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

January 30, 2006

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, January 30, 2006 starting at 8:30 a.m. Chairman Jerry Lonneman called the meeting to order with Commissioners Mike Brunner, Ken Buysse, Earl DeWilde, Frank Engels, Charlie Simonson, Rod Spronk, Bill Ufkin, Henry Van Dyke, and Joe Weber present. Leonard Swenson was absent. Also present were Board Attorney, Ron Schramel; Field Superintendent, Tom Muller; and CEO, Dennis Healy.

Agenda: M/S/P Engels/Brunner to approve the Agenda as presented.

Minutes: M/S/P Van Dyke/Engels to approve the minutes of the December 19, 2005 Regular Board meeting.

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

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

· DeWild Grant Reckert and Associates Company: Boyd Service Connection ppe #5 = $1,050.00; General Services #54 = $548.50

· McDonald, Gudmestad & Schramel: General Legal Services = $2,217.45; ECI litigation = $770.00

· US Bank: Lincoln County Refunding Bond of 2001 = $468,127.50

Regional Water Development:

• Luverne: Healy will be meeting with representatives from Luverne on February 9^th to discuss possible water purchases.

• DGR is working on a study at an Iowa rural water system that may lead to a water source for LPRW

• Northeast Exploration: Observation wells in eastern Yellow Medicine County were discussed.

• New Hookups: Water availability may become a problem in some parts of the System, and increases in use by some users are being done without LPRW input. M/S/P Engels/Brunner to require LPRW approval of all new or expanded livestock operations and other large water users. Healy will notify the county zoning offices of this requirement, and develop guidelines for Board consideration at the next meeting.

Attorney’s Report: Ron Schramel reported to the Board that the County Boards have approved the reappointment of Jerry Lonneman, Rod Spronk and Joe Weber to the LPRW Board, and the 2005 assessments have been approved by the District Court. Schramel also reported on the status of the Eatherly suit and the countersuit filed by LPRW.

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

· Tom Muller reported 6 to 8 new hookups are signed up for the spring.

· A request for water to serve an ethanol plant in the Pipestone area was discussed.

· Issues about manure management in the vicinity of the Holland WTP were discussed.

CEO’s Report:

· The Lewis & Clark project is moving forward as more construction is completed, and state and federal finances are committed.

· Financing for system improvements and development of new water sources was discussed. M/S/P Spronk/Simonson to authorize Healy to file a preliminary application for financing with the Minnesota Governmental Agency Finance Group.

· Budgeted equipment purchases were discussed. M/S/P Weber/Spronk to authorize Healy to purchase 2 replacement pickups and a new backhoe per the Capital Improvement Program Budget. M/S/P Weber/Engels to authorize Healy to purchase or lease a replacement copy machine per the Capital Improvement Program Budget.

· Healy reported on the rented land at the Verdi and Holland well fields.

· The annual meeting with the DNR and other agencies has been scheduled for February 28^th.

· A resolution authorizing the new officers and CEO to perform banking functions was presented. M/S/P Spronk/Buysse to authorize the Board officers, and Dennis Healy to perform banking functions at First Security Bank in Lake Benton.

· The water quality results at a water source in the Edgerton area were relatively good, and Healy will try to find additional information.

Chairman Jerry Lonneman proposed the following appointments and Committee structure. M/S/P Buysse/Brunner to approve the following appointments and Committee structure.

Executive Committee: Per the approved “Committee Structure” the four Board officers are automatically appointed: Jerry Lonneman (Chairman); Bill Ufkin (Vice-Chairman); Earl DeWilde (Secretary); and Rod Spronk (Treasurer).

Personnel Committee: Proposed appointments are: Secretary, Earl DeWilde, Chairman; Frank Engels; and Ken Buysse.

Budget & Finance Committee: Proposed appointments are: Treasurer, Rod Spronk, Chairman; Charlie Simonson; Leonard Swenson; and Joe Weber.

Water Resources and Equipment Committee: Proposed appointments are: Vice-Chairman, Bill Ufkin, Chairman; Henry Van Dyke; and Mike Brunner.

Minnesota Rural Water Association, Board Representative: Leonard Swenson as the LPRW representative on the MRWA Board; and Bill Ufkin as the alternate representative.

Minnesota Governmental Agency Finance Group: Bill Ufkin as the LPRW representative on the MGAFG Board.

Southwest/West Central Service Cooperative: Dennis Healy as the LPRW representative on the SW/West Central Service Cooperative.

Lewis and Clark Rural Water Board: Dennis Healy as the LPRW representative on the Lewis & Clark Rural Water System Board, and Jerry Lonneman as the alternate representative.

Lewis & Clark Minnesota Joint Powers Board: Jerry Lonneman as the LPRW representative on the Lewis & Clark Minnesota Joint Powers Board, and Henry Van Dyke as the alternate representative.

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: No report.

Minnesota Governmental Agency Finance Group, Board Representative: Ufkin provided an update of activities.

Water Systems meeting in Luverne: A meeting with area water systems, the U.S. Fish & Wildlife Service, Minnesota DNR, and others is scheduled for 1:00 p.m. M/S/P Weber/Engels to travel to the Luverne meeting and reconvene the meeting at 1:00 p.m. at Sharkee’s in Luverne. The topic of the meeting was “Southwest Minnesota Topeka Shiner Habitat Conservation Planning” and the meeting was moderated by Dan Cook, Manager of the Rock County Rural Water System. The Cities of Luverne and Adrian, RCRW, LPRW, and area soil and water districts were in attendance. Also attending were representatives of USFWL, MNDNR and consultants. Issues and options for dealing with the Topeka Shiner, which is on the federal Endangered Species list, were discussed. No action was taken by the group, and at the conclusion of the meeting the LPRW Board completed their regular Board meeting.

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

• Pump Station Upgrades: A proposal for project engineering services was reviewed, and DGR will provide an agreement for Board action at the February meeting.

• Boyd Project: The project has been completed and closed out.

• Hydraulic Model Update: Data collection has begun.

• South End Water Supply: DGR is completing a study of the Osceola County RWS, and that may be a supply of water available to supplement other sources available.

Other: Healy will set up a meeting with USFWL representatives at the MRWA Conference in St. Cloud. Dan Cook asked about our interest in cooperating in the completion of a Habitat Conservation Plan, and the Board expressed interest in cooperating.

Adjournment: M/S/P Engels/Weber to adjourn the meeting at 4:30 p.m. The next Regular Board meeting will be Monday, February 27, 2006 at 10:00 a.m.

______________________________________________

Earl DeWilde, Secretary