LINCOLN PIPESTONE RURAL WATER SYSTEM

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

                (507) 368-4248 or (800) 462-0309                 fax (507) 368-4573                                  email:  lprw@itctel.com

 

 

 

 

MEETING MINUTES

September 29, 2003

 

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, September 29, 2003 starting at 6:00 p.m.  Chairman Frank Engels called the meeting to order with Commissioners Ken Buysse, Earl DeWilde, Jerry Lonneman, Charlie Simonson, Rod Spronk, Leonard Swenson, Henry Van Dyke, Joe Weber, and Bill Ufkin present. Also present were several development representatives from the Affinity Hills Estates subdivision in Lynd; DGR Engineer, Darin Schriever; Field Superintendents, Don Drietz and Tom Muller; Director of Finance and Administration, Dennis Healy; and Director of Operations, Don Evers.

 

Agenda:  The Agenda was approved as presented.

 

Minutes:  M/S/P Swenson/Van Dyke to approve the minutes of the August 25, 2003 Regular Board meeting.  M/S/P Ufkin/Buysse to approve the minutes of the September 11, 2003 Personnel Committee meeting.

 

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

 

Bills:  M/S/P Swenson/DeWilde to approve the following bills for payment:

·   DeWild Grant Reckert and Associates Company: Minneota Tower #37 = $3.022.71; NE Phase #34 = $17,780.68; Lynd Area #33 = $1,164.50;

·   McDonald, Gudmestad & Schramel: General Legal Services = $635.82; Northeast Expansion = $50.00

·   Eatherly Constructors, Inc.: NE Phase Schedule 1B Mainline-Pay Estimate #11 = $297,078.08

·   Caldwell Tanks, Inc.: NE Phase Minneota Tower-Pay Estimate #8 = $59,793.00

·   Ervin Well Co.: NE Phase Wells #8, #9 & #10-Pay Estimate #1 = $32,890.07

·   Meier Electric, Inc.: NE Phase Minneota Booster Generator Cord Set = $3,234.00

 

Affinity Hills Estates subdivision in Lynd:  Representatives of the developers of the Affinity Hills Estates subdivision in Lynd met with the Board to discuss the costs to connect duplexes to rural water when each unit of the duplex will be owned by its occupant in a condominium or similar arrangement.  The proposed duplexes are located on a single lot, and original discussions assumed that there would be one hookup per lot.  The developers suggested that one hookup be installed in the name of a “homeowners association” that would then supply water to each duplex, but that appears to be contradictory with City and LPRW practice so LPRW staff recommended that the hookup cost be adjusted but each unit treated as a separate hookup.  M/S/P Ufkin/Lonneman to adopt the following “ADDENDUM 1 TO LINCOLN PIPESTONE RURAL WATER CONNECTION AND USE POLICY.”  Buysse voted against the motion.

 

ADDENDUM 1 TO

LINCOLN PIPESTONE RURAL WATER

CONNECTION AND USE POLICY

Adopted: December 17, 1979

As Clarified Through October 28, 2002

Addendum Adopted:  September 29, 2003

 

      Lincoln Pipestone Rural Water adopted a “Connection and Use Policy” on December 17, 1979, and that policy was further clarified and ratified by the LPRW Board through October 28, 2002.  The LPRW Board of Commissioners has the sole and exclusive right to amend, interpret or otherwise change this Policy at any time.  This “Addendum 1” was adopted by the LPRW Board of Commissioners on September 29, 2003 to establish LPRW Policy concerning connection of two-family (duplex) homes only within the Affinity Hills Estates subdivision in the City of Lynd.

 

This Addendum to the Policy shall only apply to duplex buildings placed on a single lot within the Affinity Hills Estates subdivision in the City of Lynd where each unit within the duplex is or may be separately owned.  This Addendum is further clarified and defined as follows:

 

A.       The Board authorizes a variance in hookup costs in this unique instance because the two dwelling units in a duplex will probably create about the same demand on the System as a typical single hookup, and existing policy would create excessive costs to the developer thereby limiting development and ultimately reducing revenues to LPRW.  Additionally, the agreement between the City of Lynd, the developer and LPRW suggests that each unit should be separately metered and controlled.

 

B.       The Board therefore authorizes the following hookup cost schedule in this specific case only.

 

1.   The developer/builder of each duplex building shall pay a membership fee for each duplex unit.  The membership fee is $350 per unit (a duplex is two units so the fee would be $700 for the duplex) as of the date of adoption of this Addendum, but the fee may be changed by the Board without notice.  The per unit membership fee will be the same as that charged for any other new hookup in Lyon County at the time of the hookup.

