Marshall Municipal Utilities

Board Meeting Minutes

November 28, 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 was Randy Lueckenotte representing Wallstreet Insurance Group.

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. Hird.

Manager of Employee Relations Megan Baldridge reviewed quotes for 2007 medical, dental and vision coverage that were obtained by Wallstreet Insurance Group. After careful review, Ms. Baldridge recommended a base medical plan with United Healthcare that has higher deductibles and out of pocket limits at a cost about 12.5% higher than the current plan. Ms. Baldridge also recommended offering the current plan as a “buy-up” option to employees wishing to maintain their current coverage. Ms. Baldridge also recommended renewal with the current dental and vision insurance providers with a two-year rate guarantee. The recommendations will increase MMU’s annual premiums approximately $59,900. Randy Lueckenotte, representing Wallstreet Insurance Group, briefed the Board on the rising costs of health insurance. On a motion by Mr. Fricke, seconded by Mr. Hird, the Board accepted United Healthcare’s NLM option as the base plan for 2007 medical insurance and United Healthcare’s MUC option as a “buy-up option”; accepted Guardian’s renewal proposal for 2007 and 2008 dental; and accepted VSP’s renewal proposal for 2007 and 2008 vision insurance.

Ms. Baldridge also reviewed quotes received for 2007 disability and life insurance coverage that were obtained by Meuschke Agency. On a motion by Mr. Hird, seconded by Mr. Heinzler, the Board accepted Mutual of Omaha’s proposal for Short-term Disability, Long-term Disability and Life and Accidental Death and Dismemberment coverage for 2007 and 2008 for an annual increase to MMU of $576.

Administrative Services Director Ken Gieringer reported on surcharges for extra strength wastewater. On a motion by Mr. Hird, seconded by Mr. Fricke, the Board approved maintaining the BOD surcharge at $0.51/lb. and setting the TSS surcharge at $0.38/lb. effective for billing after January 1, 2007.

Director Gieringer also discussed an increase of 5.53% on water rates based on the following changes:

Customer Base Monthly Charge 

				Current		Proposed

	One inch or less	$  9.00		$  9.00
	Two inch		$ 10.00		$ 10.00
	Three or four inch	$ 12.50		$ 15.00
	Greater than four inch	$ 15.00		$ 20.00

Volume Charge ($/100 gallons)

	First 10,000 gallons	$ 0.225		$ 0.24
	Next 190,000 gallons	$ 0.167		$ 0.18
	Next 4,800,000 gallons	$ 0.133		$ 0.143
	Over 5 million gallons	$ 0.122		$ 0.131

Resale Volume Charge	$1.665/1000 gal.	$1.80/1000 gal.

The average residential customer would see a $0.75 increase in his monthly bill. Director Gieringer also recommended a $250 tapping fee on all new water installations. On a motion by Mr. Mills, seconded by Mr. Fricke, the Board approved these new rates effective on billing after January 1, 2007. The Board also approved a tap fee which will be effective for all taps permitted after January 1, 2007. If the plumbing permit is issued before January 1, 2007, no tap fee will be charged if the tap is made before June 1, 2007.

Director Gieringer reported on the proposed 5.54% increase to wastewater rates based on the following changes:

	Current	Proposed
Customer Base Monthly Charge	$ 16.50	$17.25
Volume Charge ($/100 gallons)	$  0.15	$  0.16

On a motion by Mr. Hird, seconded by Mr. Fricke, the Board approved these new rates effective on billing after January 1, 2007.

Underground Facilities Director Monty Chase reviewed the following bids received November 17, 2006, for the hoist equipment to be mounted on the recently purchased cab and chassis:

								Weeks after delivery
								of chassis until unit 
				Bid for Truck	Make and	  will be ready for 
				mounted Crane	   Model	prepaint inspection

Altec Industries, Inc		$75,500.00	Altec AC18-70B		8-10 weeks
    St. Joseph, MO
Drake Scruggs			$81,967.00	Elliot 1870F		8-10 weeks
    Grandview, MO	
Giuffre Bros. Cranes, Inc.	$82,919.50	Terex BT-3670		45 to 60 days
    Milwaukee, WI
Pat Kelly Equipment		$85,523.00	National Crane		8-10 weeks
    Hazelwood, MO				571E
Terex Cranes			$78,537.00	Terex Stinger		12 weeks
    Kansas City, KS				BT-3470

On a motion by Mr. Hird, seconded by Mr. Heinzler, the Board accepted the bid from Terex Cranes for $78,537. The low bid did not meet specifications.

Director Chase reported that last year’s budgeted Rea Street Water Main project consisting of approximately 1,000 feet of 6” main is ready to be started. On a motion by Mr. Hird, seconded by Mr. Mills, the Board approved proceeding with this budgeted project ($32,000).

Director Chase also reported on the proposal received from Shafer, Kline & Warren for the Owner Supervised Water System Plan. On a motion by Mr. Hird, seconded by Mr. Fricke, the Board authorized the General Manager to accept the proposal from Shafer, Kline & Warren at a not-to-exceed cost of $27,800.

On a motion by Mr. Mills, seconded by Mr. Hird, the Board approved billing wastewater customers with buildings located within 150 feet of a sewer main, but not connected to or using the public sewer system, only the minimum monthly wastewater rate after the customer provides documentation to MMU. This change is prospective and no refunds will be made for charges made prior to documentation by the customer.

Electric Production Director Kyle Gibbs reported on a problem with delivery of material needed to complete the boiler tube project.

Environmental Services Director Ginny Ismay reported that statements of qualifications from engineers for the chlorine facilities at the Water Treatment Plant are due December 22. Lime spreading is finished for this year.

Electric Distribution Director Jeff Bergstrom reported on outage problems on a circuit in the north part of Marshall being mainly animal related. Poles have been delivered to Route O by Central Missouri Electric Cooperative but have not been erected. A lighting agreement for Drake Road and the Fairgrounds entrance has been received from the state and forwarded to the Mayor for signatures.

On a motion by Mr. Hird, seconded by Mr. Fricke, the Board appointed General Manager Paul Jensen to represent MMU on the MSDC Board for 2007.

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

	WATER OPERATING FUND		$	76,450.73
	ELECTRIC OPERATING FUND		$	296,750.98
	SEWER REVENUE FUND		$	71,444.30
	INTERNET OPERATING FUND		$	8,103.54
	NATURAL GAS OPERATING FUND	$	2,756.77
	ELECTRIC CONSUMERS DEPOSIT FUND	$	4,680.00

On a roll call vote, the Board adjourned the regular meeting at 10:35 a.m. to go into an executive session to discuss matters related to property acquisition and personnel matters (Mo. Rev. Stat. 610.021 [2 & 3], if authorized). Roll call:
Jim Heinzler yes Spencer Fricke yes Charles Hird yes Mike Mills yes