CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS’ REGULAR MEETING

March 7, 2007 – 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, Rob Scott and Mike White.  Darrell Scott arrived during the reading of the Correspondence.

Members absent:  None.

Also present: John Jamnick of RLK-Kuusisto, Jim Pohlman of NTS, Clerk/Treasurer Jo Ann Pohlman, representatives from the Cook News-Herald and Voyageur Sentinel, and 6 members of the community.

BUSINESS:

Opening Comments:  None

A motion was made by B. Congdon, supported by D. Adams, to approve the minutes of the Regular Meeting of February 7, 2007. All voted in favor and the motion carried.

The correspondence was presented to the Board.  A motion was made by M. White, supported by D. Adams, that the correspondence be placed on file and acted upon as required.  All voted in favor and the motion carried.

Clerk/Treasurer J. Pohlman stated that Glorvigen had completed the 2005 audit and printed reports should arrive soon. She presented the following financial documents to the Board for approval that had been reviewed by the Glorvigen Accounting Firm: Financial Statements for November and December 2006 and January 2007. She stated that a Debt Service Fund with sub-funds and a Capital Reserve Fund with sub-funds would be created with Board approval. J. Pohlman asked for approval of the Treasurer’s Report as presented.  Chairman Scott further explained the Capital Reserve Fund and asked for a motion to establish that Fund.  A motion was made by B. Congdon, supported by D. Adams, to establish the Capital Reserve Fund with sub-accounts and the transfer of $7,500 per year from the sub-funds to the Capital Reserve Fund, the amount recommended by Scott Harder of EFG as 10 – 15% of the operating budget. M. White stated that this would more than satisfy the MPCA requirements for such a fund.  All voted in favor and the motion carried.  There is currently $14,300 set aside for capital improvement.  R. Scott asked for the following motions to bring the Capital Reserve Fund to a balance of $16,875, which would equal $1,875.00 for 2004 (partial year in operation), $7,500.00 for 2005 and $7,500.00 for 2006.  A motion was made by M. White, supported by D. Scott, to transfer f$1,875.00 from the G.C. Operating Fund to the Capital Reserve Fund for the 2004 requirement.  All voted in favor and the motion carried.  A motion was made by B. Congdon, supported by D. Scott, to transfer $2,575.00 from the G.C. Operating Fund to the Capital Reserve Fund bringing that fund balance to $16,875.00 for 2004, 2005, and 2006.  All voted in favor and the motion carried.  $7,500 will need to be transferred to the Capital Reserve Fund from the G. C. Operating Fund for 2007 near the end of the year.   R. Scott explained that $87,300.00 would be needed by the end of each year to pay the Rural Development loan and asked for a motion to establish the Debt Service Fund with sub-funds.  A motion was made by B. Congdon, supported by D. Adams, to establish the Debt Service Fund with sub-funds.  All voted in favor and the motion carried.  A motion was made by D. Scott, supported by B. Congdon, to approve the Treasurer’s report as presented.  All voted in favor and the motion carried.   Invoices on Hand were presented for payment as follows: Administrative: Glorvigen – $5,100.00; and Quill – $109.60.  Plant Operations:  LakeCountry Power – $39.00 & $1,105.83; NTS – $3,830.75; Gopher State One Call – $100.00; Quality Flow – $720.00 and Schemmer’s $837.00 & $624.00.  Gold Coast Project:  Cope & Peterson – $125.00, $170.00 & $180.00; and Meadowland Surveying – $1,345.00.  A motion was made by D. Adams, supported by D. Scott, to approve the payment of invoices on hand, including previously approved Project bills for RLK – $1,600.00 and Fryberger, et al – $100.00, and with the exception of the Meadowland Surveying bill for $1,345.00, which needs further review by RLK.   All voted in favor and the motion carried.

Administration

• I.S.T.S. Grant:  D. Adams requested that the Clerk supply him with any information she may have on the Esget application for reimbursement.
• Emergency Response Plan (ERP):  RLK & NTS are reviewing the ERP to include the recent updates to the plant.
• Capital Asset Plan:  The Glorvigen accounting firm is currently reviewing the plan and will submit their recommendation with the completed 2005 audit.  Scott Harder’s recommendations on reserve funds will also be considered.

 CLWSD Meeting Minutes – March 7, 2007

Budget/Financial Update Report (EFG, Costin, RLK)

• 07/08 Budget/Rate Review:  Chairman R. Scott reviewed the steps the Board would follow during their review of the budget and rate review stating that some had been fully accomplished and others were in process.  He stated that the Board had received the projections at the previous meeting and asked for approval of the 07/08 Budget.  M. White did not receive the projections.  A motion was made by D. Adams, supported by B. Congdon, to approve the 2007/2008 Budget and to retain the current rate structure.  D. Adams, B. Congdon, D. Scott and R. Scott voted in favor; M. White voted against and the motion carried.
• Grant Funds:  R. Scott will continue to work with Gary Cerkvenik of the Costin Group to obtain grant funds for future District projects.
• Costin continues to work on securing Federal grant funds.
• RD Loan Relief:  RLK continues to work in this area.
• Clean Air Legacy Act:  Representative Dill is working on acquiring more funds for the Clean Air Legacy Act.  Funds could be available in 2008.

