CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS’ REGULAR MEETING

March 3, 2010 – 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 Bill Congdon, Darrell Scott and Rob Scott.

Members absent: Managers Dave Adams and Mark Anderson.

Also present:  Sewer Operator Terry Jackson and Anne Jackson, Sewer Maintenance Worker Jim Pohlman, Clerk/Treasurer Jo Ann Pohlman and a representative from the Cook News-Herald.

BUSINESS:

Opening Comments:    Chairman Scott stated that this meeting would include discussion of the USDA-RD workout plan and the receipt of an MPCA award by the District.  Rob Scott also stated that there would be a closed meeting following the regular meeting to discuss legal issues.

Minutes:  A motion was made by B. Congdon, supported by D. Scott, to approve the minutes of the Board of Managers’ Regular Meeting of February 3, 2010. All voted in favor and the motion carried.

Correspondence:  The correspondence list was reviewed by 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. All voted in favor and the motion carried.

Treasurer’s Report:  Clerk/Treasurer J. Pohlman reviewed the Treasurer’s Report. February payroll expenses were as follows: Administrative – $756.13 and Operations – $1,360.63. Documents have been delivered to the Glorvigen office for the 09 Audit. The January 2010 financial statements were presented to the Board.   The financial statements and current balances were reviewed. A motion was made by D. Scott, supported by B. Congdon, to approve the Treasurer’s report as presented and the payment of bills as follows:  Administrative:   Costin Group – $1,000.00; Fryberger, et al – $189.38 & $648.00; League of MN Cities – $37.62; Lutefisk Tech. – $42.50 and Quill – $204.76.  Operations:  Lake Country Power – $1,113.12, $85.15, $60.98,  & $107.09; Hawkins – $862.06; Canoe Country Electric – $302.50; Gopher State One Call – $100.00; League of MN Cities – $380.38 and Terry’s Operational Services – $1,080.00.   All voted in favor and the motion carried.

Administration

• Gary Cerkvenik Contract:  The Costin Group contract needs to be revisited following the completion of the USDA-RD work.  A motion was made by B. Congdon, supported by D. Scott to renew Gary Cerkvenik’s Costin Group contract for funding procurement assistance.  All voted in favor and the motion carried.

Legal Issues

• VLD EDU’s:  No response has been received to-date to the District’s letter of January 15, 2010.
• Freezing:  Work continues at the legal level.  A closed meeting with follow this meeting to discuss legal issues.

USDA-RD Debt Service Update

• Reserve Fund Schedule:  The USDA National Office offered the following servicing actions for the District:  1) A 3-year deferral on principle payments for payments due January 1, 2011, 2012, and 2013.  Interest only payments will be due on those dates approximately as follows and based on a balance of approximately $1,440,291.18 at 2.375%:  2011 – $29,805; 2012 – $34,210; and 2013 – $34,210.  2) The total amount of indebtedness at the time of re-amortization will be scheduled for payments over 37 years at a rate of 2.375% with annually payments beginning in January 2014 of approximately $58,936 per year.  A response to the proposal is requested by March 10^th.
• A motion was made by R. Scott, supported by D. Scott to accept USDA-RD’s proposed workout plan as stated in the USDA-RD letter of February 22, 2010.  There was discussion regarding the accrued interest.  The motion was removed from the floor.  Further information will be sought from The Costin Group.  A Special Meeting will be scheduled prior to March 10^th for a final decision.
• Thank you letters will be sent to those assisting in the workout process.

JPA Update

• The monthly meetings of the Namakan Basin Joint Powers Board (JPB) and the VNP Clean Water Joint Powers Board (JPB) were held at the Cook Land Department on February 18, 2010.  Julie Kennedy of S.E.H. Engineering reported that over 65% of the 648 surveys mailed had been received. SEH will be sending a second survey. Tracy Ekola, SEH discussed flow projection inputs and soils data analysis.  The project funding matrix covering funding source, status and timelines was discussed.

CLWSD Meeting Minutes – March 3, 2010

Collection System Expansion

• Funding:  Gary Cerkvenik will be working on funding.
• Engineering Design:  This would be the next step.

Collection System O & M

• Freezing Corrective Action Status:  Terry Jackson reported that the lateral from the church is slushing due to low use and the lateral from Darrell Scott’s house on Bayside may have temporarily frozen bending the rails.  Other areas report higher than normal meter readings; however, the system remains operational. Customers with potential freezing issues will be asked to run their water heaters out twice a week, at the District’s expense. Citi Lites, who will be handling Gopher State One Call responses for the District, has equipment available to measure lateral depth.
• VLD Pump Removal Plan: The grinder stations will be removed when weather permits.
• I&I Corrective Action Status:  Corrective action will begin in the spring. One of the removed grinder stations from VLD will be used to build a prototype.

Treatment Plant and Operations Report

• Terry Jackson reported that all effluent limitations established by EPA and MPCA were met during February.
• Main Lift Station Power Failure:  The installation of a 3-phase transformer seems to have alleviated the problem.
• Gopher State One Call and Citi Lites:  All calls will now be received and handled by Citi Lites.
• Recirculation Pump Replacement:  Installation of the new pump began on March 3^rd. Stock items were used to repair problems that occurred with the redundant pump motor.
• Chemical Replacement:  T. Jackson is evaluation the possibility of replacing aluminum sulfate with a different chemical for phosphorus removal.  This action could possibly decrease sludge generation.
• Organic Loading Increase:  T. Jackson will continue researching the increase of organic loading at the plant, particularly during the summer months; which increases the disposing of sludge and  the cost to do so. T. Jackson will contact NTS to request decreasing the testing for heavy metals prior to biosolids disposal to decrease costs. The tests have been consistent and we have no industrial influence in our wastewater.
• MPCA Award:  The District is the recipient of a Certificate of Commendation for outstanding operation, maintenance and management of the wastewater treatment system.  The MPCA will present the certificate to T. Jackson at the 73^rd Annual Wastewater Operations Conference on March 24^th in Brooklyn Park, MN.  A motion was made by R. Scott, supported by B. Congdon to assist with expenses for Terry and Anne to attend the conference.  All voted in favor and the motion carried.

PUBLIC COMMENT (5 Minute Limit)  There were none.

The Board then closed the meeting based on the attorney-client privilege exception to the Open Meeting Law under Minnesota Statute 13D.05, subd. 3(b).  The Board closed the meeting to discuss potential dispute resolution of a claim against RLK Kuusisto and specific advice provided by the District attorney regarding dispute resolution.

The meeting was closed/adjourned at 8:35PM

Jo Ann Pohlman, Clerk

NEXT MEETING:  APRIL 7, 2010, 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.