Duluth/North Shore Sanitary District – Board of Managers

Meeting # 67

 

Date:                                        August 10, 2005, 0700

Board Members Present:               Kevin Bovee; Rick Certano; Lars Fladmark, chair; Mary Ann Sironen; Scott Smith

Board Members Absent:               None

Others Present:  Mel Olson, Eric Appelwick, Nate Grayson, Clare Carpenter, Carol Surine, Duane Herold, John Miller, Larry Moon, Jeff Cook, John Kessler, Marilynn Kessler, Scott Harder, Dan Maddy for Mary Frances Skala.

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, PLAWCS, David Pierson, Tom Pulse, Yvonne Rutford, 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, Greg Mutchler

Minutes by:       Carol Surine and edited by Mary Ann Sironen

Item

Discussion

Action/Conclusion

Approve Agenda

Mary Ann Sironen asked to add a discussion of Larsmont Cottages to New Business.  Scott Smith asked to talk about the timing for a ceremony when the restorations are complete.

Motion by Scott Smith and seconded by Kevin Bovee to approve the agenda as amended.  Unanimously approved.

Approve Minutes

Mel Olson asked that the minutes be amended to read “...All grinder stations that are not in rock will be installed…”

Motion by Scott Smith and seconded by Kevin Bovee to approve the minutes as amended.  Unanimously approved

Treasurer's report

1.       Clare Carpenter distributed the Request to Pay invoices for a total of $670,866.66.  This includes the major annual (due in August) repayment on the PFA loans of $446,826.15. In February we pay just interest on the PFA loan.

2.       Bank Balance –August 10, 2005 is ($111,076.50).  Anticipated bank balance as of August 25 is $77,735.34.

3.       We have received two NSF checks.

1. Motion by Kevin Bovee to pay the outstanding invoices and approve the Treasurer’s report.  Scott Smith seconded. Unanimously approved. 

Public Comments

 

Jeff Cook passed along complaints about restorations in the Greenwood Beach area; the grass seed did not grow, etc.  He recommends not doing any restoration work past 10/1 but Mel Olson reminded that mulching of disturbed soil must be done or we are in violation of MPCA rules. Duane Herold and Lars Fladmark commented that their hook ups were done well. It was clarified that if a property is leased, the holder of the title has the responsibility to pay for the sewer charges.

Updates

John Miller

●        The easement on Knute Nisswandt's property is the only one left to be done. The options for electric power for his grinder pump offered by Mr. Nisswandt do not meet D/NSSD requirements for connection. Eric Appelwick will convey the message to Mr. Nisswandt that he must hook up to electrical power.

●        A few amendments to easements remain to be done.

●        Six easements cannot be recorded for various reasons ~ one being French River Lutheran Church.

John Miller needs an affidavit from the church stating the process used before the easement is signed.  Carol Surine said that there was an affidavit signed at a church Council meeting, but it needs additional clarification.  Dan Maddy will work with French River Lutheran Church on preparing the correct affidavit.

Updates

I&I

Jeff Cook

·         No further action on I&I inspections. Jeff inquired about the procedure for getting a sewer permit. In other areas, the sewer permit has to be in hand before the building permit would be issued. D/NSSD is Step Two in the process; the building permit is Step One. 

·         Eric Appelwick is putting together a packet for new homeowners. Scott Harder and Mary Frances Skala are finishing the draft of a document which would contractually oblige the holder of a building permit to pay to reserve sewer capacity. 

·         D/NSSD does not have or want zoning/land use authority and plans to work closely with local municipalities on new customers.

KR-LSD

Larry Moon

 

·         The Knife River detention tank has been ordered and should arrive in September

·         In an e-mail, Al Katz of the North Shore Community Association requested information on sewer service to the Larsmont Cottages development. D/NSSD has no current arrangement with WLSSD to provide sewer service to Larsmont, only the Knife River flow has been included in the current allocation negotiations. In order for Larsmont to be considered, it must go through the same assessment as Knife River. Alternative systems have to be considered and the only ones that would be covered by current PFA funding would be sending sewage to WLSSD or a pond system that would have to be built over the hill. Development is a concern but Lake County has a moratorium on PUDs until next April.  Possible rule changes to conform to the North Shore Management Plan include 1) Two acres per lot; and 2) 10 acres per PUD.

Updates

WLSSD

Allocation

Status

·         Mel Olson received a letter from WLSSD which included the draft of a new agreement.  WLSSD wants D/NSSD to review and comment on the enclosed information, and return it to them by 8/12.  This lays out the discharge units, and allocations for planned growth based on a formula using 1) Average Daily Flow, 2) Peak Daily Flow, 3) BOD, and 4) Solids load.  The numbers are very similar to the figures Ayres put together.

·         Mel recommended that D/NSSD draft a response letter to clarify how much we will be charged for our level of service.  Some townships are charged a fixed rate per unit but since D/NSSD flow can be measured, it is charged $1.05 per 1000 gallons domestic equivalent rate. WLSSD should acknowledge the fact that D/NSSD is a different class of customer, with very strict rules of flow into their system. Lars Fladmark asked Scott Harder to draft the letter, and Kevin Bovee to sign in his absence. Scott Harder said he would have a letter by fax to Kevin Bovee by tomorrow (8/11).

·         Currently there is no surcharge for exceeding our flow.  If that condition occurs D/NSSD would be required to install more storage. It was noted that a grinder pump is considered an extension while a new gravity system is not.

