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 27, 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, November 27, 2006 starting at 10:00 a.m.  Chairman Jerry Lonneman called the meeting to order with Commissioners Mike Brunner, Ken Buysse, Earl DeWilde, Frank Engels, Rod Spronk, Leonard Swenson, Bill Ufkin, Henry Van Dyke, and Joe Weber present. Also present were Board Attorney, Ron Schramel; System member, Verlyn DeKam; Field Superintendents, Don Drietz and Tom Muller; and CEO, Dennis Healy.

 

Agenda:  M/S/P Van Dyke/Engels to approve the Agenda with the addition of meeting with Verlyn DeKam at 11:00 a.m.

 

Minutes:  M/S/P Ufkin/Swenson to approve the minutes of the October 30, 2006 Regular Board meeting and the November 20, 2006 Budget meeting.

 

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

 

 

Bills:  M/S/P Weber/Buysse to approve the following bills for payment:

·   DeWild Grant Reckert and Associates Company: General Services #64 = $884.63; 2006 System Improvements - Pump Stations – ppe #6 = $7,694.10; Adrian Well #7 – ppe #11 = $940.50

·   McDonald, Gudmestad & Schramel: General Legal Services = $1,078.70

·   Liesch Associates: 2006 Exploration #8 = $5,381.95; Adrian Well #7 – ppe #16 = $5,300.12; NE Exploration, ppe #5 = 384.00

·   USDA Rural Development:  1999 Holland WTP bonds = $130,987.50; 2004 Northeast Phase bonds = $379,100.00

·   US Bank: 1998 Refunding bonds = $302,033.75; 2003 Refunding bonds = $109,899.38         

 

 

Attorney’s Report: Ron Schramel reported that all of the counties have acted to reappoint Commissioners Buysse and DeWilde to new 4-year terms effective January 1, 2007.  The $3,580,000 bond issue is moving forward with Nobles County as the lead county and the other 8 counties involved through a joint powers agreement.  A bond resolution for LPRW action was presented for review.  M/S/P Engels/Brunner to adopt RESOLUTION NO. 11-06-1 entitled RESOLUTION APPROVING THE TERMS OF A NOT TO EXCEED $3,580,000 GENERAL OBLIGATION WATER REVENUE NOTE OF 2006 OF NOBLES COUNTY AND AUTHORIZING EXECUTION OF AN ASSISTANCE AGREEMENT.  A copy of the full text of RESOLUTION NO. 11-06-1 is on file at the LPRW office.  Schramel also report that he is preparing assessments for 74 new hookups, and the hearing is scheduled for December 27th.

 

 

Engineer’s Report: Healy presented the engineer’s report prepared by Darin Schriever from DGR.

 

 

Request for new service: Verlyn DeKam met with the Board to request a second hookup at his existing location because the ownership of the site is being split.  LPRW policy requires each “tax parcel” have a separate hookup, but LPRW policies also limit new hookups in the area of this site and require a $4,000 per capacity unit charge for each new or expanding large user.  DeKam stated that his existing operation has six 1200-head hog barns and two 250 head hog barns, and there will be no expansion of the existing operation.  He stated that his request is to split the site into two ownership units with one site containing four 1200-head barns and the other containing two 1200-head barns and two 250 head barns.  M/S/P Spronk/Van Dyke to approve a new hookup for the newly created site at the regular hookup charge of $10,400 provided that there is no increase in animal units or water use at either of the sites.

 

 

Field Superintendents’ Report:  Don Drietz reported that the Yellow Medicine expansion is progressing and the requests for new hookups can be accommodated.  Tom Muller reported that there is one hookup to finish in his area, and a small leak to fix.

 

 

2006 Expansion Project:

•  North Expansion:  Healy reported that work is proceeding, and should be completed before the end of the construction season.

 

 

Regional Water Development:

•  Osceola Rural Water:  OCRWS is doing a study of their system, and they will respond to our request for water when the study is completed.

•  New Water Source Development:  Exploration in the Edgerton area is being scheduled, and the Board directed Healy to contact the City of Slayton about potentially purchasing water.

