Marshall Municipal Utilities

Board Meeting Minutes

October 9, 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.

Electric Distribution Director Jeff Bergstrom reported 2007/08 is the fifth budgeted year for the 4.16 kV voltage conversion project, which will take seven years to complete. On a motion by Mr. Mills, seconded by Mr. Fricke, the Board approved continuing with this conversion project.

Director Bergstrom explained that the 1994 Ford two-wheel-drive 1-ton flatbed truck (#329) in the Electric Distribution Department is in need of replacement. On a motion by Mr. Fricke, seconded by Mr. Hird, the Board approved requesting bids for a new 1-ton four-wheel-drive flatbed.

Director Bergstrom reported three of the six 161 kV power circuit breakers on the transmission system were installed in 1995 and are overdue for the 10-year maintenance recommended by the manufacturer. On a motion by Mr. Mills, seconded by Mr. Hird, the Board approved proceeding with this maintenance project.

The voltage conversion of feeder #43 from 4.16 kV to 13.2 kV is complete. The contractor, Arbor R.O.W., is progressing on the transmission line clearing project.

Underground Facilities Director Monty Chase reported truck #215 (1994 model) needs to be replaced. Director Chase indicated the truck would be replaced with a 1-ton four-wheel-drive and utility bed with a 30 to 60 cfm air compressor. The air compressor would cost approximately $5,000 extra. On a motion by Mr. Mills, seconded by Mr. Fricke, the Board approved requesting bids for this new truck and utility bed with air compressor.

Director Chase reported the sewer main in the alley between Jefferson and Lafayette Streets from Vest to Morgan needs to be replaced. On a motion by Mr. Hird, seconded by Mr. Mills, the Board approved proceeding with this sewer main replacement project with in-house labor for design and construction.

Director Chase stated a five-year program of changing out small water meters was completed last year with over 2,000 meters being changed out. There are still small meters in the system that need to be changed out, along with over 80 two-inch meters that also need to be changed out. On a motion by Mr. Mills, seconded by Mr. Fricke, the Board approved starting the meter change-out project for 2007/08, with a not-to-exceed cost of $25,000.

Electric Production Director Jim Johnson reported the old manual chain hoist in the Power Plant needs to be replaced with a 3-ton capacity electric chain hoist and trolley to make projects easier and safer. Director Johnson indicated the new hoist would be installed by MMU personnel and would cost approximately $5,000. The new hoist would be obtained through quotes. On a motion by Mr. Hird, seconded by Mr. Fricke, the Board approved proceeding with this project.

Director Johnson reported a contractor is working on removing the coating on the interior of the treated water tank and will also begin painting the Unit #5 stack.

Employee Relations Manager Megan Baldridge reported it is the consensus among management that there is a need for a Safety and Training Officer who could devote full time to safety related issues. The Board asked that a job description be drafted for their review before a decision is made concerning this proposed position.

Administrative Services Director Ken Gieringer is working on possible rate changes to go into effect January 1, 2008, for water, electric and wastewater. A discussion was held concerning reserves.

APPA’s Electric Market Reform Initiative, which was started about 1 ½ years ago, has been working to ensure that municipalities have a way to be heard in Washington regarding the electric market reform after retail deregulation. General Manager Kyle Gibbs reported APPA and MPUA staff believe the Initiative has helped to protect municipals in several areas. In addition to the $1,000 MMU donated in April 2006 to the Initiative, APPA is now requesting another $1,000 be donated. General Manager Gibbs indicated MMU may be able to donate under a group assessment through MPUA. On a motion by Mr. Fricke, seconded by Mr. Hird, the Board approved a donation to the Electric Market Reform Initiative up to $1,000, or the amount MPUA assesses up to $1,000.

General Manager Gibbs reported on the topics of interest at the MPUA Annual Conference, including capture and sequestration of CO2.

General Manager Gibbs indicated the contract has been signed by all parties for MMU to purchase property from James J. Thompson east of the Power Plant.

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

	WATER OPERATING FUND		$	  145,577.73
	ELECTRIC OPERATING FUND		$	1,214,005.64
	SEWER REVENUE FUND		$	  242,397.28
	INTERNET OPERATING FUND		$	   11,038.02
	NATURAL GAS OPERATING FUND	$	      412.72
	ELECTRIC CONSUMERS DEPOSIT FUND	$	    6,825.00

The Board voted unanimously to adjourn the regular meeting at 9:31 a.m. on a motion by Mr. Fricke, seconded by Mr. Mills.