CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS’ REGULAR MEETING

April 2, 2008 – 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 Dave Adams, Bill Congdon, Rob Scott and Mike White.

Members absent:  Manager Darrell Scott

Also present: Sewer Maintenance Worker Jim Pohlman, Clerk/Treasurer Jo Ann Pohlman and representatives from the Cook News-Herald and Voyageur Sentinel. John Jamnick of RLK-Kuusisto arrived during the reading of the correspondence.

BUSINESS:

Opening Comments:  Chairman Rob Scott stated that there would be a closed meeting of the Board following the Regular Board of Managers’ Meeting.  Condolences were extended to Mike White for the loss of his son.

A motion was made by B. Congdon, supported by M. White, to approve the minutes of the Regular Meetings of February 20, 2008 corrected by the addition of John Jamnick, RLK-Kuusisto as present; and March 5, 2008. All voted in favor and the motion carried.

The correspondence was presented to the Board.  A motion was made by D. Adams, supported by B. Congdon, that the correspondence be placed on file and acted upon as required.

Clerk/Treasurer J. Pohlman reviewed the Treasurer’s Report.  The 2006 Audit is still being completed. $13,000.00 of the Debt Service Fund was transferred to a 9 month CD at 3.60% interest and the remaining amount of $436.81 was placed in a savings account at 2% interest. The quarterly transfer of $4,000 from the G. C. Operating Fund to the Debt Service Fund and then to the savings account at the end of March was done. The January and February 2008 Financial Reports, reviewed by Glorvigen, were presented to the Board. January payroll expenses amounting to Administrative – $597.45 and Operations – $1,538.32, and February payroll expenses amounting to Administrative – $634.20 and Operations – $2,685.60 were presented to the Board. Invoices-on-hand were reviewed with the Board. A motion was made by D. Adams, supported by B. Congdon, to approve the Treasurer’s Report as presented and the payment of bills as follows: Administrative: Glorvigen – $200.00; Fryberger, et all – $396.76; Costin Group – $250.00; Quill $119.96 & $84.18; Lutefisk Technologies – $37.50 and Quick Books – $181.00. Operations:  Lake Country Power – $1,208.10, $1,508.92 & $75.90; NTS – $38.00, $38.00 & $38.00; Hawkins – $786.08; Ely Utilities commission – $324.00; Nelson-Collie Electric – $461.69; Petersen Drilling – $21.71; One Call Concept – $2.90; N & R Services – $60.00; Terry’s Operational Services – $1,083.60 & $1,083.60; and  RLK-Kuusisto – $417.50 & $273.75.  All voted in favor and the motion carried.

Administration (CLWSD)

• Emergency Response Plan (ERP):  T. Jackson will make required changes to the O & M manual; the ERP is included in the O&M manual.  J. Jamnick will have the manual ready for Board member review prior to the May meeting when it will be Board approved and forwarded to the MPCA.
• Capital Asset Plan:  John Jamnick will be communicating with Jennifer Hanson of the Glorvigen Accounting Firm on the Plan. If further assistance is needed, M. White and J. Pohlman will do so.
• T. Jackson Contract:  Terry Jackson’s Certificate of Insurance will be forwarded to Fryberger, Buchanan for contract completion.
• Billing Due-Date Change:  A motion was made by D. Adams, supported by B. Congdon to change the date bill payments are due prior to late fees being added from the 20^th of the month to the 25^th.  All voted in favor and the motion carried.

2008/09 Rate Review

• Carl Brown Analysis:  A motion was made by M. White to approve Carl Brown’s recommendation to increase rates as follows:  Base charge $65.07; Use rate $22.41/1,000 gallons; High-strength wastewater $38.88/1,000 gallons; and Excess flow $35.93/1,000 gallons.   There was Board discussion. The motion died for lack of support.

Financial (MFS, EFG, RLK, Costin)

• Grant Funds & Debt Service Plan:  Gary Cerkvenik of the Costin Group has been assigned to assist the Board in the areas of debt relief and grant research.

CLWSD Meeting Minutes – April 2, 2008

Financial (MFS, EFG, RLK, Costin) (cont.)

• R. Scott is currently reviewing the MPCA Small Community Wastewater Report to determine if grant funds could be provided to the CLWSD.  Copies of the report will be distributed to the Board for review.

Legal Issues (MFS, EFG, RLK)

• Elevated Pump Readings/Hamblin:  Correspondence between Paul Hamblin, Fryberger Buchanan, RLK and the Board has been reviewed.  RLK will look at Mr. Hamblin’s system when weather permits in the spring and corrections will be made.  Mr. Hamblin is monitoring his use; he will be billed based on the District’s readings, if the increased flow is from his cabin.  A winterization procedure has been provided to all WSA residents.  If the procedure is not followed and damage occurs to the system, individuals will be responsible.  D. Adams stated that there are other residents with similar elevated pump reading issues.
• EDU Assignment/Seigley:  R. Scott will respond to Mr. Seigley’s letter sending the letter to Board members for review prior to mailing.
• Service Connection Procedures:  Nothing new to report.

ESA

• Township Community Action Plan/Options:  ESA action is on hold until the debt issue is resolved.

Sewer Freezing Issue (RLK)

• Permanent Fix:  Freezing has occurred between Beckmann’s property and the manhole on Bayside Drive.  Jim Pohlman and Lance Ulen are pumping three residences on a daily basis.  J. Jamnick stated that this has occurred at this location for 3 or 4 years and feels it must be dug up in the spring.  A motion was made by M. White, supported by B. Congdon to verify the status of the manhole, whether it is frozen or not, and use that information to help determine a course of action.  M. White, B. Congdon, and R. Scott voted in favor and the motion carried.  D. Adams left the meeting prior to the motion.

RLK Engineering Status Report (RLK)

• Stahnke Connections:  A letter will be sent to Ms. Stahnke requesting completion and return of the form sent previously.

• Punch List/Seigley:  J. Jamnick stated that this driveway problem is not a Board issue and will be resolved between RLK and Mr. Seigley.
• WSA Expansion:  An email was received from Sandy Berling requesting information on connection to the sewer system if they should build a cabin near Bayside Drive.  Her email will be forwarded to John Jamnick for his response.  B. Congdon inquired about procedure to connect his property on Gold Coast Road.  Mr. Jamnick will respond to this request also.

Operations Report

• Jim Pohlman reviewed Terry Jackson’s report stating that the plant continues to operate well with discharge limits remaining within required standards.  Problems continue with recirculation pumps 1 and 2.  T. Jackson recommended another motor be purchased for redundancy purposes.  A motion was made by M. White, supported by B. Congdon to purchase a spare motor with J. Jamnick to report on the recirculation pump failures.  All voted in favor and the motion carried.  R. Scott asked that the Rice Lake Construction sign be removed.

PUBLIC COMMENT (5 Minute Limit) – None

R. Scott made the following statement before the meeting was adjourned:

• The Board will now close the meeting based on the attorney-client privilege exception to the Open Meeting Law under Minnesota Statute 13D.05, subd. 3(b).
• The Board is closing the meeting to discuss potential litigation and specific advice provided by our attorney regarding a settlement proposal relating to the pipe freezing problems.

The meeting was closed at 8:55PM

Jo Ann Pohlman, Clerk

NEXT MEETING:  MAY 7, 2008, 7:30PM, CRANE LAKE CHAPEL 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.