LINCOLN PIPESTONE RURAL WATER SYSTEM

East Highway 14, P.O. Box 188, Lake Benton, MN 56149

(507)368-4248 fax (507)368-4573 email: lprw@itctel.com

MEETING MINUTES

January 28, 2002

The regular scheduled meeting of the Lincoln Pipestone Rural Water (LPRW) System Board of Commissioners was held at the LPRW office in Lake Benton on Monday, January 28, 2002 starting at 10:00 a.m. Chairman Frank Engels called the meeting to order with Commissioners Ken Buysse, Roger Gilliland, Jerry Lonneman, Charlie Simonson, Rod Spronk, Leonard Swenson, Bill Ufkin, Henry Van Dyke, and Joe Weber present. Also present were Nobles County Commissioner, Diane Their; LPRW Attorney, Dan McDonald; Field Superintendent, Don Drietz; and Director of Finance and Administration, Dennis Healy.

Agenda: The Agenda was approved as presented.

Minutes: M/S/P Ufkin/Swenson to approve the minutes of the December 17, 2001 Regular Board meeting.

Treasurer's Report: Healy noted that budget line items are generally in line with budget projections, and cash balances are temporarily high due to bond funds that will be spent to refund bonds on February 1st. M/S/P Swenson/Weber to approve the Treasurer's Report as presented.

Bills: M/S/P Buysse/Simonson to approve the following bills for payment:

· DeWild Grant Reckert and Associates Company: General Services #11 = $276.00; Minneota Tower #7 = $4,767.55; Lynd Area #13 = $1,677.50; NE Phase #14 =$2,638.50

· McDonald, Gudmestad & Schramel: NE Phase = $28.50; General Services = $900.00

· B. A. Liesch Associates: Burr Exploration = $1,962.77

· US Bank: Pay Off Refunding 1995 Bonds = $3,452,640.00

· Evensen Dodge, Inc.: 2001 GO Refunding Bonds, services to issue bonds = $18,950.00

Attorney’s Report: LPRW Attorney, Dan McDonald reported that agreements with the City of Lynd are being prepared, and he presented a draft “Water Improvement Agreement” for the Board’s review.

Engineer’s Report: DGR did not have a representative present but sent a request for the Board’s response to proposed distribution improvements in the south part of the system. Board members wanted to know the status of proposed service agreements with Adrian and Edgerton first, but were generally supportive of the proposed improvements. The Board directed Healy to seek a proposal for Engineering Services for the north pumping and distribution improvements to interconnect the Verdi and Holland systems.

Lynd Project: The Phase I work will be completed in the Spring, and the remaining work is being prepared for bid.

Northeast Phase Expansion Project: The Northeast Expansion Project appears to be moving forward, and the Board directed the staff to move forward with new signups. The need to rebid the Minneota tower per USDA-RD directives was discussed, and revised plans and specifications were reviewed. M/S/P Buysse/Simonson to reject all bids from the December 11, 2001 Minneota Tower bid opening as directed by USDA-RD. A request from DGR to visit the construction sites of potential tower bidders was discussed, but the Board decided that LPRW will not authorize any reimbursement of expenses for the visits. M/S/P Weber/Swenson to authorize DGR to prepare plans and specifications to rebid the Minneota Tower, and to authorize the Executive Committee to set a bid opening date as soon as possible. Close coordination between DGR, USDA-RD and LPRW is needed to ensure that the plans and specifications meet all requirements.

Burr Service Area: The annual coordination meeting with the DNR is scheduled for 10:00 a.m. on February 21, 2002 at the LPRW office. Preliminary results from the two new test wells were discussed.

Marshall Municipal Utilities: A proposal from MMU is expected by the next meeting.

Regional Water Supply: Several options are being studied to supplement existing water supplies.

Director of Operations Report: Don Evers is recuperating from surgery so Don Drietz and Dennis Healy presented the report

· Drietz presented information on budgeted equipment replacement items. M/S/P Ufkin/ Van Dyke to authorize the replacement of two pickups, and the authorize the Water Resources and Equipment Committee to review and act on any proposals received.

· Drietz reported that about $4,000 in damage was done at the Leota Booster when a pipe joint failed. An insurance claim has been filed.

· Services are being inspected and cleanup work completed by field personnel.

· A fuel tank and pump was reported stolen at the Verdi site.

· Requests for new hookups in the Adrian area need to be closely monitored to avoid service problems.

· Healy reported that the Lewis and Clark project is moving forward, but funding for the next year will need support from the Board to keep the project on schedule.

Director of Finance and Administration Report:

· Healy reported that he and Matt Taubert are looking at new accounting software so reporting can be done more effectively.

