CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS REGULAR MEETING

July 7, 2004 – 7:30 P.M.

CRANE LAKE CHAPEL FELLOWSHIP HALL

The meeting was called to order by Chairman Michael White at 7:35 P.M.

Members present:  Managers Bud Bystrom, D. Scott, Rob Scott and Michael White.  Manager D. Congdon arrived at 8:05PM.

Members Absent: None

Also present: Jim Pucel of RLK Kuusisto, Clerk Jo Ann Pohlman, a reporter from the Cook News-Herald, and 8 members of the community.

BUSINESS:

Motion by D. Scott, supported by B. Bystrom, to approve the minutes of the Regular Meeting of June 16 and the Special Meeting of June 25, 2004.  Motion carried.

Chairman M. White reviewed the Treasurer’s Report. A motion was made by B. Bystrom, supported by D. Scott, to approve the Treasurer’s Report as read and to pay the following Administrative bills:  ElyMinnesota – $65.00; VTSI – $991.14; VTSI – $874.69; and the Crane Lake Chapel – $255.00 and the following Project bills:  Cope & Peterson – $15.00; Cope & Peterson – $65.00; Lake Country Power – $1,930.00; Lake Country Power – $50.86; Lake Country Power – $62.99; and RLK-Kuusisto – $14,887.29. Motion carried.  M. White prepared a Budget Performance Report comparing the June Year-to-Date Administrative Expense with the related 2004 Budget, which indicates that in the first half of the year only 10% of the budget has been spent.  There is the potential to use some of those remaining dollars for the ESA as Administrative Funds covers expenses through the planning process for the whole District.

Correspondence

• The correspondence was presented to the Board.
• A motion was made by D. Scott, supported by B. Bystrom, 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 bituminous and concrete restoration is scheduled for mid-July.
• Wastewater Treatment System
  • Contractor will have the mechanical work completed today, and the painting is schedule to be completed this week.

o        Start up for the Wastewater Treatment Facility is scheduled for the week of July 19, 2004.

• Open issues remaining:  Record Plat, Biosolids Disposal and Engineering Agreement-Amendment 3.
• J. Pucel met with Mike Appelwick of NTS today to put together a list of the items he needs for remote control operation.  The cost for remote control will be between $40,000 and $50,000.  The Forecast will be revised to include remote control costs. The cost of 22 easement changes during construction will need to be considered in the forecast revision.
• M. White stated that an agreement is needed to assure that project grant funds will remain available after the Contractor’s work is completed as remote control, easement and other expenses will occur after project completion.

RLK-Kuusisto Project Status Report (cont)

• The County planned to be in the Gold Coast Area this week to do ditching work and replace culverts that cross the road.  J. Pucel will check with the County as to when they will be here.  It is important to do the culvert work before the bituminous is applied.
• The culvert by Borderland will be replaced this fall.
• The Waste Water Treatment Facility contractor has requested a time extension.  RLK will present the request to the Board when they have received all the information for the request.
• Amendment No. 3 will be addressed after the forecast revision.
• R. Scott was concerned with the cost of the easement adjustments and who authorized the changes.  J. Pucel understood that he was to work with the homeowners to make changes.
• Discussion of responsibility for easement change expense followed.  Homeowners were told that they may be responsible for easement change expenses.
• J. Pucel will submit a list of easement changes and expense for the Board to review.

Financial Plan

• Scott Harder is working on the 2004 Forecast and has sent a list of assumptions to M. White that need to be answered.
• Mary Frances Skala is working on the ordinance.
• Information received by M. White this afternoon will be distributed to the Board.

Billing/Collecting System

• Northeast Technical Services will do the billing for $250 per month including the cost of the computer program.
• D. Congdon will provide two billing options to the Board for their consideration for a decision to be made at the next meeting.

RLK Contract Amendment #3

• The forecast revision is needed before the amendment can be approved.

Sewer System Start-Up Requirements

• Copies of a draft Application of Hook-ups were received from Scott Harder today.  Questions need to be answered.
• M. White distributed copies to the Board.
• R. Scott requested that Scott Harder copy the Board with communications sent to M. White to expedite the communication process.

NTS Contract

• The contract is currently at the CLWSD attorney’s office.  M. White will check on the status of the contract.

ESA

• $48,000 is need to do a study of the properties in the ESA.
• The number of properties to be studied may be reduced to those that may potentially use the plant to reduce the cost of the study.
• J. Pucel said they would be looking at seasonal properties and at the number of properties without current systems.
• D. Congdon suggested that a mailing could be sent asking property owners about their current systems.
• Roger Clapp of Rural Development will send information on income survey requirements for grant approval.  The survey now has to be done by a third party, eliminating Board involvement.

OTHER BUSINESS

M. White reviewed the requests in Stuart McKie’s letter of June 25.  The Board agreed to table a decision on their response until all members had time to review his requests.  A draft letter will be made by M. White after input is received from Board members by this Friday.  The letter shall be approved at the next meeting.

There was discussion on conflict of interest issues and Board member removal.  It was decided that this was a Town Board issue as the Town Board is now the appointing authority for the District Managers.

A special meeting may need to be scheduled next week if the Board has the necessary documentation to address issues including start-up requirements and plant completion.

B. Bystrom stated the permit form should include information on electrical inspection.

PUBLIC COMMENT

Ruth L. Carlson reminded the Board that there was discussion in the past about homeowner responsibility for easement changes and when that would occur.  Jo Ann will look for that information.

Larry Olson asked if their would be an inspector for the individual plumbing work as well as the electrical for individual hook-up to the grinder tanks.

There was further discussion on responsibility of grinder pump damage during individual hook-ups, ordinance compliance and the service agreements.

Mr. Setzephandt requested that Bear Island residents be contacted if there was planned discussion on issues affecting them at future meetings.

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

J. Pohlman

Clerk

NEXT MEETING:  JULY 21, 2004, AT THE CRANE LAKE FELLOWSHIP HALL AT 7:30 P.M.