CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS’ REGULAR MEETING

February 7, 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, Darrell Scott and Rob Scott.

Members absent:  Bill Congdon and Mike White.

Also present: John Jamnick of RLK-Kuusisto, Jim Pohlman and Kenny Winkler of NTS, Laurie Brown of the University of Minnesota Extension Service, Clerk/Treasurer Jo Ann Pohlman, representatives from the Cook News-Herald and Voyageur Sentinel, and 1 member of the community.

BUSINESS:

Opening Comments:  Chairman R. Scott stated that elevated pump readings would be a main topic of discussion, also budget work for 2007/2008.  Rob welcomed Laurie Brown of the U of M Extension Service and pointed out that two Board Members were absent, Bill Congdon and Mike White.

A motion was made by D. Adams, supported by D. Scott, to approve the minutes of the Regular Meeting of January 3, 2007 with the following addition, which was omitted.  Under the heading Administration, Board Designates:  ‘A motion was made by B. Congdon, supported by D. Adams, that Laurie Brown of the U of M Extension Service remains the ESA Consultant.  All voted in favor and the motion carried.’  All voted in favor and the motion carried.

The correspondence was presented to the Board.  A motion was made by D. Adams, supported by D. Scott, that the correspondence be placed on file and acted upon as required.  All voted in favor and the motion carried.

Clerk/Treasurer J. Pohlman presented the following financial documents to the Board:  2005 Profit and Loss and 2005 Balance Sheet; Unapproved 2006 G.C. Operating Profit & Loss with a net income balance of $24,606.02; 2007 Budget Overview for G.C. Operations; and the Preliminary Financial Statements for December 2006 explaining that they had been reviewed by the Glorvigen Accounting Firm, but both November and December financial statements would remain preliminary until a discrepancy in the bank reconciliation is resolved. Glorvigen has completed the 2005 audit and the resulting adjustments to the District’s books have been made. Results of the audit are positive and printed reports should be here soon.  Invoices on Hand were presented for payment as follows: Administrative: Glorvigen – $100.00; Lutefisk Technologies – $14.95; Fryberger, Buchanan, et al – $34.92; and Cook News-Herald – $28.56 (Replaces previously approved amount of $27.60).  Plant Operations:  Lake Country Power – $36.50 & $769.73; NTS – $3,697.62; and Hawkins – $341.39 & $115.05.  Gold Coast Project: Fryberger, Buchanan et al – $100.00 and Cope & Peterson – $125.00 & $170.00.  Special Assessment Revenue:  Virginia Stahnke – $1,245.60.  A motion was made by D. Scott, supported by D. Adams, to approve the Treasurer’s Report as presented and the payment of invoices on hand with the exception of the Cope & Peterson bills – $125.00 & $170.00, which need clarification.  All voted in favor and the motion carried.

Chairman Scott added that Scott Harder recommended that the operating budget include a 10-15% contingency for the Capital Reserve Fund.  Current budget work will include the concurrence of financial advisor Scott Harder and accountant Jennifer Hanson-Goulet on the amount to maintain in that fund.  R. Scott also told the Board that a Debt Service Fund would be added to track the interest and principal payments due on the Rural Development loan each January.  He further stated that the Unapproved 2006 P & L net balance of $24,606.02 and the 2007 Budgeted P & L net balance of $36,481.75 will provide monies to move into the Debt Service Fund as well as the Special Assessment Revenues.

Administration

• I.S.T.S. Grant:  The paper work has been processed following the MPCA’s approval of the grant extension.
• Personal Correspondence:  R. Scott reminded the Board that e-mail had become a recognized method of communication for the Board.  Also, Jo Ann is available for professional clerical assistance and will charge accordingly if assistance is desired.
• Stahnke/Eggen:  The second special assessment has been removed from the Stahnke property and the Board has approved a refund for amounts paid toward that special assessment since 2004. The County will be notified.  B. Congdon will monitor the abandonment procedure in the spring.
• Emergency Response Plan (ERP):  RLK & NTS are reviewing the ERP to include the recent updates to the plant.
• Capital Asset Plan:  The Glorvigen accounting firm is currently reviewing the plan and will submit their recommendation with the completed 2005 audit.  Scott Harder’s recommendations on reserve funds will also be considered.
• Capital Reservation Fees:  R. Scott responded to M. White’s memo of 1/29/07 regarding EDU assignments at Lake Shore Estates.  R. Scott felt that all steps taken were true and correct, and Board actions had been documented.

