CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS’ REGULAR MEETING

January 2, 2008 – 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, Rob Scott and Mike White.  Bill Congdon arrived during the approval of the minutes.

Also present: Sewer Operator Terry Jackson, Sewer Maintenance Worker Jim Pohlman, Clerk/Treasurer Jo Ann Pohlman, representatives from the Cook News-Herald, Timberjay, and Voyageur Sentinel, 2 members of the community and Anne Jackson.

Note:  Darrell Scott took his oath of office as a returning member of the Board of Managers prior to the meeting; Bill Congdon took his oath of office as a returning member of the Board of Managers upon arrival.

BUSINESS:

Opening Comments:  Chairman Scott welcomed Terry and Anne Jackson to the meeting and added two items to the Agenda; Election of Officers and Board Designates.

Election of Officers:  D. Adams nominated Rob Scott as Chairman, Darrell Scott as Vice-Chairman, and Jo Ann Pohlman as Clerk/Treasurer.  There were no other nominations.  The Board voted in favor of the nominations.

A motion was made by D. Scott, supported by D. Adams, to approve the minutes of the Regular Meeting of December 5, 2007. All voted in favor and the motion carried.

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

Clerk/Treasurer J. Pohlman reported that the 2006 Audit was still being completed.  Interest rate information had been sent to Jennifer of Glorvigen for her opinion on moving funds to interest bearing accounts. The Debt Service Fund balance for the end of December was at $97,261.29 and covered the RD loan payment of $86,099.99 due on January 1^st. J. Pohlman presented the November 2007 Financial Reports, reviewed by Glorvigen, to the Board. Invoices-on-hand were reviewed with the Board. A motion was made by D. Adams, supported by M. White, to approve the Treasurer’s Report as presented and the payment of bills as follows: Administrative: Glorvigen – $100.00; Fryberger, et all – $748.80; Costin Group – $250.00 and MN Rural Water Assoc. – $200.00.   Operations:  Lake Country Power – $62.97 & $883.70; NTS – $36.00, $36.00 & $266.25; A-1 Services – $1,960.00; DVS Renewal – $18.50; Terry’s Operational Services – $1,069.20; and Wells Fargo Insurance – $248.00.  All voted in favor and the motion carried.

Administration (CLWSD)

• Emergency Response Plan (ERP):  T. Jackson will work with John Jamnick of RLK to finalize the ERP to be submitted to the MPCA.
• Capital Asset Plan:  Jennifer Hanson of the Glorvigen Accounting Firm will be providing the plan soon.
• Board Designates:

o        Motion by B. Congdon, supported by D. Scott that Cope & Peterson remains as council as needed for the District.  All voted in favor and the motion carried.

o        Motion by D. Scott, supported by M. White that Fryberger, Buchanan Law Firm remains as primary council for the District.  All voted in favor and the motion carried.

o        Motion by M. White, supported by B. Congdon that Glorvigen, Theis remains as the accounting firm for the District.  All voted in favor and the motion carried.

o        Motion was made by D. Adams, supported by B. Congdon that American Bank remains as the financial institution for the District.  All voted in favor and the motion carried.

o        Motion by B. Congdon, supported by D. Adams that Environmental Financial Services remains as a financial consulting firm on an as needed basis for the District.  All voted in favor and the motion carried.

o        Motion was made by B. Congdon, supported by D. Scott that Carl Brown Consulting remains as a financial consulting firm on an as needed basis for the District.  All voted in favor and the motion carried.

o        Motion was made by B. Congdon, supported by D. Scott that RLK-Kuusisto remains as consulting engineering firm to the District.  All voted in favor and the motion carried.

o        Motion was made by M. White, supported by B. Congdon that the rental payment to the Crane lake Chapel remains the same at $20 per meeting.  There was discussion of raising the rate.  M. White, B. Congdon, D. Scott voted in favor.  D. Adams and R. Scott voted against and the motion carried.

