Board Members Present: Jim Aird, Paul Thomsen, Ruth Janke, Dave Manderfeld, JuleneBoe, Bruce Ahlgren, Archie Chelseth, Marcia Podratz, and Yvonne Solon

Staff Present: Jack Ezell, Cathy Remington, Karen Anderson, Marianne Bohren, Al Parrella, Dianne Mathews, Joe Mayasich, Dan Belden, Carrie Clement, Todd MacMillan, Todd Krollman, Brandon Stall, Melissa Dallum, Craig Lincoln, James Hietala, Samidha Junghare, and Amanda MacDonald

Guests Present: Doug Host – CliftonLarsonAllen

Legal Present: David Oberstar – Fryberger, Buchanan, Smith & Frederick

Chair Aird called the meeting to order at 1:30 p.m.

  1. Approval of Consent Agenda Items
  2. Regular Board minutes dated April 25, 2016
  3. Board Member vouchers for the month of April
  4. Payment Vouchers dated April 20, 2016 to May 17, 2016

MOTION:Member Boe to approve the Consent Agenda Items

SECOND:Member Thomsen

DISCUSSION:None

RESULT:The motion passed unanimously

  1. New Business Items for Discussion and Approval
  2. 2015 Financial Audit Exit

Doug Host from CliftonLarsonAllen presented the audit results. This is the fourth year that CliftonLarsonAllen performed the audit at WLSSD. For a week in February, a team from CliftonLarsonAllen was onsite to conduct the audit. There were no material weaknesses in 2015; there was one significant deficiency noted in regards to controls over bank reconciliations for a period while the accounting department was short staffed requiring doubling up on duties. This was resolved with the hiring of an accountant to fill the vacancy in the department.

Mr. Host discussed the financial results of the audit. The total unrestricted cash & investments is $20,943,676; increases in unrestricted cash & investments primarily due to increase in operating revenues. Mr. Host discussed the operating revenues and expenses. There were proportional increases in revenues and expenses. Overall, WLSSD was $2.01M over budget on operating revenue due to $1,073,694 of more than expected revenues from user charges; $9,244,650 over budget on total revenues; and $1,458,890 over budget on expenses primarily due to costs directly associated with user charges revenues.

Staff recommends approval of the 2015 Financial Audit Exit.

MOTION:Member Manderfeld to approve the 2015 Financial Audit Exit

SECOND:Member Podratz

DISCUSSION:None

RESULT:The motion passed unanimously

  1. Resolution 16-07; Wisconsin DNR NR – 208 Compliance Maintenance

Joe Mayasich discussed Resolution 16-07. WLSSD is permitted by the Wisconsin Department of Natural Resources to land apply biosolids on the State of Wisconsin. Section 2.1.4 of the WPDES permit specifies a need to submit a Compliance Maintenance Annual Report (CMAR) by June 30th of each year, for the preceding year. Since 1987, the CMAR has been an annual self-evaluation reporting requirement for publicly and privately owned wastewater treatment works, which operate under WPDES permits. The CMAR program was revised in 1992 and 2005. In the case of a publicly owned treatment works, a Resolution must be passed by the governing body and submitted as part of the CMAR, verifying its review of the report and providing responses as required. The Resolution, report and scoring results have been prepared to facilitate WLSSD’s complete fulfillment of the WPDES permit requirement, to submit a CMAR for calendar year 2015. The scoring (grade) was an “A” and there are no problematic issues to address with corrective actions.

WLSSD staff recommends approval of Resolution 16-07; Wisconsin DNR NR 208 – Compliance Maintenance.

MOTION:Member Ahlgren to approve Resolution 16-07; Wisconsin DNR NR – 208 Compliance Maintenance

SECOND:Member Boe

DISCUSSION:None

RESULT:The resolution passed unanimously

  1. Approval of Sanitary Sewer Extension – Jackson Estates Fourth Addition (City of Hermantown)

Dan Belden discussed the sewer extension request. The project consists of constructing approximately 2,564 feet of 8-inch PVC gravity sewer for a residential housing development to serve a proposed 31 lots. This will be the last phase of the Jackson Estates Additions. The development will require installation of water and sewer mains; there are existing sanitary sewer mains located on both the east and north sides of the development and it is proposed that the portions of the development will connect to these mains. The ultimate estimated flow for this project is 8,060 gallons per day. The proposed sanitary sewer will result in new flow to the WLSSD Hermantown Interceptor.

The City of Hermantown is presently in compliance with WLSSD’s Ordinance Establishing Standards for Reduction of Inflow and Infiltration. The City of Hermantown will be responsible for the future operation and maintenance of the proposed utilities.

Given the above, staff recommends the WLSSD Board approve this project and authorize District staff to forward the application to the MPCA for final approval.

