Marshall Municipal Utilities

Board Meeting Minutes

July 16, 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; and Jim Heinzler, member. Mike Mills, Secretary, was absent.

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

Environmental Services Director Ginny Ismay reported the packing gland on the #3 high service pump at the Water Treatment Plant is leaking. The overhaul of this pump was planned for the 2008/09 budget year, but since the packing gland is leaking the overhaul should be done now. On a motion by Mr. Hird, seconded by Mr. Heinzler, the Board approved proceeding with the overhaul of the #3 high service pump.

Director Ismay reported the contractor for the Water Treatment Plant backwash tower inspection should be onsite July 17, 2008. The contractor for the disinfection facility construction at the Water Treatment Plant has moved some equipment onsite and should start the project July 17, 2008.

A discussion was held concerning mutual aid and how this network of resource sharing works during emergencies.

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. Hird, seconded by Mr. Heinzler, the Board approved changing the “billing demand” in the MMU electric rates (excluding Private Area Lighting) from “75 percent of the maximum Billing Demand during the summer session of the 12-month period ending with the current month” to “80 percent of the maximum Billing Demand of MMU’s peak summer month of the 12-month period ended with the current billing month.” Increase demand charges from the current $9 to $10. The changes to be effective for billing after October 1, 2008.

Electric Production Director Jim Johnson reported the results of the coal and ash analysis for the Unit #5 boiler indicated a content of 35.5% unburned carbon. This is high for a pulverized boiler. Plans are to do some monitoring at various loads to determine if performance can be improved by tuning the controls.

Director Johnson reported Unit #4 is running at 70% load until some issues with the unit at higher loads are resolved. Some bags from the Unit #4 baghouse have failed and were sent to BHA for evaluation. Units #10 and #11 were run last week and are being run this week also. The new loader has been received.

Underground Facilities Director Monty Chase reported the replacement gas meter for the Mid-Missouri Energy regulator station should be in this week or next. The sewer construction project in the alley north of Vest is close to completion. Bids will be opened July 23, 2008, for a vacuum excavator.

Electric Distribution Director Jeff Bergstrom reported there were some problems with C Substation due to the recent storm, and various other storm damage around town.

Employee Relations Manager Megan Baldridge reported the Safety and Training Officer, Scott Melton, is being introduced around the various departments. Mr. Melton is familiarizing himself with MMU policies and procedures and learning about the work MMU employees do.

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

	WATER OPERATING FUND		$	  130,790.91
	ELECTRIC OPERATING FUND		$	1,342,296.57
	SEWER REVENUE FUND		$	   99,267.07
	INTERNET OPERATING FUND		$	   17,819.29
	NATURAL GAS OPERATING FUND	$	    3,436.11
	ELECTRIC CONSUMERS DEPOSIT FUND	$	    6,175.00

On a motion by Mr. Heinzler, seconded by Mr. Hird, the Board voted unanimously to adjourn the regular meeting at 9:23 a.m.