CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS’ REGULAR MEETING

June 4, 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, Bill Congdon, Darrell Scott, Rob Scott and Mike White.

Also present: John Jamnick of RLK-Kuusisto, Sewer Operator Terry Jackson, Sewer Maintenance Worker Jim Pohlman, Clerk/Treasurer Jo Ann Pohlman, representatives from the Cook News-Herald, Timberjay, and Voyageur Sentinel, 6 members of the community and invited guests Gary Cerkvenik of The Costin Group and SEH representatives Jim Johnson, Mike Larson, Denny Resgan and Dan Viau.

Opening Comments:  Chairman Rob Scott explained that presentations by The Costin Group and SEH, and questions and comments related to the presentations would precede the regular business meeting. Chairman Scott introduced Gary Cerkvenik as the first speaker, with the representatives from SEH following.

Mr. Cerkvenik reported on the history of his work for the District for debt relief and expansion, and the plan for the future including resources for implementation. He explained that competition for funds was always great; however, an advantage that this area has is being the entrance to the Voyageur National Park.  A change from the norm would be including three communities – Crane Lake, Kabetogama, and Ash River – rather than just one, to endeavor to acquire funds on the Federal, State, and County levels. A future goal, which is currently being addressed, is to acquire 80% of $28,000,000 through the Federal legislature with Congressman Oberstar’s support.  The remaining 20% requests would be directed toward the State and the County.  A present goal would be to acquire funds from the Environmental Trust Fund and to identify other agencies for support.  Senator Bakk and Representative Dill are both supportive of this effort.

Denny Resgan, Sales Manager of Short Elliott Hendrickson Inc. (SEH) introduced the members of their group including, Jim Johnson, Engineer and Sr. Project  Manager who would organize the project;  Mike Larson of the IRRR who would work on acquiring grant funds; and Dan Viau, Engineer with 23 years of experience in wastewater.  Each spoke to the combined community project and stated that the planning stage would be done free of charge to the communities.

Chairman Scott thanked everyone for their presentations and requested that a time line of the project be provided for the Board and that a representative of SEH attend future CLWSD Board meetings.  Information will be placed on the CLWSD website for public information.  Chairman Scott stressed the importance of the project being communicated as proactive to retain the pristine quality of the VNP and not reactive to pollution problems in the park.

BUSINESS:

A motion was made by B. Congdon, supported by D. Scott, to approve the minutes of the Regular Meeting of May 7, 2008. All voted in favor and the motion carried.

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

Clerk/Treasurer J. Pohlman reviewed the Treasurer’s Report.  The 2006 Audit is still being completed. May payroll expenses were as follows: Administrative – $395.49 and Operations – $2,792.95. Accountant Jennifer Hanson-Goulet of Glorvigen voiced her concern about the District’s ability to pay the RD debt in January of 2009. $4,000.00 will be transferred from the Base/Volume Fund to the debt payment savings account near the end of June.  The request for early distribution of 2008 tax collections on June 20^th was not recommended as required by the District; distribution will be received on July 3^rd. The Final March and April 2008 Financial Reports have been reviewed and approved by Glorvigen and were presented to the Board for approval.  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: Fryberger, et all – $1,942.19; Costin Group – $1,000.00; Bill Congdon – $2,272.34; and Lutefisk Technologies – $93.75. Operations:  Lake Country Power – $982.30 & $68.09; NTS – $114.00; Terry’s Operational Services – $1,354.50; and Hawkins – $1,095.14. Operations/Freeze 08:  Nelson’s Resort – $58.55; Adam Sperling – $100.00; and Sunrise Construction – $300.00.  All voted in favor and the motion carried.

R. Scott referred to Lance Ulen’s letter requesting compensation for use of private vehicles for work related activities.  R. Scott asked Terry Jackson to look into Lance’s concerns and report to the Board.

CLWSD Meeting Minutes – June 4, 2008

Administration (CLWSD)

• Emergency Response Plan (ERP): J. Jamnick presented an updated draft of the O & M manual with required changes to the ERP portion and a cover letter to the Board for approval prior to submitting to the MPCA.  A copy is now available for Board member review for one week prior to sending to the MPCA. A motion was made by B. Congdon, supported by D. Scott to approve the updated O & M manual to be sent to the MPCA with the understanding that the Board has one week to review and comment prior to submitting to the MPCA.  All voted in favor and the motion carried.
• Capital Asset Plan:  J. Jamnick sent both a draft Capital Asset Schedule and a 2006 Budget Summary to  Jennifer Hanson-Goulet of the Glorvigen Accounting Firm to assist in the completion of the Capital Asset Plan.  Jennifer will be contacted to see if she needs any further assistance.
• T. Jackson Contract:  A Certificate of Insurance will be forwarded to Fryberger, Buchanan for contract completion.

2008/09 Rate Review

• There was no action taken.

