Crane Lake, Minnesota Water & Sanitary District  
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June 18, 2003 – 7:30 PM


Study Session:  7:00 – 7:30PM


Jim Pucel reviewed the Project Status Report.  They are still reviewing specifications on the Barnes pressure sewer basins from Quality Flow Systems; more information on the insulation is needed. RLK will present their findings to the Board when they have received all the information.  RLK’s surveyor is working with Alicia Cope on the easements; Alicia should have the Easement Plat for review next week.  Rural Development sent an approval letter for resident inspectors, Jim Pucel, Matt Jamnick and Stuart Dye.  A letter was received from St. Louis County, Community Development Division, advising the Board that the pre-applications for the wastewater treatment/collection system & for planning the ESA were denied.  A name is still needed for the access road.


Stu Dye presented the update on the construction status.  Ledge rock removal is near completion on Handberg Road and Bayside Drive.  They have removed 200 cubic yards of rock so far.  The next area for rock removal will be Hilltop Road.  There are boat trailers on the right-of-way, which will need to be moved.  The pipe crew will begin work on the access road on June 19; then they will work toward Handberg Road.  At Handberg Road they will need to decide to continue to the Gold Coast or Handberg Road.


Stu plans to schedule weekly construction meetings on each Wednesday afternoon to review work done and plan the following week’s schedule.  M. White requested that the work schedule be posted for public information.  Stu will try to do so after each meeting.


There were questions and comments from the public regarding public notice before blasting/rock removal and where the construction crew would be working during the 4th of July.  They will not be working over the 4th of July weekend.


M. White said the Contract states that the Engineer is the owner’s representative on the project site.  If there are questions relating to the project, they should be directed to Stu Dye, RLK’s representative.  If Stu is unable to respond, he will refer the question to the Board.


M. White requested the information on freezing and maintenance of the grinder pumps, which he will put in report form for the public.


Work on the service lines is not scheduled until November.



Regular Meeting


The meeting was called to order by Vice-Chairman Darrell Scott at 7:35PM.


Members present:  Managers Darrell Scott, Mike White, Jim Sanborn, and Deena Congdon.

Members absent:   None


Also present:  Jim Pucel & Stu Dye of RLK-Kuusisto Ltd., Scott Harder of Environmental Financial Group, Clerk Jo Ann Pohlman, a reporter from the Cook News-Herald, a reporter from the Voyageur Sentinel and 23 members of the community.




Motion by D. Congdon, supported by M. White to approve the minutes of the Regular Meeting of June 4, 2003.  Motion carried.


  • The correspondence was presented to the Board.
  • A motion was made by M. White, supported by J. Sanborn to place the correspondence on file and act upon as required.  Motion carried.


Easements/Right-of-Way Issues

  • The land at the top of Bear Island is dedicated to the public.  There is the potential that this land could be used for a septic system.  The Town has jurisdiction over land dedicated to the public.
  • A motion was made by M. White, supported by D. Congdon to send a letter to the Town Board stating the possible use of that land for a septic system in the future and to include a copy of Alicia’s letter.  Motion carried.
  • Allen McKie sent a letter to the Board stating that he wishes to cancel the easement to his house.  A response will be sent to Mr. McKie after consultation with the CLWSD attorney.  A motion was made by Mike, supported by J. Sanborn to respond to Mr. McKie.  Motion carried.
  • Brad Blazevic presented a letter to the Board to be read by Brad during Public Comments.  The Board will respond to Mr. Blazevic’s letter after they have had time to review it.


Request for Permanent Injunction

  • The court trial will be held on July 8 and 9, 2003 at 8:30AM at the St. Louis County Courthouse in Virginia.
  • The request for a temporary injunction was denied.  Treasurer M. White stated that bills related to the injunction received to date amount to approximately $10,000, which is about $35 per property.  The charges for a two-day trial will probably be much higher than the charges for the 1-hour hearing.
  • All documents related to the request for temporary injunction have been filed with the Court and are public documents.  Anyone wishing to see the documents or have copies should contact Clerk Jo Ann.


