Marshall Municipal Utilities

Board Meeting Minutes

February 12, 2008

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

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

Administrative Services Director Ken Gieringer reported the insurance reserves need to be built up because of high deductible and the fact that much of our assets are not covered by insurance. On a motion by Mr. Heinzler, seconded by Mr. Hird, the Board approved increasing the insurance reserve funds in Water and Wastewater each by $25,000 and the Electric by $100,000.

Director Gieringer presented proposed changes to electric rates for the Board’s review. A recommendation will be made at a future meeting.

Underground Facilities Director Monty Chase reported a demonstration of a pipe patching machine was held February 8, 2008. This equipment has been purchased.

Electric Production Director Jim Johnson reported there are problems with air flow in five of the six compartments in the baghouse for Unit #5. These bags are five to six years old, which is about the normal life for our operation. Quotes are being solicited for replacement of these bags.

Unit #4 has been shut down and the high pressure relief valves have been removed and sent off for repairs.

Environmental Services Director Ginny Ismay reported a change order will need to be made to the contract with Shafer, Kline & Warren for the design of the disinfection facility at the Water Treatment Plant. The original contract would allow the potential building contractors to submit their bids based on four options for equipment to be installed in the building. The change order would allow for a prebid on the equipment, which would give the potential building contractors specific equipment on which to base their bids. On a motion by Mr. Mills, seconded by Mr. Hird, the Board approved the change order to the contract with Shafer, Kline & Warren at a cost of $4,608.

Director Ismay requested that a change order to the Shafer, Kline & Warren contract for the disinfection facility at the Water Treatment Plant be approved in order for bathroom facilities to be incorporated into the design of the facility. Shafer, Kline & Warren has indicated this change order would be at a cost of $4,320. It was the consensus of the Board that management negotiate with Shafer, Kline & Warren to reduce this cost.

Electric Distribution Director Jeff Bergstrom reported Wesco has completed the 10-year maintenance of the three ABB 161 kV transmission line breakers. These breakers are 14 years old and, according to ABB, have over half their useful life left.

Director Bergstrom reported the transformer and wire at the First Christian Church has been replaced for the 4.16 kV voltage conversion project. Electric Distribution crews will be working on clearance issues on Odell between Arrow and North Streets, and adding another 13.2 kV feeder out of Miami #2.

General Manager Kyle Gibbs reported the South Odell Sewer project is substantially complete. There are only a few small items that remain to be finished.

A discussion was held concerning the demand payments and new plant cost charged to MMU by MoPEP for 2008. MMU will be charged for 8.36% of the Pool’s costs in 2008 versus 8.81% in 2007. The reduced percentage reflects additional cities joining the MoPEP Pool and MMU’s lower peak.

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

	WATER OPERATING FUND		$	 94,028.08
	ELECTRIC OPERATING FUND		$	527,282.05
	SEWER REVENUE FUND		$	 69,082.76
	INTERNET OPERATING FUND		$	  7,611.92
	NATURAL GAS OPERATING FUND	$	    207.97
	ELECTRIC CONSUMERS DEPOSIT FUND	$	     --

On a motion by Mr. Mills, seconded by Mr. Hird, the Board voted unanimously to adjourn the regular meeting at 9:42 a.m.