LINCOLN PIPESTONE RURAL WATER SYSTEM

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

(507)368-4248 fax (507)368-4573 email: lprw@itctel.com

SPECIAL MEETING MINUTES

The special meeting of the Lincoln Pipestone Rural Water (LPRW) System Board of Commissioners was held at the Lake Benton Office on Monday, May 2, 2005 starting at 7:00 p.m. Chairman Rod Spronk called the meeting to order with Commissioners Frank Engels, Jerry Lonneman, Joe Weber, Earl DeWilde, Charles Simonson, Leonard Swenson, Bill Ufkin, Henry Van Dyke and Ken Buysse present. Commissioner Mike Brunner was absent. Also present were CEO, Dennis Healy; and Field Superintendents Don Drietz and Tom Muller. The purpose of the meeting was to:

1. Review and act on rural water hookup fees.

2. Review and act on quotes for concrete work at Verdi.

3. Review Water Resource Technician applications and set Personnel Committee interview schedule.

4. Discuss water service and expansion issues.

Rural Water Hookup costs were reviewed and discussed. Healy reported that pipe costs are up by 30-40% and fuel costs are driving installation costs higher. Increases in state permit fees (stream crossing permits went from $50 to $500) and decreases in federal grants are also creating problems. Several options were discussed. M/S/P Ufkin/Simonson to set the costs for “General/Nonproject Hookups” at $9,900 for the basic connection including up to 1,500 feet of water line, 150 feet of service line, and other basic facilities normally required. The hookup is in addition to the $400 membership fee and any additional charges necessary for the hookup. Hookups done as part of an expansion project will be evaluated as part of the specific project. The new rates will be effective for all hookups LPRW commits to install after May 2, 2005. Healy will develop a more detailed written hookup policy for the next meeting.

Quotes for concrete work at Verdi were received from David Borresen Construction ($13,278.00), Willert Construction ($13,750.00), and Lovre Construction ($14,003.00). M/S/P Swenson/DeWilde to award the work to Willert Construction for $13,750.00 because it specified power troweling and saw cut joints while the other quotes did not.

Interviews for the Water Resource Technician position were scheduled for Monday, May 9^th with alternate dates of May 10^th or May 16^th.

The interconnect with Rock County Rural Water System was discussed, and several potential expansion projects were reviewed. Joe Weber reported that we will be required to change our CRP renters at the Holland and Verdi sites due to a new interpretation of the rules by FSA. Weber, Engels and Healy will meet with the Lincoln County FSA office on May 3^rd.

M/S/P Lonneman/Weber to adjourn the meeting at 9:15 p.m.

Minutes Compiled By:

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Dennis Healy