Marshall Municipal Utilities

Board Meeting Minutes

November 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; Spencer Fricke, Secretary; and Charles Hird, member. Also present were Mayor Connie Latimer, City Administrator Charles Tryban, Councilman Gabe Ramsey, and Mr. and Mrs. Frank Pogue.

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

Mr. Pogue (967 North Street) indicated his residence is at the lowest point on North Street and his residence is not hooked to the public sewer. Mr. Pogue explained he is using a septic tank at his residence, but is still being assessed a sewer charge. Mr. Pogue does not intend to hook to the public sewer and asked that the Board consider waiving the sewer charge. Mr. Mills stated that, by ordinance, any residence within 150 feet of a public sewer should be connected to the sewer system and will be assessed a sewer charge based on water usage. The Board indicated this matter would be discussed and a decision made at a later date.

Manager of Employee Relations Megan Baldridge reviewed the annual safety report and indicated, overall, safety incidents were down.

Ms. Baldridge reported United Healthcare has reduced its renewal rate from a 32% increase to a 20% increase. Dental coverage renewal is a 15% increase, and vision coverage renewal rates went down. Mr. Heinzler asked that self-insurance be investigated. Several alternatives are being evaluated.

Mr. and Mrs. Pogue left the meeting.

The following bids were received for a digger derrick for the Electric Distribution truck #320.

					Bid		Make and Model	

Altec Industries, Inc.		$	89,461.00	Altec DL 42
    St. Joseph, MO
Pitman Utility Products		$	107,923.00	Pitman M45H-T4 Plus
    Grandview, MO
Terex Utilities-South		$	97,015.00	Terex CMDR-4045
    North Little Rock, AR

Electric Distribution Assistant Director Doug Root indicated the low bid meets specifications. On a motion by Mr. Heinzler, seconded by Mr. Hird, the Board accepted the bid from Altec Industries.

General Manager Paul Jensen reviewed information regarding possible increases in BOD and TSS surcharges for extra strength wastewater from local industries. On a motion by Mr. Hird, seconded by Mr. Heinzler, the Board postponed a decision on these possible increases until a future meeting.

General Manager Jensen asked the Board to consider water and wastewater rate increases that would result in revenue increases of about 5.5% in each department. He noted the current year’s budget is based on a 10% increase in revenue for both the departments. The increase would result in a monthly increase of $0.75 to the average residential water customer and $1.20 for the average residential wastewater customer. Staff also proposed that all new water installations be charged a $250 tapping fee.

Underground Facilities Director Monty Chase reported two statements of qualifications were received for updating the Owner Supervised Water System Plan; one from Shafer, Kline and Warren and one from Larkin Group. It was the consensus of the Board to accept management’s recommendation to retain Shafer, Kline and Warren to perform this work.

Director Chase reported crews are working on the Vest Street water main project.

Electric Production Director Kyle Gibbs reported Unit #4 is on line. The boiler tubes for Unit #5 have not been delivered yet and that project is about a week behind schedule.

On a motion by Mr. Hird, seconded by Mr. Fricke, the Board approved the Terms and Conditions of Use for Natural Gas Transportation Service.

General Manager Jensen indicated he is conducting a review of the mandatory electric reliability standards criteria to determine if MMU needs to register.

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

	WATER OPERATING FUND		$	164,261.76
	ELECTRIC OPERATING FUND		$	676,317.24
	SEWER REVENUE FUND		$	66,825.83
	INTERNET OPERATING FUND		$	4,852.40
	NATURAL GAS OPERATING FUND	$	139.35
	ELECTRIC CONSUMERS DEPOSIT FUND	$	2,325.00

On a motion by Mr. Heinzler, seconded by Mr. Hird, the Board adjourned the regular meeting at 9:22 a.m. to go into an executive session to discuss matters related to legal action and personnel matters (Mo. Rev. Stat. 610.021 [1 & 3], if authorized). Roll call:

				Jim Heinzler	yes
				Spencer Fricke	yes
				Charles Hird	yes
				Mike Mills	yes

The Board reconvened the open session meeting at 10:05 a.m. with all members present. A motion was made by Mr. Heinzler, seconded by Mr. Hird, to request statements of qualifications for the design of chlorine facilities at the Water Treatment Plant.

On a motion by Mr. Heinzler, seconded by Mr. Fricke, the Board adjourned the regular session at 10:10 a.m. to return to executive session to discuss matters related to legal action and personnel matters (Mo. Rev. Stat. 610.021 [1 & 3], if authorized). Roll call:

				Jim Heinzler	yes
				Spencer Fricke	yes
				Charles Hird	yes
				Mike Mills	yes