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

October 25, 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, October 25, 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 Bob Eatherly, Eatherly Constructors, Inc.; Board Attorney, Ron Schramel; DGR Engineer Darin Schriever; Field Superintendent Don Drietz; Director of Finance and Administration, Dennis Healy; and Director of Operations, Don Evers.

Agenda: M/S/P Engels/Lonneman to approve the Agenda with the addition of several items.

Minutes: M/S/P Engels/Brunner to approve the minutes of the September 27, 2004 Regular Board meeting.

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

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

· DeWild Grant Reckert and Associates Company: NE Phase #47 = $15,468.66; Lismore Service Connection #3 = $1,000.00; General Services #40 = $1,456.50

· McDonald, Gudmestad & Schramel: General Legal Services = $1,413.00; NE Expansion = $84.00

· Pat Sterzinger: (NE Phase) Schedule 1C-Pipeline Extensions, PPE#3 = $113,050.84

· Prairie Wild Enterprises, Inc.: (NE Phase) Minneota storage building hydro seeding = $1,298.77

· Liesch Associates, Inc.: (Adrian) Adrian well # 7 = $1,032.00

· US Bank: 1997 Refunding Bond payment = $289,377.50

Bonds: M/S/P Engels/Simonson to authorize the LPRW staff and The PFM Group to proceed with refinancing of the “General Obligation Refunding Bonds of 1998 Series B” issued through Lincoln County provided that adequate savings can be achieved. M/S/P Lonneman/Brunner to authorize the LPRW staff to proceed to prepay the “General Obligation Refunding Bonds of 1998” issued through Lincoln County.

Attorney’s Report: Board Attorney, Ron Schramel presented a “Legal Services Agreement” for the USDA-RD System-wide Expansion and Improvement Project for Board consideration. M/S/P DeWilde/Swenson to approve the “Legal Services Agreement” with McDonald Gudmestad & Schramel, PLLP for the System-wide Expansion and Improvement Project.

Lismore: Mid States is close to completing the work on the Lismore hookup. M/S/P Buysse/Van Dyke to approve Change Order #1 that extends the completion date by 15 days.

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

• Schedule 1B Mainline: Bob Eatherly representing Eatherly Constructors, Inc. met with the Board to discuss issues relating to the closeout of the Schedule 1B Mainline contract. The Board expressed their desire to closeout the project, but a number of punch list items need to be completed. Bob Eatherly said he will have people here for the next 2 or 3 to complete the punch list items, and he will provide the Board a proposal to settle the final quantity issues by November 15^th. M/S/P Lonneman/DeWilde to direct the LPRW staff to hire someone to finish the punch list items if Eatherly does not complete them by November 15^th. All cost will be billed back to Eatherly and/or his bonding company.

• GIS/GPS: DGR is about 90% done with the staking sheets.

• Schedule 1C Pipeline: The contractor is making satisfactory progress. M/S/P Weber/Lonneman to approve Change Order No. 2 to the contract for Northeast Phase and Internal Expansion Schedule 1C – Pipeline Extensions to increase the contract by $5,319.56, and to add 15 days to the contract completion.

• Burr WTP Improvements: Work on the treatment plant projects is progressing, and much of it will be ready for final payment at the November meeting.

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

• 2005 Project Application: The 2005-2008 System-wide Expansion and Improvement Project is being processed by USDA-Rural Development.

• Adrian: DGR is working on plans to connect the well to the City system after the well is drilled. Liesch Associates has submitted well plans to the Minnesota Department of Health for approval.

Regional Water Development:

• Lewis and Clark: Construction and design work continues on the project.

• Edgerton: No new information on the City of Edgerton interconnect.

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

• CRP issues with the Pipestone County FSA office were discussed.

· The Lewis & Clark project report was presented.

· Small booster pumps are needed at the Chandler tower and south of the Ivanhoe tower. M/S/P Lonneman/Van Dyke to install both booster pumps this fall if possible.

· Evers requested authorization to purchase a semi-tractor and trailer to replace the 1987 gravel truck and trailer. The purchase was included in the 2004 Capital Improvement Program at a net cost of $45,000. M/S/P Ufkin/Lonneman to authorize staff to purchase a semi-tractor and trailer at a net cost not to exceed $45,000.

Director of Finance and Administration Report:

· The Northeast Phase Project financial status was reviewed.

Committee Reports: The following committee reports were given:

Executive Committee: No report.

Water Resources and Equipment Committee: No report.

Personnel Committee: No report.

Budget & Finance Committee: No report.

Minnesota Rural Water Association, Board Representative: Leonard Swenson updated the Board on MRWA activities including the new vehicle purchase program.

Adjournment: M/S/P Engels/Lonneman to adjourn the meeting at 10:15 p.m. The next Regular Board meeting will be Monday, November 29, 2004 at 10:00 a.m.

______________________________________________

Joseph Weber, Secretary