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

July 29, 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, July 29, 2002 starting at 6:00 p.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 Louis Taveirne, Cy Molitor, Jim Munson, LPRW Attorney, Dan McDonald; DGR Engineer, John Madden; Field Superintendent, Don Drietz; Director of Operations, Don Evers; 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 June 24, 2002 Regular Board meeting and the July 15, 2002 Special Board meeting.

 

Treasurer's Report:  M/S/P Van Dyke/Lonneman to approve the Treasurer's Report as presented.

 

Bills:  M/S/P Buysse/Simonson (Engels abstained) to approve the following bills for payment:

·   DeWild Grant Reckert and Associates Company: Minneota Tower #23 = $4,535.57; NE Phase #20 =$7,722.34; Lynd Area #19 = $2,455.81; SW Minnesota Supply Project = $1,069.88

·   McDonald, Gudmestad & Schramel: NE Phase = $1,239.91; General Legal Services = $1,215.26

·   US Bank:  2001 Refunding Bonds = $78,930.30

 

Code of Conduct Concerning Procurement:  Proposed policies concerning purchasing and contracting were reviewed and discussed.  Dan McDonald reported that he had reviewed the document and has no concerns with it, and Healy reported that Jim Maras of USDA-RD also reviewed it and found it acceptable from his standpoint.  M/S/P Van Dyke/Lonneman to adopt the following “Code of Conduct Concerning Procurement” as the official policy of Lincoln Pipestone Rural Water effective July 29, 2002.

 

LINCOLN PIPESTONE RURAL WATER

CODE OF CONDUCT CONCERNING PROCUREMENT

Effective July 29, 2002

 

          The following standards shall apply to all Board Members, employees and agents of Lincoln Pipestone Rural Water engaged in the purchase of services or materials, or the selection, award or administration of contracts for LPRW.

No Board Member, employee or agent of Lincoln Pipestone Rural Water shall participate in the purchase of services or materials, or the selection, award or administration of contracts for LPRW if a Conflict of Interest, real or apparent, would be involved. 

 

A.    Conflict of Interest:  A Conflict of Interest arises when a Board Member, employee or agent; any member of their immediate family; their partner; or an organization which employs, or is about to employ, any of the above; has a financial or other interest in the firm selected for the purchase of services or materials, or selected for the award of a contract for the purchase of services or materials.

1.     Each Board Member, employee and agent of Lincoln Pipestone Rural Water shall publicly notify the Board of any Conflict of Interest, real or apparent.  Failure to notify the Board of a Conflict of Interest is grounds for disciplinary action as described herein.

2.     Board Members shall not directly benefit from any purchase or contract by Lincoln Pipestone Rural Water.  A direct benefit would consist of a purchase from or contract with the Member or a dependent of the Member.

 

3.     Board Member’s shall remove themselves from any decision where a conflict has been identified, including but not limited to; award of contracts, approval of payments, providing opinions that might influence other Directors, etc.

4.     Board Members, employees or agents shall neither solicit nor accept gratuities, favors or anything of monetary value from contractors, potential contractors or parties to subagreements, or suppliers.

5.     Employees or agents shall remove themselves from any decision involving a Conflict of Interest.

 

B.    Penalties, Sanctions, or Other Disciplinary Actions: In addition to any actions resulting from federal or state laws or regulations, the Board may impose the following actions for violating this Code of Conduct.

1.     The Board may deny any Board Member the right to vote and receive per diem for one or more meetings for violating this Code, and in any case deemed to be especially serious the Board may vote to remove a Member from the Board.

2.     Any employee found to have violated this Code will be subject to discipline, up to and including dismissal, as described in Chapter 107 of the Personnel Policies Manual.

3.     Any agent of LPRW found to have violated this Code shall be barred from serving as an agent of LPRW for such period of time as the Board may find appropriate.

 

C.    Procurement Procedures:  It is the policy of Lincoln Pipestone Rural Water to use open procurement practices that result in the most economical and efficient acquisition of goods and services for LPRW.  Purchases of goods and services shall be made in the following manner:

1.     Purchases; except professional services, real estate and insurance; that are expected to exceed $50,000 will be made using a sealed bid process.

2.     Purchases; except professional services, real estate and insurance; that are expected to exceed $10,000 but not to exceed $50,000 may be made using a sealed bid process or by direct negotiation.  If the direct negotiation method is used at least 2 quotes must be obtained.

3.     Purchases; except professional services, real estate and insurance; that are expected to be $10,000 or less may be made in the open market or by direct negotiation.  If the direct negotiation method is used at least 2 quotes must be obtained.