Financial (MFS, EFG, RLK, Costin)

• Grant Funds:  The following resolutions were adopted at the request of Gary Cerkvenik of The Costin Group for his work in acquiring grant funds:

o        A motion was made by B. Congdon, supported by D. Adams to adopt Resolution No. 2008-01 formally requesting federal assistance from Congressman Oberstar and Senators Klobuchar and Coleman for sanitary sewer funding for the Namakan basin area of theVoyageur National Park.  All voted in favor and the motion carried.

o        A motion was made by D. Adams, supported by B. Congdon to adopt Resolution No. 2008-02 requesting State of Minnesota bonding assistance in the 2009 and 2010 legislative sessions for the non-federal match for the sanitary sewer funding we receive from Congress and submit this request to Representative Dill and Senator Bakk.  All voted in favor and the motion carried.

o        A motion was made by B. Congdon, supported by D. Adams to adopt Resolution No. 2008-03 requesting two years of planning and technical assistance funds from St. Louis County for the development of a sanitary sewer project and seeking County sponsorship of the project along with requesting legal assistance in setting up an appropriate governing structure.  All voted in favor and the motion carried.

o        A motion was made by B. Congdon, supported by D. Adams to adopt Resolution No. 2008-04 requesting funds from the IRRRB for two years of planning and technical assistance and to match the County funds.  All voted in favor and the motion carried.

• Debt Service Plan & USDA Exception Authority Request:  R. Scott contacted Carl Brown regarding a possible update to his rate recommendation.  An option to pursue is the Exception Authority with the USDA.  A motion was made by R. Scott, supported by M. White to pursue an application for the Exception Authority option with the USDA with the assistance of the Fryberger law firm.  R. Scott, M. White, and D. Scott voted in favor; B. Congdon and D. Adams voted against and the motion carried.

Legal Issues (MFS, EFG, RLK)

• Elevated Pump Readings:  Discussed under Sewer Freezing Issue (RLK)
• NTS Invoices:  An offer for invoice settlement has been sent by Fryberger to NTS. No response to date.
• Service Connection Procedures:  Nothing new to report.

ESA

• Township Community Action Plan/Options:  R. Scott will check with Laurie Brown of the U of M Extension Service for any new information from the MPCA.

Sewer Freezing Issue (RLK)

• Permanent Fix:  T. Jackson reported that A-1 Serviced had ‘jetted out’ the lateral near The Pines today and the line is now clear.  J. Jamnick reviewed the Project Status Report listing plans to expose the Lutz service connections; review more procedures available to the longer, dead-end lines; schedule a meeting with Barnes representatives the week of June 16^th to discuss elevated readings, tank leakage, bending rails, seasonal shutdown procedures and other grinder pump related issues; possibly relocate the main through the campground; investigate each manhole and provide proper alignment to be completed by June 20^th; possibly add to insulation of grinder lids and grinder perimeters; address grinder station wiring.
• Insurance Claim:  An insurance claim was submitted to the League of Minnesota Cities for the current freezing issues.

CLWSD Meeting Minutes – June 4, 2008

RLK Engineering Status Report (RLK)

• Stahnke Connection:  A completed Application for Sewer Connection Permit and $350 check were received from Ms. Stahnke for modifications to her current system.

• CSAH 24 Culvert Issue:  An email was received from St. Louis County Planning requesting to discuss design and changes of the sewer line prior to replacing the culvert on CSAH 24 this fall.  J. Jamnick attended a meeting at the County Public Works Garage in Hibbing on May 29^th.  The sewer pipe will need to be relocated during the repair of the West side of the culvert.  The County stated that the utility will need to pay for the relocation of the sewer line.  R. Scott stated that the District would not be paying for that work.
• Berling Connection:  There was nothing to report.

Operations Report

• Terry Jackson reported that all State Standards were maintained throughout May. Total influent reported phosphorus was higher than recent lower population experience.  Pumping has resumed on Bayside Drive, the issue at the lateral from the Pines lift station was resolved today.  Damaged rails in the lift station were replaced.  T. Jackson commended Jim Pohlman and Lance Ulen on their work resulting from the freezing this past winter.
• B. Congdon requested a list of all expenses for the freezing the past two years including attorney’s fees.

The July meeting date was changed from July 2^nd to July 9^th.

PUBLIC COMMENT (5 Minute Limit)

Mark Anderson stated that four months from now we will be freezing again and wondered when the system would be repaired.  He does not like paying for infiltration.

Jeff Sanborn stated that he had learned a lot at the meeting and thanked the Board for their efforts in working together to resolve the current problems.  As the Fire Chief he requested that the fire fighters tour the plant to increase awareness of chemicals and asked for gate keys for the fire trucks.  He was also concerned about confined space awareness.  He expressed his hope that the Namakan Basin Plan would move forward.

The meeting was adjourned at 9:35PM

Jo Ann Pohlman, Clerk

NEXT MEETING:  JULY 9, 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.