CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS’ REGULAR MEETING

June 7, 2006 – 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 Harvey Parvi, Darrell Scott, and Rob Scott.

Members absent:  Bill Congdon

Also present: John Jamnick of RLK-Kuusisto, Kenny Winkler and Jim Pohlman of NTS, Laurie Brown of the U of M Extension Service, Clerk/Treasurer Jo Ann Pohlman, reporters from the Cook News-Herald, Timberjay, and Voyageur Sentinel and 19 members of the community.

BUSINESS:

Opening Comments:  Chairman Rob Scott introduced Laurie Brown of the University of Minnesota Extension Service explaining that she was present to address the Board regarding the Eastern Service Area.  Mr. Scott then introduced the volunteers for the Eastern Service Area Advisory Committee; Jim Bonner, Steve Hutt, Bob Kaiser, Bill Paulsen and Jeff Sanborn.

A motion was made by D. Scott, supported by H. Parvi, to approve the minutes of the Regular Meeting of May 3, 2006. All voted in favor and the motion carried.

The correspondence was presented to the Board.  A motion was made by D. Scott, supported by H. Parvi, 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 Financial Statements for January, February, March, and April 2006 as reviewed by the Glorvigen Accounting Firm.  A motion was made by D. Scott, supported by H. Parvi, to approve the Financial Statements as presented.  All voted in favor and the motion carried.  J. Pohlman presented the May Financial Statements as Preliminary explaining the Accounting Firm’s suggestion that Financial Statements be presented one month later allowing time to enter all data pertinent to that month and allowing time for the Firm’s review given the early date of the CLWSD meetings.  A motion was made by D. Scott, supported by H. Parvi, to approve Financial Statements one month later with Preliminaries being sent to the Board when available.  All voted in favor and the motion carried.  The Accounting Firm recommended writing off the Litigation Settlement Receivable amount of $3,794.04 as a bad debt. A motion was made by H. Parvi, supported by D. Scott, to set up the accounting procedure to transfer $99,027.96 from Pre-Paid Special Assessments to the Project Fund – partial repayment of interim interest paid on the loan.  All voted in favor and the motion carried.  A motion was made by D. Scott, supported by H. Parvi to transfer $6,052 from the Project Funds to Administrative Funds, which were borrowed from Administrative Funds to pay project expenses prior to grant and loan funds being received.  All voted in favor and the motion carried.  J. Pohlman explained that a letter had been received from St. Louis County for a partial early tax distribution on June 21^st rather than July 6^th.  The Board discussed the option and decided it was not necessary.  A motion was made by D. Scott, supported by H. Parvi to pay the following Invoices on Hand: Administrative: EFG – $1,080.00.  Plant Operations:  Lake Country Power – $29.35 & $411.35; A-1 Services – $225.00; NTS – $3,697.75; Hawkins – $325.02 & $365.21.  Flood Invoices:  NTS – $193.50; RLK – $1,027.50; and GAP Engineering – $237.72.  Gold Coast Project: Cope &Peterson – $256.00 and previously approved RLK – $1,322.50; NTS – $3,711.78; and Architectural Resources – $685.00.  All voted in favor and the motion carried.  J. Pohlman requested the Board’s permission to exchange the Ink Jet All-In-One Printer for a comparable Laser All-In-One Printer at an increased cost of $175.  A motion was not necessary as the final amount spent for the new computer system would not exceed the $3,000.00 previously approved.

Administration

• I.S.T.S. Grant:  A motion was made by H. Parvi, supported by D. Scott to adopt Resolution #2006-02 authorizing the CLWSD to execute a grant contract with the MPCA for ISTS grant assistance for eligible ESA projects.  All voted in favor and the motion carried.
• Emergency Response Plan – R. Scott is working on the Plan.
• WIF Project Grant Agreement Extension:  A motion was made by D. Scott, supported by H. Parvi, to adopt Resolution #2006-01 authorizing the CLWSD to execute Amendment #1 to the Wastewater Infrastructure Fund Project Grant Agreement #MPFA-98-0056-R-FY03.  All voted in favor and the motion carried.
• Court File #C4-03-100730 Retention.  A motion was made by H. Parvi, supported by D. Scott, to respond to the Fryberger, et al letter of 5/15/06 outlining their file retention and destruction policy.  The Board would notify them if any of the file information would be needed prior to 5/1/10.  All voted in favor and the motion carried
• Fellowship Hall Accessibility Transition Plan – D. Scott had no report.

CLWSD Meeting Minutes – June 7, 2006

Eastern Service Area

• Laurie Brown Discussion:  Ms. Brown introduced herself to the Board and those present as a Regional Extension Educator from the U of M Extension Regional Center in Cloquet.  She explained she is one of three people in the State working with small communities on similar projects.  She explained her background and the Extension Service’s participation in the ESA project.
• Advisory Committee Appointments:  A motion was made by H. Parvi, supported by D. Scott, to appoint the following people to the ESA Advisory Committee:  Jim Bonner, Steve Hutt, Bob Kaiser, Bill Paulsen, and Jeff Sanborn.  All voted in favor and the motion carried.
• Approve Advisory Committee Roles & Responsibilities:  The Committee would need Board approval for any monetary expenditure.  One member will be designated to communicate with Laurie Brown.  There would be a monthly report to the Board.  H. Parvi will be the Board contact for the Committee.  Community involvement was stressed.

