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

August 26, 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, August 26, 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 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 Swenson/Van Dyke to approve the minutes of the July 29, 2002 Regular Board meeting and the August 12, 2002 Special Board meeting.

 

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

 

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

·   DeWild Grant Reckert and Associates Company: Minneota Tower #24 = $12,897.26; NE Phase #21 =$28,814.65; Lynd Area #20 = $1,602.91; General Services #17 = $1,191.00; SW Minnesota Supply Project: #2 = $430.58; #4 = $2,973.94; #8 = $4,137.08

·   McDonald, Gudmestad & Schramel: NE Phase = $450.00; General Legal Services = $677.63

·   B. A. Liesch Associates, Inc.: Burr Test Well Project = $2,169.00

·   Engineering America, Inc.: Lynd Standpipe & Booster-Pay Estimate #1 = $183,976.90

 

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

•   A Joint Powers Agreement between Lincoln, Lyon, Yellow Medicine and Redwood Counties has been approved, and LPRW approval will allow the Interim and permanent bonds for the Northeast Phase Project to be issued.  M/S/P Ufkin/Swenson to adopt a “RESOLUTION PERTAINING TO JOINT POWERS AGREEMENT LINCOLN PIPESTONE RURAL WATER SYSTEM NORTHEAST PHASE EXTENSION BONDING” and to authorize the Chairman and Secretary to execute the Joint Powers Agreement.

•   Lease documents from Wells Fargo Bank for the Verdi and Burr standby generator projects were reviewed.  M/S/P Lonneman/Weber to approve the following Resolution:

 

 

RESOLUTION AUTHORIZING LEASE-PURCHASE AGREEMENT FOR STANDBY ELECTRIC FACILITIES AT THE VERDI PUMP STATION AND BURR WATER TREATMENT PLANT

 

                                The Lincoln Pipestone Rural Water Board of Commissioners hereby approves the “GOVERNMENTAL LEASE-PURCHASE MASTER AGREEMENT” between Lincoln Pipestone Rural Water System and Wells Fargo Brokerage Services, LLC in the amount of $200,000.00 to acquire standby electric generation facilities at the Verdi Pump Station and the Burr Water Treatment Plant.  Said lease shall require 20 semi-annual payments of $12,902.25 each, and at the end of the lease Lincoln Pipestone Rural Water System may at its option purchase the facilities for $1.00.  The officers of Lincoln Pipestone Rural Water are hereby authorized to execute such lease documents as are necessary to close the transaction.

 

 

                                The following commissioners voting in favor and the following commissioners voting against:

FOR:  Ken Buysse, Roger Gilliland, Jerry Lonneman, Charlie Simonson, Rodney Spronk, Leonard Swenson, Bill Ufkin, Henry Van Dyke, Joe Weber, and Francis Engels.

                                AGAINST:  none

 

•   An “AMENDED AND RESTATED COMMITMENT AGREEMENT” between Lewis and Clark Rural Water System and LPRW was presented for review and discussion.  No action was taken as the Board will act on it at a later meeting.

 

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 proceeding and Madden recommended that a September 25th bid date be set.  M/S/P Spronk/Buysse to set the bid opening for the Phase 3 Lynd Project for September 25, 2002 at 1:30 p.m. at the LPRW office in Lake Benton.  Healy noted that the “WATER IMPROVEMENT AGREEMENT” between the City of Lynd, the Andersons, and LPRW has not been approved by LPRW.  M/S/P Lonneman/Van Dyke to approve the “WATER IMPROVEMENT AGREEMENT” between the City of Lynd, the Andersons, and LPRW.

 

•  Minneota Tower & Booster Project:  The Booster Station bid letting has been scheduled for September 25, 2002 at 1:30 p.m. at the LPRW office in Lake Benton. Construction of the Minneota Tower is proceeding on schedule.

 

•  North Internal Users Project:  The Internal Users Expansion is proceeding on schedule with no problems except for some complaints about the boring crew that Evers will address with the contractor.

 

•  Northeast Phase Expansion Project: The NE Phase Mainline & User Additions bid letting has been scheduled for September 25, 2002 at 1:30 p.m. at the LPRW office in Lake Benton

 

DGR Request for Additional Compensation:  John Madden presented a request with documentation to increase NE Phase engineering fees from $457,000 to $523,000.  The Board discussed the request at length, and Madden answered several questions.  M/S/P Spronk/Ufkin to approve the DGR request subject to USDA-RUS approval.  All Commissioners voted in favor of the motion except Commissioner Buysse who voted against and Chairman Engels abstained from the discussion and vote due to a potential conflict of interest.

 

Burr Exploration:  Healy reported that Liesch Associates have prepared plans for the 12” test well at the Hemish site and the project can be bid as soon as they receive RUS approval.  M/S/P Weber/Simonson to authorize the project to be bid, and to authorize Healy and Evers to set the date and time of the bid opening.

 

Wellhead Protection:  The Holland Wellhead Protection meeting on August 20th was very productive.

 

Regional Water Supply:  The meeting with the City of Dawson on August 8th was very productive, and they are preparing a proposal for our consideration.  The Board decided to move ahead with the Edgerton interconnect, and expanded purchases from Adrian as soon as possible.  We should request a meeting with Adrian as soon as possible.  Pumping improvements at Edgerton to Chandler and Leota are being designed.  The study of the feasibility of purchasing water from Osceola Rural Water has not been received but sufficient water may not be available.

 

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

·   Drietz reported that the North Expansion is going good.

·   Evers provided an update on Lewis & Clark progress, and reported that federal funding is pending but the groundbreaking has been rescheduled until Spring.  A Minnesota Joint Powers Board meeting was held to discuss state and local financing.

·   The Verdi and Burr standby generators are scheduled to arrive in mid-September.

·   Building repairs have been completed at four pump stations, and the overhead door at Verdi has been fixed.

·   Don will be going to the twin cities to meet on the SCADA system.

·   The well fields are holding up well despite the dry conditions.  The nitrate tests at the Holland Well Field are showing a discrepancy between our results and the MDH results.  Evers will contact MDH to discuss the procedures used.

·   A report on electricity usage was received from Sioux Valley Southwestern Electric.

 

 

 

Director of Finance and Administration Report:

·   Healy reported on possible Board Training and Strategic Planning activities, and the Board suggested that the activities be put off until next year.

·   The Board suggested that more news releases be published as bids are let and construction begun.

 

Committee Reports:  The following committee reports were given:

 

Executive Committee: No report.

 

Budget & Finance Committee:  See August 12th minutes.  The next Committee meeting will be scheduled after health insurance costs are determined.

 

Personnel Committee: See August 12th minutes.

 

Water Resources and Equipment Committee: See August 12th minutes.

 

 

 

Minnesota Rural Water Association, Board Representative:  MRWA is growing and they are ready to start construction of their new building.

 

Other Business:  We need to develop a written policy on water service warranty from the curb stop into the property.  Good comments were received on our WEB site, and we should provide more information on this source.

Adjournment:  M/S/P Swenson/Simonson to adjourn the meeting at 10:15 p.m.  The next Regular Board meeting will be Monday, September 30, 2002 at 6:00 p.m.

 

 

 

 

 

 

 

 

______________________________________________

                                  Rod Spronk, Secretary