CRANE LAKE WATER & SANITARY DISTRICT (CLWSD)
BOARD OF MANAGERS’ REGULAR MEETING
September 5, 2007 – 7:30 P.M.
CRANE LAKE CHAPEL FELLOWSHIP HALL
The meeting was called to order by Chairman Rob Scott at 7:34P.M.
Members present: Managers Bill Congdon, Darrell Scott, Rob Scott and Mike White.
Members absent: Dave Adams
Also present: John Jamnick and Stu Dye of RLK-Kuusisto, Sewer Maintenance Worker Jim Pohlman, Clerk/Treasurer Jo Ann Pohlman, representatives from the Cook News-Herald, Timberjay, and Voyageur Sentinel and 5 members of the community.
A motion was made by B. Congdon, supported by D. Scott, to approve the minutes of the Regular Meeting of August 1, 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 July 2007 Financial Reports to the Board as reviewed by the Glorvigen accounting firm. The reports and invoices-on-hand were reviewed with the Board and expanded upon by Chairman Scott. A motion was made by B. Congdon, supported by M. White, 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. Administrative: Glorvigen – $100.00; RVS Software – $57.82; Costin Group – $250.00 & $283.95; RLK – $220.00; League of Minnesota Cities – $1,365.00 and Fryberger, et al – $272.25. Operations: Lake Country Power – $88.52 & $308.01; NTS – $672.00; Hawkins – $1,063.72 & $1,358.14; Terry Jackson – $1,300.50; Russ Daniels – $1,232.00; RLK – $1,680.00; USABlueBook – $126.10; Nelson’s Resort – $37.28; and St. Louis County Auditor – $305.00. All voted in favor and the motion carried.
- Payroll Service: A motion was made by B. Congdon, supported by M. White, to approve the employment of Terrie Hoff to provide payroll service for the District for $600.00 per year. All voted in favor and the motion carried. A motion was made by M. White, supported by B. Congdon, to approve the addition of Workers Compensation insurance to the District policy. All voted in favor and the motion carried
- Emergency Response Plan (ERP): RLK & NTS are reviewing the ERP to include the recent updates to the plant.
- 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.
- Seigley EDU Valuation: A letter was received from Mike Seigley disputing his EDU valuation. M. White stated that all EDU’s needed to be reviewed before responding to Mr. Seigley. A survey of both commercial and residential EDU’s will be included in the rate review. A letter will be written to Mr. Seigley advising him of the Board’s plan to review all EDU’s.
2008/9 Budget Review
- Carl Brown Proposal: A letter was sent to Carl Brown requesting a proposal for rate analysis. Mr. Brown’s proposal was received on August 1st. A motion was made by M. White, supported by B. Congdon, to accept Carl Brown’s proposal of Service Package 1 – Sewer user charge analysis; Service Package 2 – On-site visits; and Service Package 3 – Follow-up financial examinations done once for each of the two fiscal years following the rate analysis for $7, 691.00 to begin as soon as possible. There was Board discussion on the start time of Mr. Brown’s work and the necessity of Mr. Brown’s services. M. White, B. Congdon, and D. Scott voted in favor; R. Scott voted against. The motion carried. M. White volunteered to be the Board contact for communications with Mr. Brown and requested that all information go to the Clerk and be sent to all Board members. R. Scott stated that as Chair he would be the point of contact and work with Mr. Brown and all information would be sent to all Board members.
- 2008 Levy: A proposed 2008 Budget/Levy was presented to the Board by M. White at the August meeting for Board review. A motion was made by B. Congdon, supported by D. Scott, to approve the levy amount of $30,000. R. Scott felt there should be no levy as there will be an estimated $60,000 remaining in the Administrative Account at the end of 2007. B. Congdon, D. Scott, and M. White voted in favor; R. Scott voted against. The motion carried.
CLWSD Meeting Minutes – September 5, 2007
Financial (MFS, EFG, RLK)
- RD Loan Relief: B. Congdon will compose a letter to Roger Clapp, of Rural Development requesting information on the new poverty rate, which may lower the interest rate on our project loan.
