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

November 28, 2005 (Rescheduled to December 5, 2005 due to weather)

 

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 5, 2005 starting at 10:00 a.m. Chairman Rod Spronk called the meeting to order with Commissioners Mike Brunner, Ken Buysse, Bill Ufkin, Earl DeWilde, Charlie Simonson, Leonard Swenson, Henry Van Dyke, Jerry Lonneman, Frank Engels and Joe Weber present. Also present were Board Attorney, Ron Schramel; DGR Engineer, Darin Schriever; Field Superintendents, Don Drietz and Tom Muller; Water System Operator, Steve Lovre; and CEO, Dennis Healy.

 

New employee Steve Lovre was introduced to the Board, and his job responsibilities were briefly discussed.

 

Agenda:  M/S/P Van Dyke/Buysse to approve the Agenda with the Lewis & Clark presentation deleted.

 

Minutes:  M/S/P Lonneman/Ufkin to approve the minutes of the October 31, 2005 regular Board meeting.

 

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

 

Bills:  M/S/P Lonneman/Brunner to approve the following bills for payment:

·   DeWild Grant Reckert and Associates Company: General Services #52 = $6,447.50

·   McDonald, Gudmestad & Schramel: General Legal Services = $728.60; ECI litigation = $3,197.15

·   Robert L. Carr Co.:  NE Phase Burr WTP Schedule E – PPE #3 = $8,893.00

·   Carstensen Contracting, Inc.:  Boyd Service Connection – PPE #1 = $81,839.75

·   USDA Rural Development: Holland WTP Bonds of 1999 (91-20) = $131,043.75; NE Phase Bonds of 2004 (91-22) = $384,050.00

·   US Bank:  Lincoln Co. GO Bonds of 1998, Series B = $295,840.00; Nobles Co. GO Bonds of 2003 = $140,338.75; Lincoln Co. GO Bonds of 2003 = $106,024.38

 

Attorney’s Report:  Ron Schramel reported to the Board on the following issues:

 

•   Schramel reviewed the progress of the ECI v. LPRW case, and answered questions from the Board concerning costs and scheduling.

 

•   The 2005 assessment hearing is scheduled for December 28th.

 

•   The terms of Commissioners Weber, Spronk and Lonneman expire on January 1, 2006, and Schramel presented the following Resolution to recommend their reappointment by the Counties represented in the LPRW System.

 

RESOLUTION RECOMMENDING REAPPOINTMENT OF THREE LINCOLN PIPESTONE RURAL WATER DISTRICT COMMISSIONERS

 

RECITALS

 

        WHEREAS, the terms of Lincoln Pipestone Rural Water District Commissioners, Joseph Weber (representing Lincoln County), Rodney Spronk (representing Pipestone County), and Jerry Lonneman (representing Nobles and Rock Counties) are scheduled to expire on January 1, 2006; and

 

        WHEREAS, Joseph Weber, Rodney Spronk, and Jerry Lonneman have all agreed to serve another four-year term as commissioners on the Lincoln Pipestone Rural Water District board; and

 

        WHEREAS, the Lincoln Pipestone Rural Water District board believes that Joseph Weber, Rodney Spronk and Jerry Lonneman are valuable members of the Lincoln Pipestone Rural Water District Board of Commissioners and that they are worthy of reappointment.

RESOLUTION

 

        BE IT NOW RESOLVED that the Lincoln Pipestone Rural Water District Board of Commissioners hereby recommends the reappointment of Joseph Weber (representing Lincoln County), Rodney Spronk (representing Pipestone County), and Jerry Lonneman (representing Nobles and Rock Counties) to the Lincoln Pipestone Rural Water District Board of Commissioners pursuant to and provided for by Minnesota Statute §116A et. seq.

