CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS’ REGULAR MEETING

August 1, 2007 – 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, Rob Scott and Mike White.

Members absent:  Bill Congdon and Darrell Scott

Also present: John Jamnick of RLK-Kuusisto, Sewer Maintenance Worker Jim Pohlman, Clerk/Treasurer Jo Ann Pohlman, a representative from the Cook News-Herald and 2 members of the community.

BUSINESS:

Opening Comments:  Chairman R. Scott reminded the public of the sign in sheet designating an interest in speaking during the public comment period.  He also mentioned the short time between the prior meeting, which was a week later – July 12^th – because July 4^th fell on the first Wednesday of the month, and this meeting date of August 1^st.

A motion was made by D. Adams, supported by M. White, to approve the minutes of the Regular Meeting of July 12, 2007. All voted in favor and the motion carried.

The correspondence was presented to the Board.  A motion was made by M. White, supported by D. Adams, that the correspondence be placed on file and acted upon as required.  Chairman Scott suggested that he would like to add a brief summary and recap of the meeting to the bottom of the minutes. Mary Frances Skala will be consulted prior to this inclusion with the minutes.  Chairman Scott also stated that a letter should be sent to District members stating where information is available; i.e., website, ordinances and minutes.  A motion was made by D. Adams, supported by M. White to send the letter to District members.  All voted in favor and the motion carried.

Clerk/Treasurer J. Pohlman presented the June 2007 Financial Reports to the Board as reviewed by the Glorvigen accounting firm.  The reports and invoices-on-hand were reviewed with the Board and expanded upon by Chairman Scott.  A motion was made by D. Adams, supported by M. White, to approve the Treasurer’s Report as presented and the payment of bills as follows with the exception of unpaid NTS invoices related to the freezing issue amounting to $79,494.60, which are being reviewed for insurance claim purposes.  Administrative: Glorvigen – $100.00; RVS Software – $87.00; Costin Group – $701.27; RLK – $1,824.92 & $78.75; LMCIT – $1,458.00; and VTSI – $2,022.11.   Operations:  Lake Country Power – $66.82 & $240.43; NTS – $82.00 & $142.00; Hawkins – $1,016.17; LMCIT – $4,004.00; VTSI – $776.50; Terry Jackson – $1,040.40; Anderson Canoe Outfitters – $605.00; and Quality flow – $2,617.64.  All voted in favor and the motion carried.

Administration (CLWSD)

• Increased Insurance Coverage:   The District’s insurance agent does not recommend main line coverage; stating that he is not aware of any city/sewer district that does so because it is cost prohibitive and damage to underground mainlines is uncommon. In reference to the current claim for freezing, a meeting with Allied Adjusters assured the District that there would be coverage of 90% on some of the expense less the $250 deductible.  Because the grinders and lift station were so recently added to the policy, the coverage is at 90% rather than 100%.  The Adjuster will determine if the manholes were included with the grinder coverage; and if not, they will be added to the coverage at the same 90%.  There may be an additional cost to the District.  Workers’ Comp coverage for Terry Jackson was discussed.  A motion was made by M. White, supported by D. Adams for Terry Jackson to get Workers’ Comp. insurance for his work provided to the District and the District would reimburse him for the expense.  All voted in favor and the motion carried.  It was suggested that the insurance agency provide a list of recommended coverage for the District.
• Emergency Response Plan (ERP):  RLK & NTS are reviewing the ERP to include the recent updates to the plant.  The MPCA agreed to delay submission of the report until August due to the operator changes of the District. R. Scott recommended that the O&M manual include mainline service.
• Capital Asset Plan:  Jennifer Hanson of the Glorvigen Accounting Firm will provide the plan upon comparison to the Duluth/North Shore Sanitary District’s plan, which she feels would be an appropriate model for the District to follow. The Duluth/North Shore Sanitary District has recently completed their plan.  Jennifer expected that plan to be delivered to her office soon.

