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 27, 2004

 

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 30, 2004 starting at 6:00 p.m. Chairman Rod Spronk called the meeting to order with Commissioners Mike Brunner, Ken Buysse, Earl DeWilde, Frank Engels, Charlie Simonson, Leonard Swenson, Joe Weber, Jerry Lonneman, Henry Van Dyke, and Bill Ufkin present. Also present were Shane Hastings, USDA-RD; Bob Eatherly, Eatherly Constructors, Inc.; Board Attorney, Ron Schramel; DGR Engineer Darin Schriever; Field Superintendents Tom Muller and Don Drietz; Director of Finance and Administration, Dennis Healy; and Director of Operations, Don Evers.

 

Agenda:  The Agenda was approved with the addition of several items.

 

Minutes:  M/S/P Engels/Brunner to approve the minutes of the August 30, 2004 Regular Board meeting, the minutes of the August 30th Water Resources & Equipment Committee meeting, and the minutes of the September 13th and August 30th Personnel Committee meetings.

 

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

 

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

·   DeWild Grant Reckert and Associates Company: NE Phase #46 = $12,298.20; Lismore Service Connection #2 = $2,000.00; General Services #39 = $830.50

·   McDonald, Gudmestad & Schramel: General Legal Services = $1,077.00; NE Expansion = $94.50

·   Pat Sterzinger: (NE Phase) Schedule 1C-Pipeline Extensions, PPE#2 = $138,273.27

·   Vlaminck Electric, Inc.: (NE Phase) Electrical @ Burr Wells, PPE#1 = $18,000.00

 

Eatherly: Bob Eatherly representing Eatherly Constructors, Inc. met with the Board to discuss issues relating to the closeout of the Schedule 1B Mainline contract.  Pipeline quantities need to be worked out with DGR and LPRW staff, and several punch list items need to be completed.

 

USDA-RD: An application conference with Shane Hastings from USDA-RD addressed the procedures for future steps to complete Phases 1 – 3 of the System-wide Expansion and Improvement Project.  The Preliminary Engineering Report is one of the next major steps to be completed.

 

Attorney’s Report: Board Attorney, Ron Schramel reviewed the procedures for reappointment to the Board of Commissioners for Henry Van Dyke, Frank Engels and Leonard Swenson whose terms end on December 31, 2004.  The following resolution was acted upon:

 

RESOLUTION RECOMMENDING REAPPOINTMENT OF BOARD MEMBERS

OF THE LINCOLN PIPESTONE RURAL WATER SYSTEM

WHEREAS, the terms of Lincoln Pipestone Rural Water Commissioners Frank Engels (representing Lincoln County), Leonard Swenson (representing Lac Qui Parle and Yellow Medicine Counties) and Henry Van Dyke (representing Murray and Nobles Counties) are scheduled to expire on January 1, 2005; and

WHEREAS, Frank Engels, Leonard Swenson and Henry Van Dyke have agreed to serve another term as commissioner on the Lincoln Pipestone Rural Water System Board; and

WHEREAS, Lincoln Pipestone Rural Water System Board believes that Frank Engels, Leonard Swenson and Henry Van Dyke are valuable members of the LPRW Board of Commissioners and that they are worthy of reappointment.

BE IT NOW RESOLVED that Lincoln Pipestone Rural Water System Board of Commissioners hereby recommends the reappointment of Frank Engels (representing Lincoln County), Leonard Swenson (representing Lac Qui Parle and Yellow Medicine Counties) and Henry Van Dyke (representing Murray and Nobles Counties) to the Lincoln Pipestone Rural Water System Board of Commissioners pursuant to and provided for by Minnesota Statutes 116A.

 

Commissioner Bill Ufkin moved the resolution and Commissioner Joe Weber seconded the resolution with the following Commissioners voting in favor and the following commissioners voting against:

 

FOR:       Michael Brunner, Joe Weber, Rod Spronk, Bill Ufkin, Jerry Lonneman, Earl DeWilde, Charlie Simonson, and Ken Buysse

 

AGAINST:  none

 

ABSTAIN: Frank Engels, Leonard Swenson and Henry Van Dyke

 

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

 

•  Schedule 1B Mainline:  Issues concerning final quantities and punch list items need to be resolved.