 

        Commissioner Bill Ufkin moved the resolution and Commissioner Leonard Swenson seconded the resolution.  The vote on the Resolution went as follows:

 

For:  Henry Van Dyke, Frank Engels, Leonard Swenson, Kenneth Buysse, Charles Simonson, Earl DeWilde, Bill Ufkin, and Michael Brunner.

 

Against:  None

 

Abstained:  Joseph Weber, Rodney Spronk, and Jerry Lonneman.

 

Field Superintendents’ Report:  Don Drietz and Tom Muller reported on the following items:

·   Drietz reported on power outages at the Burr WTP and Hendricks pump station.  Service was maintained using the generators available.  We provided an employee and a backhoe for 4 days to help Lyon-Lincoln Electric restore service in the area.

·   A number of new services remain to be installed this year, and local contractors are being used to complete the work.

·   The costs of replacing pipe located in easements outside the highway right-of-way in Nobles County was discussed.

·   Muller reported that developers of a potential ethanol plant in Pipestone County had contacted him about water service.  Healy indicated that a new water source would have to be developed to provide the service because of the large quantities involved.

·   The lack of water resources in the south part of the system was discussed, and a variety of potential new sources will be studied so future growth can be accommodated.

 

Engineer’s Report: Darin Schriever discussed the following items.

 

•  NE Expansion and GIS/GPS:   The GIS project is progressing very well.  The Burr WTP projects are substantially completed.

 

•   2005-08 System Improvements and Expansion:  There are no new developments.

 

•  Boyd Connection:  The City of Boyd Service Connection was substantially completed on November 17th.  The contractor did a good job on the project although they did not meet the November 12th completion deadline.  M/S/P DeWilde/Van Dyke to approve a 6-day time extension for project completion because water was not available to flush and test the water lines on the original completion date of November 12th.

 

Regional Water Development:  There were no developments to report.

 

CEO’s Report:

·   Healy reported that we may exceed the Holland permit quantity limits, but it has been reported to the DNR and no problems are expected to result.

·   The “Southwest Minnesota Groundwater Workshop” was well attended and very informative.

 

·   The Lewis & Clark revised “Commitment Agreement” was reviewed and discussed.  The following Resolution was presented and adopted:

 

RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF THE AMENDED AND RESTATED COMMITMENT AGREEMENT BETWEEN THE LINCOLN PIPESTONE RURAL WATER SYSTEM AND THE LEWIS AND CLARK RURAL WATER SYSTEM, INC.

 

WHEREAS, the Lewis and Clark Rural Water System, Inc. (“Lewis & Clark”) is a South Dakota nonprofit corporation organized for the purpose of developing, constructing and operating a water supply system (the “System”) drawing water from the Missouri Elk Point Aquifer adjacent to the Missouri River and serving its member communities and water systems in southeastern South Dakota, northwestern Iowa and southwestern Minnesota; and

WHEREAS, the Lincoln Pipestone Rural Water System (the “Member”), a rural water system of the State of Minnesota, statutorily organized under M.S. 116A, is a member of Lewis & Clark; and

WHEREAS, it is critical to the feasibility and ultimate financing and construction of the System to have firm commitments of participation from all members desiring to participate in the System; and

WHEREAS, the Member entered into that certain Commitment Agreement dated March 29, 1993 (the “Existing Commitment Agreement”); and

WHEREAS, certain events and redesign of said system to add capacity have occurred since the execution and delivery of the Existing Commitment Agreement, and the parties desire to amend and restate the Existing Commitment Agreement to reflect the current state of facts and circumstances relating to the development, financing and construction of the System and the manner in which Lewis & Clark and its members currently anticipate the development, financing, construction and operation of the System will proceed; and

WHEREAS, Lewis & Clark and the Member wish to enter into an amended and restated commitment agreement setting forth their respective rights and obligations with respect to the financing and construction of the System which will supercede and replace the Existing Commitment Agreement;

NOW, THEREFORE, BE IT RESOLVED that the Member hereby determines it is in the best interests of the Member and its water customers for the Member to enter into the Amended and Restated Commitment Agreement (the “Agreement”) to be entered into on or about December 31, 2005, between the Member and Lewis & Clark, in substantially the form presented at this meeting.