 CLWSD Meeting Minutes – February 7, 2007

Budget/Financial Update Report (EFG, Costin, RLK)

• 07/08 Budget/Rate Review:  Chairman R. Scott reviewed the steps the Board would follow during their review of the budget and rate review.  The accountant’s input and resulting budget work should provide the information needed to make a recommendation at the March meeting for future rate structure.
• Grant Funds:  Gary Cerkvenik of the Costin Group has been working with Congressman Oberstar for potential grant funds for future District projects.  Mr. Oberstar is in support of our request and has requested further information. R. Scott will be working with Mr. Cerkvenik developing the requested background by Mr. Oberstar.
• RD Loan Relief:  RLK continues to work in this area.
• Clean Air Legacy Act:  Representative Dill is working on acquiring more funds for the Clean Air Legacy Act.

Legal Issues (MFS, EFG, RLK)

• John Jamnick, Mary Frances Skala and Scott Harder have been working on grinder pump capacity, EDU equivalency values, and service connection procedure for Ordinance modification. Another committee meeting may be required prior to the March Board Meeting.  This process is critical as we move into the ESA process.

Eastern Service Area Update (U of M, RLK)

• U of M Extension Service representative, Laurie Brown had planned a video presentation for the Board; however, video equipment was not available.  Ms. Brown distributed information on and discussed the successful onsite wastewater management system used by Otter Tail Water Management District.  The Otter Tail system is very involved and Ms. Brown stated that the District Board would need to decide how involved the District would want to be in ESA management.  She reminded the Board that the Advisory Committee had identified their focus as being on-site systems.
• John Jamnick has incorporated the Advisory Committee’s recommendations into the Preliminary Engineering Report (PER) and agreed that on-site systems would be the best way to go until there is more density.  There was discussion as to whether or not holding tanks were considered on-site systems.  It was determined that they were. Mr. Jamnick questioned who would initiate the area priority for the ESA project. R. Scott responded that environmental impact and cost would be the determining factors.  Ms. Brown reminded the Board that EastBay is under a timeline with the Federal Government for compliance.  She also stated that land use plans and wastewater plans should work together.
• R. Scott asked RLK to update costs in the PER to be prepared should funds become available for the ESA project.
• L. Brown recommended that the Board determine the status of the systems in the ESA and how much management the District wanted to do.  She also recommended that the Board update the Advisory Committee on Board progress.

RLK Engineering Status (RLK)

• EDU Equivalency Values:  RLK provided a recommendation to the Board related to EDU assignments for all properties at the January meeting.  That information will be sent to Mary Frances Skala to be incorporated into Ordinance 3 for Board review prior to the March meeting.

• Insurance:  RLK advised that Allied Adjusters would be sending the final insurance claim check next week.  A proof of loss letter will be sent to the Board by Allied Adjusters stating that the claim is complete.
• DeFries Tank:  Correction work will be done in the spring.
• Hoff Easement:   Field work still needs to be done before the easement is recorded.
• PPL:  RLK will notify the MPCA that the District wishes to remain on the list.
• Punch List:  Items remaining will be addressed by RLK in the spring.
• Elevated Pump Readings:  Pump readings have been high at several properties due to the cold temperatures and lack of snow to insulate the grinder stations.  A motion was made by D. Adams, supported by D. Scott, to approve the expenditure of up to $2,000 by RLK and NTS to remedy the situation immediately.  All voted in favor and the motion carried.  A permanent plan for insulating the grinder stations will be presented at the March meeting.
• Lake Shore Estates:  Mr. Braaten of Lake Shore Estates has requested that RLK and the Board clarify what information is needed from him.  R. Scott and RLK will meet with Mr. Braaten in March and provide an update at the April Board meeting.

Operations Report (NTS)

• Jim Pohlman reported that all discharge standards were met for the month with no bypasses or overflows.
• A cost proposal for service was requested from Quality Flow Systems for the purchase of the necessary software, equipment and calibration services of the main lift station influent flow recorder. The cost proposal received was quite expensive.  NTS will do a drawdown test to check on meter accuracy prior to agreeing to Quality Flow Systems services.

CLWSD Meeting Minutes – February 7, 2007

PUBLIC COMMENT (5 Minute Limit)

Jim Janssen commented that Laurie Brown’s handout on Otter Tail’s management system looked interesting but cautioned the Board that the figures in the report were low due to the lack of any debt; which our District would have.

The meeting was adjourned at 9:30PM

J. Pohlman, Clerk

NEXT MEETING:  REGULAR MEETING, MARCH 7, 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.