Duluth/North Shore Sanitary District – Board of Managers

Meeting # 79

Date:    August 9, 2006                       

Board Members Present:            Kevin Bovee, Mary Ann Sironen, Scott Smith, Katie Kuettel  

Board Members Absent:            Lars Fladmark 

 

Others Present: Clare Carpenter, John Kessler, Jeff Cook, Jim Anklam, Nate Grayson, Eric Appelwick, Erin Pratt, Scott Harder, Andrew Pratt, Mary Frances Skala, Patty Sigford, Steve Sigford, Duane Herold, Mel Olson, Kim Husting, and Becky McNamara

 

Minutes to:       Jim Anklam, Eric Appelwick, Mike Appelwick, Darryl Bathel, Dan Belden, Bruce Berg, Kelli Boedigheimer, Kevin Bovee , John Bowen, Clare Carpenter, Rick Certano, Jeff Cook, City of Duluth, Duluth City Council, Duluth Township, Lars Fladmark, Greg Garmer, Jane Gilbert, Mark Gottwald, Wendy Gustofson, Scott Harder, Mark Herman, Duane Herold, Lynn Ann Hollatz, Kevin Holm , Dan Jacobson, Laurie Johnson, Al Katz, John Kessler, Lakewood Township, Nancy Larson-St. Louis County, Sue Lawson, Patti Logergren, Mike Mahoney, Joe McGaver, Don McTavish, Larry Moon, Dan Neiman, Mel Olson, Wayne Parson, PLAWCS, David Pierson, Tom Pulse, Yvonne Rutford, Mark Schaus, John Schifsky, Dale Schroeder, Dick Sigel, Mary Ann Sironen , Mary Frances Skala, Scott Smith, Kurt Soderberg, Tim Strom, George Sundstrom , Carol Surine, Peg Sweeney, John Thomas, Nelson Thomas, Jonathon Thornton, Pete Weidman, Robin Whaley, Sandy Woolum

 

Minutes by:            Erin Pratt and edited by Mary Ann Sironen

 

Item

Discussion

Conclusion/Actions

Roll Call

A quorum of Board members is present.  Vice-chair K. Bovee called the meeting to order.

Agenda

Agenda was accepted by consensus.

Minutes

Motion by S. Smith and seconded K. Kuettel to approve the July minutes.  Unanimously approved.

Treasurer’s Report
  1. Clare Carpenter distributed a list of Outstanding Invoices
  • Payment of $6,040 to Shelton Excavating for fixing the water problem on the Bob Murray property.
  • Payment of $478.72 to Kerrick Sod Co for work on Mark Herman Property
  • DNSSD received $35,000 to cover Hoover settlement. Board discussed whether settlement included amount for work done on Audrey Schoenborn property.  MF Skala will ask Joe Mihalek whether Schoenborn property was included.
  1. General Obligation Bond.  Due to timing of PFA loan payment and SJ Louis settlement payment, DNSSD is experiencing a cash fall shortage of $418,286.13.  S. Harder sought proposals from three banks (Beacon Bank, NorthShore Bank, and Woodlands Bank) for General Obligation Bond.  North Shore Bank came in with best proposal at a 4.72% rate for 5 years. The Board confirmed their position that monthly rates will be held as low as possible when considering repayment options for this bond.
  2. Rates and Charges.  Board discussed need to have commercial and residential properties paying approximately the same amount per 1000 gallons.  Board will consider S. Harder’s recommendation of reevaluating commercial rates based on actual flow.  Allocating costs fairly is an ongoing principle of the district.
  3. KnifeRiver/Larsmont:  Board discussed whether current charge  per 1000 gallons covered the cost of running that amount through DNSSD sewer line.  Preliminary breakdowns of NTS budget indicate that cost of running 1000 gallons through line is approximately $2.09.  E. Appelwick will do a more thorough breakdown of NTS services.  Rates and Charges committee will meet with KnifeRiver/Larsmont board regarding raising rates.

