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March 26, 2003 – 7:30 PM





Study Session – 7:00 – 7:30PM


Jim Pucel of RLK-Kuusisto reviewed the Progress Status Report with the Board.  The regulatory and funding issues have been resolved with the MPCA and Rural Development.  The Contract has been reviewed with the US Army Corps of Engineers and the State still has money reserved for the Public Facilities Authority (PFA) portion of funding for the project.

Mike White summarized the status of current Board projects:


  • Service Areas

The Western Service Area (WSA) includes properties from Bayside Drive to the Crane Lake Road and including properties on either side of the Crane Lake Road to the end of the road at the Vermilion River.  The Board is ready to award bids for the system construction for this area.


The Eastern Service Area (ESA) covers the balance of the District and includes the islands, East Bay, the balance of Handberg Road, etc.  A Preliminary Engineering Report for the ESA has been sent to the regulatory agencies for their comments and suggested priorities.  Funding for each ESA area could ease the funding process rather than requesting a lump sum for the entire ESA project.


  • WSA Project

The original project cost estimate was $2,221,000.  With the completion of the bidding process the cost estimate was increased to $3,221,000.  Grants will provide $1,831,000 or 57%.  The $1,390,000 balance, or 43%, will be from loans, which will be the responsibility of the users of the system.


  • Equivalent Dwelling Unit (EDU)

An EDU was defined as a single-family unit in a single dwelling with water usage up to 250 gallons per day.  The current estimate is 150 EDU’s for the WSA project.  At capacity the treatment facility will be able to handle 212 EDU’s.


  • Loan Cost per EDU

The WSA project loan cost per EDU is estimated at $9,300.  It is proposed that $6,600 per EDU be provided as a special assessment or as an up-front payment.  The special assessment could be paid off over the 40-year life of the loan.  The $2,700 estimated balance would be paid as part of the monthly user fee to allow favorable adjustments as new accounts are added to the system.


  • Cost per Month

The monthly user fee is estimated at $44.57 per month or $535 per year.  This includes $32.22 for operation and maintenance of the system and $12.35 for the loan balance.


  • Project Option

The option to abandon the project should include recognition of the Board’s current debt of about $250,000 and the potential loss of $1,831,000 of grants.  It could also result in the County’s application of their regulations covering on-site systems.


  • On-Site Systems

County regulations currently require enough land to allow two conventional drain fields.  Holding tanks are expensive and do not appear to be an option for most properties.  A system with a cost of $25,000 would require an annual payment of $2,005 per year if financed over 20 years at a 5% interest rate.

Special Meeting


The meeting was called to order by Vice-Chairman Darrell Scott at 7:30PM.


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


Also present:  John Jamnick and Jim Pucel of RLK-Kuusisto Ltd., Clerk Jo Ann Pohlman, a reporter from the Cook News-Herald, a reporter from the Voyageur Sentinel, and 18 concerned citizens.


The meeting was first opened for public comments.  There were many comments, questions and discussions about the overall project cost and the EDU cost calculations.


There was discussion on the Engineer’s procedure for assuring the Contractor supplies the specified grinder station or its equivalent.


There was discussion on who will supervise the project on a day-to-day basis.  Rural Development, the regulatory agency, requires that the Board provide an on-site inspector. This function will be handled by the Engineer.


There was no action taken on the bids.  They will be acted upon at the Board of Manager’s Regular Meeting on April 2, 2003 at 7:30PM at the Crane Lake Fellowship Hall.  There will be a Study Session prior to the meeting beginning at 7:00PM.



The meeting was adjourned at 9:30PM





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