Marshall Municipal Utilities

Board Meeting Minutes

July 1, 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.

On a motion by Mr. Mills, seconded by Mr. Hird, the Board approved a 10% industrial incentive on the electric portion of Fitzgibbon Hospital’s main account for one year starting July 1, 2008 (resulting in approximately a $37,000 reduction in their bills), and a $34,200 refund by the Electric Department for prior infrastructure work for the hospital; totaling approximately $71,200 for the cancer center fundraising campaign.

Administrative Services Director Ken Gieringer reported an electric rate change is needed in which the ratchet factor of the demand charge would be increased. Historically, MMU has billed the greater of the actual demand load for the month or 75% of the highest load in the summer season (June to September) in the prior eleven months. Director Gieringer proposed that the 75% be increased to 80%. There is also a need to increase the charge per kW for demand from $9 to $10. On a motion by Mr. Mills, seconded by Mr. Hird, the Board postponed a decision on the proposed rates until further review.

Director Gieringer reported the installation of approximately 500 electric meters for the automatic meter reading test area has been completed. Two “gate ways” have also been installed that provide the readings from these meters to equipment located in the Business Office. The meters in the test area are working well. Director Gieringer indicated the delivery time on these meters is long and the meters to complete the rest of the town would need to be ordered soon. On a motion by Mr. Mills, seconded by Mr. Hird, the Board authorized the purchase of equipment from Trilliant for the full implementation of an automated electric meter reading system (prices established in the bid received January 15, 2008).

Electric Production Director Jim Johnson reported the Unit #5 chemical feed pump needs to be replaced. The pump is 20 years old and the cost of parts along with the increased yearly maintenance has become an issue. On a motion by Mr. Heinzler, seconded by Mr. Mills, the Board approved requesting bids for this pump.

Director Johnson reported the mechanical hydraulic operated door opener on the Otis elevator failed. The door opener was replaced with a new electronic AT400 operator.

Director Johnson indicated the #4 baghouse is beginning to experience some of the same problems as experienced with the previous Unit #4 bags. Various options are being considered.

Underground Facilities Director Monty Chase reported there is a need for a vacuum excavator for various jobs such as potholing, cleaning valve boxes and meter boxes, and removing debris from manholes. This machine uses water and a large vacuum to remove solids. On a motion by Mr. Heinzler, seconded by Mr. Hird, the Board approved requesting bids for a vacuum excavator.

Director Chase indicated a 10” water main at ConAgra will need to be relocated due to their dock expansion plans. Several options are being considered.

Electric Distribution Director Jeff Bergstrom reported the bids opened June 2, 2008, for the North Street Substation switchgear project have been reviewed by MMU staff and the consulting engineers Lutz, Daily & Brain. The base bid from H. K. Scholz Co. was determined to be the best bid submitted. On a motion by Mr. Mills, seconded by Mr. Hird, the Board accepted the base bid of $514,800 from H. K. Scholz Co.

Director Bergstrom reported the infrared camera purchased in 1995 has quit working. This camera is used to scan for bad connections in all the substations and main feeders annually. On a motion by Mr. Hird, seconded by Mr. Mills, the Board approved requesting bids for this camera.

Director Bergstrom is reviewing the arc flash study recently compiled by Lutz, Daily & Brain. Electric Distribution crews will begin the underground bore on S. Lake Drive on July 8.

The following proposals were received June 18, 2008, for the backwash tower inspection at the Water Treatment Plant:

	Cunningham Sandblasting & Painting	$2,100
		Joplin, Missouri
	Hydro Spec, Inc.			$1,250
		Nevada, Missouri
	Liquid Engineering Corp.		$3,185
		Billings, Montana
	Ozark Applicators, LLC			$1,450
		Van Buren, Missouri

The low bidder, Hydro Spec, is the contractor currently doing the work on Consolidated Public Water Supply District #2’s ground storage tank across Highway 65 from the Water Treatment Plant. On a motion by Mr. Hird, seconded by Mr. Heinzler, the Board accepted the proposal from Hydro Spec, Inc., for $1,250 to inspect the Water Treatment Plant backwash tower.

Environmental Services Director Ginny Ismay reported SMI-CO will be at the Water Treatment Plant July 7, 2008, to begin the disinfection facility construction project.

Employee Relations Manager Megan Baldridge reported the new Safety and Training Officer, Scott Melton, started work June 30. We have not yet received confirmation of the availability of a Ford Escape through the state contract, which could possibly be a vehicle for the Safety and Training Officer.

A discussion was held concerning MMU’s claims history over the last three years with Workers’ Compensation. A letter has been received from our Workers’ Compensation carrier, Missouri Rural Service Workers’ Compensation Insurance Trust, identifying issues that need to be addressed. Management will be working with the new Safety and Training Officer to improve MMU’s safety performance.

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		$	142,850.07
	ELECTRIC OPERATING FUND		$	453,087.80
	SEWER REVENUE FUND		$	121,315.60
	INTERNET OPERATING FUND		$	 13,767.74
	NATURAL GAS OPERATING FUND	$	  3,237.00
	ELECTRIC CONSUMERS DEPOSIT FUND	$	  5,725.00
 

On a motion by Mr. Hird, seconded by Mr. Mills, the Board voted unanimously to adjourn the regular meeting at 10:13 a.m.