CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS’ REGULAR MEETING

May 6, 2009 – 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 and Rob Scott.

Members absent: Managers Darrell Scott and Mike White.

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.  Jim Johnson of SEH, Inc. arrived at 7:45PM.

Opening Comments:  Chairman Scott said that Mike White was home and all wished him a speedy recovery.

BUSINESS:

A motion was made by B. Congdon, supported by D. Adams, to approve the minutes of the Board of Managers’ Regular Meeting of April 1, 2009. All voted in favor and the motion carried.

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

Clerk/Treasurer J. Pohlman reviewed the Treasurer’s Report.  March payroll expenses were as follows: Administrative – $661.65 and Operations – $3,033.90. April payroll expense for Admin was $560.39 and $3,492.14 for Operations.  $10,000 was transferred from S.A.R. Savings back to the Operating Fund in April.  The March, and January through March 2009 financial statements reviewed by Jennifer of Glorvigen were presented to the Board.  Jo Ann asked to transfer payment of the 3-Way Recovery Unit ($1,819.67) from the Operating Fund to the Capital Reserve Fund.  The Board agreed.  Invoices-on-hand were reviewed with the Board with a recommendation to hold payment on the Glorvigen invoice to retain a balance in the Admin fund until levy monies are received. A motion was made by D. Adams, supported by B. Congdon, to approve the Treasurer’s report as presented and the payment of bills as follows:  Administrative:  Costin Group – $1,214.24; Fryberger, et all – $317.67; Glorvigen – $5,000.00; North Country Floral – $45.27 and Quill – $83.06. Operations:  Lake Country Power – $1,179.71, $74.85, $55.24 & $102.95; Terry’s Operational Services – $1,395.00; Ely Utilities Commission – $540.00; Hawkins – $1,073.84; Quality Flow – $1,660.64; Minnesota Revenue – $505.00; Dept. of Employment & Economic Dev. – $508.84, Jim Pohlman – $105.00 and Lance Ulen – $345.00.  All voted in favor and the motion carried.

Audit:  The 2007 audit was received and was submitted to the Secretary of State’s Office on May 4^th.

Administration

• Minimum Volume Charges:  Discussion on this item will be tabled until infiltration issues are resolved.
• Culvert:  The County was advised of Board action approving funding for maintenance of the main line during culvert construction this fall.  The County will be sending an agreement to the Board.
• Insurance Claim.  Payment should be received soon for two items that were in review prior to closing the 2008 claim.
• Service Connection Procedure:  There is the possibility of up to three new connections in the E.S.A.  Terry Jackson will review expenses to provide holding tank pumping services and submit a report to the Board for review to better advise new connections of anticipated expenses.
• Voyageur Lakes Development:  Mr. Braaten did not attend the meeting as anticipated.  A member of the Board will communicate with Mr. Braaten.

Budget

• 2008/9 Rate Review-Analysis:  Correspondence will be sent to WSA residents to confirm EDU assignments.
• USDA-RD Meeting:  The committee level meeting was held on April 28^th at the Fellowship Hall to review the  USDA-RD workout plan to resolve loan issues. Those in attendance were:  Mike Monson and Dennis Tabbert of the USDA-RD and Rob Scott, Bill Congdon and Jo Ann Pohlman of the CLWSD.  The workout plan was reviewed by the group. The following motions were submitted and passed:

o        A motion was made by B. Congdon, supported by D. Adams to complete the May 6^th revised USDA-RD workout agreement with a target date of June 1, 2009.  All voted in favor and the motion carried.

CLWSD Meeting Minutes – May 6, 2009

Budget, USDA-RD Meeting (Cont.)

o        A motion was made by B. Congdon, supported by D. Adams to terminate the current contract with The Costin Group to secure funding. All voted in favor and the motion carried.  It was explained that this work is now being done through the JPA of the VNP Project.

o        A motion was made by B. Congdon, supported by D. Adams to contract with The Costin Group for $1,000 per month to provide consulting services for the District.  All voted in favor and the motion carried.

o        A motion was made by D. Adams, supported by B. Congdon to contact Carl Brown to provide an analysis of the rate structure to determine the amount of funds available for debt payment with the following parameters:  Expected zero growth, the rates remain the same or lower, and consideration of required reserve funds.  All voted in favor and the motion carried.

JPA Update

• The VNP Joint Powers Authority (JPA) met on April 23^rd.  The group’s purpose is to spearhead development of a comprehensive sewer plan impacting the VNP and including Kabetogama Township, Ash Riverand the CLWSD.  SEH, Inc. was selected to provide planning engineering services with a completion date set for July of 2010. Another JPA will be formed to develop the funding program for the VNP project. Both St. Louis County and Koochiching County will be involved.  The next meeting is planned for May 21^st.

Legal Issues

• RLK Collection System Offer:  A letter was sent to RLK revoking the offer proposed and the accompanying proposed Settlement and Mutual Release Agreement in Fryberger’s letter of February 10, 2009.   A future offer to RLK will be based on the current freezing issue and the SEH analysis.  Jim Johnson of SEH advised that they should be able to provide analysis information to the Board within two weeks.  The report will also be sent to Sewer Operator Terry Jackson.  Board members will review and will meet on a committee level prior to the June Board of Managers’ Regular Meeting.
• R. Scott stated that the District is not pursuing placement on the MPCA’s Project Priority List (PPL) at this time as it is understood that this is being pursued in the group effort of the VNP Project by Mike Larson of SEH.  Jim Johnson confirmed.

Collection System

• Elevated Pump Readings:  Ron Rutchasky of Rutchasky Enterprises and Terry Jackson are communicating regarding supplies and required work needed for infiltration at grinder stations.  A copy of the Grinder Pump Reading Sheet with noted locations with infiltration will be sent to Terry Jackson.
• Insurance Claim:  The Board will be submitting an insurance claim for the 2009 freezing at Bowser Court.

• SEH Collection System Analysis Proposal:  Addressed above.

ESA Expansion

• ESA Committee – There was no report.

Treatment Plant and Operations Report

• Terry Jackson reviewed his report with the Board. All effluent standards were maintained during the month of April.
• Lake Country Power performed tests at the main lift station to identify why phase failures occur at the panel.  A poor power factor of 69% was indicated.  A capacitor addition may be recommended.
• Jim Pohlman reported that the freezing issue at Bowser Court is defrosting.  The Bodkin residence is again able to pump; however there are bent rails at the DeFries and O’Connell residences as a result of the freezing.  Those tanks will need continued pumping until rails are replaced.

A letter was received from Dave Beckmann addressing the elevated water usage at his residence. Mr. Beckmann requested that the lawn be repaired around his tank, which was replaced last year. Terry Jackson will communicate with the contractor providing the work about sod replacement or seeding.

Information from Equaris Corp., which provides sustainable onsite wastewater treatment and water recycling technologies, was received by R. Scott.  The information was sent at the recommendation of MN Rep. Dill and MN Senator Bakk.   The information will be distributed to Board members.

PUBLIC COMMENT (5 Minute Limit) – There was none.

CLWSD Meeting Minutes – May 6, 2009

The meeting was adjourned at 8:50PM

Jo Ann Pohlman, Clerk

NEXT MEETING:  JUNE 3, 2009, 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.