4.     Procurement of professional services will utilize qualification-based competitive negotiation procedures, and they will be open to all qualified professionals.

5.     The purchase or lease of real estate will be based on appropriate evaluation of value by LPRW, and negotiation with the owner.

6.     Insurance will acquired through evaluation of alternatives and selection of products offering the best value.  Participation in group and cooperative purchasing arrangements will be used when possible.

 

D.    Overview and Standards:  Solicitation of offers will incorporate a clear and accurate description of the technical requirements for the material, product or service to be procured.  Sole-source procurements will be avoided and “brand name or equal” descriptions will be used where appropriate.  All requirements which offerors must fulfill and all other factors to be used in evaluating bids or proposals will be clearly specified.

1.     LPRW will take affirmative steps to maximize open and free competition, and utilize small, minority and women owned businesses when possible.

2.     The cost plus percentage of cost method of contracting shall not be used.

3.     The following will not be allowed to bid on, or negotiate for, a contract or subcontract related to the construction of a project:

a.     An engineer as an individual or firm who has prepared plans and specifications or who will be responsible for monitoring the construction.

b.    Any firm or corporation in which LPRW’s engineer is an officer, employee, or holds or controls a substantial interest.

c.     Any Board Member, employee, or agent of LPRW.

d.     Any member of the immediate family or partners in the entities referred to in this section.

4.     Contracts shall be made only with responsible parties possessing the potential ability to perform successfully under the terms and conditions of a proposed procurement.  Consideration shall include but not be limited to matters such as integrity, record of past performance, financial and technical resources, licensure, insurability, and accessibility to other necessary resources.  Contracts shall not be made with parties who are suspended or debarred by any Agency of the United States Government or the State of Minnesota.

 

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Attorney’s Report:  LPRW Attorney, Dan McDonald reported on the following items:

•   The court order authorizing the Northeast Phase improvements has been approved by the District Court.

•   A Joint Powers Agreement between the counties included in the Northeast Phase has been prepared, and Healy noted that he has appointments with the Boards of Lincoln, Lyon, Yellow Medicine and Redwood Counties to get their action and approval.

 

Engineer’s Report:  John Madden reported on the following items:

 

•  Lynd Project:  The standpipe and booster project is progressing on schedule.  The Phase 3 design work is still waiting for input from the MS&G developer.  The Phase I contractor needs to finish some small items before that contract can be closed out.

 

•  Minneota Tower & Booster Project:  The Booster Station plans have been submitted to RUS & MDH for review.  M/S/P Lonneman/Buysse to authorize staff to set a bid date for the Minneota Booster as soon as RUS & MDH approval is received.  Construction of the Minneota Tower is underway with the piling work completed.

 

•  North Internal Users Project:  The bid opening for the Internal Users Expansion was held at 1:30 p.m. on Wednesday, July 24th at the LPRW office.  Bids were received from Carstensen Contracting ($762,616.28); Underground Developers ($813,157.17); Earherly Constructors ($955,920.65); and BRB Contractors ($1,011,880.72).  John Madden recommended award of the bid to the low bidder, Carstensen Contracting with a bid of $762,616.28 which is below the engineer’s estimate of $900,000.  M/S/P  Weber/Van Dyke to award the North Internal Users Project bid to Carstensen Contracting with a bid of $762,616.28 subject to USDA-RUS concurrence.

 

•  Northeast Phase Expansion Project:  Madden reviewed Northeast Expansion plans and suggested an early September bid date if RUS & MDH plan review is completed. M/S/P Buysse/Swenson to authorize staff to set a bid date for the Northeast Phase Expansion Project as soon as RUS & MDH approval is received.

 

Lynd Phase 3 Schedule:  Cy Molitor, Lynd City Councilman; Louis Taveirne, Lyndwood developer, and Jim Munson representing the Marshall Sand & Gravel developer met with the Board to discuss scheduling Phase 3 construction of service to the City of Lynd and the Marshall Sand & Gravel development.  Dennis Healy reported that we do not have an easement across the MS&G property and the developer has not provided a grading plan so LPRW can design and bid the water line necessary to serve the City of Lynd.  Jim Munson representing the MS&G developer indicated that the issue preventing MS&G from providing the necessary information for the last several months has not been resolved but he was confident that it would be resolved soon.  The LPRW Board indicated that we need all information and an easement very soon if the water line is to be installed this year.  Molitor indicated that the City of Lynd expects to have water service this year, and Don Evers noted that the Phase 2 Standpipe and Booster Station contractor may want additional payments if he cannot complete his contract on time due to the lack of water.  Munson indicated that he is doing all he can to get the issue resolved, and he will get an easement signed and returned as soon as possible.  The Board informed Munson that LPRW and the City need a firm answer and resolution of all issues within two weeks or LPRW will by-pass the MS&G subdivision to get service to the City of Lynd excluding the MS&G property.  The Board directed John Madden to contact the MS&G engineer to see if any information was available from them.  M/S/P Ufkin/Swenson to set a special meeting for 5:00 p.m. on Monday, August 12, 2002 to either authorize bidding the project through the MS&G property, or if no answer has been received from MS&G by August 9th, to authorize bidding the project along an alternate route.  The Board directed Healy to notify the MS&G developer in writing of this requirement and the consequences, and to copy the City.

