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

SPECIAL MEETING MINUTES

The special meeting of the Lincoln Pipestone Rural Water (LPRW) System Board of Commissioners was held at the LPRW office in Lake Benton, Minnesota on Monday, August 12, 2002 starting at 5:00 p.m. Chairman Frank Engels called the meeting to order with Commissioners Jerry Lonneman, Joe Weber, Rod Spronk, Roger Gilliland, Charles Simonson, Leonard Swenson, Henry Van Dyke and Ken Buysse present. Commissioner Bill Ufkin was absent. Also present were Director of Operations, Don Evers; and Director of Finance and Administration, Dennis Healy. The purpose of the meeting was to discuss the Lynd pipeline project through the MS&G development, and to receive reports from the Committees that met prior to the Board meeting.

At 2:45 p.m. the Personnel Committee met with the LPRW employees to announce the appointment of Tom Muller to a new Field Superintendent position effective December 30, 2002. The Committee stated the Board’s position on the position, and presented their expectation that all staff members will support Muller in his new position. Several people asked about pay and benefits changes in 2003, and Healy presented preliminary proposals being discussed. Healy will research comparable salaries.

At 4:00 p.m. the Personnel; Water Resources & Equipment; and the Budget & Finance Committees met to discuss the issues budget related issues specific to each of the Committees. The Personnel; and Water Resources & Equipment Committees presented recommendations to the Budget & Finance Committee for the 2003 Budget and Capital Improvement Program. The Budget & Finance Committee will precede with preparation of the 2003 Budget and Capital Improvement Program based on the recommendations received, and other information once it is received.

The Special Board meeting started at 5:00 p.m. with a general overview of the issues involving the MS&G development and the delays it has caused in the Lynd Project. Evers and Healy reported that they met with Ted Anderson and Jim Munson to review the project, and Anderson had offered to pay for any cost overruns and allow the project to be re-routed through his property. Evers and Healy indicated that the alternative would work but would result in duplicated lines in the long run. M/S/P Weber/Lonneman to send a letter to the MS&G development land owner (Ted Anderson) agreeing to their proposal with the following conditions:

• Anderson will provide, at his own cost, a survey of the water line right-of-way through his property, and indicate his preferred location for the waterline within the right-of-way. The right-of-way and waterline location must be acceptable to LPRW.

• Anderson will provide an easement to LPRW based on the survey noted above. The easement width shall be at least 50 feet or dimensions otherwise acceptable to LPRW.

• LPRW will provide an estimate of the scope and cost of the additional work. Anderson will provide a written assurance, in a form acceptable to LPRW, that he will pay LPRW for all expenses incurred by LPRW that are the result of additional work created by changing the alignment of waterlines within his property.

Additionally, Anderson will meet all of the conditions in a timely manner with no further delay in the project.

M/S/P Buysse/Simonson to adjourn the meeting at 5:45 p.m.

Minutes Compiled By:

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Dennis Healy