Marshall Municipal Utilities

Board Meeting Minutes

June 14, 2006

The Board of Public Works convened the regular session at 8:30 a.m. at the Marshall Municipal Utilities Business Office. Present were Mike Mills, President; Jim Heinzler, Vice President; and Spencer Fricke, Secretary. Charles Hird, member, was absent.

The agenda was approved as presented. The minutes of the previous meeting were approved as printed on a motion by Mr. Heinzler, seconded by Mr. Fricke.

Mr. Mills asked that management check into the possibility of changing the regular Board meetings to Thursday instead of Wednesday.

Underground Facilities Superintendent Monty Chase reported the Summit Street sewer project is progressing well. The last manhole was set June 13.

Electric Distribution Superintendent Jeff Bergstrom reported the insulation for the Miami #1 switchgear building roof has been installed. Crews will be working Saturday, June 17, to move a pole at Morrow and Odell Streets for the Highway Department project. The pole evaluation report has been received concerning the Central Missouri Electric Cooperative poles on Route O. All the poles are in good condition but there are some clearance issues.

Administrative Services Director Ken Gieringer reported the 1997 sewer bonds are being retired as of July 1, with $1,595,000 from the Wastewater Department being used to repay a portion of that debt. Wastewater is using its Depreciation Reserve Fund and its Revenue Bond Reserve Fund (neither of which will be required after the bonds are paid off), and $1,070,000 of its Equipment Reserve Fund. Also, $2,300,000 from the Electric Department will be used to pay off the remainder of that bond debt. An attempt will be made through the banks and the media to make bond holders aware of this bond retirement.

On a motion by Mr. Fricke, seconded by Mr. Heinzler, the Board accepted the proposal from AeroMet Engineering to perform a study on the Maximum Achievable Control Technology (MACT) for Utility Steam General Units Under 25 MW.

A discussion was held on the problems with slag buildup in the Unit #4 boiler. Director Gibbs indicated several options are being explored.

Mr. Heinzler asked that more consideration be given concerning the wages for Underground Facilities personnel. A discussion was held on the process to determine wages for all MMU employees. Management will review the process over the next few months to see if changes will to be made.

General Manager Paul Jensen reported Sega has submitted a revised proposal to perform energy audits for five customers and three MMU facilities for $16,517. On a motion by Mr. Fricke, seconded by Mr. Heinzler, the Board accepted Sega's June 1, 2006, proposal for walk-through energy audits.

On a motion by Mr. Heinzler, seconded by Mr. Fricke, accounts payable were approved and warrants ordered issued from the following funds:

	WATER OPERATING FUND			$	  125,550.07
	ELECTRIC OPERATING FUND			$	  531,718.09
	SEWER REVENUE FUND			$	  120,477.62
	INTERNET OPERATING FUND			$	    6,938.36
	NATURAL GAS OPERATING FUND		$	    3,278.63
	ELECTRIC CONSUMERS DEPOSIT FUND		$	    5,800.00
	1997 SEWER BOND INTEREST & SINKING FUND	$	1,953,136.26
	  (from Sewer Equipment Fund)
	1997 SEWER BOND				$	2,300,000.00
	  (from Electric Consumers Deposit Fund)

On a motion by Mr. Heinzler, seconded by Mr. Fricke, the Board adjourned the regular meeting at 10:20 a.m.