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Marshall Municipal Utilities

"Providing Hometown Reliability"

Board Meeting Minutes

March 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 Charles Hird, President; Mike Mills, Vice President; Jim Heinzler, Secretary; and Spencer Fricke, member.

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

Environmental Services Director Ginny Ismay reported the SMI-CO contract for the disinfection facility at the Water Treatment Plant needs to have a change order for additional work on the south and middle drives. The middle drive has to have the radii reworked to comply with MoDOT standards, which has to be done. The south drive portion is to redo the drive from the edge of Route N back approximately 37 feet. On a motion by Mr. Mills, seconded by Mr. Fricke, the Board approved change order #4 to the SMI-CO contract for $18,900.

Director Ismay reported phase 2 of the drive repairs project (south leg) at the Wastewater Treatment Plant needs to be completed. Municipal Services has indicated this project could be included in their bid request package for paving services. On a motion by Mr. Fricke, seconded by Mr. Mills, the Board approved completing this project through bids requested by Municipal Services.

Director Ismay indicated a small boat is needed to perform maintenance work in the aeration basins, wet wells, and clarifiers at the Wastewater Treatment Plant. Mr. Mills asked that the Safety and Training Officer evaluate the situation to determine what type of boat is needed and what safety precautions will need to be taken. A decision on the purchase of the boat was postponed until the next meeting in order for the safety issues to be evaluated.

Electric Production Director Jim Johnson reported the Unit #5 turbine needs a major overhaul. It has been five years since the last overhaul on this unit. Options for a new electronic governor will be included in this project. On a motion by Mr. Heinzler, seconded by Mr. Mills, the Board approved proceeding with this project and seeking bids for the Unit #5 governor conversion package.

The following bids were opened March 6, 2009, for replacement of the Southeast Substation roof.

     Kirberg Company		$ 9,250
          Kansas City, KS
     Tremco Incorporated	$20,652
          Olathe, KS
     Watkins Roofing		$17,275
          Columbia, MO
     Pat Flinn			$10,684
          Marshall, MO

Director Bergstrom indicated Watkins Roofing and Kirberg Company bid an overlay over the existing roof. Tremco Incorporated and Pat Flinn bid replacement of the roof. On a motion by Mr. Heinzler, seconded by Mr. Fricke, the Board accepted the bid from Pat Flinn for $10,684.

Employee Relations Manager Megan Baldridge stated management’s recommendations for wages for 2009 are: 1) a 2 ¼% increase to all pay ranges, except five (the other five were: three at 1%, one at 4.25%, and one at 1.25%) 2) a corresponding adjustment to individual wages to maintain individual progress within the pay range except for those that have failed to sustain their performance, and 3) merit based changes to wages and salaries in an amount not to exceed $45,000. Mr. Hird requested that each step of the recommendation be discussed and voted on separately. An extensive discussion of all three recommendations followed. On a motion by Mr. Mills, seconded by Mr. Hird, the board approved recommendation number 1 as stated above, to include exempt and nonexempt employees. On a motion by Mr. Heinzler, seconded by Mr. Fricke the Board approved recommendation number 2 as stated above. On a motion by Mr. Mills, seconded by Mr. Heinzler, the Board approved recommendation number 3 as stated above. All three approved recommendations are to become effective as of March 1, 2009.

Mr. Mills requested a cost adjustment of three-eighths of a cent per kWh be applied to customer bills. Discussion followed. General Manager Kyle Gibbs suggested MMU could better handle a one-quarter of a cent per kWh adjustment at this time. On a motion by Mr. Mills, seconded by Mr. Fricke, the Board approved a one-quarter of a center per kWh adjustment to customer bills effective for billing after April 1, 2009.

A short break was called. The meeting resumed at 10:15 a.m.

Ms. Baldridge reported a policy has been drafted to address the use of flame resistant (FR) clothing and personal protective equipment (PPE) when employees are exposed to potential electric arc. A procedure has also been developed to provide an allowance for those employees required to wear the FR clothing as a method for these employees to replace the daily wear clothing as its useful wear life ends. On a motion by Mr. Mills, seconded by Mr. Fricke, the Board approved the flame resistant clothing policy effective April 15, 2009, and establishing the allowance program in order to maintain flame resistant daily wear clothing where required.

Ms. Baldridge indicated a policy has been drafted to address the use of high visibility apparel when employees are exposed to the risks of moving traffic or equipment. High visibility apparel is recommended for 32 employees who will require the daily and routine use of the apparel. Procedures have also been developed for an allowance program for replacement of the high visibility apparel as the clothing fades. On a motion by Mr. Heinzler, seconded by Mr. Mills, the Board approved a High Visibility Safety Apparel Policy effective April 15, 2009; and acquisition of high visibility daily wear clothing for individuals in the positions as identified, with the establishment of an annual allotment as described, to be obtained through quotes.

Underground Facilities Director Monty Chase reported the contractors for the rehab of two sections of sewer main started and completed the project on March 2. MMU crews have completed the sewer main inspection of all the areas that drain to the North English Lift Station. Most of the mains are in good to excellent condition and it appears most of the inflow and infiltration is entering through customers’ service lines or footing drains.

Administrative Services Director Ken Gieringer reported 43 Internet customers have been added since MMU’s Internet speed was increased last May and the maximum usage allowed by MMU’s connection has been reached. On a motion by Mr. Mills, seconded by Mr. Fricke, the Board approved increasing the dedicated Internet access through Missouri network Alliance by 50%.

Mr. Mills asked that management look into applying for broadband stimulus money.

General Manager Kyle Gibbs reported MMU has reviewed the calculations for BOD and TSS extra strength rates for industries in response to a request from ConAgra to change their BOD limit. As a result, it was determined that the labor and maintenance costs done by the Underground Facilities Department should be removed from these calculations because they have nothing to do with BOD or TSS extra strength treatment. On a motion by Mr. Mills, seconded by Mr. Fricke, the Board approved revising the BOD extra strength charge to $0.28/lb. and $0.16/lb. for TSS effective for billing after January 1, 2009, and refunding any overcharges since January 1, 2009, to the industries in the form of a deduction on their next billing. The BOD limit of 350mg/l will not be changed. The wastewater discharge flow in Con-Agra’s permit will be changed from 500,000 gallons to 900,000 gallons.

General Manager Gibbs indicated the roof on the Benton Street property is leaking. Watkins Roofing has given a quote of $1,500 to make the needed repairs. Mr. Hird asked that Pat Flinn be requested to provide a bid to repair the leaks. It was the consensus of the Board to take the best bid between Watkins Roofing and Pat Flinn and proceed with this project.

MPUA will be taking a group to tour the Prairie State Power Plant in Illinois on April 16, 2009. The Board members were invited to attend.

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		$	181,437.30
	ELECTRIC OPERATING FUND		$	820,170.94
	SEWER REVENUE FUND		$	156,118.18
	INTERNET OPERATING FUND		$	  9,183.12
	NATURAL GAS OPERATING FUND	$	    182.50
	ELECTRIC CONSUMERS DEPOSIT FUND	$	  2,300.00
	WATER PLANT IMPROVEMENT RESERVE	$	 50,928.00

On a motion by Mr. Fricke, seconded by Mr. Heinzler, the Board voted to adjourn the regular meeting at 10:50 a.m.