CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)

BOARD OF MANAGERS’ REGULAR MEETING

October 11, 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, Darrell Scott, Rob Scott and Mike White.

Members absent:  Bill Congdon

Also present: John Jamnick of RLK-Kuusisto, Sewer Maintenance Worker Jim Pohlman, Clerk/Treasurer Jo Ann Pohlman, a representative from the Cook News-Herald and 2 members of the community.

BUSINESS:

Opening Comments:  Chairman Scott told those present that the regularly scheduled Board of Manager’s Meeting set for October 3^rd had been rescheduled to this date due to a lack of quorum.

A motion was made by D. Scott, supported by M. White, to approve the minutes of the Regular Meeting of September 5, 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.

Clerk/Treasurer J. Pohlman presented the August 2007 Financial Reports to the Board as reviewed by the Glorvigen accounting firm.  The reports and invoices-on-hand were reviewed with the Board, as well as payment of payroll expenses. A motion was made by M. White, supported by D. Adams, to approve payment of payroll expenses without approval at a Board meeting due to the payment timing of such expenses.  The Clerk/Treasurer would include such payments in her monthly report.  All voted in favor and the motion carried.  A motion was made by M. White, supported by D. Scott, to approve the Treasurer’s Report as presented and the payment of bills as follows with the exception of unpaid NTS invoices related to the freezing issue amounting to $79,494.60, which are being reviewed for insurance claim purposes; and recently received invoices that will be submitted for insurance claim consideration amounting to $24,233.89.  Administrative: Glorvigen – $100.00; Carl Brown Consulting – $7,306.45; Costin Group – $250.00; and Quill – $135.11.   Operations:  Lake Country Power – $84.04 & $253.88; NTS – $196.00; Hawkins – $1,064.26; Terry Jackson – $1,069.20; One Call Concept – $5.80; Sunrise Construction – $150.00; and Quality Flow – $1,085.00.  All voted in favor and the motion carried. M. White referred to NTS’s letter of 9/26/07 requesting a minimum payment of 10% of the total cost of the work done last winter. Chairman Scott stated that the Board’s position to date has been to hold all NTS payments until we get clarification on the invoices that our insurance adjuster is working on with NTS.  No further Board action was taken.

Administration (CLWSD)

• Payroll Service:  Terrie Hoff has been employed by the District to provide payroll services.
• Emergency Response Plan (ERP):  RLK & Terry Jackson are reviewing the ERP to include the recent updates to the plant and have been in communication with 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.
• 90-Day Late Letters:  A motion was made by D. Scott, supported by D. Adams to send 90-Day Late Letters to Randy Stern of Gateway Lodge and to Bob Braaten/Gloria & Bill Patenaude.  All voted in favor and the motion carried.
• Survey Letters:  Many responses have been received from the EDU survey letters sent to WSA residents and businesses with most coming back with no changes noted.  A motion was made by D. Adams, supported by D. Scott, to continue billing EDU’s at their current status. There was discussion, with the decision to review the survey letters by the Clerk and Chair, including Norway Lodge.  All voted in favor and the motion carried.

2008/09 Rate Review

• Information was sent to Carl Brown, as requested by him, throughout the month of September for his review and recommendation.

 CLWSD Meeting Minutes – October 11, 2007

Financial (MFS, EFG, RLK)

• RD Loan Relief:    B. Congdon was not present to report, but does continue to work on loan relief.
• Grant Funds: The Earmark request for funds for the ESA failed in the House, but still has a slight chance for its inclusion in a Senate bill.
• 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.
• MPCA Funds:  Chairman Scott contacted Minnesota Public Facilities Authority and was advised there are no Corrective Actions Funds available from the MPCA at this time.  Inclusion in the Clean Air Act will be pursued in 2008, when it becomes available again for consideration.