 

  1.  Bookkeeper Changes.  C. Carpenter is resigning as bookkeeper. The Board expressed their thanks to Clare for her excellent work with the District during the past years.

6.        S. Harder sought a firm that would provide both bookkeeping and auditing services and recommended Rebecca McNamara and Kim Husting at Ellingson & Ellingson.  K.Keuttel questioned whether a local firm could provide the service.  Investigation of local firms in the past has shown that none of them are either interested or able to handle the D/NSSD account. S. Smith will ask bank what is needed so R. McNamara and K.  Husting can have read only access to online bank accounts.  Board will address at September meeting.

Motion by M.A. Sironen and seconded by K. Bovee to approve Treasurer’s Report.  Unanimously approved.

 

Motion by M.A. Sironen and seconded by Scott Smith to accept NorthShore Bank Proposal and issue General Obligation Bond in the amount of $671,900.

 

 

 

 

 

 

 

 

 

Motion by M.A. Sironen to engage Ellingson & Ellingson.  S. Smith seconds.  Approved: Sironen, Smith and Bovee.  Keuttel opposed. Motion passes.

 

 

 

Public Comments

1.  Patty and Steven Sigford were present.  They wanted to hear the discussion regarding sewer rates. 

Updates
  1. RLK, Inc., project has been permanently placed on hold
  2. E. Appelwick will contact John Miller about status of Easements
  3. KRLSD –  No new information. 

Communications/Correspondence
  1. M.A. Sironen had two letters from Fryberger stating that the SJ Louis settlement has been completed.
  2. E. Appelwick had letter from WLSSD regarding the flow meter that is not working correctly. 

            Ayres will check the flow meter for accuracy. E.Appelwick has been updating WLSSD and

             J.Anklam will meet with Dan Belden to discuss this issue:

Legal Issues
  • MF Skala noted that any resolution to issue GO Bond must contain a finding that DNSSD has revenues of 105% of bond amount.
  • Board made finding that bond would be paid by levy, but left open the possibility to increase rates and hookup fees to pay bond.  All board members agreed that cost of GO Bond should be distributed equitably among all DNSSD residents.
  • MF Skala recommended that DNSSD board adopt a record retention policy.
  • DNSSD ordinance discussion moved to September meeting.

Engineer’s Report
  1. Ayres reported that SJ Louis still plans to complete 4 remaining restoration/repair items themselves.  Ayres is trying to obtain a schedule of when these repairs will be completed.
  2. Restoration – J. Anklam reported that the bulk of the restoration work is complete, with known issues remaining at 18 residences. 
  3. DNSSD Board discussed amount that should be released to Frontier Pipeline in light of remaining restoration.

Motion by K. Kuettel to pay Frontier Pipeline, retaining $12,000 to cover any remaining restoration issues.  S. Smith seconds.  Motion passes unanimously.

 

NTS Report:  E. Appelwick distributed the July report to the Board.

1. Ryan Road continues to have an odor.  E. Appelwick is conducting testing to find a solution.

2.  E. Appelwick will conduct yearly routine maintenance from McQuade to Ryan Road.

3.  Pipeline Pigging:  E. Appelwick asked whether pipeline pigging should be done this coming year; would have to be included in 2007 budget.  Ayers responded that corrosion was not currently an issue.  Pipeline pigging will not be done in 2007.

New Business:  None

Meeting Suspended.  K. Bovee read the following: 

 

     Pursuant to the Open Meeting Law in Minnesota Statutes, Sec. 13D.05, and on the basis of attorney-client privilege,         the Board will close this meeting to discuss the continuation of litigation versus Brian and Jennifer Malarski.  Only members of the Board and legal counsel will be allowed during this portion of the meeting.  This meeting is now closed. 

 

The next meeting is at 0700 at French River Lutheran Church on September 13, 2006

 

 

Approved  (9/13/06):                                                                                                                                            

                                                Chair                                                    Secretary