Marshall Municipal Utilities

Board Meeting Minutes

December 9, 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. Also present were Dennis Knipmeyer, Manager of Consolidated Public Water Supply District No. 2 of Lafayette, Johnson and Saline Counties (CPWSD#2); and Water District Board representatives including Ron Heins, President, and members Bob Sander, Sam Fenner, Larry Kitchen, and Debbie Lueck; and staff member Tammy Winter.

The agenda was approved as presented.

Mr. Knipmeyer explained the background of the CPWSD#2 and its relationship with MMU. Mr. Knipmeyer stated that on average in 2008 the district purchased 6.8 million gallons of water per month of the 10 million gallons allowed by the contract between the district and MMU. In lieu of MMU’s water rate increase (recently approved), Mr. Knipmeyer asked that the Board of Public Works consider a stepped rate for the district such as $2.15 per 1,000 gallons of water for the first 3 million gallons per month and $1.52 per 1,000 gallons for all over 3 million. Mr. Knipmeyer indicated these figures were a starting point for discussion and would be open to modification. The Board will take this matter under consideration and let Mr. Knipmeyer know their decision. The staff and board members of the district left the meeting.

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

Administrative Services Director Ken Gieringer recommended establishing an Electric Impact Fee of $250 per meter for any new single-phase service. Customers requesting a new (or upgrading to) three-phase service shall pay for all costs of the service. Customers making a major investment in the community may ask for consideration for a waiver of this fee. On a motion by Mr. Heinzler, seconded by Mr. Hird, the Board approved an Electric Impact Fee of $250 per meter for any new single-phase service. The Impact Fee for three-phase service will be determined by MMU upon review of an application for service from the customer. The Electric Impact Fee to be effective January 1, 2009.

The Board discussed the request by Dennis Knipmeyer on behalf of CPWSD#2 regarding a proposed stepped water rate for the water district. General Manager Kyle Gibbs will gather further information for the Board before a decision is made.

Underground Facilities Director Monty Chase reported a request has been received from Joe and Kim Thompson for a one-inch water service outside the city limits. Public Water Supply District #3 has released the Thompson’s property so it can be served by MMU. The Thompson’s have the necessary easements and will be required to agree to be annexed into the city limits if annexation occurs. On a motion by Mr. Hird, seconded by Mr. Mills, the Board approved the request by Joe and Kim Thompson for water service connection outside the city limits.

Wastewater Treatment Plant Chief Operator Jerry Lawson reported the second polymer pump in the filter building at the Wastewater Treatment Plant needs to be replaced. There are no spare parts available for this pump. On a motion by Mr. Mills, seconded by Mr. Hird, the Board approved requesting bids for replacing this pump.

Electric Production Director Jim Johnson reported the Unit #5 controls project is complete and this unit was put on line December 1, 2008.

The following bids were received December 4, 2008, for contract tree trimming for walkway easement (rebid from 10/22/08).

Electric Distribution Assistant Director Doug Root indicated the lowest bid meeting specifications is from Nelson Tree Service. On a motion by Mr. Mills, seconded by Mr. Hird, the Board accepted the bid from Nelson Tree Service.

Assistant Director Root reported when taking the Southeast to Norton Substation section of transmission line out of service in order for PAR Electric to do their maintenance work, the top actuating rod on the No. 1 switch interrupter broke. We had spare parts to make the repairs and worked with Electric Production in scheduling an outage on the feed from Norton Substation so the repairs could be made. MMU generated all of the city’s power for approximately 6 hours while the switch was repaired.

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

	WATER OPERATING FUND			$	 98,226.41
	ELECTRIC OPERATING FUND			$	644,523.99
	SEWER REVENUE FUND			$	 80,482.72
	INTERNET OPERATING FUND			$	 14,977.09
	NATURAL GAS OPERATING FUND		$	    97.23
	ELECTRIC CONSUMERS DEPOSIT FUND		$	  3,650.00
	WATER TREATMENT PLANT IMPROVEMENT RES.	$	  4,801.95

On a motion by Mr. Mills, seconded by Mr. Heinzler, the Board voted to adjourn the regular meeting at 9:33 a.m.

The Board expressed their wish that the employees of MMU have a Merry Christmas.