R. Scott realized at this point that he had not welcomed Harvey Parvi to the Board as a recently elected Manager.  He also stated at this time that Jim Pucel was no longer with the RLK firm and John Jamnick would now be attending the CLWSD meetings.

RLK/NTS – Treatment Plant Update and Corrective Actions

·         Work Plan/Project Forecast:  John Jamnick stated that the by-pass valve had been ordered and an 8-week lead time remained until it would be received. All other related work will be completed in preparation for the valve arrival.

RLK-Kuusisto Project Status Report

• Punch Lists: A Warranty Inspection Meeting was held on May 24^th.  Five items remain on the Wagner Punch List.  To date, two of the five have been completed.
• Wagner Close-Out:  J. Jamnick presented closing documents to be approved after punch list completion.  He also presented documents to be signed and sent to the US Army Corps of Engineers and Rural Development to speed the process.
• Capital Asset Plan – No action was taken.
• Engineer Services Amendment #5 – No action was taken.
• R. Scott requested that RLK look at the equivalency value of EDU’s.

NTS Status Report

• Kenny Winkler reported that the plant was running well and all quality standards are being met. The discharge monitoring is well within specifications.
• Gopher State One Call:  The application process is completed. Bob Patrick of N&R Services will instruct Jim Pohlman on equipment use.
• Elevated Grinder Readings Report:  NTS is currently working on this.
• MPCA – Compliance Monitoring Survey Report (O&M Manual):  The report from Jaramie Logelin, WQ Compliance & Enforcement of the MPCA, Duluth Regional Unit, was excellent; the only requirement is an O&M manual for the plant.  RLK & NTS are working on the manual to be completed within 60 days.
• There is increased chemical use for the summer season.
• A motion was made by D. Scott, supported by H. Parvi, to purchase lawn care equipment not to exceed $300 for the plant.  All voted in favor and the motion carried.
• A Preventive Maintenance Schedule for the plant was submitted by NTS.

EFG – Report

• 2006-7 Rate Projection & Schedule: R. Scott reviewed Scott Harder’s letter of May 26, 2006 presenting Option 8 with a recommended Base Charge of $56.00 per month, Volume Charge of $12.25 per thousand gallons, and an Excess Volume Charge of $20.07 per thousand gallons.  He also noted that the excess volumes previously believed to exist, did not.  Mr. Harder recommended the District should add a 10% operating contingency to the amount recovered through user charges.  Mr. Harder also recommended three seasons worth of data needed to be present before changing EDU’s.  R. Scott requested a motion to approve Option 8.  A motion was made by D. Scott, supported by R. Scott to approve Option 8.  Discussion followed.  H. Parvi stated that he needed a month to review information and to receive input from the public before making a decision. R. Scott removed his support of the motion.  The motion died.  A motion was made by H. Parvi, supported by D. Scott, to mail S. Harder’s letter of May 26, 2006 outlining Option 8 to the WSA residents.  All voted in favor and the motion carried.

CLWSD Meeting Minutes – June 7, 2006

EFG – Report (Cont.)

• Eggen/Stahnke Special Assessment & Service Connection:  B. Congdon has been assigned this project and was not present to report.

Capacity Reservation Fees

·         The Board is waiting for communication from St. Louis County.

PUBLIC COMMENT (5 Minute Limit)

Paul Hamblin stated the Board should not pass on a new rate structure without public input.  He did not feel any of the options presented by Scott Harder were proportionately fair and equitable.  The high base fee is not agreeable.  He stated that out of the $56 base fee $4 goes to debt service and the rest goes to operation of the plant. The seasonal people should not provide more than their share of the Plant operating expenses. The Board should hold another public meeting to provide the service they provided on other rate proposals.

Dorothy Mohr concurred with Paul Hamblin’s comments.  The Board needs to listen to the public.

Dave Beckmann asked for an explanation of the EDU survey sent to the WSA residents.  R. Scott explained that the survey was to assist in the review of the Financial Plan.

Charlie Crockett stated that it was absolutely critical that the Board think in terms of reacting to the sentiment of the public and rebuild the credibility of the Board.

Doug Marshall asked why the Board felt it was fair that one customer with an estimated 45% usage pay 22% of the bill.  R. Scott responded in a base-volume rate schedule you will have higher percent fees to lower percent usage.

There being no other business the meeting was adjourned at 9:05PM

J. Pohlman, Clerk

NEXT MEETING:  REGULAR MEETING, JULY 5, 2006, 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.