 

 

CEO’s Report:

•   Healy updated the Board on Lewis & Clark activities.

•   New Hookups:  Healy presented 7 requests for new hookups for Board consideration.  M/S/P Buysse/Brunner to approve the 8 new hookups as recommended.

·   Wellhead Protection:  Healy reported that he approved a request for $7,500 to match a grant application by area SWCD’s to support a regional nutrient management program.  The application needed to be in mid-November, and the program has been very beneficial as a wellhead protection tool in the past.  M/S/P Weber/Engels to ratify the CEO’s decision to participate in the program.

•  MMU Agreement:  Marshall Municipal Utilities requested a proposal to extend the existing contract for water service on a year-to-year basis with a 2-year notice requirement.  M/S/P Swenson/Engels to offer to extend the agreement for 100 million gallons per year (MGY) at the regular municipal water rate plus an annual capacity charge of $56,250 per year.  Water use over 100 MGY will be provided on an “as available” basis at the regular municipal water rate.

 

Committee Reports: Budget meetings were held on Monday, November 20th. 

Executive Committee: No report.

Water Resources and Equipment Committee: The Committee recommended adoption of the 2007-2012 Capital Improvement Program as presented.  M/S/P Ufkin/Brunner to adopt the 2007-2012 Capital Improvement Program as presented.

Personnel Committee: The Committee recommended adoption of the 2007 pay tables, benefits and wages as presented.  M/S/P Ufkin/Van Dyke to adopt the 2007 pay tables as presented and to set hourly salaries per the following years and steps effective with the pay period beginning December 25, 2006:

 

                          NAME:_____________________        DATE HIRED             PAYROLL YEAR/STEP

Connie Bressler, Water System Clerk     June, 1992       16/6

Ronald Carr, Water Maintenance Technician January, 1980                28/8

Don Drietz, Field Superintendent        August, 1986       22/8

Steve Lovre, Water System Operator October, 2005                  3/1

Pat McCarthy, Water System Operator        February, 1999         9/5

Tom Muller, Field Superintendent  June, 1994                14/4

Shawn Nelson, Water System Operator May, 1999         9/5

Jason Overby, Water Resource Technician      June, 2005                  3/1

Karen Petersen, Water System Clerk     June, 1990       18/6

Roger Rasmussen, Water System Operator April, 1982       26/8

Jeremy Rost, Water System Operator April, 2000         8/4

Jay Stuefen, Water System Operator April, 1985       23/7

Kyle Thooft, Water System Operator May, 2001         7/3

 

 

 

 

 

Bill Ufkin asked that the Board go into executive session to discuss health insurance benefits.  M/S/P Ufkin/Brunner to go into executive session to discuss health insurance benefits. M/S/P Engels/Swenson to reopen the meeting.  The Board directed the Personnel Committee to set up a meeting with health insurance representatives to review alternatives to the current plan to avoid excessive premium increases in the future.

M/S/P Buysse/Weber to set the CEO,s salary at $70,700 per year plus a car allowance of $250 per pay period effective with the pay period beginning December 25, 2006.

The Personnel Committee will meet with employees on Monday, December 4th.

Budget & Finance Committee: The Committee recommended adoption of the 2007 Budget as presented.  M/S/P Engels/Weber to adopt the 2007 Budget as presented.

Minnesota Rural Water Association, Board Representative: Leonard Swenson reported on MRWA activities.

Minnesota Governmental Agency Finance Group, Board Representative: Bill Ufkin reported on MGAFG activities.

Search Committee: Healy provided the Committee with a list of members in the area represented by the Board seat currently vacant.

 

Other:

·   Healy reminded the Board that election of officers is scheduled for the December meeting.

 

·   Jerry Lonneman scheduled a meeting of the Executive Committee after the December meeting.

 

·   The Board discussed the need for a long-range planning retreat this winter.

 

 

Adjournment:  M/S/P Van Dyke/Swenson to adjourn the meeting at 3:00 p.m.  The next Regular Board meeting will be Monday, December 18, 2006 at 10:00 a.m.

 

 

 

 

 

______________________________________________

                                  Earl DeWilde, Secretary