Presentation – Scott Harder, Environmental Financial Group

  • Scott Harder, President of the Environmental Financial Group, presented his findings from suggestions and dialogue from community members.  Mr. Harder did look into other grant possibilities and found that all sources had been tapped; there is a possibility of getting an additional grant from the USACE. His view on how to best approach the rates, assessments and charges is attached.  This should be used as a starting point to make adjustments and changes to work toward a hearing process in August.
  • After his presentation, Mr. Harder asked for more questions and comments. Some of them follow.
  • Virginia Clifford said it looks like construction costs of the treatment facility will be born by the Western Service Area.  Jim Pucel responded that the plant was designed for the WSE but there is capacity for future expansion, which could include the Handberg Road.  Scott Harder said if a group outside the current plan were included, the rates would be adjusted.
  • Larry Olson asked if this project was considered a high expense system.  Scot Harder said it was because of the low number of people in the WSA and the rock removal is an issue.
  • Bob Bowers asked for clarification of the 2005-06 Monthly User Charges.  He understood that a Class I User (Residential and small commercial) would pay $80 per month while a resort with 10 cabins (Class III) would pay $580 + volume or $58 per building.  Scott Harder said that was correct.
  • Virginia Clifford asked Scott Harder to provide her with the total annual cost and the number of property owners.
  • Brad Blazevic found it curious that the expense of such an expensive system must be born by property owners with an annual income around $20,000 per year as reported in 1996 census data.
  • Virginia Clifford requested a comparison of annual incomes between 1996 and 2000 census data.




M. White stated the wire transfer for the first request for funds should be at Border State Bank today or tomorrow.


M. White also stated that Newsletter #10 should be out before the 4th of July.



Mike Seigley asked about a representative from RLK being on site.  Stu Dye responded that someone has been here each day since June 6 and there would be two here from now on throughout the summer.


Brad Blazevic read his letter to the Board stating it was for the public record and that no action was requested from the Board.  His concern is the possibility that the contractor mistakenly clear cut part of his land.  Mr. Blazevic has retained an independent survey firm to survey the area in question.


Mike Seigley asked if there is supposed to be erosion control when working on properties? Stu responded that there will be.


Virginia Clifford stated that she and several neighbors near the Blazevic property are concerned and alarmed about the apparent mistake and presented a petition to the Board asking the Board to stop work on the project until the correct easement and property lines are verified.  She asked that her statement and the petition be part of the public record.


Brad Blazevic said that this small community with two governing bodies needs to unify fiscal issues.  M. White responded that taxes are levied for the Sanitary District, the Township and the Fire Department; and it would be desirable to have all three work together in establishing annual levies.


Stu Dye mentioned that the road has not been named yet.  He also suggested that a committee be formed to choose the colors for the treatment facility.




A motion was made by M. White, supported by D. Congdon to adopt Resolution #060304 authorizing Vice-Chair, Darrell Scott to execute the Grant Agreement Amendment with the Minnesota Pollution Control Agency for Crane Lake ISTS Upgrades.  Motion carried.


The next Board of Managers’ Regular Meeting will be on Wednesday, July 2 at 7:30PM at the Crane Lake Chapel Fellowship Hall with a Study Session at 7:00PM.


There being no further business the meeting was adjourned at 9:15PM




J. Pohlman




Preliminary Program of Rates, Assessments, and Charges




Project Cost                                                                                                                                          $3.221 million

Net Long-Term Loan                                                                                                                             $1.390 million

Annual Debt Service Payment                                                                                                                                $75,537

Annual Revenue Requirements (including operations, maintenance and replacements)                                   $155,000




Annual Assessment:  Small Grinder Pump Station                                                                                        $350

Annual Assessment:  Large Grinder Pump Station                                                                                        $540




Monthly Base Charge:  Class I                                                                                                                         $  80


Monthly Base Charge:  Class II                                                                                                                                    $270

Monthly Base Charge:  Class III                                                                                                                                  $580

+ Volume Charge, per 1000 gallons (Class II and III only)                                                                             $9.00



Monthly Base Charge:  Class I                                                                                                                         $  40

Monthly Base Charge:  Class II                                                                                                                                    $270

Monthly Base Charge:  Class III                                                                                                                                  $580

+ Volume Charge, per 1000 gallons (all Customer Classes)                                                                                   $6.50






1.         Special Assessments are paid for 30 years unless debt is retired early due to future growth.

Customers have the option of paying an upfront assessment of $5,800 for a small grinder station or

$8,700 for a large grinder station.  Grinder station size is determined by the District’s engineer.


2.         Monthly Base Charges are paid by all customers, year-around.  This revenue pays off the debt on

the main sewer line, pump stations, and treatment facility.


3.         Volume Charges are determined by measuring the running time of each grinder pump station.

Volume charges will raise 50% of the annual revenue requirements in 2007.


4.         Class I customers include residential and small commercial.  Class II customers include medium-sized

commercial.  Class III customers include large commercial.


5.         Vacant parcels served by grinder pump stations will be expected to pay assessments and monthly

base charges.


6.         Hookup fees for future Class I customers will be either $16,000 or $8,000 plus the actual cost of the

grinder and service line, whichever is greater.  Class II and Class III hookup fees will be determined

on a case-by-case basis.



Crane Lake Water & Sanitary District
P.O. Box 306 · Crane Lake, Minnesota 55725
© 2001 CLWSD