- 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: The Esget ISTS Grant Fund reimbursement check for $3,500.00 was received. That amount will be forwarded to the Esgets soon. A list of ESA study invoices has been sent to the MPCA to be considered for possible reimbursement.
- MPCA Funds: There are Corrective Actions Funds available from the MPCA. R. Scott and John Jamnick will continue to pursue this concept to see if there is possible application to the freezing issue. There was nothing new to report.
Legal Issues (MFS, EFG, RLK)
- Ordinance #3: A revised draft of Ordinance #3 was received from Fryberger, Buchanan. The Board will table any further action on Ordinance #3 until Carl Brown has reviewed the rate structure.
- O & M Contracts: The Sewer Maintenance Worker contract has been signed by Jim Pohlman. Corrections need to be made on the Wastewater Treatment Operator contract. A motion was made by M. White, supported by D. Scott approving John Jamnick, Rob Scott and Jo Ann Pohlman to complete the administrative work on the contract. All voted in favor and the motion carried. Terry Jackson has agreed to extend the 90 day contract to a one year contract.
- Board Members: R. Scott asked the Board members if anyone thought they should be removed from the Board because of unfairness. No one felt they should. He also asked if the Board felt any Board member should be legally audited for fairness. The Board did not feel this was necessary.
Sewer Freezing Issue Review (RLK)
- Permanent Fix: RLK provided a Corrective Plan for the Wastewater Collection System. RLK’s review of the grinders and manholes did not identify any additional damage that had not been previously identified. RLK’s Plan included a budget of approximately $20,000 for repair work. A local excavator will be hired. A motion was made by B. Congdon, supported by M. White, to approve RLK’s recommendations. 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.
- O & M Requirements: RLK recommended that the District should be involved with grinder pump winterizations to insure proper shut down procedure. A letter should be sent to WSA property owners with shut down procedures for residents that will be gone for the entire winter and for those that come and go during the winter season.
Eastern Service Area Update (U of M, RLK)
- ESA Approach & Funding: A motion was made by M. White, supported by B. Congdon, that all current matters related to ESA activity be terminated and tabled. All voted in favor and the motion carried.
RLK Engineering Status (RLK)
- Punch List: Nothing new to report.
- Lake Shore Estates Modifications: Nothing new to report.
- S. McKie Drain Tile: The drain tile was exposed. A collapsed pipe was found near the road near the outlet of the drain tile. The trench was left open for homeowner repair.
- DeFries Grinder: A local contractor excavated. The tank was repaired with a fiberglass repair kit. Further interior repair may be needed.
- WSA Expansion: Nothing new to report.
- Stahnke Connection: RLK to determine status of compliance requirements for new connections and abandonment of existing system.
- NPDES/SDS Permit Application – RLK will complete the 5 year renewal forms.
- Jim Pohlman reported that the plant performed well for the month and was well within state standards. Terry Jackson’s written report of plant operation for the month confirmed the same. July phosphorus issues were resolved. Proper sludge levels are being maintained. Steve Krtinich from Babbitt will substitute for Terry when necessary. Steve is a Class B operator with the MPCA. He recommended additional help for Jim Pohlman be considered by the Board. An ad will be placed in the paper for an additional Sewer Maintenance Worker.
CLWSD Meeting Minutes – September 5, 2007
PUBLIC COMMENT (5 Minute Limit)
Paul Hamblin asked if there would be any requirements for individual property owners included in the permanent fix of the grinders. The answer was not at this time.
Paul Hamblin asked Rob Scott to confirm that he understood him correctly to say that he did not recommend a levy up to $30,000 for 2008. R. Scott confirmed that he recommended no levy for 2008.
Paul Hamblin commended the Board’s decision to hire Carl Brown for the rate review and suggested that M. White and B. Congdon be included as contacts, along with Rob Scott.
The meeting was adjourned at 9:20PM.
J. Pohlman, Clerk
NEXT MEETING: OCTOBER 3, 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.