEETING:  OCTOBER 2, 2013, 7:30PM, CRANE LAKE 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.