Marshall Municipal Utilities

Board Meeting Minutes

May 29, 2007

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

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. Fricke.

Electric Production Director Jim Johnson reported the scale deposit buildup between the plates is a problem on the Units #10 and #11 heat exchangers, requiring the units to be shut down for a lengthy cleaning process. Having spare plates on hand would allow the units to be out of service for only a few hours. On a motion by Mr. Fricke, seconded by Mr. Hird, the Board approved requesting bids for pricing of new plate packs for the Units #10 and #11 heat exchangers.

Director Johnson reported when cleaning the slag and ash out of the Unit #4 boiler, a deteriorated fire brick wall was discovered. A boiler company has been called in to make necessary repairs.

Environmental Services Director Ginny Ismay reported the final consent order from EPA concerning the disinfection facilities at the Water Treatment Plant should be received soon. The temporary covers for the chlorine containers should be finished May 30. The new Water Treatment Plant Chief Operator will begin working on June 11.

Underground Facilities Foreman Randy Huesgen reported a crew is extending the water main casing on the Southeast corner of the Highway 65 and College Street intersection. The contractor for the South Odell Sewer project has completed the fourth of six bores.

Administrative Services Director Ken Gieringer reported staff is working on data as to the effect of the recently changed electric rate ratchet on individual industrial customers.

General Manager Kyle Gibbs updated the Board on MMU’s energy costs and capacity payments after being with the MoPEP pool for one year. Both energy and demand charges are substantially higher than the projected costs outlined in the Electric Power Supply Study performed by Burns and McDonnell. Capacity payments are not covering current and future maintenance costs. As a member of MoPEP, MMU is buying into several major power plants currently being built, and having ownership in these plants will stabilize the energy costs when these plants start coming on line beginning in 2009.

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

	WATER OPERATING FUND		$	 70,777.08
	ELECTRIC OPERATING FUND		$	463,054.57
	SEWER REVENUE FUND		$	 77,019.95
	INTERNET OPERATING FUND		$	 24,368.15
	NATURAL GAS OPERATING FUND	$	    184.55
	ELECTRIC CONSUMERS DEPOSIT FUND	$	  6,975.00

The Board voted unanimously to adjourn the regular meeting at 8:57 a.m. to go into executive session to discuss matters related to legal action (Mo. Rev. Stat. 610.021 [1], if authorized). Roll call vote:
Mr. Heinzler yes
Mr. Hird yes
Mr. Fricke yes