CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS REGULAR MEETING

June 2, 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, Deena Congdon, Rob Scott and Michael White.  Manager D. Scott arrived at 7:43PM.

Members Absent: None

Also present: Jim Pucel of RLK Kuusisto, Clerk Jo Ann Pohlman, a reporter from the Cook News-Herald, a reporter from the Voyageur Sentinel and 12 members of the community.

BUSINESS:

Motion by B. Bystrom, supported by D. Congdon, to approve the minutes of the Regular Meeting of May 19, 2004.  Motion carried.

Chairman M. White reviewed the Treasurer’s Report and reminded the Board that a bank loan procurement was authorized at the previous meeting because cash is down considerably.  M. White applied to the County for an early distribution of property taxes, which should be received by 6/29/04.  This should avoid the necessity of the loan.  The Gold Coast Project Summary Report has been added to the Treasurer’s Report, which shows the total project receipts and disbursements.  Pay estimates for the Waste Water Treatment System and the Waste Water Collection System were received prior to the meeting.  A motion was made by D. Congdon, supported by B. Bystrom to approve the Treasurer’s Report as read and to pay the following Administrative bills:  Fryberger, et al – $2,359.49; RLK-Kuusisto – $1,482.50; and Jo Ann Pohlman – $36.00 and the following Project bills:  RLK-Kuusisto – $8,689.38; Rice Lake – $164,559.32; and Wagner Construction – $32,397.76.  Motion carried.

Correspondence

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

RLK-Kuusisto Project Status Report

• The USDA monthly construction meeting was held May 25, 2004.

• Wastewater Collection System
  • Contractor has completed the installation of 17 Model #2010-93 grinder pumps and service lines throughout Bayside Drive, Handberg Road and C.S.A.H. 24.  Wagner has received another model grinder pump, which they hope to deliver to the site by the end of the week.  Installation of those grinder pumps would begin in the Gold Coast area, then Hilltop Road and Bowser Court.
  • The Contractor will continue the installation of Model #2010-93 on the Gold Coast Road and Hilltop Road until receipt of the other grinder pumps.
• Wastewater Treatment System
  • Contractor completed the construction of the sand filter and will start the water balance test the first week of June.

o        Contractor is also working on the mechanical and electrical within the building.

o        The site grading has been completed and seeding will be completed the first week of June.

• Open issues remaining:  Record Plat, Biosolids Disposal and Engineering Agreement-Amendment 3.

RLK-Kuusisto Project Status Report (Cont.)

• M. White stated that the County Commissioner was in the area on Tuesday talking to people.  M. White recommended that Wagner Construction be reminded that ditching and culvert work is the responsibility of the County.

Financial Plan

• M. White reviewed the Financial Plan history.
• The first plan was received from Scott Harder of the Environmental Financial Group on 3/17/04, which was approved in concept in preparation for the Public Meeting held on 4/24/04.
• M. White presented another Financial Plan, which Scott Harder applied to his computer data, on 5/18/04 prior to the 5/19/04 Board Meeting.  This plan equalizes the balance of debt for single unit and multi unit properties and eliminates the subsidy of debt by single units.
• On 5/19/04 a motion was approved to except that Financial Plan in concept with the elimination of classes and the use of EDU’s as its basis.
• Scott Harder put the Financial Plan together using EDU’s after J. Pucel’s review of EDU assignments.  This plan was received the morning of 6/2/04 and was distributed to the Board at the meeting.  M. White feels this plan is better than the one he presented on 5/19/04.
• M. White requested that the Board review this plan and suggested that any other revisions considered by Board Members be sent to Scott Harder and applied to his computer data.
• M. White reminded the Board that an approved Financial Plan is needed to create a rate ordinance needed by the July 1, 2004 plant completion.
• R. Clapp has requested a loan closing date be set up.  The interest due to Minnesota Rural Water Financing for the long-term debt will be due at the loan closing.
• The Board agreed that the current Financial Plan should be placed on the Bulletin Board of the website.

Billing/Collecting System

• D. Congdon spoke to Mick Appelwick of Northeast Technical Services regarding billing service for the District.  He has provided very rough numbers, which will be compared to information received from companies providing billing software.
• Glorvigan et al is reviewing the audit information provided to them a few weeks ago.

RLK Contract Amendment #3 & Rice Lake Change Order

• A project forecast is needed from RLK before the Amendment and the Change Order can be approved by the Board.

NTS Contract

• Mike Appelwick is currently working on biosolids disposal and will need to do mapping and soil testing at farms located in Buyck and Gheen to determine if either would be a suitable site.  A Federal agency does the actual testing.
• M. Appelwick and J. Pucel will meet to discuss biosolids and other concerns on Thursday.

ESA Plan and Funding

• Requests for funding have been denied by the Legislative Commission on Minnesota Resources and the St. Louis County Community Development Block Grant (CDBG).
• The MPCA has requested that a study be made of each property in the ESA by a licensed inspector before the project can be placed on the Project Priority List (PPL).
• M. White asked J. Pucel to provide a cost estimate for completion of this study.

OTHER BUSINESS

M. White received Board agreement to do whatever is necessary to upgrade the District computer to receive attachments sent.

M. White asked that any Board member planning to attend the Rainy River Basin Water Management Plan Basin Committee meeting on June 9, 2004 contact him.  B. Bystrom said he would plan to attend the meeting.

PUBLIC COMMENT

Virginia Clifford asked if there would be a public meeting for the revised Financial Plan.  The Board responded that they would check into its legal responsibility.

Virginia Clifford asked what the Board’s position was on the houseboat issue being addressed at the Rainy River Basin Water Management Plan Basin Committee meeting on 5/9/04.  The Board explained that the District has no jurisdiction on the issue. The responsibility is the MPCA’s.

Steve Hunter asked if there would be another meeting before the Financial Plan is approved by the Board.  The Board responded that it may be approved at the next Board meting and that the Board would refer to legal council on public hearing requirements.

There being no other business the meeting was adjourned at 8:18 P.M.

J. Pohlman

Clerk

NEXT MEETING:  JUNE 16, 2004, AT THE CRANE LAKE FELLOWSHIP HALL AT 7:30 P.M.