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Marshall Municipal Utilities

"Providing Hometown Reliability"

Board Meeting Minutes

February 9, 2010

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

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

Administrative Services Director Ken Gieringer reported MMU has been building an insurance reserve fund over the years due to the high deductibles carried and the fact that so much of MMU’s assets are not cov-ered by insurance. The annual increase is not recommended for the Water and Wastewater Departments due to the financial condition of these two departments. On a motion by Mr. Hird, seconded by Mr. Fricke, the board authorized an increase of $100,000 in the Electric Department insurance reserves, with no in-crease in the reserves for the Water and Wastewater Departments.

Director Gieringer reported the Missouri Valley Community Action Agency has made a major change in the way they determine the amount of funds they approve for assistance to customers. Procedures are being developed for MMU’s Customer Service Department to help customers meet the new requirements.

Environmental Services Director Ginny Ismay asked that a decision be postponed for selecting engineering firms for the lime sludge handling facilities project at the Water Treatment Plant and for the discharge per-mit renewal and disinfection facilities project at the Wastewater Treatment Plant. The Board agreed to postpone the decision until the full Board can be present.

Director Ismay reported there is a need for a mid-size SUV to be used by the Environmental Services Direc-tor for travel necessary for the job and to be used by Environmental Services staff when traveling for train-ing. On a motion by Mr. Hird, seconded by Mr. Fricke, the Board postponed a decision on this purchase until the full Board can be present.

Employee Relations Manager Megan Baldridge explained that management is currently reviewing the des-ignated smoking areas in MMU facilities in order to comply with the Clean Air Act. Mr. Heinzler ex-pressed his view that there should be no smoking allowed in any of MMU’s facilities. A draft of proposed changes to the smoking policy will be brought to the Board at a later meeting.

Ms. Baldridge reported the quality of the high visibility clothing currently being used by MMU employees is poor and the vendor’s administration of the clothing allowance program is not satisfactory. Some high visibility clothing from another vendor has been in use since the first of September and the clothing seems to be outperforming the clothing from the current vendor. Management would like to begin purchasing a quantity of high visibility clothing annually instead of trying to administer an allowance program. On a motion by Mr. Hird, seconded by Mr. Fricke, the Board approved the purchase of high visibility clothing using quotes, with a maximum cost of $5,000.

Underground Facilities Director Monty Chase reported the plans have been received from Shafer, Kline & Warren for the sewer and water main replacement project on Hamner Street at Ohio. Director Chase indi-cated the annual Contractors’ meeting will be February 18 at the Service Center Electric Distribution Build-ing.

Electric Distribution Director Jeff Bergstrom reported the cable failed between the North Street Substation and the Power Plant on February 1, 2010. The load has been shifted to the south transformer and the cable will be replaced next week.

Electric Production Director Jim Johnson reported requests for bids for breaker maintenance for Units #4, #5, and #6 have been sent out and are due February 16, 2010. Requests for bids for replacement of the fill and fill supports for the Unit #5 cooling tower were also sent out and are due March 2, 2010.

Director Johnson reported there are still problems with the hydrogen seal oil system on Unit #5.

General Manager Kyle Gibbs reported the goal of $12,500,000 for MoPEP reserves will be reached in March 2010. Wholesale electric prices will decrease once this goal is reached.

General Manager Gibbs reported fifteen municipal utilities have been notified by Sho-Me Power Co-op that the Co-op will no longer serve their wholesale power needs after 2013. It is expected that some of the mu-nicipals will join MoPEP.

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

	WATER OPERATING FUND		$	  113,279.97
	ELECTRIC OPERATING FUND		$	1,055,931.46
	SEWER REVENUE FUND		$	  150,294.87
	INTERNET OPERATING FUND		$	   11,105.00
	NATURAL GAS OPERATING FUND	$	      433.22
	ELECTRIC CONSUMER DEPOSIT FUND	$	    2,800.00

On a motion by Mr. Hird, seconded by Mr. Fricke, the regular meeting adjourned at 9:14 a.m.