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

December 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, December 27, 2004 starting at 10:00 a.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 Board Attorney, Ron Schramel; DGR Engineer Darin Schriever; Field Superintendents Don Drietz and Tom Muller; and CEO, Dennis Healy.  The Board met with LPRW employees to discuss personnel issues from 8:30 to 10:00 a.m.

 

 

Agenda: The Agenda was approved as presented.

 

 

Minutes:  M/S/P Engels/Van Dyke to approve the minutes of the November 29, 2004 Regular Board meeting, and to approve the December 9, 2004 minutes of the Water Resources & Equipment Committee and the Budget & Finance Committee.

 

 

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

 

 

Bills:  M/S/P Ufkin/Simonson to approve the following bills for payment:

·   DeWild Grant Reckert and Associates Company: NE Phase #49 = $3,379.93; Adrian Well No. 7 #2 = $2,216.17; Lismore Service Connection #5 = $1,551.85;

·   McDonald, Gudmestad & Schramel: General Legal Services = $1,287.00

·   Pat Sterzinger: (NE Phase) Schedule 1C-Pipeline Extensions, PPE #5-Final = $20,332.80

·   Robert L. Carr, Co.: (NE Phase) Burr Well enclosures, PPE #3-Final  = $4,650.00

·   Mid States Utilities, Inc.: (Lismore) Lismore hookup, PPE #1-Final = $73,732.40

·   Vlaminck Electric, Inc.: (NE Phase) Burr WTP electrical improvements Schedule D #1  = $15,000.00

·   David Borresen Construction: (NE Phase) Burr generator relocation  = $1,550.00

·   C & K Construction: (NE Phase) 15 late hookups  = $152,148.00; (General) 3 new hookups = $37,890.00

·   US Bank: Lincoln County GO Refunding Bond of 2001 = $465,140.00

 

 

Attorney’s Report: Board Attorney, Ron Schramel reported that the assessment hearing for 106 hookups in 2004 will be held on January 12th.  FSA issues with the CRP acres at the Verdi and Holland well fields were discussed.  M/S/P Ufkin/Buysse to authorize the Water Resources & Equipment Committee to take the actions necessary to maintain CRP payments.  A letter notifying Eatherly Constructors that their contract would be terminated for cause was reviewed.  M/S/P Engels/Brunner to send the letter notifying Eatherly Constructors that their contract would be terminated for cause.  M/S/P Lonneman/Swenson to adopt “RESOLUTION REGARDING THE ISSUANCE, SALE AND DELIVERY OF GENERAL OBLIGATION WATER SYSTEM REFUNDING BONDS, SERIES 2005A (LINCOLN PIPESTONE RURAL WATER SYSTEM) OF LINCOLN COUNTY, MINNESOTA” and to authorize the officers of the LPRW Board to execute all required documents.

 

 

 

 

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

 

•  Schedule 1B Mainline: A termination letter has been sent.

 

•  GIS/GPS:  DGR is about done with the staking sheets, and additional staff training is being scheduled.

 

•  Schedule 1C Pipeline:  The contractor is nearly completed but grass seeding will be done in the spring.  M/S/P Simonson/Engels to approve Change Order #3 to adjust the contract for final quantities and reduce the contract price by $4,448.69.

 

•  Burr WTP Improvements:  Work on the treatment plant projects is progressing.  Additional work on the Schedule D Burr WTP Electrical Contract was reviewed.  M/S/P Swenson/Brunner to approve Change Order #1 for additional work at a cost of $12,214.00.  Bids for Schedule E Burr WTP Chemical Feed Upgrades were reviewed.  M/S/P Ufkin/DeWilde to award the Schedule E Burr WTP Chemical Feed Upgrades contract to low bidder, Robert L. Carr Co. for $55,700.  Frank Engels abstained from the vote.

 

•  Lismore:  Mid States completed the work 24 days late, and they may contest the liquidated damages amount of $4,800.  M/S/P Van Dyke/Lonneman to approve Change Order #1 decreasing the contract amount by $6,878.60 for final quantities and liquidated damages.

 

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

 

•   Adrian:  M/S/P Lonneman/Brunner to authorize LPRW staff to hire local contractors for the electrical, plumbing and dirt work required to complete Adrian Well #7.

 

 

Operations Report: 

•   Tom Muller presented information on costs of a replacement lawn mower and accessories, and a snow blower for the skid steer loader.  M/S/P Ufkin/Swenson to purchase a John Deere mower from Southwest Implement in Tyler.

·   The Lewis & Clark project report was discussed.

 

 

CEO Report:

·   The Northeast Phase Project financial status was reviewed.

·   Healy reported that Minnesota statutes have been changed to require LPRW to pay interest on security deposits starting in 2005.  M/S/P Lonneman/Buysse to discontinue the collection of security deposits and return deposits previously collected, and to notify property owners that they are responsible for unpaid renter water bills.

·   Current crop damage rates ($350 for fields with standing crops, $250 for fields with no standing crops, and $100 for pasture, CRP, etc.) were reviewed, and the Board felt some of the crop rates were low.  M/S/P Engels/DeWilde to set crop damage rates to $450/acre for fields with standing crops, $300 for fields with no standing crops, and $100 for pasture, CRP, etc.  The rates will become effective in 2005.

·   Healy announced that the Minnesota Rural Water Association conference is scheduled for March 8-10 in St. Cloud.

·   Dividends of about $9,000 on the Northeast Phase interim bond, and $1,994 on our Property & Casualty insurance have been or will be received.

·   M/S/P Buysse/Swenson to approve the 2005 regular Board meeting schedule.

 

 

Committee Reports: The following committee reports were given:

Executive Committee: No report.

Personnel Committee: The Committee reported that Don Evers decided to retire rather than accept the positions offered.  Salary and vacation issues that need to be addressed in the future were discussed.

Water Resources and Equipment Committee: M/S/P Buysse/Van Dyke to adopt the 2005-2010 Capital Improvement Program as presented.

Budget & Finance Committee: M/S/P Lonneman/Simonson to approve the 2005 Budget as presented.

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

 

Other:

Election of officers:  The following officers will be installed at the January Board meeting.

·   Chairman: M/S/P Lonneman/Ufkin to nominate Rod Spronk.  M/S/P Weber/Engels to cease nominations and cast a unanimous ballot to elect Rod Spronk Chairman for 2005.

·   Vice-Chairman: M/S/P Engels/Weber to nominate Jerry Lonneman. M/S/P Swenson/Buysse to cease nominations and cast a unanimous ballot to elect Jerry Lonneman Vice-Chairman for 2005.

·   Secretary: M/S/P Buysse/Ufkin to nominate Joe Weber. M/S/P Swenson/Simonson to cease nominations and cast a unanimous ballot to elect Joe Weber Secretary for 2005.

·   Treasurer: M/S Swenson/Weber to nominate Bill Ufkin. M/S/P Engels/Lonneman to cease nominations and cast a unanimous ballot to elect Bill Ufkin Treasurer for 2005.

 

Adjournment:  M/S/P Lonneman/Brunner to adjourn the meeting at 2:30 p.m.  The next Regular Board meeting will be Monday, January 31, 2005 at 10:00 a.m.

 

 

 

 

______________________________________________

                                  Joseph Weber, Secretary