CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)
BOARD OF MANAGERS’ REGULAR MEETING
August 6, 2008 – 7:30 P.M.
CRANE LAKE CHAPEL FELLOWSHIP HALL
The meeting was called to order by Chairman Rob Scott at 7:30.M.
Members present: Managers Dave Adams, Darrell Scott, Rob Scott and Mike White. Manager Bill Congdon arrived during the presentation of the correspondence.
Also present: Sewer Maintenance Worker Jim Pohlman, Clerk/Treasurer Jo Ann Pohlman, representatives from the Cook News-Herald and Voyageur Sentinel and 2 members of the community.
A motion was made by D. Scott, supported by D. Adams, to approve the minutes of the Board of Managers’ Regular Meeting of July 9, 2008. All voted in favor and the motion carried.
The correspondence was presented to the Board. A motion was made by D. Scott, supported by D. Adams, that the correspondence be placed on file and acted upon as required.
Clerk/Treasurer J. Pohlman reviewed the Treasurer’s Report. July payroll expenses were as follows: Administrative – $661.08 and Operations – $1,665.36. The ISTS Fund balance was transferred to the Administrative Fund as recommended by the accounting firm and approved by the Board at the July meeting. $10,865.36 Special Assessment Funds were received from St. Louis County and have been transferred from the Special Assessment Revenue Fund to the Savings Account. Administrative Budget/Levy spreadsheets were emailed to the Board members for review with a decision to be made on an administrative levy amount for 2009 at the September meeting. The June 2008 financial statements were presented as Preliminary as they were not reviewed by Accountant Jennifer Hanson-Goulet of Glorvigen. Invoices-on-hand were reviewed with the Board. A motion was made by B. Congdon, supported by D. Adams, to approve the Treasurer’s report as presented and the payment of bills as follows: Administrative: Glorvigen – $100.00; Fryberger, et all – $541.80; RLK-Kuusisto – $146.25; and RVS Software – $96.00. Operations: Lake Country Power – $427.31 & $87.28; NTS – $38.00 & $38.00; Hawkins – $957.54; Terry’s Operational Services – $1,426.50; One Call Concepts – $1.45; Anderson’s Canoe Outfitters – $605.00; and USABlueBook – $216.53. Operations/Freeze 08: Jim Pohlman – $630.00 and Lance Ulen – $630.00. All voted in favor and the motion carried.
Audit: The 2006 Audit numbers are final, the report has been submitted to the Secretary of State and copies will be mailed to the District this week. Adjustments will be made to the District books to reflect the 2006 audit.
Capital Asset Plan: The Capital Asset figures have been agreed upon by RLK and Glorvigen, and will be sent to the District.
- T. Jackson Contract: Insurance information requested by Fryberger has been sent and the contract is ready to be finalized.
- The Board discussed their options as related to rate increase and debt payment, which included: Increase rates, do not pay the Rural Development $86,000.00 interest and principal payment due January 1st, pay part of the debt payment, look for additional funds, re-amortization of the loan.
- The loan payment must be 180 days late before Rural Development will consider lowering the interest rate.
- Rural Development could eventually require the District to levy taxes on the entire District to make the loan payments.
- The Board is not required to deplete their funds to meet the loan payments. The system operation must be maintained.
- Chairman R. Scott requested a motion to increase rates. None was made.
- A motion was made by B. Congdon, supported by D. Adams to notify American Bank to disallow the automatic withdrawal of the loan payment by Rural Development on January 1, 2009. All voted in favor and the motion carried.
CLWSD Meeting Minutes – August 6, 2008
Namakan Basin Project (S.E.H., MFS, RLK, Costin)
- Jim Johnson of SEH was unable to attend the meeting. A Status Update Memo was sent providing information regarding the Namakan Basin Water Quality Initiative:
o The IRRRB Public Works Infrastructure Grant Application was submitted on July 9th. Announcement of project funding is not expected before early to mid-September. A $100,000 match to the St. Louis County appropriation is anticipated.
o Gary Cerkvenik and Barb Hayden of the St. Louis County Planning Department will meet with the Kabetogama Town Board and the Ash River area residents in August to gain their concurrence, and to name their representative and alternate to the Steering Committee for the project.
o Signed copies of the SEH proposal were received from the District. Kabetogama Township has signed and mailed their copy of the SEH Proposal to SEH.
Legal Issues (MFS, EFG, RLK)
- NTS Invoices: A counter offer for invoice settlement was received from NTS. NTS agreed to forgive ½ of the invoice amount balance of $38,532.40. Fryberger, et al recommended that the Board accept the offer stating that it would cost around $20,000 to litigate and the District could end up liable for the invoices plus interest. A motion was made by M. White, supported by R. Scott to accept the NTS counter offer. There was discussion. M. White and R. Scott voted in favor; D. Adams, B. Congdon, and D. Scott voted against. The motion did not pass. A motion was made by B. Congdon, supported by D. Scott to offer NTS $10,000. B. Congdon, D. Scott and D. Adams voted in favor; R. Scott and M. White voted against. The motion carried.
Sewer Freezing Issue (RLK)
- J. Jamnick was not present to report on the freezing issue.
- A motion was made by B. Congdon, supported by D Adams to approve Fryberger, et al to draft a request for an engineering proposal to do an analysis of the system. There was discussion. B. Congdon, D. Adams, D. Scott, and R. Scott voted in favor; M. White abstained. The motion carried.
- A motion was made by D. Adams, supported by B. Congdon to authorize RLK to go out for bids on the system correction actions as outlined with the Board’s final approval before work is awarded. All voted in favor and the motion carried.
- The Board discussed the expenses of the 2007/08 freeze and the 2008 freeze.
RLK Engineering Status Report (RLK)
- RLK emailed a Project Status Report.
- A letter was received from Chris Morris, St. Louis County Public Works Department regarding the replacement of the culvert on Gold Coast Road and requesting a meeting with a CLWSD Manager and a Township Supervisor to discuss the funding issue. R. Scott and a Township Supervisor will meet with Mr. Morris.
- Jim Pohlman reviewed Terry Jackson’s report stating that all effluent limitations during the month of July were maintained. Safety items were ordered and delivered to the plant. T. Jackson met with Steve Duerre of the MPCA on July 15th to conduct a “squirt” test on all 8 zones of the sand filters. Two laterals indicated some blockage. T. Jackson attended a stakeholder meeting video conference at the MPCA in Duluth on July 24th regarding proposed fee increases. The increases do not have a substantial impact on the District unless new or major modifications are made.
PUBLIC COMMENT (5 Minute Limit) There were none.
The meeting was adjourned at 8:40PM
Jo Ann Pohlman, Clerk
NEXT MEETING: SEPTEMBER 3, 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.