· Healy will check on acquiring jackets for the Board to replace those purchased several years ago.

· Water rate increase notices have been mailed to all municipal/community customers.

Committee Reports: The Board reviewed a revised committee structure as prepared by Healy at the request of the Board. The proposal is as follows:

General Committee Guidelines: All Board members should have an opportunity to participate in at least one Board Committee. The Chairman subject to Board approval should make all appointments.

Executive Committee: Comprised of the four Board officers: Chairman, Vice-Chairman, Secretary and Treasurer. Chaired by the Board Chairman.

Purpose: To act as needed between meetings of the full Board, but only within the parameters authorized by the Board. Oversee Board policy development, training and development activities, and the strategic planning process. . Other duties as delegated and defined by the Chairman and the Board.

Budget and Finance Committee: Comprised of the Treasurer and 2 or 3 Board members. Chaired by the Treasurer. The Board Chairman is an ex-officio, non-voting member of the Committee.

Purpose: To prepare the annual Budget and the Capital Improvement Program with input from staff and other committees as needed. To review banking and investment practices and policies. To review and evaluate liability, and property and casualty insurance coverage. Other duties as delegated and defined by the Chairman and the Board.

Personnel Committee: Comprised of the Secretary and 2 or 3 Board members. Chaired by the Secretary. The Board Chairman is an ex-officio, non-voting member of the Committee.

Purpose: To review salaries and benefits, and provide recommendations to the Budget Committee and the Board. To review and evaluate personnel policies. To develop an evaluation system, and implement said system within Board guidelines. To review and evaluate health insurance and disability insurance coverages. To oversee the search and hiring process within Board guidance. Other duties as delegated and defined by the Chairman and the Board.

Water Resources and Equipment Committee: Comprised of the Vice-Chairman and 2 or 3 Board members. Chaired by the Vice-Chairman. The Board Chairman is an ex-officio, non-voting member of the Committee.

Purpose: To monitor and study water resource exploration, management and protection activities. To oversee land use and conservation activities, and manage rental of LPRW property. To review and evaluate acquisition of vehicles and equipment within Board and Budget guidelines. Other duties as delegated and defined by the Chairman and the Board.

Miscellaneous Appointments: Various groups and organizations require LPRW participation as a result of LPRW membership. Individuals, either Board members or staff, are appointed as required.

Appointments for Voting Purposes: Minnesota Rural Water Association (one member and one alternate); Lewis and Clark Rural Water System (one member and one alternate); the Minnesota Joint Powers group to support the Lewis and Clark Rural Water System (one member and one alternate); Southwest/West Central Service Cooperative (one member); Southwest Water Exploration Group (one member)

M/S/P Buysse/Lonneman to approve the “Committee Structure” as presented.

Chairman Frank Engels proposed the following appointments for Board approval:

Executive Committee: Per the approved “Committee Structure” the four Board officers are automatically appointed: Frank Engels (Chairman); Joe Weber (Vice-Chairman); Rod Spronk (Secretary); and Bill Ufkin (Treasurer).

Budget & Finance Committee: Proposed appointments are: Treasurer, Bill Ufkin, Chairman; Charlie Simonson; and Jerry Lonneman.

Personnel Committee: Proposed appointments are: Secretary, Rod Spronk, Chairman; Ken Buysse; and Henry Van Dyke.

Water Resources and Equipment Committee: Proposed appointments are: Vice-Chairman, Joe Weber, Chairman; Leonard Swenson; and Roger Gilliland.

Minnesota Rural Water Association, Board Representative: Leonard Swenson; and Bill Ufkin as alternate representative.

Southwest/West Central Service Cooperative: Dennis Healy

Southwest Water Exploration Group: the Water Resources and Equipment Committee will make this appointment, and they appointed Henry Van Dyke at a Committee meeting following the regular meeting.

Lewis and Clark Rural Water Board, and the Minnesota Joint Powers Board in support of the Lewis and Clark Project: these are three year appointments and Don Evers was appointed the representative in 2000 with Dennis Healy as alternate.

M/S/P Lonneman/Van Dyke to approve the Chairman’s appointments.

Brief Committee organizational meetings will follow the regular Board meeting.

Attendance at the MRWA Conference was discussed.

Other Business: The Board had an evaluation meeting with Dennis Healy to review his performance.

Adjournment: M/S/P Lonneman/Simonson to adjourn the meeting at 2:30 p.m. The next Regular Board meeting will be Monday, February 25, 2002 at 10:00 a.m.

______________________________________________

Rod Spronk, Secretary