CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS’ REGULAR MEETING

August 3, 2005 – 7:30 P.M.

CRANE LAKE CHAPEL FELLOWSHIP HALL

The meeting was called to order by Acting-Chairman Rob Scott at 7:30P.M.

Members present:  Managers Bud Bystrom, Darrell Scott, Rob Scott, and Michael White.

Members absent:  Deena Congdon (Late arrival of 7:35PM)

Also present: John Jamnick and Jim Pucel of RLK-Kuusisto, Mike Appelwick and Jim Pohlman of NTS, Clerk Jo Ann Pohlman, reporters from the Cook News-Herald and the Voyageur Sentinel, and nine members of the community.

BUSINESS:

Election of Chair:  Acting-Chair Rob Scott asked for nominations for Chairman.  D. Scott nominated R. Scott for Chairman. There were no other nominations.    The vote for Rob Scott as Chair was as follows:  B. Bystrom – abstain, M. White – abstain, D. Scott – yes, R. Scott – no vote. D. Congdon arrived at 7:35PM.  The nomination for R. Scott as Chairman was restated and the vote was called again with the votes being as follows:  D. Congdon – yes, B. Bystrom – abstain, M. White – abstain, D. Scott – yes, R. Scott – yes.  Rob Scott was elected Chairman.  Chairman Rob Scott asked for nominations for Vice-Chair.  There were none.  Nominations for Vice-Chair will be considered at a future meeting.

A motion was made by M. White, supported by B. Bystrom, to approve the minutes of the Regular Meeting of July 6, 2005.  Motion carried.

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

D. Congdon reviewed the Treasurer’s Report and presented the invoices on hand for payment approval.  A motion was made by D. Scott, supported by B. Bystrom, to accept the Treasurer’s report as read and to approve the payment of the following invoices:  Administrative:  Quill – $300.85; Costin Group – $750.00; V.T.S.I. – $1,826.48; and Jo Ann Pohlman – $17.00. Plant Operations:  A-1 Services – $1,075.00; Hawkins – $269.84; NTS – $6,081.75; Lake Country Power – $49.12 and $246.14; and Sunrise Construction – $300.00.  Gold Coast Project:  Cope & Peterson – $1,348.58 and RLK-Kuusisto – $2,347.88.  Motion carried.

Jim Pucel asked for approval of Partial Payment Estimate No. 16.  A motion was made by D. Scott, supported by B. Bystrom to approve Partial Payment Estimate No. 16 for the Wastewater Collection System in the amount of $29,713.15.  Motion carried.

Accounting System

• D. Congdon reported that the new accounting system was working well and Glorvigen was satisfied.  They may make a few changes after reviewing the system in the future.

2006 Budget

• D. Congdon stated that the August 2005 flows were needed to review that budget.
• M. White stated that the Administrative Expense Budget would need to be approved at the September meeting in able to submit a levy amount to the County by September 15^th.  The figure submitted on September 15^th can be adjusted downward in December.
• M. White sent a memo to the Board on July 25^th with an option, that may be a requirement, of creating a taxing sub-district that would include the benefited properties within the area being served by the treatment plant.

2006 Budget (Cont.)

• M. White felt Scott Harder would be able to advise the Board on this issue.  A motion was made by M. White, supported by B. Bystrom, to assign the task to do a study on a taxing sub-district and submit his recommendation to the Board.  There was discussion and the roll was taken as follows:  D. Congdon – no, B. Bystrom – yes,  M. White – yes, D. Scott – no, R. Scott – no.  The motion did not pass.

Treatment System

• Chairman R. Scott asked J. Pucel and M. Appelwick to respond to the flooding incidents of July 3^rd and July 15^th at the plant.
• J. Pucel responded that they are working at assessing the damages and have had the Contractor look at what is under warranty.  They are also working on preventative action items.
• M. Appelwick stated that they had put in a bypass valve to provide continuous backup power to the Programable Logic Controller.  He has been getting numbers for other items for improvements.  The plant is operational, but is basically being run manually.   The UV disinfector is in good working order.
• B. Bystrom voiced a concern about dumping into a creek near the plant, which flows to Baylis Bay. NTS will check with the MPCA on emergency dumping options and assured the Board that floodwaters had been processed.  M. White referred to the 2001 MPCA hearing related to discharge into Baylis Bay.
• R. Scott requested that M. Appelwick speak to the MPCA on August 4^th regarding health issues, if any, for the community from the emergency dumping process.
• Copies of the Incident Reports will be sent to Mary Frances Skala.
• A Special Meeting will be held on August 17, 2005 at 7:30PM at the Fellowship Hall to discuss gathered information from contractors and damage information.

RLK-Kuusisto Project Status Report

• Project Status:  Updated punch lists have been sent to the Contractors.
• Hutt Property Restoration:  Completed.
• Recording of Plat:  Cope & Peterson have reviewed the Plat and made their changes.  The changes are now being made at the RLK office.
• Wells:  In addition to the Minnesota Department of Health issue, there is now mud reported to be in the Zullick well.  R. Scott requested that J. Pucel find a well driller to assess the mud in the well and to complete the MDH work.  Kolstad performed testing on the James Mohr well.  Kolstad did not find any problems with the well.  Kolstad will contact Mr. Mohr and follow up with a letter.
• Plant Flood:  Discussed above.

