Study Session: 7:00 – 7:30PM

Jim Pucel reviewed the bids with the Board. The initial apparent low bidders were Louis Leustek & Sons for the Wastewater Collection System and Rice Lake Construction Group for the Wastewater Treatment System. There were irregularities found with both. Leustek made a mathematical error which made them the second lowest bidder on the base bid. Wagner Construction of South International Falls became the low bidder for the Collection System at $1,734,104.00. Rice Lake Construction made a minor error in their Unit Prices which did not affect the total bid amount and which was corrected. They remain the low bidder for the Treatment System at $909,097.00.

More documentation and approval from the MPCA must be received and paper work for Rural Development needs to be completed before the bids will be awarded.

Assuming 160 EDUs for the Western Service Area, $472 per EDU per year for 40 years would be required for repayment of the loan needed for the project. The Board agreed that awarding of the bid should be delayed to allow time for the future system users to become aware of the debt costs.

Regular Meeting

The meeting was called to order by Vice-Chairman Darrell Scott at 7:35PM.

Members present: Managers Darrell Scott, Mike White, Jim Sanborn, and Deena Congdon.

Members absent: None

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

BUSINESS:

Motion by M. White, supported by J. Sanborn to approve the minutes of the Regular Meeting of February 5 and the Special Meeting of February 26, 2003. Motion carried.

Motion by D. Congdon, supported by J. Sanborn to approve the February Treasurer’s Report and payment of bills as follows: Frontier – $54.25 and RLK-Kuusisto – $2,000.00. Motion carried.

Correspondence:

The correspondence was presented to the Board.
A motion was made by M. White, supported by J. Sanborn that the correspondence be placed on file and acted upon as required. Motion carried.

RLK-Kuusisto Progress Report

Bids were received for the Wastewater Collection System and the Wastewater Treatment System.
Letters were presented to the Board recommending Wagner Construction be offered a contract for the Collection System and Rice Lake Construction Group be offered a contract for the Treatment System.
A revised project budget and rate schedule were sent to Rural Development for additional loan funds.

RLK-Kuusisto Progress Report (Cont.)

Mr. Applewick of Northeast Technical Services will schedule a meeting with the City of Orr Wastewater Treatment Plant Operator to discuss Biosolids Disposal.

The Board should receive a formal Plan and Specification approval letter within the next week from Bill Priebe of the MPCA.
Spoke with Rolland Hamborg from the Army Corps of Engineers.
Spoke to Mary Frances Skala regarding ordinance questions presented by the Board. Board will receive an updated draft Ordinance within the next couple of weeks.
Spoke with Dawn Cole of Cole Appraisal and Consulting, who worked on the Town of Fayal Wastewater Collection System project, regarding undeveloped property values abutting the collection system pipelines.
Sent the Eastern Service Area Report to Rich Hyrkas of St. Louis County Health Department for his review and comment.

Easements Status Report

Work continues on the easement issues; there are very few left to be resolved.

Right-of-Way Issues

A letter was received from Cope & Peterson regarding the road on Bear Island. The letter stated that the road was dedicated for public use and does not appear to be dedicated for utility services.
Alicia will be contacted regarding her letter.
M. White suggested that a letter should be requested from Alicia Cope further explaining her letter and the potential impact on Western Service Area right-of-ways. Also, is there available property in the park area for a wastewater sytem.

Eastern Service Area Plan

The Eastern Service Area report has been sent to the St. Louis County Health Department for their review and comment. They were also asked to prioritize the various areas within the ESA.
The report will also be sent to the MPCA for their review and comment.
M. White requested that it also be sent to Roger Clapp of Rural Development.

Ordinance Plan & Rate Schedule

M. White used EDU figures from RLK-Kuusisto to calculate the approximate rate for each EDU for operation and debt. The figure is approximately $77 per EDU per month.
Approval of the bids will be delayed to allow the users time to consider this figure.

Vacancy/Board of Managers

A letter was received from St. Louis County stating that after their research, the appropriate procedure is for the Crane Lake Town Board to appoint the District board members.
M. White stated that the District was established by the MPCA and that the County entered as the local form of government for the unorganized territory. The letter did not mention discussion with the MPCA nor did it mention if this would impact the District in any other way.
A motion was made by D. Congdon, supported by J. Sanborn to write a letter to Mary Frances Skala regarding her views on the County’s decision and how the District would be impacted. Motion carried.
The vacancy will be acted upon when this issue is resolved.

Board 2003 Officer Elections

The election of officers will be tabled until there is a full Board of Managers.

Board Designates – Accountant, Attorney, Bank & Newspaper

The Board designates will be tabled until there is a full Board of Managers.

OTHER BUSINESS

A motion was made by M. White, supported by J. Sanborn to comply with the request from Jim Pucel of RLK-Kuusisto to sign the DNR License forms and provide payment of $410 for the License Fee; and to comply with the request from Roger Clapp of Rural Development relating to funding documents. Motion carried.

OTHER BUSINESS (Cont.)

A motion was made by M. White, supported by D. Congdon to proceed with signing the USACE documents after RLK-Kuusisto reviews those documents. Motion carried.

The next meeting will be a Special Board Meeting on March 26, 2003 at 7:30PM at the Crane Lake Chapel Fellowship Hall with a Study Session at 7:00PM prior to the meeting.

PUBLIC COMMENT

Butch Eggen asked if Add Alternates had been eliminated from the bids. The Add Alternates have not been eliminated and will be considered at a later date. They are not included in the loan amounts needed for the project at this time.

Butch Eggen asked if a property owner had property adjacent to the sewer line, would that property owner be required to hook-up to the system or could they put in their own St. Louis County approved system. The Board response was that each situation would be looked at individually.

Butch then asked if a property owner had ten lots could they have their own cluster system. The Board would have to look at each situation individually for this also.

There being no further business the meeting was adjourned at 8:15PM.

J. Pohlman

Clerk

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