MOTION:Member Boe to approve this project and authorize District staff to forward the application to the MPCA for final approval

SECOND:Member Thomsen

DISCUSSION:None

RESULT:The motion passed unanimously

  1. Approval of Sanitary Sewer Extension – Krenzen Water and Sewer (City of Rice Lake)

Dan Belden discussed the sewer extension request. The City of Rice Lake project includes extending sanitary sewer north along the east side of Rice Lake Road approximately 855 feet to the south east corner of Rice Lake and Martin Road. The extension will include 2-inch and 6-inch HDPE lines, which is consistent with the previous extension constructed by Northland Constructors back in 2010. Currently, the 2-inch line is being used by Northland Constructors and will initially serve the proposed 5 residential homes and 1 commercial use. The 6-inch line is being constructed for additional, presently unknown, future flows. The flow estimate for this project is 7,250 gallons per day and will result in new flow to the WLSSD Rice Lake forcemain and WLSSD Hermantown Interceptor.

The City of Rice Lake is presently in compliance with WLSSD’s Ordinance Establishing Standards for Reduction of Inflow and Infiltration. The City will be responsible for future operation and maintenance of the proposed sewer utility.

Given the above, staff recommends the WLSSD Board approve of this extension and forward this project onto the MPCA for their approval.

MOTION:Member Thomsen to approve this extension and forward this project onto the MPCA for their approval

SECOND:Member Solon

DISCUSSION:None

RESULT:The motion passed unanimously

  1. Approval of 2016 Interceptor Maintenance Project – Bid #1346

Carrie Clement discussed bid #1346. The Interceptor Asset Management tools are used to identify and prioritize pipe segments that require maintenance and inspection activities. The 2016 Interceptor Maintenance Program (IMP) identified that the Carlton, Cloquet, Rice Lake, Scanlon Creek, Silver Brook, Twin Lakes, West, and Woodland Interceptors along with the Courtland Street facility sanitary and storm sewers require cleaning and inspecting in 2016. The project includes inspection of 47,335 feet of 8 to 54 inch pipe using Closed Circuit Television (CCTV) and based on the results of this inspection, pipe segments will be identified for hydraulic cleaning; based on past inspections it is estimated approximately 20,000 feet of pipe will require hydraulic cleaning to remove roots and debris. The sections will also be inspected after cleaning.

WLSSD staff advertised for bids on April 22, 2016; bids were received and opened on May 20, 2016. The lowest responsive and responsible bid was from Hydro-Klean.

Staff recommends the Board approve Bid #1346 and authorize staff to enter into a contract with Hydro-Klean.

MOTION:Member Ahlgren to approve Bid #1326 and authorize staff to enter into a contract with Hydro-Klean.

SECOND:Member Janke

DISCUSSION:None

RESULT:The motion passed unanimously

  1. Committee Reports
  2. Committee of the Whole – the Board Strategic Planning Session immediately follows the May Regular Board Meeting
  3. Finance – the minutes from the May committee meetings were reviewed; the next meeting is scheduled for Wednesday, June 22nd
  4. Operations – the next meeting is scheduled for Tuesday, June 21st
  5. Personnel – no meeting is scheduled for June
  6. Legislative – the next meeting is scheduled for Thursday, June 23rd; Marianne Bohren gave a Legislative Update
  7. Planning/Solid Waste – the next meeting is scheduled for Tuesday, June 21st
  8. Board Governance – no meeting
  9. Board Member Comments – Member Manderfeld acknowledged the Finance Department for their hard work during the audit process
  1. Executive Director Reporting
  2. Communications

Due to the time constraint, Marianne Bohren asked to Board Members to review the Communications on their own.

  1. Monthly Financials

Cathy Remington discussed the financials for the month of April.

Revenues

Total Wastewater Operating Revenues thru April were $67,913 over budget or 101%; Industrial Revenues thru April were $78,576 over budget or 102% (excluding $374,777 of Georgia Pacific prepaid debt service); Operating Investment Earnings were $7,917 over budget or 338%; Hauled Waste was $29,917 under budget or 42%; Biosolids was $16,706 under budget or 10%; Capacity Availability Fee was $23,991 over budget or 225%; Other Miscellaneous revenues were $4,052 over budget. Verso Bankruptcy anticipated write-off - $155,000.

Wastewater Loadings

BOD is at 94,853 lbs/day which is 10,794 lbs/day over budget and TSS is at 43,799 lbs/day which is 2,786 lbs/day under budget thru April.

Expenses

Total Wastewater O&M Expenses thru April were $211,027 under budget or 96%.

Direct Department

Direct Department Expenses thru April were $154,267 under budget or 95%.