• MPCA Project Priority List: RLK has received a quote of $150/site for a total cost of $22,500 for site evaluations/surveys of the estimated 150 sites in the ESA.  They are in the process of receiving additional quotes.  Please note that these are not compliance inspections.  Getting site evaluations is in line with MPCA recommendations for additional points for the PPL.

• Capital Asset Plan:  There is no report at this time.
• Project Forecast:  A budget summary was provided to the Board by RLK on July 22^nd.  Accessibility:  RLK received a quote of $475 from Architectural Resources to form an accessibility report for the Crane Lake Chapel.  RD has accessibility requirements for the meeting place for the District.  A motion was made by D. Congdon, supported by D. Scott, requesting J. Pucel to determine which of the three available meeting places is the most accessible, beginning with the Groomer Garage. Motion carried.

NTS Project Status Report

• Status of Operations:  The plant is manually operational as stated above.
• Plant Flood:  Discussed above.  Lake Country Power is monitoring the plant for power surges and will be monitoring the lift station as well.
•  Grinder Station/Pipeline Maintenance:  No inspections were reported. The inspections of all grinder pump stations will continue.

NTS Project Status Report (Cont.)

• Monitoring Equipment Status: The flow recorder has been installed and is in use as of mid-July.
• Preventive Annual Maintenance Plan: No progress to date because of incidents at the plant.
• The Clerk will notify the insurance company of flooding incidents asking them to contact both RLK and NTS.

EFG – Report

• A report was received from EFG on July 23^rd.
• Handicap Policy:  A draft policy was submitted to the Board for review and comment.  A motion was made by M. White, supported by D. Scott, to accept Scott Harder’s recommendation as submitted.  Motion carried.
• Management Report:  No other comments have been received by Scott Harder to date.
• Connection Procedure:  No other comments have been received by Scott Harder to date.
• Rural Water Interim Loan Closing:  A preliminary closing statement has been requested from Rural Water.  An amortization of the USDA-RD loan will be made upon receipt of that statement.
• Special Assessment Amortization:  There is difficulty confirming with the County Auditor’s office the exact principal and interest components of annual special assessment payments.  Work will continue.
• Updated 2005 Forecast:  An updated draft forecast has been forward to the Board.

Eastern Service Area

·         Charlie Crocket Concerns:  The Board is working on it.

• An e-mail was received by R. Scott from the new District Ranger Nancy Larson for the LaCroix Ranger District, Superior National Forest, requesting information on District plans for forestry lands within the District, particularly East Bay.  Ms. Larson would like to be included in any ongoing discussions on the East Bay area.
• RLK has received two estimates to inspect the existing sewer systems in the ESA.  Matrix Soils & Systems quote was $150 per property for a total cost of $22,500.  These are not compliance inspections; but inspections to increase points for funding.  There would be much front-end work and Matrix suggested that RLK be retained to do that work.  J. Pucel and the Clerk will work on a letter to send to the ESA property owners regarding the inspections.

RD Project & Loan Closing

• A loan closing date was set for September 1, 2005 at 11AM at the Cope & Peterson office.  It was suggested that the Chairman and the Clerk attend.  Roger Clapp of Rural Development would be attending.

Public Meeting

• M. White suggested at the July meeting that a public meeting be scheduled to discuss the current status of the WSA, future plans for the ESA, and the management district concept.  He contacted Valerie Prax of the University of Minnesota to speak on the management district concept.  Her schedule is booked through September, so M. White has not pursued.

OTHER BUSINESS

B. Bystrom apologized for getting excited earlier in the meeting, but feels NTS needs to find a suitable emergency dumping procedure should future plant floods occur.

PUBLIC COMMENT

Jerry Cornell suggested that a Preliminary Engineering Report for the ESA be sent to Nancy Larson.  He also mentioned that the Report stated that a sewer system could be installed for $15,000; and felt that should be reviewed.

Feno Rainaldi asked if the plant flooding was raw sewage.  RLK responded that it was not; it had been processed.  She also asked why there would be site evaluations.  RLK responded that the funding process begins with the MPCA and their scoring list for funding.  We need to show that there are noncompliant systems to receive funding for the project.  She then asked what is the plan for the ESA.  It was recommended that she review the Preliminary Engineering Report at the Post Office.

Steve Latowski stated that he put in a new Forestry approved system and wonders if it will be acceptable for the ESA plans.  RLK responded that there are many unique systems in the ESA and all are being looked at.

Teresa Johnson asked if the Board had been in communication with the Forestry regarding East Bay properties.

Jessica Rott asked about the timeline for the ESA.  RLK responded that it is dependent on the funding.  She voiced her concern that the East Bay leases are up in 2009 and all leaseholders must be compliant at that time.  The Preliminary Engineering Report schedule  is to secure funding by spring of 2006, and start construction after that.

Terrie Hoff stated that she is requesting hook-up to the system at her new proeprty and needs to know procedure and fees to do so.  Rob Scott and Jim Pucel will let her know.  She also needs landscaping completed at her current property.  RLK said that work is scheduled.

Ruth L. Carlson had an announcement to make regarding the upcoming Township Public Meeting on Monday, August 8^th with C.J. Fernandez at the Fellowship Hall at 7:30PM.  He will be presenting his concept for use of the land in the land exchange and trails.  Nancy Larson of the USFS has been invited to speak.  She or someone from her office should be there.

There being no other business the meeting was adjourned at 9:40PM.

J. Pohlman, Clerk

NEXT MEETING:            SPECIAL MEETING AUGUST 17, 2005, AT THE FELLOWSHIP HALL AT 7:30 P.M.