CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS REGULAR MEETING

August 4, 2004 – 7:30 P.M.

CRANE LAKE CHAPEL FELLOWSHIP HALL

The meeting was called to order by Chairman Michael White at 7:34 P.M.

Members present:  Managers Bud Bystrom, Rob Scott and Michael White.  Manager D. Congdon arrived at 8:30PM.

Members Absent: Manager Darrell Scott

Also present: Jim Pucel of RLK Kuusisto, Mike Appelwick of Northeast Technical Services, Clerk Jo Ann Pohlman, a reporter from the Voyageur Sentinel, a reporter from the Timberjay, and 10 members of the community.

BUSINESS:

Motion by B. Bystrom, supported by R. Scott, to approve the minutes of the Regular Meeting of July 21 and the Special Meeting of July 28, 2004.  Motion carried.

Chairman M. White reviewed the Treasurer’s Report. A motion was made by B. Bystrom, supported by M. White, to approve the Treasurer’s Report as read and to pay the following Project bills:  NTS – $1,701.67; RLK-Kuusisto – $19,702.50; Wagner Construction, Inc. – $182,052.14 and Rice Lake Construction Group – $25,445.89.  Motion carried.

Correspondence

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

RLK-Kuusisto Project Status Report

• Wastewater Collection System
  • Contractor has completed the installation of the grinder pumps and service lines.
  • The Contractor is completing the restoration and punch list items.
  • The first lift of bituminous is placed, the second will come later.  Sodding will be done in the next month.
  • Change Order No. 2 in the amount of $6,199.00 added Running Time Meters for $6,325.00, Re-staking Access Road for $1,765.00, and an Extended Contract Completion Date to September 30, 2004 for restoration items only; and a deduct for an Add-A-Phase Converter for  $1,891.00.
  • A motion was made by B. Bystrom, supported by M. White, to approve the extension of the completion date to September 30, 2004 to avoid disturbance of restoration.  Motion carried.  The rest of the Change Order will be addressed at the following meeting.
• Wastewater Treatment System
  • Start up has been completed.

o        Contractor is completing the punch list items.

o        Change Order No. 3 in the amount of $1,851.00 added Installation of Weatherproof 400-amp 250 Volt Safety Switch with 225 amp fuses for $1,831.00, an Electrical Change for Alum Tank Relocation for $520.00 and an Extended Contract Completion Date to August 1, 2004; and a deduct to install a Standard Laundry Tub rather than a Cast Iron Laundry Tub for $500.00.

o        A motion was made by M. White, supported by B. Bystrom to approve the electrical change for Alum Tank Relocation for $520.00.  Motion carried.  The rest of the Change Order will be addressed at the following meeting.

RLK-Kuusisto Project Status Report (cont.)

• Others
  • Discussed the recording of the easement plat and changes to the plat with Cope & Peterson.
  • The Board discussed remote access costs.  Mike Appelwick explained that remote access would reduce costs for the District.  A motion was made by M. White, supported by B. Bystrom to move $60,000 into the project for remote operation. R. Scott felt there were other items to be considered before remote operation.  B. Bystrom felt the District should include remote operation at start up.  J. Pucel advised the project forecast does include the remote operation at $60,000.  M. White called for a vote on the motion.  M. White – yes, R. Scott – no, B. Bystrom – yes.  The motion failed.
  • RLK developed a draft plan of corrective action for issues identified by the Minnesota Department of Health (MDH).  They would like to meet with the MDH to review the plan.  R. Scott suggested that the MPCA should be represented at that meeting.
  • Developed a pump change summary.

Sewer Connections/Abandonment Proposal

• RLK and NTS met to develop a proposal to provide a service connection and ISTS abandonment program for the WSA connections.
• NTS would provide forms and would distribute information packets if the Board agreed.  The rate would be a professional rate of $85/hour and an administrative rate of $50/hour, not to exceed $1,000.
• RLK would provide service connection observation, verify that existing systems were abandoned and perform the Clearwater inspection.  The estimated cost would be $400 per connection, total budget would be $32,000.  If observations could be grouped together (5 per day), the cost per connection would be reduced to an estimate of $200 per connection, total budget would be $16,000.
• Mike Appelwick stated that NTS would be providing support service to RLK.
• A motion was made by R. Scott, supported by B. Bystrom, to approve the proposal assuring compliance with the Ordinance and State agencies and to include information on connecting property owners to the project easement and to include a $200 license fee for property owners.  Motion carried.

Project Closure – D. Adams

• M. White reminded the Board that approval was made at the last meeting to place the pipe under the road way to Mr. Adams’ lakeside property and that the Board will need to consider and make a final decision on grinder pump changes at the Adams’ property.
• RLK will make a recommendation in Change Order form.
• The Board agreed to determine how the project would be declared final with inclusion of those changes made during the construction phase.

Houseboat Rates

• M. White stated that the response to Stuart McKie did not include his concern about Deena Congdon’s possible conflict of interest due to her relationship with Voyagaire Houseboats.  Mary Frances Skala of Fryberger, attorney for the District, assured M. White that there was no conflict of interest inasmuch as the Board was providing a service to all potential customers with the same rates available to all customers.  The Biological Oxygen Demand (BOD) levels from houseboats could result in an Extra Strength Charge that would be included in the Rate Ordinance.
• The strength of the waste from houseboats must be determined to arrive at a fair rate.
• Samples will be taken by NTS and analyzed on a monthly or weekly basis to arrive at a fair and accurate way to determine the charge for houseboat waste.
• NTS and RLK will provide more information to the Board before the next meeting.

NTS Contract

• The attorney’s are now in agreement on the contract.  There are still a few minor changes.  The contract will be to the Board soon.
• Mike Appelwick stated that he was comfortable with postponing remote operation but was concerned about funding dedicated to remote operation.
• J. Pucel will look into when grant funding availability will terminated.

ESA

• M. White has been contacted by people in the ESA with pending sales of their properties regarding septic issues.
• Mr. Harrison has property in the ESA and has requested that the Board provide a statement that the method of service is under study for this area and is yet to be determined.  M. White felt a letter could be written.
• M. White stated that the ESA is currently under the jurisdiction of the County.  County Ordinance #55 states that permanent holding tanks cannot be used.  The District is considering holding tanks for parts of the ESA.  The Board will consider options for approaching the County on the holding tank issue.

Joint Rainy Lake/River Meeting Representation

• R. Scott plans to attend the meeting planned for 8/24/04 in Fort Frances.

Accounting/Billing Procedures

• M. White has reviewed the Chart of Accounts used by Townships in Minnesota and will meet with D. Congdon to set up accounts for the District.

OTHER BUSINESS – There was none.

PUBLIC COMMENT

Ruth L. Carlson  asked the Board to explain to the public who Mary Frances Skala was.  She is an attorney with Fryberger, Buchanan, et al who specializes in this type of work.

There being no other business the meeting was adjourned at 9:20 P.M.

J. Pohlman

Clerk

NEXT MEETING:  AUGUST 18, 2004, AT THE CRANE LAKE FELLOWSHIP HALL AT 7:30 P.M.