Discussion: Proposed $750 fee for new hook-ups

Scott Smith, Scott Harder, Eric Appelwick, and Rick Certano were in attendance at the meeting where WLSSD proposed to add a fee of $750 per new hook-up.  This fee would apply to D/NSSD customers and would be over and above the $4,500 to D/NSSD to put the sewer in AND the $750 fee for a sewer extension application to MPCA.

Motion by Rick Certano and seconded by Mary Ann Sironen to authorize Lars Fladmark to send a letter to WLSSD (copy to Jane Gilbert), stating the D/NSSD Board’s objection to the $750 fee.  Unanimously approved

Budget Discussion

Rick Certano reported that the citation in the audit for not withholding properly for a non-Minnesota company was inaccurate. Mel Olson will send Rick Certano a copy of the waiver and one to Clare Carpenter for next year’s audit. The Audit also questioned the D/NSSD separation of duties, and Rick Certano went through the chain of events:

  1. The board approves every check – with two signatures.
  2. An independent firm does the bookkeeping.
  3. NTS collects the money, and only one client regularly pays in cash.
  4. Eikill & Schilling does the accounting.
  5. Clare Carpenter opens the bank statement

·         One other issue is the use of a single date for the project because otherwise there would be hundreds of separate dates.

·         There is an issue of collateral requirement if the balance is greater than $100,000. This will no longer be an issue once the construction is done because there will only be operating funds in the bank.  Audit costs will go down.

·         Rick Certano recommended that all relevant information be sent to Knife River – anything to do with facilities shared with Knife River, and any required capital investments, to avoid future problems.Larry Moon commented that there are no shared facilities, just space within the pipe.

·         Scott Harder requested that Scott Smith and Rick Certano join him to form an ad hoc committee that would review and plan for operational expenses that include:

  1. How the PFA money would apply to the Knife River connection
  2. Common flow, and how this would affect minor capital budget items, such as timers
  3. NTS fees
  4. Ayres Contract
  5. Litigation Budget ~ Fryberger Buchanan
  6. Capital account transfers
  7. Putting delinquent payments on taxes.

Communications

None to report

Legal Issues

·         Any judgement from the SJ Lewis matter would be handled by rates/charges or a levy.

If SJ Lewis were to stop being a legal entity D/NSSD would pursue payment from their assets.

·         Christine Penney has requested that we communicate with her through her attorney, Melanie Ford.

Construction

Report

Mel Olson

1.       The two houses above the railroad track at the top of Ryan Rd are now done

2.       Dodges Log Lodges area has much rock; there are 12 grinders to install in that area

3.       Frontier Pipeline is averaging 2-3 hook ups per day; with just under 100 remaining.

Restoration

Report

Mel Olson

1.       The grass is not ‘taking’.  Residents need to water their lawns. Paul Peterson has requested a review of the restoration on his property. Eric Appelwick will do that.

2.       Mel Olson has submitted a master agreement for continued engineering work to Mary Frances Skala who has some questions on it.   They will continue to work on it and include the rate study and NTS.

3.       A new home has required Frontier to undermine the foundation 18" to hook it up.  This is contrary to D/NSSD policy. Frontier needs to request payment from the homeowner for this extra work. It was recommended that the property not be hooked up until Frontier is paid for their work.  Frontier should also get a "hold harmless" agreement from the homeowner.

The Board is on the record that D/NSSD will not hook up to any stubs that are not extended past the foundation.  The Board appreciates the fact that Frontier is doing the work in an expeditious fashion to keep making progress, but must collect for work beyond what is approved by D/NSSD policies.

NTS Report

·         Eric Appelwick reported that NTS was awarded the Knife River contract.  They have hired Tom Henry and Ty Heibl to do maintenance work.

·         Rick Certano and Scott Smith went over the list of duties and the responsibility for scheduled maintenance; the risk is that damage may be done to the grinder pumps by inspecting them.  The suggestion was made to use a camera to check the Greenwood Beach pipes.

·         Eric Appelwick confirmed that the new connection application form will address I&I.

·         Mel Olson will check on the Hedberg sidewalk restoration, to see if they have been paid.

·         Eric Appelwick said there was an instance where the homeowner thought the grinder was failing but it was really a clogged sewer line.  Eric Appelwick wants to have the homeowner call him first.  The stickers should have “Sewer Emergency” and the NTS telephone number.

Old Business

1.       Joyce Seeley basement:  A letter from Dan Baillargeon of Frontier Pipeline denies that the basement cracks are due to sewer connection on that property. He lays the fault to the fact the gutters had been removed from the house and that led to the damage to the basement.

2.       Kevin Holm PUD:  Eric Appelwick will talk to him.

3.       Capital Asset Plan:  tabled

4.       Charles Erickson's basement is leaking around the line in his basement wall.  Eric has sent him a letter stating D/NSSD's responsibility ends outside the foundation.

New Business

1.       Larsmont Cottages:  discussed during Knife River update

2.       D/NSSD would like to hold a Dedication Event before the end of this construction season while the weather is nice.  Rep. Oberstar's presence will be requested. Tours of the detention facility can be offered.  A PowerPoint presentation could describe the work done to bring the system to reality. Mary Ann Sironen will pursue plans for this event.

Motion by Scott Smith and seconded by Kevin Bovee to adjourn.  Unanimously approved.  Lars Fladmark declared the meeting adjourned at 9:45 AM.  The next meeting will be September 14, 2005, 0700.

 

 

Approved (9/14/05):                                                         chair                                                                 secretary