Marshall Municipal Utilities

Board Meeting Minutes

December 26, 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 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.

Electric Distribution Director Jeff Bergstrom reported some of the cross arms and poles used to deliver primary electric service to the Habilitation Center need to be replaced. On a motion by Mr. Heinzler, seconded by Mr. Fricke, the board approved proceeding with this project.

Director Bergstrom reported that as part of the 4.16 kV conversion project, the electric service to the telephone office on East Arrow needs a new primary dip pole, wire and a dual voltage pad mount transformer to replace the pole mount units. On a motion by Mr. Fricke, seconded by Mr. Heinzler, the Board approved proceeding with this project.

Director Bergstrom reported bids will be opened January 5, 2007, for tree trimming along the transmission line.

Environmental Services Director Ginny Ismay reported seven statements of qualifications were received December 22, 2006, for designing the chlorine facilities at the Water Treatment Plant. These will be evaluated and a recommendation made at a future meeting.

Electric Production Director Kyle Gibbs reported Unit #5 is being put on line today and is scheduled to run until April. G. E. is looking into a solution to the problems with the new bags in the Unit #4 baghouse.

Director Gibbs reported the energy from Unit #4 has been repriced. This lowered MoPEP’s monthly capacity payment to $20,000 for this unit. Unit #4 is now burning paper pellets.

Administrative Services Director Ken Gieringer reported a negative cash flow of at least $500,000 is estimated for the current year. Management is continuing to review data on electric rates. No action is recommended at this time.

The Board had no objections to the draft policy statement concerning sewer customers not connected to the public sewer. This policy statement will be added to the book of policies.

The Board was given MMU’s annual report.

General Manager Paul Jensen reported MoPEP is building wind power facilities in North Missouri.

On a motion by Mr. Mills, seconded by Mr. Fricke, the following Board of Public Works officers were elected for 2007:
Jim Heinzler, President
Spencer Fricke, Vice President
Charles Hird, Secretary

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		$	91,867.44
	ELECTRIC OPERATING FUND		$	820,749.79
	SEWER REVENUE FUND		$	76,616.42
	INTERNET OPERATING FUND		$	10,095.70
	NATURAL GAS OPERATING FUND	$	6,178.35
	ELECTRIC CONSUMERS DEPOSIT FUND	$	8,075.00

On a motion by Mr. Fricke, seconded by Mr. Heinzler, the Board adjourned the regular meeting at 9:19 a.m.