Marshall Municipal Utilities

Board Meeting Minutes

February 10, 2009

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

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

Underground Facilities Director Monty Chase reported two sections of sewer main need to be replaced: one on Effie Street starting west of Jefferson and ending near the Middle School (approximately $20,000), and one between Jefferson and Lafayette Streets south of Summit Street (approximately $7,500). These projects will not need an engineer’s approval or seal and will be done with in-house labor. On a motion by Mr. Heinzler, seconded by Mr. Fricke, the Board approved replacing the two sections of sewer main with in-house labor for an estimated total cost of $27,500.

Director Chase reported MMU’s generator has been returned that was used by the city of Campbell’s wastewater plant during the recovery efforts after the recent winter storm.

Electric Production Director Jim Johnson reported Units #4, #5 and #10 do not have adequate relaying to protect these units by today’s standards. A 2003 study by Lutz, Daily & Brain recommended that multi-function relays be installed on units that have inadequate protection. Units #5 and #10 should be upgraded as part of the North Street Substation upgrade that is planned for this fall. On a motion by Mr. Heinzler, seconded by Mr. Fricke, the Board approved proceeding with the multi-function relays project.

Administrative Services Director Ken Gieringer reported MMU has been building reserve insurance funds due to the high deductibles and the fact that so much of MMU’s assets are not covered by insurance. These funds need to be increased. On a motion by Mr. Fricke, seconded by Mr. Heinzler, the Board approved increasing the insurance reserve funds in water and wastewater by $25,000 and in electric by $100,000.

Director Gieringer also indicated most of MMU’s insurance is for liability coverage, but MMU has maintained comprehensive and collision coverage on the fleet and the inland marine policy for heavy equipment. MMU has rarely collected on this coverage in thirty years. It was the consensus of the Board not to renew the comprehensive and collision coverage portion of the fleet insurance policy and cancel the inland marine coverage ($26,510 last year).

Director Gieringer reported that wholesale power costs have increased over the past few years by $50.87 per megawatt. MMU has increased billing $26.04 per megawatt over the past three and one-half years. The remaining cost has not been passed on to MMU’s customers. The increase in wholesale costs has been financed by delay, deferral or cancellation of major projects and $4,000,000 of MMU’s reserves.

Environmental Services Director Ginny Ismay reported the startup for the disinfection facility at the Water Treatment Plant should be the week of February 23, 2009.

Electric Distribution Director Jeff Bergstrom reported problems occurred in voltage and amperage at the Power Plant when the tap changer was operated in the Miami #1 transformer. The contacts have been replaced and the spring drive is on order for this tap changer.

Director Bergstrom reported five MMU employees went to Campbell, Missouri, January 25 to help with the recovery work from the recent winter storm. These five employees returned February 7, and two employees have now gone to Kennett, Missouri, to help with their recovery efforts. The Nelson Tree Trimming crews that were trimming in walkway easements for MMU were temporarily released from their work for MMU to help with ice storm damage in Kentucky.

Director Bergstrom indicated two quotes were received for refinishing twenty-four fiberglass layout arms, one for $83 per arm and the other for $109 per arm. The Board had no objections to taking the quotes for $83 per arm to refinish these fiberglass layout arms.

Employee Relations Manager Megan Baldridge distributed the annual wage survey data to the Board. Management will be working on a recommendation for salary adjustments.

Ms. Baldridge indicated a representative of Unico will be here February 13, 2009, to size the employees who will be receiving flame resistant clothing.

Ms. Baldridge gave a brief review of the safety report of the first quarter of fiscal year 2009 and noted there seemed to be a better awareness by employees of the need to report incidents. Mr. Mills expressed his disappointment in the slow progress of the safety program and noted there was not a safety committee volunteer from the Administrative Services Department. Mr. Mills stressed that employees should be made to realize the extreme importance of participation in the safety program.

General Manager Kyle Gibbs reported DNR has requested that MMU come to an agreement on the 800-hour operation limit for Units #7, #8, and #9 as stated in the draft construction permits for these units. MoPEP has stated MMU will not lose any capacity payments if this limit is accepted, as long as MMU can run more than 500 hours per year. The Board had no objections to accepting this limit.

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

	WATER OPERATING FUND		$	150,635.65
	ELECTRIC OPERATING FUND		$	922,495.57
	SEWER REVENUE FUND		$	138,370.38
	INTERNET OPERATING FUND		$	  9,372.05
	NATURAL GAS OPERATING FUND	$	    243.96
	ELECTRIC CONSUMERS DEPOSIT FUND	$	  3,650.00
	WATER PLANT IMPROVEMENT RESERVE	$	233,345.66

On a motion by Mr. Fricke, seconded by Mr. Heinzler, the Board voted to adjourn the regular meeting at 9:21 a.m.