CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)
BOARD OF MANAGERS’ REGULAR MEETING
November 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, Darrell Scott, Rob Scott and Mike White.
Members absent: None
Also present: John Jamnick of RLK-Kuusisto, Sewer Maintenance Worker Jim Pohlman, Clerk/Treasurer Jo Ann Pohlman, representatives from the Cook News-Herald and Voyageur Sentinel, and 2 members of the community.
A motion was made by B. Congdon, supported by M. White, to approve the minutes of the Regular Meeting of October 11, 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. Scott, that the correspondence be placed on file and acted upon as required.
Clerk/Treasurer J. Pohlman presented the Preliminary September 2007 Financial Reports to the Board. Glorvigen will review the reports for action at the December meeting. The reports and invoices-on-hand were reviewed with the Board. A motion was made by M. White, supported by D. Adams, to approve payment of Administrative and Operations bills as follows: Administrative: Glorvigen – $100.00; Costin Group – $250.00; Fryberger, et all – $267.40; American Express – $211.94; and V.T.S.I. – $1,388.87. Operations: Lake Country Power – $76.09 & $503.01; NTS – $232.00; Terry Jackson – $1,069.20; One Call Concept – $10.15; Nelson-Collie – $621.28; N & R Services – $110.00; McCahill Publishing – $49.00; Cook News-Herald – $24.00; LMCIT – $122.00; and V.T.S.I. – $2,293.53. All voted in favor and the motion carried. A motion was made by B. Congdon, supported by D. Scott; to approve partial payment of NTS Invoices Nos. 07-02635 and 07-03522 for $32,637.13 – the amount of the insurance reimbursement received. All voted in favor and the motion carried. The remainder of those two NTS invoices and all other freeze related invoices submitted to Allied Adjusters for consideration for reimbursement will remain unpaid.
- 90-Day Late Letters: A motion was made by D. Adams, supported by B. Congdon, to send a letter to St. Louis County requesting that Randy Stern’s (Gateway Lodge) unpaid sewer bills be included with his property taxes. All voted in favor and the motion carried.
- Emergency Response Plan (ERP): RLK & Terry Jackson are finalizing the review of the ERP to be submitted to the MPCA.
- Capital Asset Plan: Jennifer Hanson of the Glorvigen Accounting Firm will provide the plan upon comparison to the Duluth/North Shore Sanitary District’s plan, which she feels would be an appropriate model for the District to follow.
- EDU Assignments: Letters were sent to all Western Service Area property owners requesting their responses on their view of their EDU assignments. The Board reviewed the responses. A motion was made by B. Congdon, supported by D. Adams, to modify the residential EDU for the Seigley property from 1.5 to 2, as recommended by RLK-Kuusisto. B. Congdon, D. Adams, D. Scott, and R. Scott voted in favor; M. White voted against and the motion carried. A motion was made by B. Congdon, supported by D. Adams, to modify the commercial EDU’s as recommended by the Chair. All voted in favor and the motion carried. Letters will be sent to properties with changes. Adjustments will be made in the December billing.
2008/09 Rate Review
- Carl Brown Analysis: The first draft of Carl Brown’s analysis was received for Board review. Mr. Brown used 2006 as the test year with data provided by the District. Mr. Brown felt the utility must be run as a business and has a responsibility to its customers to provide the service for their benefit. Capital reserves are also an important element to be considered. A 0.4 percent growth rate was assumed, and the assumption that future operating costs would rise at varying inflation rates. Mr. Brown set the working capital goal at 60 percent. He does see rate increases beginning in 2008. The Board will further review the analysis, sending it back to Carl Brown for adjustment before approval in December and enactment in January. R. Scott commented and pointed out that the sewer is the most important issue facing the Township and that people are currently paying a lot of money in sewer expenses, economic development has not happened as predicted and is being stifled, businesses have stated that they are looking at modifying their operations due to the high cost of the sewer, we have stopped work on the ESA expansion, and the anticipated increases in the sewer rates will not improve the overall situation. A motion was made by D. Adams, supported by B. Congdon, to write a letter to the Town Board to initiate dialogue between the District and the Township on the rate issue. All voted in favor and the motion carried.
CLWSD Meeting Minutes – November 7, 2007
Financial (MFS, EFG, RLK)
- ISTS Grant Funds: A list of ESA study invoices has been sent to the MPCA to be considered for possible reimbursement. No communication has been received from the MPCA to date. An email was sent to Mr. Anderson of the MPCA asking about the status of the reimbursement.
Legal Issues (MFS, EFG, RLK)
- Service Connection Procedures: Application forms were sent to Tom Schlotec and Virginia Stahnke for modifications at their properties.
- Ordinance #3: There was nothing new to report.
- O & M Contracts: R. Scott will contact Mary Frances Skala for a current draft of Terry Jackson’s contract to be signed in December.
Sewer Freezing Issue (RLK)
- Permanent Fix: Nearly all of the grinder covers have been insulated; some of the 42’ covers remain. Total cost for the project may reach at least $35,000.
- Insurance Claim: A reimbursement check was received from Allied Adjusters for partial payment of two of the NTS invoices. RLK will continue to communicate with Allied Adjusters for approval on other invoices submitted. RLK hopes to have final recommendations on the issue by the December meeting.
- O & M Requirements: RLK will provide a shut down procedure for residents using their systems intermittently during the winter season by the December meeting. Adjusting the floats may be an option.
- Elevated Pump Readings: RLK is looking for trends from the grinder pump reading spreadsheets sent to him. Some of the issues have been reviewed and corrected.
RLK Engineering Status Report (RLK)
- Punch List: Nothing new to report.
- Lake Shore Estates Modifications: Nothing new to report.
- WSA Expansion: Nothing new to report.
- Schlotec/Stahnke Connections: Application forms were sent to both property owners.
- PFA/WIF Report: RLK will complete and submit.
- Jim Pohlman reported that the plant performed well for the month, meeting state standards on a consistent basis. Alum dosage has been reduced. Sludge pump number one is back in service. Full winterization of the plant will be accomplished in November. Terry is looking into sample analysis being done in the Ely laboratory, reducing expense for the District. Total phosphorus will continue to be analyzed by NTS.
- Grinder Pump Repair Invoice: No action was taken.
- NTS Punch List: The GPS and weed trimmer will be returned to the District.
PUBLIC COMMENT (5 Minute Limit) – There was none.
The meeting was adjourned at 9:10PM.
J. Pohlman, Clerk
NEXT MEETING: DECEMBER 5, 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.