 

DGR Request for Additional Compensation:  John Madden presented a request to increase NE Phase engineering fees from $457,000 to $523,000.  The Board requested more detailed information and tabled the matter until the next meeting.

 

Osceola Rural Water Study:  Madden reported that the study of the feasibility of purchasing water from Osceola Rural Water is not complete, but it may be an option in the south part of the system.

 

Burr Exploration:  Healy reported that Liesch Associates have been directed to prepare plans for the 12” test well at the Hemish site and the project should be ready to bid soon.

 

Wellhead Protection:  The University of Minnesota held “field days” at the Holland and Verdi wellheads on July 25th, and the research looks promising.  A Holland Wellhead Protection meeting is scheduled for 1:30 p.m. on Tuesday, August 20th at the LPRW office.  The Water Resources and Equipment Committee should plan to attend the meeting.

 

Regional Water Supply:  Discussions with Adrian and Edgerton continue, and the Board directed Healy and Evers to work closely with the cities to develop supplemental and emergency supplies as soon as possible.  Healy reported that a meeting with the City of Dawson is scheduled for noon on August 8th at the Dawson City Hall.  Healy, Evers, Engels, Swenson and Simonson will attend the meeting.

 

Director of Operations Report:  Don Evers reported on the following items:

·   Drietz reported that Winters Construction has some cleanup to do on the Lynd line, North Phase easements are about done, most services in the existing system have been completed, and the Skorczewski service has been disconnected.

·   Evers provided an update on Lewis & Clark progress, and reported that federal funding is pending but a groundbreaking is scheduled for September.

·   Building repairs have been completed at four pump stations.  Failing copper pipe at the Holland WTP is being replaced with plastic pipe at an approximate cost of $5,000.

·   A used Ditch Witch trencher has been purchased for about $43,000 plus trades on the existing trencher and Bradco.  This is less than budgeted and was discussed and authorized at the July 15th special meeting.

·   A garage door was damaged at Verdi and some vehicles received minor hail damage in the Sunday storm.

 

Director of Finance and Administration Report:

·   Healy noted that registrations for the National Rural Water Conference in Spokane need to be sent in.  M/S/P Lonneman/Buysse to authorize Evers, Healy and Ufkin to attend, and to authorize meal reimbursements at the “High Rate” (middle) as defined in the Personnel Policy.

·   Healy reported that he met at the Holland WTP with a tour group with the Minnesota Geological Society on Sunday morning.  The group included about 50 people, mostly from the metro area.

 

Committee Reports:  The following committee reports were given:

 

Executive Committee: No report.

 

Budget & Finance Committee:  See July 15th minutes.  The next Committee meeting was set for 4:00 p.m. on August 12th at the LPRW office.

 

Personnel Committee:  Rod Spronk reported that the Committee has reviewed staffing needs and recommendations, and the Committee recommends that another Field Superintendent position be created.  The Committee further recommends that effective December 30, 2002 Tom Muller be promoted to Field Superintendent at Step 2, Year 5.  M/S/P Swenson/Simonson to approve the Personnel Committee recommendation as presented.  See July 15th minutes.  The Committee will meet with all staff at 2:45 p.m. on August 12th at the LPRW office to announce the appointment.

 

Water Resources and Equipment Committee: See July 15th minutes.  The next Committee meeting was set for 4:00 p.m. on August 12th at the LPRW office.

 

Minnesota Rural Water Association, Board Representative:  No report.

 

Adjournment:  M/S/P Buysse/Van Dyke to adjourn the meeting at 10:30 p.m.  The next Regular Board meeting will be Monday, August 26, 2002 at 6:00 p.m.  A special Board meeting will be held at 5:00 p.m. on August 12th with Committee meetings scheduled for 2:45 p.m. and 4:00 p.m.

 

 

 

 

 

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                                                                                                Rod Spronk, Secretary