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November 19, 2003 – 7:30 PM




Regular Meeting


The meeting was called to order by Chairman Michael White at 7:30PM.


Members present:  Managers Darrell Scott, Mike White, Deena Congdon, and Bud Bystrom.

Members absent:   Jim Sanborn


Also present:  Jim Pucel of RLK-Kuusisto Ltd., Clerk Jo Ann Pohlman, a reporter from the Cook News-Herald, a reporter from the Voyageur Sentinel and 3 members of the community.




Motion by B. Bystrom supported by D. Scott to approve the minutes of the Regular Meeting of November 5, 2003.  Motion carried.


2003 Forecast/2004 Budget

  • M. White reported that there are $30,000 less expenditures in the current 2003 Forecast than he estimated in July.  He has forwarded this information to Scott Harder for review.
  • Scott Harder will also review the 2004 Budget and Levy.
  • Other available funds need to be looked at to determine if they may be used to offset possible cash flow problems until July 2004 when income becomes available.
  • The levy amount can be reduced in December but cannot be increased.



  • The correspondence was presented to the Board.
  • A motion was made by D. Congdon, supported by D. Scott that the correspondence be placed on file and acted upon as required.
  • An E-mail from Bart Greenwood and M. White’s response were read to those present.  Mr. Greenwood’s communication was prompted by an E-mail sent to him by Jessica Rott of the East Bay Leaseholders’ Association.  The contents of Mr. Greenwood’s E-mail and M. White’s response are included with these minutes..
  • After discussion the motion carried.


RLK-Project Status Report

  • Construction-Wastewater Collection System –The Contractor has shut down for the winter and is scheduled to start up in the spring.
  • Construction-Wastewater Treatment System – Rice Lake poured the roof cap, grouted the digester and the sludge storage tank and installed the platform for the UV equipment.  The Contractor will continue working on the building after the New Year.
  • Open issues include:  Grinder pump approval, record the plat, power to lift station and treatment site, biosolids  disposal, and easement/construction changes requested by homeowners.
  • Jim Pucel rode through the area before the meeting.  He will contact Wagner Construction regarding needed roadwork and will follow-up with a letter.
  • Jim requested a motion to correct the plat.  A motion was made by B. Bystrom, supported by D. Congdon to eliminate the assessment on Parcel #308-0150-00163 of Rob Scott’s property.  Motion carried.


Special Assessments

  • The Special Assessment work was done on schedule and submitted to the County to set-up the tax levy for next year.
  • Some checks have been received.  Responses will be sent to those sending checks.
  • M. White commented on the excellent job Scott Harder is doing on the Special Assessments.


Accounting System

  • D. Congdon contacted the Glorvigen, Theis, Lind & Co. accounting firm in Grand Rapids.
  • Requested information on the District’s loans and grant agreements was forwarded to them last week.
  • Requested Financial Statements will also be sent.


Eastern Service Area (ESA)

  • J. Jamnick, M. White, and B. Bystrom were to meet to discuss a facilities plan for the ESA.
  • J. Jamnick needs to further update information before the meeting.
  • M. White explained to those present that the ESA covers all areas not covered by the Gold Coast Treatment Plant System.
  • The option of holding tanks is being considered for seasonal properties without road access and the inability to meet County ordinance regulations.  The holding tanks would be pumped; the effluent would be transported to the Gold Coast and processed through the treatment plant.  There would be a monthly fee for using the system.


  • A draft newsletter was presented to the Board for review prior to the meeting.
  • M. White reviewed the newsletter topics.
  • A motion was made by B. Bystrom, supported by D. Scott to mail the newsletter.  Motion carried.


Ordinance Requirements

  • M. White requested that J. Pohlman review the Ordinances to determine what permits, licenses, and forms will be needed for sewer connections.
  • There was discussion on the need to let people know what will be required prior to hook-up.
  • J. Pucel said he would forward some example applications and permits to the Board.




M. White asked if there had been a response to the letter written to The Rainy River Basin Coordinator asking to be placed on their mailing list.  There has not been a response to date.  Butch Eggen, who receives the mailings, will be asked to advise the Board of any mailings he should receive.


The Board agreed to have one meeting in December and review the need for two meetings per month at the January meeting.


Bud Bystrom said that there would be a Rainy River Basin meeting on December 8th at the Holiday Inn in International Falls at 4PM; which he plans to attend.


D. Congdon requested that information she located on the Internet on types of assistance for homeowners to connect to the system be forwarded to Board members for their consideration.




Mr. Jarvinen of Gilbert and East Bay asked when the report on the meeting with John Jamnick  regarding the ESA would be available.  M. White responded that there should be an ESA plan within a few months.  There was further discussion on ESA issues.




Rob Scott suggested that a buffer fund suggested by Scott Harder be considered before reducing the levy.


Rob Scott asked if the Board would be making a recommendation to the Town Board for a Manager appointment.  The response was no.



There being no further business the meeting was adjourned at 8.40PM.





J. Pohlman








Following is a copy of an e-mail received from Bart Greenwood by the Crane Lake Water and Sanitary District on Friday, November 14, 2003:




Connie & I have vacation property in East Bay and i thought it would be best to deal with rumors directly.  I just received this note, as did everyone is East Bay, and rather than let a bunch of rumors get started and swirl around i ws curious if you could clear this up.  If you can get me a response I would be happy to make the same group gets the information and we can put this to bed before everyone gets worked up.


Thanks so much for your prompt attention to squashing the rumor mill.


Bart Greenwood



Good Day to all of you,


I just had a visit with Kalie Klaysmat.  She suggested very strongly that we all keep up with what is happening at the Crane Lake Water and Sewer Meetings.  According to Kalie, the project is close to being bankrupt, and the committee is looking for ways to keep it afloat.  One of the strong suggestions is for the people on Bear Island, and those of us in East Bay to be assessed a monthly fee to use the system.  I pointed out to Kalie that we didn’t have any septic systems that would need to be pumped out so we wouldn’t be using theirs.  Kalie said that didn’t matter, as the board has charged Crane Lake residents for items/service that they aren’t using either.


Kalie also stated that the monthly cost of using the sewer system on the Gold Coast was going to be between $100-$150.


I think we need to be alert, and be thinking of any actions that we may wish to take regarding this matter.


The minutes of the meetings are posted on the web site


Happy Thanksgiving to all




Mike White’s response to Mr. Greenwood via e-mail on November 17, 2003 was as follows:



Mr. Greenwood,


After becoming aware of the subject e-mail, I called Jessica Rott and advised her that the alleged statements could not be substantiated with facts.  I also advised her that I would seek Board approval to respond with a Newsletter after our Board Meeting of November 19th.  If was my understanding that Jessica Rott would follow with another e-mail this past weekend explaining my phone call.


In the meantime, I offer the following:


There is no current financial crisis related to the Gold Coast Project.


Monthly fees for use of the Gold Coast System will be limited to those District residents who benefit from the system.


The items/services not being used but being charged to Crane Lake residents should be specifically defined as I do not know what they are.


There is no approved rate schedule for those residents who will use the Gold Coast System.


Finally, it would be very helpful if concerned District residents would direct their questions to the Board as you have.


Thanks so much for your concern!


Mike White, Chairman




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