Duluth/North Shore Sanitary District – Board of Managers

Meeting # 83

Date:             December 13, 2006               

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

Board Members Absent:    None

Others Present:  Jeff Cook, John Kessler, Mike Appelwick, Mel Olson, Nate Grayson, Jim Anklam, Mary Frances Skala, Eric Appelwick, and Missy Kesanen

Minutes to:       Jim Anklam, Eric Appelwick, Mike Appelwick, Darryl Bathel, Dan Belden, Bruce Berg, Kelli Boedigheimer, Kevin Bovee , John Bowen, Clare Carpenter,  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, Dan Neiman, Mel Olson, Wayne Parson, PLAWCS, David Pierson, 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:            by Missy Kesanen

Item

Discussion

Conclusion/Actions

Roll Call

A quorum of Board members is present

Agenda

Motion by K. Bovee and seconded by M.A. Sironen to approve the agenda.  Unanimously approved.

Minutes

3 corrections to be made to the November minutes by M. Sironen and then she will send out.  Motion by S. Smith and seconded by K. Kuettel to approve the November minutes with corrections.  Unanimously approved.

Treasurer’s Report
  1. S. Smith distributed the Request to Pay Outstanding Invoices
  • Two additional requests received; One Call Concepts, Inc. for $24.65 and Shelton Excavating $1,195.00.
  1. K. Bovee wanted to know what the amount of $352.46     listed under “Profit/Loss YTD Comparison” for Board Meetings included as it was roughly ¼ of the year to date amount. 
  2. Discussion on the 20 Year Projected Cash Flow Analysis that B. McNamara is currently working on.  This will be based on the current revenues, debt and payments and will give an idea where any shortfalls will occur in terms of the annual payment to debt load.
  • Looks like Levies will need to be relied.
  • Hook-up fees will be determined for future use but as stated by M. Skala, these fees need to be fair and equitable.
  • J. Kessler asked what growth expectations are being considered.
  • K. Kuettel asked if having more customers on-line would help.

Motion by K. Kuettel and seconded by K. Bovee to pay invoices listed plus two additional invoices on Request for Payment.  Unanimously approved.

 

 

S. Smith will check with Becky McNamara of Ellingson & Ellingson.

 

 

 

 

 

 

 

 

 

 

 

Projected Cash Flow will be distributed to the Board once it is received.

 

Public Comments
  1. E. Appelwick gave Cape Superior Inn’s counteroffer as to the fees owed for their rental properties.  They offered to pay half of their bill and forego the other half.  Offer was denied.
  2. J. Cook asked what DNSSD owns as far as the right of way.  It was stated that DNSSD owns from the connection to the mainline to the eave of the house.  Further discussion ensued regarding special easements for the breaker for homeowners not wanting access going into their homes.

Updates
  1. I & I.  No updates
  2. Easements.  No updates
  3. KRLSD.  E. Appelwick stated that the requested mainline cost information was sent to KRLSD on November 30, 2006.  It was also noted that KRLSD has a new board member, Randy Ellestad.
  4. Ellingson & Ellingson approval.  E. Appelwick has not yet received information from B. McNamara yet regarding the on-line bank request.
  5. New Connection Hookup Fee.  Discussion earlier in the meeting.  M. Skala stated that a tax levy is tax deductible whereas an assessment is not.

Communications/Correspondence
  • French River Hatchery letter was received.  They are not in agreement with the new fee structure that is being proposed.  E. Appelwick will get information together and would like to meet with the Rates/Charges Committee before implementing in 2007.  L. Fladmark and Scott Harder will need to get together and discuss.
  • Sigford Correspondence – Aaron Hartman from Fryberger in attendance for the Closed Session.  The Board received a Notice of Summons.

Legal Issues
  1. Auto Insurance Update.  E. Appelwick said that this coverage protects the District for up to 1 million dollars in case of an accident.
  2. M. Skala will amend the By-Laws with the new DNSSD office address and bring them to the next meeting for signage.  Motion by S. Smith and seconded by K. Bovee.  Unanimously approved.
  3. M. Skala asked E. Appelwick if he has any formal agreements with either Shelton or Schemmer’s for the subcontract work they do for DNSSD.  He stated that this work is for emergencies only and did not think that a request for proposal was needed.  M. Skala suggested that in the future he get a signed RFP for a formal arrangement with them as to abide by the Public Bidding Laws.  This will insure a possible locked-in rate for future work.  K. Kuettel suggested getting a quote for emergency services from these subcontractors to keep on file. 