Key area to highlight: Payroll - $5,629 over or 100%; Natural gas – $38,307 under or 70%; Electricity - $7,304 under or 99%; Diesel - $14,579 under or 62%; Repairs/Cleaning Interceptors - $58,080 under budget; Contract Services - $17,769 under or 58%; Supplies - $26,112 under budget or 55%; Chemicals - $6,853 over or 102% which includes: Sodium Hypochlorite/Bisulfite - $14,368 under or 68%; Polymers - $7,165 over or 103%; Ferric - $8,125 over or 122%; Defoamant - $1,262 over or 107%; Liquid Oxygen – $7,223 over or 183%; Other Chemicals - $2,554 under or 81%.

Allocated Department Expenses

Total Allocated Department Expenses thru April were $56,760 under budget or 97%.

Capital Fund

The Capital Fund Transfer is 100% year to date.

Debt Service

Debt service fund investment earnings are $12,620 over budget or 289% thru April.

Debt Service Transfer

Debt service transfer is $100% year to date. Additional transfer of $374,777 for Georgia Pacific prepaid Debt Service 2017-2028.

Operations Revenue, Expense, and Surplus Summary

The Wastewater Operations Revenue are $442,690 over budget thru April. Expenses are $211,027 under budget; Capital/Debt Service Earnings are $21,105 over budget; Capital/Debt Service Transfers are $374,777 over budget. The actual wastewater surplus thru April is $43,483. The adjustment for Verso Bankruptcy is a $111,517 deficit.

Operations Fund Balance

The Wastewater Operations Fund Balance was at $9,531,591 or 2 ½ times the minimum targeted goal as of April 30, 2016. (Goal 25% or better of 2016 budgeted O&M expenses - $3,955,253)

Capital Fund Reserve Balance

The Wastewater Capital Fund Reserve was $5,691,612 or $3.5 million in excess of minimum targeted goal as of April 30, 2016. (Goal $1,000,000 or better plus highest annual WIF set aside of $1,201,066)

Debt Service Adjusted Fund Balance

The Wastewater Debt Service Adjusted Fund Balance was at 196% as of April 30, 2016. (Goal 120% or better)

Solid Waste

Revenues

Total Solid Waste Operating Revenues thru April were $143,370 over budget or 106%.

Transfer Station - $20,302 over or 101% includes $1,957 late penalties; Hauler Collected Fees - $82,199 over or 112%; Material Recovery Center - $10,404 over or 112%; Yard Waste/Organics - $15,094 over budget or 510%; Household Hazardous Waste - $10,459 over or 230%; Operating Investment Earnings - $1,217 over or 282%; Miscellaneous - $3,695 over budget.

Expenses

Total Solid Waste O&M Expenses thru April were $275,669 under budget or 90%.

Direct Department

Direct Department Expenses thru April were $267,792 under budget or 88%.

Key areas to highlight: Solid Waste Disposal - $8,350 under or 99%; Contract Services - $79,181 under or 61%; Supplies - $1,128 under or 94%; Grants to Governmental Units - $125,250 under budget.

Allocated Department

Allocated Department Expenses were $7,877 under budget or 99% thru April.

Capital Fund

Capital Investment earnings - $510 over budget or 163%; Capital Transfers – YTD 95%.

Operations Fund Balance

The Solid Waste Operations Fund Balance was at $1,109,509 or 102% of minimum targeted goal as of April 30, 2016 (Goal 25% or better of 2016 budgeted non-Transfer Station O&M expenses - $1,083,192)

Capital Fund Reserve Balance

The Solid Waste Capital Fund Reserve was at $711,889 or 1 ¼ times the minimum targeted goal as of April 30, 2016. (Goal $550,000 or better)

Solid Waste Debt Service Fund

There is no Solid Waste Debt and thus there are no Solid Waste Debt Service Funds.

Transfer Station Fund Balance

The Transfer Station Reserve Fund balance was at $282,769 or 1 ¾ times the minimum targeted goal as of April 30, 2015. (Goal $150,000 or better)

Solid Waste Summary

Total Solid Waste Operating Revenues are $143,370 over budget thru April. Total Solid Waste Expenses are $275,669 under budget. Capital transfers are $3,997 under budget and Capital earnings $510 over budget. The actual solid waste surplus thru April is $6,297.

  1. NPDES

Joe Mayasich discussed the NPDES report. Both the BOD and TSS limits were met for the month of April. The mercury daily maximum limit was met but the monthly average was exceeded in April. The disinfection season started April 1st and the disinfection limit was met. The reissued permit will also have a new mass-based monthly limit for phosphorus; both limits were met in April. There were no sewage releases in the month of April. The MPCA and WLSSD staff met to review and discuss the “Temp” version of the permit.

  1. Legal Counsel – no report
  1. Executive Session – none

The meeting adjourned at 2:12 p.m.

Recording SecretaryBoard Chair

Board Secretary