 

•  GIS/GPS:  DGR is about 75% done with the staking sheets.

 

•  Schedule 1C Pipeline:  The contractor is making satisfactory progress.  M/S/P Lonneman/Swenson to approve Change Order No. 1 to the contract for Northeast Phase and Internal Expansion Schedule 1C – Pipeline Extensions to increase the contract by $9,437.14.

 

•  Burr WTP Improvements:  The electrical work is about done, and the control building work at the Burr Wells is progressing.  The US Filter shop drawings have been reviewed.  Chemical feed upgrades are being designed.  Bids for electrical controls were received from Vlaminck Electric ($18,737) and Meier Electric ($24,600).  M/S/P Simonson/Engels to award the Burr WTP Electrical Control contract to Vlaminck Electric for a price of $18,737.00.

 

•   Burr GSR: USDA-RD is reviewing the Preliminary Engineering Report.

 

•  Lismore:  Mid States has begun work on the hookup.

 

•   Adrian:  DGR is working with Liesch Associates to get the well installed this fall.

 

Executive Session:  At approximately 8:30 p.m. the Board went into executive session to discuss personnel matters.  The purpose of the executive session was to consider reorganization of LPRW staff, and to consider the Employment Agreement offered to Don Evers and the counterproposal presented by Don Evers.  M/S/P DeWilde/Van Dyke to reject the 3-year counterproposal offered by Don Evers, and to withdraw the 1-year proposal that has been rejected by Don Evers.  The Board’s 1-year proposal is attached as follows:

 

EMPLOYMENT AGREEMENT

 

        THIS AGREEMENT made and entered into this ______ day of _______________________, 20___, by and between Lincoln Pipestone Rural Water System, a rural water system of the State of Minnesota, hereinafter called the "LPRW," and Donald Evers.

 

W I T N E S S E T H:

 

        WHEREAS, LPRW is organized as a rural water system pursuant to 116A of Minnesota Statutes; and

 

        WHEREAS, Donald Evers desires to retire from full-time employment as the Director of Operations for LPRW effective January 1, 2005; and

 

        WHEREAS, Donald Evers desires to begin part-time employment as a Technical Support Person for LPRW effective January 1, 2005; and

 

        WHEREAS, LPRW agrees to the change in employment status of Donald Evers from full-time Director of Operations to part-time Technical Support Person effective January 1, 2005.

 

        NOW THEREFORE, in consideration of the terms and conditions hereinafter set forth, the Parties agree as follows:

 

·            EFFECTIVE DATE AND TERM:  This Agreement shall become effective on January 1, 2005, and shall remain in effect for one year or unless it is cancelled sooner by agreement of both parties.  After one year this agreement may be extended by agreement of both parties.

 

2.     JOB TITLE AND DUTIES:  The position that Donald Evers is appointed to effective January 1, 2005 is called “Technical Support Person” and the duties shall be as assigned by the Board’s designated representative.  Duties may include but are not limited to serving as the appointed LPRW representative on various boards and organizations; training and mentoring LPRW personnel; water resource monitoring; project monitoring and documentation; organization of system documents and records; and such other duties as may be assigned.

 

3.     HOURS OF WORK:  The average work week for this position shall be at least 20 hours per week or enough hours to maintain eligibility for health insurance benefits.

 

4.     PAY AND BENEFITS:  The pay and benefits for this position shall be as follows:

 

A. The pay for this position shall be $30.00 per hour, or such other hourly rate as may be agreed to in writing by the parties.

 

B. The benefits for this position shall be defined as follows:

1.      LPRW will continue to contribute 5-1/2% of Donald Evers gross pay to his account in the LPRW retirement plan.

2.      LPRW will allow Donald Evers to continue to participate in the LPRW health insurance plan on the same basis as full-time employees.

3.      Donald Evers may participate, at his option and at his cost, in the life and disability insurance program offered by LPRW.  Within the options allowed by the insurer, Evers may opt to pay for the coverage by payroll deduction or by a reduction in the hourly pay rate for this position.