CLWSD Meeting Minutes – January 2, 2008

Administration – Board Designates (Cont.)

o        Newspaper:  Bids were requested from the three newspaper representatives present for a decision to be made at the February meeting.

2008/09 Rate Review

• Carl Brown Analysis:  Board concerns were discussed with Carl Brown regarding the timing of rate increases and the affordability index.  The Board discussed the availability of grants to reduce debt to avoid a rate increase.  A motion was made by B. Congdon, supported by M. White to request a proposal from Gary Cerkvenik of The Costin Group to work toward acquiring federal grant funds and to assist in reducing debt.  All voted in favor and the motion carried.

Financial (MFS, EFG, RLK)

• ISTS Grant Funds:  A check for $2,772.00 was received for the District’s work thus far in the ESA.  No further funds are available as the grant has been discontinued by the MPCA.
• Grant Funds:  The District may apply for phosphorous related grant funds from the State in even numbered years.  A motion was made by B. Congdon, supported by D. Scott to write a letter to Nancy Johnson, Public Facilities Authority, requesting inclusion in the grant request.  All voted in favor and the motion carried.

Legal Issues (MFS, EFG, RLK)

• Service Connection Procedures:  Nothing new to report.
• Ordinance #3:  A motion was made by B. Congdon, supported by D. Adams to adopt the January 2, 2008 amendment to Ordinance No. 3 Establishing Rates and Charges for the Crane Lake Water and Sanitary District  of December 1, 2004, amended on June 27, 2006. Discussion followed.  B. Congdon, D. Adams, D. Scott and R. Scott voted in favor.  M. White voted against and the motion carried
• O & M Contracts:  There was no discussion.

ESA

• Township Community Action Plan/Options:  There was no discussion.

Sewer Freezing Issue (RLK)

• Permanent Fix:  There was no discussion as J. Jamnick was not present.
• Insurance Claim:  R. Scott will contact Allied Adjusters to monitor progress.

• Elevated Pump Readings:  There was no discussion.

RLK Engineering Status Report (RLK)

• Punch List:  There was no discussion.
• WSA Expansion:  There was no discussion.
• Schlotec/Stahnke Connections:  There was no discussion.

Operations Report

• Jim Pohlman reviewed Terry Jackson’s report stating that the plant continues to operate well with discharge limits remaining within required standards.  The aluminum sulfate dosage to the primary clarifier was reduced in December to accommodate lower winter flow rates. Chemical feed problem was resolved.  The dosing on the sand filters has been reduced to two zones during the low flow winter months.  Biosolids were transported to Virginia.  NTS submitted the annual biosolids report to the MPCA.  One heater is currently down and should be repaired by next week.
• NTS Punch List:  The GPS and weed trimmer will be returned to the District. T. Jackson or J. Pohlman will pick up at NTS when in the area.
• New Hire/MPCA Certification:  Lance Ulen has been hired to assist J. Pohlman with sewer maintenance.  T. Jackson has offered to assist with Class C training for J. Pohlman or L. Ulen to work toward having a State Certified Operator in the area employed by the District.
• MPCA-Compliance monitoring Survey Report (O&M Manual).  T. Jackson will communicate with J. Jamnick on completion of the manual.

CLWSD Meeting Minutes – January 2, 2008

PUBLIC COMMENT (5 Minute Limit)

David Beckmann stated that he had received the grinder station winterization sheet that was mailed to WSA part-time users of the system.  He asked if there was a specific length of time the station could go without use.  The response was that if he planned to leave the system unused for more than 4 or 5 days, some extra water should be run into the tank and consideration of cold weather conditions should be observed.

Paul Hamblin thanked the Board for the work with Carl Brown on the rates.  Mr. Hamblin felt it would be prudent to accept the higher rates while exploring grant opportunities for debt relief.  Fund reserves could be depleted during the period of grant request and receipt, if such should occur.

The meeting was adjourned at 8:20PM.

J. Pohlman, Clerk

NEXT MEETING:  FEBRUARY 6, 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.