CRANE LAKE, MN 55725

CLWSD Newsletter #7 – April 2003

This newsletter is being mailed to all property owners within the Crane Lake Water and Sanitary District and other interested parties. It provides a summary of the Board of Managers activities and related requirements for Board decisions.

GOLD COAST PROJECT

Bids have been awarded to cover the construction of the Gold Coast system. Wagner Construction will install the wastewater collection system and Rice Lake Construction Group will build the treatment facility. Although the bids were somewhat higher than anticipated, 53% of the total cost will be covered by grants from funding agencies. The total cost is currently estimated to be $3,221,000.

The Board will make every attempt possible to minimize disruptions caused by construction activities. Construction schedules have been requested from the Engineer. Residents will be notified as soon as the schedules have been resolved. The Board is especially concerned with activities that affect local roads.

RATE SCHEDULES

The completion of the Gold Coast Project Budget resulted in the Board’s decision to notify affected property owners of the potential project costs before the awarding of the bids. Engineer’s estimates of Equivalent Dwelling Units (EDU’s) were used to allocate costs to individual properties. An Equivalent Dwelling Unit (EDU) is defined as a single family in a single dwelling using up to 250 gallons of water per day. There was no other similar allocation available at the time and none have been developed to date.

The Board was and is aware that the EDU allocation is subject to refinement. The Board also realizes that it lacks the professional expertise to develop rate schedules that are most equitable with consideration of all options. The potential solution follows in this newsletter.

UTILITY BUSINESS CONSULTANT

The Board is currently considering employment of a consultant who specializes in rate determinations to assist in development and implementation of financial and utility business plans.

Potential consultant tasks include:

Review existing financial status and plans.
Develop equitable financial program.
Special assessments processing requirements.
Utility billing, treasury and bookkeeping procedures.

The equitable financial program task would include special assessment policies and plans, a program of rates, fees and charges and other required financial policies. The consultant would also participate in final development of the required ordinance.

UTILITY BUSINESS CONSULTANT (Cont.)

Preliminary estimates indicate the consultant’s fees will relate to administrative functions of the Board. This would result in all members of the District sharing in the costs related to the consultant.

EASEMENTS

There are a few easements outstanding for the Gold Coast Project. The Board does not anticipate any problem in this area and thanks everyone involved for their cooperation and patience. It has been a major portion of the project.

EASTERN SERVICE AREA (ESA)

The Eastern Service Area represents the balance of the Sanitary District that is not included in the Gold Cast Project Area. The Engineer has presented the Board a preliminary plan for the ESA, which is subject to review and refinement. It is anticipated that a grant application to cover planning expenses will be requested within the next 60 days. All potential options will be considered within each ESA sub-area.

BOARD VACANCY

There has been a vacancy on the Board of Managers since November 2002. The Minnesota Pollution Control Agency (MPCA) issued the order creating the District and that order states that vacancies will be filled by the St. Louis County Board of Commissioners. The County was notified of the vacancy last November.

The County did advise the Board in writing that the County Board believes the appointment process should be transferred to the Crane Lake Town Board. Our Attorney is currently working with the County to insure the transfer is within the MPCA requirements.

WEBSITE

We encourage District property owners to use our Website at www.clwsd.org. It includes our meeting minutes and provides forms to send us your comments and suggestions. Our e-mail address is info@clwsd.org.

OBJECTIVE

We are confident that all District residents share our continuing objective to provide cost effective systems that protect our environment. This will result in the preservation of our lake for future generations.

The Board wishes everyone a pleasant summer season.

Visit our website at www.clwsd.org. Our e-mail address is info@clwsd.org.

Board of Managers:

Deena Congdon 993-2269 Darrell Scott 993-2378

* Mike White 993-2424 Jim Sanborn 993-2404

*Newsletter Writer

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