Legal Issues (MFS, EFG, RLK)

• Service Connection Procedures:  John Jamnick handed out a draft Application for Sewer Connection Permit Form that had been presented to the Board in August, 2006 for consideration.  A motion was made by D. Adams, supported by D. Scott, to approve the form.  D. Adams, D. Scott, and R. Scott voted in favor; M. White voted against and the motion carried.
• Ordinance #3:  Chairman Scott sent an email to Jaramie Logelin asking if there was an MPCA timeline for progress in the ESA; with a response received that there were no requirements of which they were aware.  In addition,  Chairman Scott sent an email to Mary Frances Skala asking if there was an issue with the Board’s action at the previous meeting to temporarily discontinue additional activities in the ESA while continuing to levy that area for administrative expenses.  No response has been received as Ms. Skala was out of the office.
• O & M Contracts:  Corrections need to be made on the Wastewater Treatment Operator contract.  The contract, which has been extended for a full year, will be reviewed with Mary Frances Skala and Terry Jackson to get completed by the November meeting.

Sewer Freezing Issue Review (RLK)

• Permanent Fix:  RLK has been working on the corrective action for the collection system since the 2^nd week of September and has completed the work on the air relief manholes and about 23 grinder stations.  Approximately 50 stations remain.  The tentative completion date is 10/31/07.  M. White’s email of 9/12/07 was reviewed, which questioned portions of the corrective plan including the estimated total cost of $20,000.  It is now understood that those expenses may exceed that figure by about $7,000.
• Installation Specifications:  A motion was made by D. Adams, supported by M. White, to begin the potential liability review for the freezing and the related repair with Mary Frances Skala’s advice on the process to review potential culpability, including design deficiency. All voted in favor and the motion carried.

• Insurance Claim:  RLK will continue to communicate with Allied Adjusters for invoice approval for the insurance claim. R. Scott will also contact Allied Adjusters.
• O & M Requirements:  RLK recommended that the District should be involved with grinder pump winterizations to insure proper shut down procedure.  A shut down procedure for residents using their systems intermittently during the winter season should be determined by the November meeting.
• Elevated Pump Readings:  The grinder pump reading spreadsheets will be forwarded to RLK for their review of those grinder stations with elevated readings to help in determining the causes.

RLK Engineering Status (RLK)

• Punch List:  Nothing new to report.
• Lake Shore Estates Modifications:  Nothing new to report.
• S. McKie Drain Tile:  Completed.
• DeFries Grinder:  Completed.
• WSA Expansion:  Nothing new to report.

• Stahnke Connection:  Virginia Stahnke has requested information on how to proceed.  The Board discussed sending the Application for Sewer Connection Permit approved earlier in this meeting.  After further discussion, the Board decided that the permit needed to be review before final approval.  A motion was made by M. White, supported by D. Scott, to remove the previous motion approving the permit application form.  All voted in favor and the motion carried.  A motion was made by D. Adams, supported by D. Scott, to provide the first two pages of the permit to both Virginia Stahnke and Tom Schlotec for their respective modifications and request a $350 fee from each to cover administrative and engineering fees.  D. Adams, D. Scott and R. Scott voted in favor; M. White voted against and the motion carried.

CLWSD Meeting Minutes – October 11, 2007

Operations Report

• Jim Pohlman reported that the plant performed well for the month and was well within state standards. Jim reviewed Terry Jackson’s written report which stated that Hawkins Chemical delivered four poly carboys to the plant, each containing 55 gallons of aluminum sulfate.  They will be refilled during the winter months.  The road at the plant will need to be plowed previous to Hawkin’s deliveries. Sludge pump #1 has been repaired.  Winterization of the plant will begin soon.  The final reissued NPDES/SDS Permit was received from the MPCA with testing requirements for the plant being cut in half.  This will reduce expense for the District.
• An invoice was received from Quality Flow for grinder pump repair.  There has been no expense for previous repairs.  Quality Flow will be contacted for an explanation on why the repairs are not covered under warranty.
• The hour meter at the Bjorlin residence is not working and will be replaced.  R. Scott will inquire about warranty on the meter, when the repairs are completed and we receive the invoice.
• The help wanted ad will remain in area newspapers to find a part-time sewer maintenance worker.  All responses thus far have been looking for full-time work.

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

The meeting was adjourned at 9:20PM.

J. Pohlman, Clerk

NEXT MEETING:  NOVEMBER 7, 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.