4.      Donald Evers shall not accrue any additional paid vacation hours effective January 1, 2005, but he may carry over and use any vacation hours accrued and unpaid prior to that date.

5.      Donald Evers shall not accrue any additional paid sick leave hours effective January 1, 2005, but he may carry over and use any sick leave hours accrued and unpaid prior to that date.  Provided however that the maximum accrued sick leave hours shall not exceed 720 hours, and the maximum number of sick leave hours plus hours worked in any two-week pay period shall not exceed 40 hours.

6.      LPRW may allow Donald Evers to use an LPRW vehicle for official business if a vehicle is available.  If no LPRW vehicle is available, regular mileage rates will be paid for the use of his personal vehicle.

7.      Donald Evers shall not qualify for any other benefits or paid time off.

 

5.        RELATIONSHIP TO LPRW PERSONNEL POLICY:  This Agreement shall supercede any conflicting provision in the LPRW Personnel Policy, otherwise the LPRW Personnel Policy shall apply.

 

Preliminary proposals to reorganize LPRW staff functions to achieve greater efficiency and cost savings were discussed.  M/S/P Simonson/Engels to eliminate the Director of Operations position effective December 31, 2004 due to reorganization of the management structure for cost savings and more efficient operations.  The Board directed the Personnel Committee to proceed with planning for the staff reorganization and prepare additional recommendations for Board action.

 

At approximately 9:30 p.m. the Board reconvened in open session.  Secretary/Personnel Committee Chairman Joe Weber reported on the actions taken during the executive session, and informed Don Evers that the Committee and Board are willing to discuss options for possible employment after December 31, 2004.

 

2005 Project Application: The 2005-2008 System-wide Expansion and Improvement Project was discussed at meetings in Clarkfield on September 22nd and Dawson on September 23rd.  Both meetings were well attended and the project was well supported.  Healy reported that we have received several calls since the meeting.

 

Regional Water Development:

•  Adrian:  Lonneman, Evers and Healy met with the Adrian Public Utilities Commission on September 21st, and a “Water Purchase Agreement” was agreed to.  M/S/P Lonneman/Brunner to approve the “Water Purchase Agreement” with the Adrian Public Utilities Commission.

 

•  Edgerton:  Spronk and Evers have been contacted by the City of Edgerton to discuss an emergency connection between the City and LPRW.  Evers will put together a price for the project.

 

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

·   The Lewis & Clark budget was reviewed.  The previously approved revised Lewis & Clark membership agreement was signed by the Chairman and Secretary.

·   CRP issues with tree plantings were discussed.

·   A request that LPRW support leak detection work by TKDA in communities served by LPRW was discussed, but there was no support for the proposal.

·   A proposal to cement the floor in the Verdi storage building was presented.  M/S/P Ufkin/Brunner to refer the proposal to the Water Resources & Equipment Committee for consideration as part of the 2005-2010 Capital Improvement Program.

 

Director of Finance and Administration Report:

·   The Northeast Phase Project financial status was reviewed.

•   A letter from Don Sandberg concerning a proposed development at Stony Point on Lake Benton was reviewed and discussed.  The Board decided that no change from their previous proposal could be justified so they directed Healy to communicate that to the developer.

 

Committee Reports: The following committee reports were given:

Executive Committee: No report.

Water Resources and Equipment Committee: No report.

Personnel Committee: M/S/P Lonneman/Brunner to authorize hiring a Water Resource Technician based on the recommendations of the Personnel Committee.  M/S/P Ufkin/Brunner to approve the hourly wages rates recommended by the Personnel Committee effective December 27, 2004.  The Board announced that the staff will be reorganized effective January 1, 2005 to eliminate the Director of Operations position, but Don Evers may remain on staff in some other position.

Budget & Finance Committee: No report.

Minnesota Rural Water Association, Board Representative: No report.

 

 

Adjournment:  M/S/P Lonneman/DeWilde to adjourn the meeting at 11:15 p.m.  The next Regular Board meeting will be Monday, October 25, 2004 at 6:00 p.m.

 

 

 

 

______________________________________________

                                  Joseph Weber, Secretary