CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS’ REGULAR MEETING

December 5, 2007 – 7:30 P.M.

CRANE LAKE CHAPEL FELLOWSHIP HALL

The meeting was called to order by Chairman Rob Scott at 7:33P.M.

Members present:  Managers Bill Congdon, Darrell Scott, Rob Scott and Mike White.

Members absent:  Dave Adams

Also present: John Jamnick of RLK-Kuusisto, Sewer Maintenance Worker Jim Pohlman, Clerk/Treasurer Jo Ann Pohlman, and 3 members of the community.

BUSINESS:

A motion was made by B. Congdon, supported by D. Scott, to approve the minutes of the Regular Meeting of November 7, 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 B. Congdon, that the correspondence be placed on file and acted upon as required.

Clerk/Treasurer J. Pohlman reported that the 2006 Audit should be completed by mid-December.  The Debt Service Fund balance is currently at $97,261.29 and will cover the RD loan payment of $86,099.99 due on January 1^st. J. Pohlman asked the Board to consider placing the Debt Service Fund money and the Capital Reserve Fund money in a savings account, money market account or CD’s.  J. Pohlman presented the Final September 2007 and October 2007 Financial Reports, reviewed by Glorvigen, to the Board. R. Scott added that he had met with Steve Michalski of Allied Adjusters on Tuesday, December 4^th to review the freeze and corrective action invoices. Allied issued a check to the District in the amount of $5,878.66 to be applied to two NTS invoices for a total reimbursement thus far of $38,515.79. Mr. Michalski will be considering the $8,214.92 already paid by the District for reimbursement.  RLK invoices amounting to $9,366.94 will also be considered. Invoices-on-hand were reviewed with the Board. A motion was made by M. White, supported by D. Scott, to approve the Treasurer’s Report as presented and the payment of bills as follows: Administrative: Glorvigen – $100.00; Fryberger, et all – $625.00; Crane Lake Chapel – $180.00 and LMCIT – $81.00.   Operations:  Lake Country Power – $61.23 & $519.10; Terry Jackson – $1,069.20 & $417.00; Hawkins – $723.53; Quality Flow – $100.44; and LMCIT – $322.00. Debt Service:  USDA-RD – $86,099.99.  Insurance Claim:  Partial payment of NTS Inv. No. 07-02634 – $2,428.00 & No. 07-3525 – $3,450.96. All voted in favor and the motion carried.

Administration (CLWSD)

• Emergency Response Plan (ERP):  RLK & Terry Jackson are finalizing the review of the ERP to be submitted to the MPCA.
• Capital Asset Plan:  Jennifer Hanson of the Glorvigen Accounting Firm will be providing the plan soon.
• EDU Assignments:  Letters were sent to Western Service Area property owners with changes to their EDU’s.  Adjustments will be made in the December billing.
• Tax Levy:  The Board discussed reducing the approved 2008 tax levy amount of $30,000 sent to St. Louis County in September.  The levy may be lowered by December 15^th by Minnesota Statute.  A motion was made by B. Congdon, supported by D. Scott, to reduce the 2008 levy amount to $15,000.  B. Condon, D. Scott, and R. Scott voted in favor; M. White voted against and the motion carried.  A letter will be sent to St. Louis County advising them of the levy reduction.

2008/09 Rate Review

• Carl Brown Analysis:  The final draft of Carl Brown’s analysis was received for Board review.  Mr. Brown recommended the following adjustments beginning January 1, 2008:  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.  He also recommended that all rates and fees increase by 4% beginning in January of 2009 and every year thereafter. A motion was made by M. White to adopt the rates as recommended by Carl Brown and to include a notice in the December billing of the rate changes.  B. Congdon stated that Mr. Brown’s rate increase recommendation would increase rates for everyone and was not in the best interest of the community at this time. He also felt the amount of money dedicated to capital replacement was not necessary at this time. R. Scott stated that the current rate structure would provide sufficient income for 2008 and 2009.  D. Scott suggested that Board concerns should be discussed with Carl Brown before implementation.  R. Scott stated clarification was needed on the affordability index which is at 4 and would increase to 6 with 1 being an acceptable affordability index figure.  The Board will send additional questions and issues to Carl Brown for his review and comment.  The motion died for lack of a second.  A decision will be considered at the January meeting.