BE IT FURTHER RESOLVED that the officers of the Member, or any one of them, are hereby authorized to execute and deliver the Agreement in the name and on behalf of the Member and do all such acts and execute the Agreement and such other certificates, contracts, documents and instruments as may be necessary or appropriate to carry out the above-described transaction; their execution of the above-named document pursuant to the authorization shall be deemed conclusive evidence of the approval and sufficiency thereof.

 

Adopted upon a motion by Commissioner Lonneman seconded by Commissioner Engels and upon vote being taken thereon, the following voted in favor thereof: Michael Brunner, Ken Buysse, Earl DeWilde, Frank Engels, Jerry Lonneman, Charlie Simonson, Rod Spronk, Leonard Swenson, Bill Ufkin, Henry Van Dyke, and Joe Weber.

 

And the following voted against same:  none

 

Whereupon the Resolution was declared duly passed and adopted.

 

 

Committee Reports: The following committee reports were given: 

 

Executive Committee: No report.

 

Personnel Committee: The Committee reported on their November 14th meeting.  M/S/P Lonneman/Brunner to approve the minutes of the November 14th Personnel Committee meeting.  M/S/P Brunner/Swenson to approve the recommended 2004-2010 Staffing Plan and Organizational Chart.  M/S/P Ufkin/Buysse to approve the recommended 2006 pay tables and benefits, and establish staff salaries per the following table:

 

 

2006 Employee Pay Scale – Effective December 26, 2005

 

NAME:___________________ DATE HIRED PAYROLL YEAR/STEP

 

Connie Bressler  June, 1992 15/5

 

Ronald Carr  January, 1980 27/7

 

Don Drietz August, 1986 21/7

 

Dennis Healy November, 1999 8/8

 

Steve Lovre October, 2005 2/1

 

Pat McCarthy February, 1999 8/5

 

Tom Muller  June, 1994 13/3

 

Shawn Nelson May, 1999 8/5

 

Jason Overby  June, 2005 2/1

 

Karen Petersen  June, 1990 17/6

 

Roger Rasmussen April, 1982 25/7

 

Jeremy Rost April, 2000 7/4

 

Jay Stuefen April, 1985 22/6

 

Kyle Thooft May, 2001 6/2

 

M/S/P Swenson/Brunner to approve the recommended Board per diem rate at $100 for meetings requiring less than 4 hours including travel time, and $200 for meetings requiring more than 4 hours including travel time.  M/S/P Lonneman/Swenson to approve the recommended changes to Sections 100:02, 100:03 and 103:04 of the Personnel Policy.  The Personnel Committee and available Commissioners will meet with the employees on December 12th.

 

Water Resources and Equipment Committee: The Committee reported on their November 14th meeting.  M/S/P Simonson/Buysse to approve the minutes of the November 14th Water Resources and Equipment Committee meeting, and to approve the recommended 2006-2011 Capital Improvement Program.

 

Budget & Finance Committee: The Committee reported on their November 18th meeting.  M/S/P Lonneman/Engels to approve the minutes of the November 18th Budget & Finance Committee meeting, and approve the 2006 Budget.

 

Minnesota Rural Water Association, Board Representative: No report.

 

Minnesota Governmental Agency Finance Group:  No report.

 

Other:  Rod Spronk reminded the Board that officers will be elected at the December 19th meeting.

 

Adjournment:  M/S/P Engels/Lonneman to adjourn the meeting at 3:00 p.m.  The next Regular Board meeting will be Monday, December 19, 2005 at 10:00 a.m.  The meeting is a week earlier than normal due to the Christmas holiday.

 

 

 

 

 

                                                                                            ____________________________________________

                                  Joe Weber, Secretary