     CLWSD Meeting Minutes – August 1, 2007

2008/9 Budget Review

• Carl Brown Proposal:  A letter was sent to Carl Brown requesting a proposal for rate analysis.  That proposal was received just prior to the meeting.  The Board will review.  M. White requested that all correspondence and other data related to Carl Brown’s proposal be forwarded to all Board members.

Financial (MFS, EFG, RLK)

• RD Loan Relief:    The Board has requested that Roger Clapp of RD provide information in writing regarding the pending Farm Bill with possible loan interest rate reduction to the Board.
• Grant Funds: M. White reported that our Earmark request had been deleted from the House bill, which has passed.  There is still a slight chance for its inclusion in a Senate bill.
• ISTS Grant Funds:  The Esget invoices have been submitted to the MPCA for ISTS Grant Fund reimbursement and a reimbursement is expected soon.   A list of ESA study invoices to be considered for possible reimbursement will be sent to the MPCA.
• MPCA Funds:  There are Corrective Actions Funds available from the MPCA.  R. Scott and John Jamnick will continue to pursue this concept to see if there is possible application to the freezing issue. There was nothing new to report.

Legal Issues (MFS, EFG, RLK)

• Ordinance #3:  A revised draft of Ordinance #3 was received from Fryberger, Buchanan.  The Board is currently reviewing the revisions.  M. White requested that the draft Ordinance #3 be sent to Scott Harder of EFG for his review.
• O & M Contracts:  The contracts for the Wastewater Treatment Operator and the Sewer Maintenance Worker are near completion.  Insurance issues need to be clarified as discussed above.  The Board requested that John Jamnick solidify Terry Jackson’s contract for signature and to talk to Terry about a one year extension of the contract.

Sewer Freezing Issue Review (RLK)

• Insurance Committee Meeting:  A meeting was held on July 30^th to review invoices submitted for the insurance claim due to the freezing last winter. Further information will be requested of NTS by Allied Adjusters as part of the invoice review.  John Jamnick will provide a letter to the Board and Allied Adjusters upon completion of all damage repair and review of all grinders and manholes stating that the system is back to design status.

Eastern Service Area Update (U of M, RLK)

• ESA Approach & Funding:  M. White stated that the Board needs to evaluate where we are with the ESA and what direction we should take. John Jamnick has indicated that the DNR has expressed interest in providing restroom facilities at the public landing on Handberg Road, that interest could affect part of the ESA funding issue. R. Scott requested an email from M. White listing the Board responses requested by the ESA Advisory Committee.

RLK Engineering Status (RLK)

• Punch List:  No new report.
• Lake Shore Estates Modifications:  No new report
• DeFries Tank/S.McKie Grinder:  Russell Daniels has been contacted to do the excavation work necessary for both issues.  J. Jamnick will have patching work completed at the DeFries property.

• WSA Expansion:  No new report.
• Stahnke Connection:  No new report.
• RLK is working with Terry Jackson to improve efficiency at the plant.

Operations Report

• Jim Pohlman reported that Quality Flow had been contacted for pump repair, which will be completed soon.  Terry Jackson sent a written report of plant operation for the month.
• NTS Punch List:  Equipment and paid invoices are being reviewed to determine what belongs to the District and what belongs to NTS.

CLWSD Meeting Minutes – August 1, 2007

Additional Items

• M. White provided the 2008 Proposed Budget with a $30,000 levy request for Administrative receipts and expenses to the Board for their review.  The Board will need to decide on a levy amount at the September meeting.
• VTSI was contacted regarding adding Jim Pohlman to the payroll service.  A motion was made by M. White, supported by D. Adams for R. Scott to resolve payroll issues with VTSI.  All voted in favor and the motion carried.

PUBLIC COMMENT (5 Minute Limit)

Feno Rainaldi asked who would do the inspection of the grinder tanks. R. Scott responded that the Engineer along with maintenance people would do the inspections.

The meeting was adjourned at 8:53PM.

J. Pohlman, Clerk

NEXT MEETING:  SEPTEMBER 5, 2007, 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.