Engineer’s Report
  1. Restoration.  J. Anklam said that there is still $12,000.00 in retainage for Frontier to cover outstanding restoration issues.
    • Nate Grayson did a walk-through the first part of December for work Shelton did in November and there is still some misc. seeding and re-grading to be done.  He noted that the bolts and gaskets have been installed.
    • J. Anklam stated that Frontier received the Notice of Substantial Completion on December 14, 2005, so the warranty period will expire on December 14, 2006.
    • Mel Olson from Frontier spoke and asked if we could find a resolution so that the project can be closed out and they can receive final payment.  He noted that 2 of the driveways missed were not included on the punch-list until October, so they would not be part of the retainage still held.  He said that there were about a dozen yards or less that needed work and assured the Board that Frontier will be back next spring to take care of and any possible wash-outs or erosion that may occur over the winter.  K. Kuettel spoke of her yard that still is not finished and it has been two years.  S. Smith is concerned that the yards that were seeded in 2006 that may require more work because of settling etc.  If the total bill is paid, then DNSSD will have no leverage to get Frontier to come back.  J. Anklam recommended paying Frontier an amount agreed upon by both parties and officially closing out the contract.  The amount kept for the $12,000 would be used for future needs.  After much discussion, a motion was made by K. Bovee and seconded by S. Smith to pay Frontier $8,000.00 and close out the contract and keep $4,000.00 to perform the necessary work still needed on the punch-list.  It was also agreed upon that any portion remaining of the $4,000.00 after completing the punch-list would be returned to Frontier. M.Sironen, S.Smith, L.Fladmark and K.Bevin voted in favor. K. Kuettel opposed.
  2. Ryan Road Odor Issued.  J. Anklam said that the odor is being handled by treating with carbon treatment units and the frequency in which they need to be changed will vary.  The hydrogen sulfide issue being looked at could possible be handled by:

·         Installing a Hydrogen Sulfide system at Ryan Road

Approx. $60,000 for the equipment and $100,000 installed

or

·         Installing the system at Lift Station #1

Approx. $40,000 for the equipment and $60-70,000 installed

or a less expense option would be to

·         Trailer System that could be rented for $3,000 for one month to do a pilot study to intensely monitor the hydrogen sulfide levels in the system.  This would be done at Ryan Road.  The hydrogen sulfide testing would cost $150.00.

Before doing any of the above, the system needs to be “pigged” to remove any solids in the system.  This is currently scheduled to be done in the Spring of 2007.  After this “pigging” is done, continued monitoring of the hydrogen sulfide levels would be done and if still elevated the pilot test could be performed.  J. Anklam stated that an increase in flow would diminish the odor.  M. Appelwick suggested going ahead with the “pigging” for now because it is the most cost effective solution and that by doing this “pigging” we will learn more about where the solids are accumulating and what can be done as far as maintenance in the future.  Motion was made by M.A. Sironen and seconded by K. Kuettel to authorize the “pigging” and follow up procedures outlined by J. Anklam.  Unanimously approved.

NTS Report:  E. Appelwick distributed the Superintendent Report to the Board.

  1. Diversion of Flow was performed from November 20-24, 2006.  Good data was received from WLSSD but it was found that during this diversion we were over-reporting the flow by about 13-1/2% or 6-7,000 gallons.  J. Anklam stated that this could be cause by the pipe being open-ended.  Somehow we need to create pressure on the system that would simulate the normal pumping pressures.  This also causes the pressure in the system to drop to zero which is not good for the pumps.  J. Anklam will continue looking into and report back to the Board.  After the diversion, the tank was cleaned by NTS personnel which saved the District about $1,200.00.
  2. Computer Backup:  E. Appelwick’s computer was upgraded and during the process 2 months of emails were erased by the NTS IT person.  Backups are performed on the NTS server by E. Appelwick and M. Kesanen also performs backups daily of the RVS Program which is used for the DNSSD billing.
  3. A P.O. box has been set up for the District for all correspondence and invoices.
  4. NTS has moved its office to 5123 McQuade Road in Duluth.
  5. Phone Listing Update:  additional listing under “Sewer Systems”.
  6. Weed Control Proposal:  S. Smith is going to get more information on the pesticides and will have at the next meeting.
  7. City of Duluth is possibly putting up a garage where the salt shed is.
  8. Dodges Log Lodges has reverted back to the previous owner.  They will be working on a schedule for payments for their sewer services.

K. Bovee asked if E. Appelwick would get together a specific punch-list for restorations still needed.

New Business:  Lighthouse Restaurant

They are sub-dividing the property and there is currently a simplex installed.  Once the restaurant is built, the question is “what will their fee be”?  They will probably need a duplex installed.  There will be some sort of connection cost, but will need flows before that can be decided upon.  E. Appelwick stated that the CAF will change, so essentially they will change from a residential to a commercial customer.  They will need to pay the mechanical costs of changing the pump plus any administration fees which include post installation inspection and I & I.  E. Appelwick will make the decision of what the administration fees will be.  M. Skala will look up in the ordinance the concept of “new use” and report back to the Board.

Pursuant to the open meeting law in Minnesota Statutes, Section 13D.05, and on the basis of attorney-client privilege, the Board will close this meeting to discuss the litigation versus Steven B. Sigford.  Only the members of the Board and legal counsel will be allowed during this portion of the meeting.  This meeting is now closed.

Meeting adjourned at 9:00 am. 

The Next meeting is at 0700 at French River Lutheran Church on January 10, 2007.

 

Approved  (date):                                                                                                                                     

                                                Chair                                                    Secretary