 

2.   The developer/builder of each duplex building shall pay a hookup fee plus the cost of a second service installation. The hookup fee for a duplex in this specific case is $8,900 for a full hookup plus $1,200 for the second service installation for a total of $10,100 as of the date of adoption of this Addendum, but the fees may be changed by the Board without notice.  The full hookup fee will be the same as that charged for any other new hookup in Lyon County at the time of the hookup, and the second service installation cost will reflect actual costs of materials and labor for a typical service installation.

 

C.       Each unit within a duplex will be treated as an individual customer for the purposes of utility billing and service.

 

D.      The developer/builder shall inform each buyer of the location of all water service lines on the property, and where applicable ensure that all necessary easements are in place prior to the sale of the property.  LPRW is not responsible for water service lines on the house side of the curb stop, but LPRW retains ownership of the water meter and is authorized access to the meter as a condition of service.

 

E.       The terms and conditions cited in this Addendum shall not apply to any other situation outside that described herein.

 

 

Attorney’s Report:  Dan McDonald could not attend the meeting.  Appointment of a new Board member from the Northeast Expansion area was discussed, and the Board decided to table further discussion until the next meeting because the Search Committee has not received any inquiries about the position.

 

Engineer’s Report:  Darin Schriever reported on the following items:

 

•  Lynd Project:  The Project is complete except for some minor cleanup and paperwork.

 

•  Minneota Tower and Booster:  Painting of the tower is completed and it will be filled soon.  KHC is taking care of paint problems for the booster station portion of the project.

 

•  Green Valley Booster:  Work should be nearly complete by the end of October.

 

•  Schedule 1B Mainline:  The contractor is installing services, and  people are beginning to receive water.  M/S/P Ufkin/Simonson to approve, subject to USDA-RD concurrence, Change Order #7 increasing the Eatherly Contract by $21,885.00 for additional hookups and lines.

 

•  Burr WTP Improvements:  The feasibility report is being completed.

 

•   Burr Wells:  The Ervin Well Company is making good progress.

 

 

Regional Water Development:

 

•  Adrian:  M/S/P Lonneman/Van Dyke to approve the Stover Easement and Option for exploration, drilling and a well site west of Adrian.

 

•  Rock County Rural Water:  The RCRW Board plans to meet with us to discuss the Lewis & Clark project.

 

 

Director of Operations Report:

·   Don Evers reviewed the Lewis & Clark FY2004 budget, and reported that one Iowa system is late paying their dues.  The Board felt that any system behind on their dues should lose their voting privileges.

·   Don Evers reported that lime removal at Burr is nearly complete at an estimated cost of $60-70,000.

·   Don Evers reported that 4 furnaces are being replace at the Burr WTP at a cost of $9,223.00.

 

Director of Finance and Administration Report:

·   Healy reported that we plan to meet with Marshall Municipal Utilities to discuss possible cooperation on Security planning activities.

·   A summary of hookups in the Northeast Phase Expansion Project was presented for Board review.

·   Healy reported that we have given 24 conservation rebates in 2002 and 16 so far in 2003.

·   Healy will contact our elected representatives our elected representatives about the costs of stream crossing permits.

 

Committee Reports: The following committee reports were given:

Executive Committee: No report.

Budget & Finance Committee: The Committee has prepared a preliminary budget for review.

Personnel Committee: The Committee has presented a preliminary budget proposal to the Budget Committee.

Search Committee: The Committee will meet again in early November.

Water Resources and Equipment Committee: No report.

Minnesota Rural Water Association, Board Representative:  Leonard Swenson reported that MRWA investment policies are being reviewed.  M/S/P Ufkin/Lonneman to recommend that MRWA investments be limited to investments that do not risk loss of principal.

The Budget, Personnel and Equipment Committees will meet before the next Board meeting if schedules can be worked out.

 

Other: The Rock County Rural Water Board will be invited to the next Board meeting.  Board per diem rates was discussed but no action was taken.

 

Adjournment:  M/S/P Spronk/Lonneman to adjourn the meeting at 9:30 p.m.  The next Regular Board meeting will be Monday, October 27, 2003 at 6:00 p.m.

 

 

 

 

                                                                                     ______________________________________________

                                                                                                Rod Spronk, Secretary