CLWSD Meeting Minutes – December 5, 2007

Financial (MFS, EFG, RLK)

• ISTS Grant Funds:  Nothing new to report.
• Grant Funds:  Nothing new to report.

Legal Issues (MFS, EFG, RLK)

• Service Connection Procedures:  Nothing new to report.
• Ordinance #3:  A motion was made by B. Congdon, supported by D. Scott, to provide Mary Frances Skala with current information and questions to date for revision of Ordinance #3 to be sent to the Board for approval.  All voted in favor and the motion carried.
• O & M Contracts:  A motion was made by M. White, supported by D. Scott, to continue Terry Jackson’s contract for one year.  All voted in favor and the motion carried.

ESA

• Township Community Action Plan/Options:  The Township has agreed that dialog could be pursued on CLWSD community concerns, if the CLWSD identifies specific concerns.  A motion was made by B. Congdon, supported by D. Scott, to reopen the ESA subject with M. White and B. Congdon heading the Committee to begin dialog with the Township.  All voted in favor and the motion carried.

Sewer Freezing Issue (RLK)

• Permanent Fix:  RLK has determined that 12 of the approximately 40 seasonal customers would be using their grinder stations intermittently throughout the winter. Adjusting the floats is being considered. A letter should be written to all seasonal customers re-stating the winterization procedure for grinder stations.  Approximately six of the 42” grinder station covers remain to be insulated.  With the current snow cover, grinder insulation and potential float adjustment will be completed next spring.
• Insurance Claim:  See Treasurer’s Report above.

• Elevated Pump Readings:  RLK has not found a trend in reviewing the stations with elevated readings.

RLK Engineering Status Report (RLK)

• Punch List:  Nothing new to report.
• WSA Expansion:  Nothing new to report.
• Schlotec/Stahnke Connections:  Schlotec’s connection has been completed and inspected.  Another letter should be written requesting the required fee.  RLK is waiting for a letter from Virginia Stahnke stating proposal of connection procedure.

Operations Report

• Jim Pohlman reported that the discharge into Crane Lake was well within effluent limitations.  The chemical metering line has been fixed for the alum feed. The motor on the failing recirculation pump has been replaced.  The old motor cannot be repaired again. A spare pump is not needed at this time. Winterization of the plant continues on schedule. J. Pohlman recommended a letter be written to Quality Flow requesting their recommendation on float modification and adjustment. RLK will put together a draft letter of our review to be sent to Quality Flow. Terry Jackson plans to attend the January meeting.
• NTS Punch List:  The GPS and weed trimmer will be returned to the District.
• Help-Wanted Ad:  Lance Ulen has expressed interest in the planned maintenance assistant position.  A motion was made by B. Congdon, supported by D. Scott, to hire Lance Ulen for the maintenance assistant position at $15 per hour.  All voted in favor and the motion carried.

Interest Bearing Accounts:   A motion was made by B. Congdon, supported by D. Scott, to consult Jennifer of Glorvigen for her recommendation on moving Debt Service and Capital Reserve funds from the checking account to interest bearing accounts.  All voted in favor and the motion carried.

CLWSD Meeting Minutes – December 5, 2007

PUBLIC COMMENT (5 Minute Limit)

David Beckmann explained his experience with elevated pump readings from last May to date.

Paul Hamblin also explained his experience with elevated pump readings and has provided a detailed record to the Board and RLK to assist in resolution of the problems.

The meeting was adjourned at 9:00PM.

J. Pohlman, Clerk

NEXT MEETING:  JANUARY 2, 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.