Establishment Orders

ORDER ESTABLISHING CROOKNECK LAKE

IMPROVEMENT DISTRICT

Based upon testimony received at a public hearing held at the Scandia Valley

Town Hall in Morrison County, Minnesota, on July 9, 2005, the comments of the

Minnesota Department of Natural Resources, the recommendations of staff, and upon all

files, records, and proceedings herein, the Morrison County Board of Commissioners

makes the following:

Findings

1. Morrison County recognizes that its lakes and rivers are important natural

resources. This has been demonstrated by its support of the Morrison County

Lake and River Alliance and its involvement the Central Minnesota Initiative

Foundation's Healthy Lakes and Rivers Program. These programs have

encouraged lake lot owners and lake associations to manage water quality and

exotic vegetation in the county lakes.

2. Curlyleafpondweed is a non-native form of vegetation that has invaded

Crookneck Lake. Because of its invasive nature, curlyleaf pondweed tends to

choke out native vegetation and some forms of aquatic life.

3. Curlyleaf pondweed impairs swimming, boating, fishing,jet-ski use and water

skiing in areas of dense vegetation.

4. Curly leaf pondweed reduces enjoyment of the lake and lowers property values for

all riparian (littoral) owners.

5. In January 2005, representatives of the Crookneck Lake Association asked the

County to establish a Lake Improvement District as a means of supporting work

the association has done to improve lake water quality.

6. To show support for a lake improvement district, a petition signed by more the

25% of the owners of property adjoining the lake was submitted to the county

asking that a lake district be established for Crookneck Lake.

7. On May 10, 2005, the Morrison County Board of Commissioners passed a

resolution giving notice of its intent to establish the Crookneck Lake

Improvement District and setting a public hearing to obtain input about the

district.

8. Notice of the public hearing was sent to the Department ofNatural Resources, the

Pollution Control Agency, local units of government, and all riparian landowners.

Notice was published and posted as required by law.

9. The lake improvement district is necessary to preserve Crookneck Lake as a

viable natural resource in the county. Efforts made to date to control curlyleaf

pondweed have been unsuccessful and unfair because they have relied on

voluntary contributions of interested individuals.

10. The district will promote the public welfare by improving the quality of the lake.

11. Landowners will benefit from the district's aquatic plant management because

they will have the opportunity for greater use of the lake and increased property

values.

12. The lake management program will be under the direction of the Minnesota

Department ofNatural Resources and will not cause or contribute to long-range

environmental pollution.

13. The Crookneck Lake Improvement District will include all riparian properties.

14. The primary program to be undertaken by the district will be long-term aquatic

plant management.

15. The program will be financed by special assessments imposed on riparian

landowners.

16. The Morrison County Water Planner will be the county official responsible for

supervising programs of the lake improvement district.

17. Delegation of the powers stated below to the district will assure that

representatives of the people most directly affected by the actions of the district

will determine its management.

18. The manner of voting outlined below provides a fair method of equalizing control

among interested individuals when there are multiple parcels owned by a single

person(s) and/or multiple owners of single parcels.

19. The directors listed below meet the requirements of Minnesota Statute 103B.55 l.

20. Because of the county's residual financial responsibility under Minnesota Rule

6115.0980, the district will be required to maintain insurance and follow standard

government accounting principles.

Wherefore, the Morrison County Board of Commissioners makes the following

Order:

1. The Crookneck Lake Improvement District is hereby established.

2. The District shall include all riparian (littoral) properties to Crookneck Lake.

3. The lake improvement district is authorized to undertake long-term aquatic plant

management as determined necessary and appropriate by its board of directors

and in cooperation with the Minnesota Department of Natural Resources.

4. Projects of the lake improvement district will be financed by special assessments

imposed on riparian (littoral) landowners.

5. The lake improvement district will be managed by a five (5) person board of

directors. Directors shall be property owners in the lake improvement district and

a majority of the directors shall be residents of the district. Except for the original

board appointees, directors shall serve two (2) year terms. The terms shall be

staggered. Property owners are those shown as owners on the records of the

Morrison County Auditor.

6. The following residents of the District shall serve as directors for one year

beginning upon adoption of this order and continuing until the 2006 Crookneck

Lake annual meeting: John Marsh , Robert Larson and Tina Snell. The following

property owners shall serve as directors for two years beginning upon adoption of

this order and continuing until the 2007 Crookneck Lake annual meeting: David

Gurney and John Parker.

7. Future directors shall be elected at the annual meeting to be held in July or August

of each year on a date set by the board of directors.

8. A director may be removed from office by a majority vote of the remaining board

members for failure to attend meetings or for conduct detrimental to the good of

the lake district.

9. A vacancy on the Board of Directors shall be filled by election at the next annual

meeting.

10. Individuals whose names appear as owners on the records of the Morrison County

Auditor are eligible to cast votes for board members and on other lake

improvement district matters; however, no property shall have more than one

vote. A " property" is defined as a parcel or parcels held in separate and distinct

ownership, regardless of the number of lots or parcels owned, the acreage, or the

number of owners.

11. Voting for directors will be by secret ballot. Ballots shall be mailed to each

property owner within the district at least three (3) weeks prior to the annual

meeting. Ballots may be sent or delivered to the clerk of the board prior to or on

the date of the annual meeting.

12. Directors may receive compensation for their services as determined by the

property owners at the annual meeting and may be reimbursed for actual expenses

necessarily incurred in the performance of their duties in the manner provided for

county employees.

13. The following powers are hereby delegated to the Crookneck Lake Improvement

District:

a. to undertake research to determine the condition and development of

Crookneck Lake and the water entering it and to transmit the results of the

studies to the pollution control agency and other interested authorities;

b. to conduct a program of water improvement and conservation, limited to

aquatic nuisance control as allowed by the Minnesota Department of

Natural Resources;

c. to make cooperative agreements with the United States or state

government or other counties or cities to effectuate authorized water and

related land resource programs; ยท

d. to take actions necessary for the administration of the lake improvement

district;

e. to levy special assessments to finance implementation of the powers

identified in this order pursuant to Minnesota Statutes 103B.555, subd. 4.

14. The Crookneck Lake Improvement District shall maintain general liability

insurance in the amount of tort limits established by Minnesota Statute 466 and

shall name Morrison County as an additional insured on such insurance policy. A

copy of the insurance policy shall be filed annually with the Morrison County

Auditor.

15. The Crookneck Lake Improvement District shall submit its annual work plan for

county review and approval by March each year.

16. The Crookneck Lake Improvement District shall use the latest accounting

techniques, in compliance with Generally Accepted Accowiting Principles

(GAAP) and those of the Government Accounting Standards Board (GASB).

17. The Crookneck Lake Improvement District shall appear before the County Board

in August of each year to present the budget for the following year. At least two

weeks prior to the appearance, they shall submit an annual audited :financial

statement regarding the activity of the lake improvement district from the

previous calendar year.

18. The Crookneck Lake Improvement District shall, within four months after its

annual meeting, file an annual report with the Morrison County Board of

Commissioners, the Minnesota Department of Natural Resources, and the

Minnesota Pollution Control Agency.

19. The Crookneck Lake Improvement District shall operate in accordance with

Minnesota Statutes 103B.501 to 103B.581 and Minnesota Rules 6115.0900 to

6115.0980 and within the limitations of this order.

20. This order will become effective 30 days after its publication in the Morrison

Dated this 26 day of July, 2005