Legal Issues (MFS, EFG, RLK)

• A draft copy of Ordinance No. 3 revisions was received from Fryberger, Buchanan.  The revisions identify EDU equivalencies for residential use. The Board discussed Section 3 and the need to balance residential and commercial values including additional EDU values and revenue changes. The Board reviewed Residential Equivalent Domestic Units of the Ordinance and made adjustments. A motion was made by D. Adams, supported by B. Congdon, to approve the modifications to Section 3 of Ordinance No. 3.  All voted in favor and the motion carried.  The Board needs to review the remainder of the Ordinance and forward any questions/ comments to Mary Frances Skala prior to approval of all amendments to Ordinance No. 3.  A meeting with J. Jamnick of RLK, S. Harder of EFG, M.F. Skala of Fryberger, and R. Scott will be scheduled in April to finalize changes to the service connection procedures for Board approval.

Eastern Service Area Update (U of M, RLK)

• M. White will join B. Congdon as the Board representatives on the Advisory Committee.  D. Adams had requested to be removed from that committee due to other Board commitments.
• On going actions related to the ESA include:  Contacting Otter Tail Water Management District for further information on area management.  Acquire a point of contact with St. Louis County. Rank the six areas of the ESA to be connected to the system and/or managed. Coordinate with Laurie Brown on spring tasking for the ESA Advisory Committee.
• Mike Appelwick of NTS will be at the April meeting to update their current contract and discuss inclusion of work on the ESA.

RLK Engineering Status (RLK)

• Elevated Pump Readings/Freeze Issue:  J. Jamnick stated that straw had been implemented at grinder stations to alleviate freezing.  The air relief manholes are now freezing and a contractor has been hired to steam them.  Water has been introduced into the manholes to help keep them from refreezing, but the manholes are not totally sealed, which allows the water to seep out.  There is an insulation kit available similar to the one used at the culvert on Gold Coast Road. The grinder pump manufacturer recommends that without insulation in the covers and with lack of snow cover the station shut down procedure should include filling water to 1 foot above the discharge pipe and that the floats could be adjusted on grinders that are used intermittently during the winter season.  A summer option would be to excavate around the manholes to insulate them.  The interim fix is to continue with placing water in the manholes.  A meeting with NTS and RLK to be scheduled to evaluate interim procedures.
• New Insurance Claim:  An insurance claim has been filed related to the freezing issue.  Data will be needed from RLK and NTS to determine what expenses may be considered by the insurance company as allowable for coverage.  RLK will need to provide information to the Board regarding the installation of the system according to the specifications in relation to northern Minnesota climate.  A committee level meeting with NTS, RLK, and the insurance adjuster may be scheduled by the end of the month to discuss the correct installation of the system and insurance invoice coverage.
• Lake Shore Estates:  R. Scott and J. Jamnick will meet with Mr. Braaten on March 21^st to discuss Board requirements for his development. Mr. Braaten plans to attend the April Board meeting.

• DeFries Tank:  Correction work will be done in the spring.
• Hoff Easement:   Field work still needs to be done before the easement is recorded.
• Punch List:  Items remaining will be addressed by RLK in the spring.

CLWSD Meeting Minutes – March 7, 2007

Operations Report (NTS)

• Jim Pohlman reported that all discharge standards were met for the month with no bypasses or overflows. System freezing problems in the collection system are being thawed with portable heaters and steam jetting of sewer lines.  Wastewater collected in affected IPS’s is being pumped and hauled to the main lift station.
• Quality Flow Cost Proposal:  Quality Flow’s cost proposal for lift station calibration is still being considered.
• NTS Contract:  The contract will be discussed in April.
• Billing:  The March billing volume charges will be adjusted to compensate for freezing by using an average of customer use for the months of November, December and January of this season.

PUBLIC COMMENT (5 Minute Limit)

Bob Kaiser, Advisory Committee member, asked if the Board plans to adopt the recommendations of the Advisory Committee.  R. Scott responded that the Board is currently reviewing all information provided, with their goal being to finalize by May.  He further stated that the Board is currently working on the federal level to secure funding, should it be needed for the ESA.

The meeting was adjourned at 9:05PM

J. Pohlman, Clerk

NEXT MEETING:  REGULAR MEETING, APRIL 4, 2007, 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.