Marshall Municipal Utilities

Board Meeting Minutes

September 13, 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; and Mike Mills, member.

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

A discussion was held on the addition of fluoride to the water. Management will check into what it would take to get the issue placed on a ballot again.

A discussion was held on the proposed 2007/08 budget. On a motion by Mr. Fricke, seconded by Mr. Mills, the Board approved the 2007/08 budget with the understanding that each project will be presented individually for the Board’s approval prior to starting the project.

Administrative Services Director Ken Gieringer reported the individual working part-time collecting data for the GIS mapping system will continue to work until the data collection is complete.

Director Gieringer reported $1 million will be transferred from wastewater reserves to the operating fund to cover the costs of the South Odell sewer main project. Mr. Hird asked that the Board be given a report at a future meeting on the status of all the reserve accounts.

Electric Distribution Director Jeff Bergstrom reported there is a need to replace the North Street Substation due to its age and condition and its importance to the generation and distribution systems. This replacement project is listed in the 2007/08 budget. On a motion by Mr. Hird, seconded by Mr. Mills, the Board approved proceeding with this project.

Director Bergstrom reported crews are starting on the repair and maintenance project for the section of transmission line from Norton Substation to Southeast Substation. Arbor R.O.W., Inc., the contractor for the tree-trimming project along the transmission line, should be starting this project next week. The new digger derrick truck has been received.

Electric Production Director Jim Johnson reported Advanced Protective Coating (APC) will be recoating the treated water tank and painting the Unit #5 stack in October. Unit #4 is back on line. There are a lot of deposits built up on the superheat tubes that need to be removed. APC will clean off these deposits when they are here for the water tank and stack work in October.

Underground Facilities Director Monty Chase reported the manhole rehabilitation project is complete with 80 manholes finished.

Director Chase reported there are a couple of options for putting in a water main across Salt Fork Creek at the Union Pacific Railroad bridge and the Eastwood Street viaduct. Shafer, Kline and Warren has proposed conducting a study to choose the best option for this water main. The Board directed management to negotiate the cost of the study with Shafer, Kline and Warren.

A discussion was held on how water pressure in Marshall and the water level in the water tower are maintained.

Employee Relations Manager Megan Baldridge reported meeting with a representative of the Naught-Naught Agency to discuss options for employee health insurance. A request for proposals for employee health insurance will be sent out in October. The Board asked that Ms. Baldridge arrange for a representative of the Naught-Naught Agency to come to a future Board meeting to explain MMU’s options on employee health insurance, specifically partially self-funded health insurance.

Ms. Baldridge indicated representatives of OSH, Inc. will be here in October to conduct training on AEDs and CPR. Mr. Mills suggested MMU might take advantage of OSHA’s 10-hour safety course. Ms. Baldridge is surveying other utilities to find out how safety issues/programs are handled at those utilities. The possibility of having a stand-alone safety department is being evaluated.

Environmental Services Director Ginny Ismay reported that she, General Manager Kyle Gibbs, and Chief Operator Allen Boydston traveled to Lenexa, Kansas, to attend a presentation on sodium hypochlorite generating equipment.

A discussion was held on the need for replacing the lime settling basin at the Water Treatment Plant.

General Manager Kyle Gibbs asked the Board if a decision had been made regarding Mr. and Mrs. Terry Clark’s request (at the last Board meeting) for an adjustment to their high electric bill due to a faulty remote meter. The Board postponed discussion of this request in order for management to talk with Mr. and Mrs. Clark regarding the information compiled concerning their account over the last several years.

General Manager Gibbs briefly summarized some of the improvements being implemented concerning emergency outage response.

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		$	  114,951.50
	ELECTRIC OPERATING FUND		$	1,083,466.49
	SEWER REVENUE FUND		$	  264,035.20
	INTERNET OPERATING FUND		$	    7,797.52
	NATURAL GAS OPERATING FUND	$	       98.36
	ELECTRIC CONSUMERS DEPOSIT FUND	$	    7,230.00

The Board voted unanimously to adjourn the regular meeting at 10:10 a.m. on a motion by Mr. Fricke, seconded by Mr. Mills.