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Marshall Municipal Utilities

"Providing Hometown Reliability"

Board Meeting Minutes

March 30, 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 Mike Mills, President; Jim Heinzler, Vice President; Spencer Fricke, Secretary; and Charles Hird, member.

The agenda was approved as amended to deal with cash disbursements after business from Board members and to make the report from Employee Relations the first report. The minutes of the previous meeting were approved as printed on a motion by Mr. Heinzler, seconded by Mr. Hird.

Mr. Mills expressed his opinion that if customers were encouraged to look at the breakdown of individual costs on their utility bill, they would realize that the cost for electricity is only part of the overall bill.

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		$	121,630.00
	ELECTRIC OPERATING FUND		$	452,974.31
	SEWER REVENUE FUND		$	153,853.32
	INTERNET OPERATING FUND		$	 16,047.72
	NATURAL GAS OPERATING FUND	$	357,697.88
	ELECTRIC CONSUMER DEPOSIT FUND	$	  7,475.00
	WATER SEGREGATED FUND		$	139,857.35

Employee Relations Manager Megan Baldridge reviewed information from the Bureau of Labor Statistics concerning comparison of employer costs per hour worked for employee compensation and costs as a percent of total compensation. Ms. Baldridge presented management's recommendations for 2009-10 wage and pay ranges, as follows: 1) adjustments to exempt and non-exempt pay ranges that range from 0.75% to 2.75%; 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 $44,000. On a motion by Mr. Hird, seconded by Mr. Fricke, the Board approved recommendation number 1. On a motion by Mr. Mills, seconded by Mr. Hird, the Board approved recommendation number 2. On a motion by Mr. Hird, seconded by Mr. Fricke, the Board approved recommendation number 3. All three recommendations are to become effective March 28, 2010.

Mr. Mills suggested that if wages are to be raised for MMU employees, then MMU customers should also see a reduction in the cost adjustment on their bills. A discussion followed. A decision on this issue will be discussed later in the meeting.

Ms. Baldridge presented management’s recommendation for proposed changes to the Personnel Policy that would make smoking in MMU buildings, offices, facilities and vehicles prohibited. On a motion by Mr. Hird, seconded by Mr. Heinzler, the Board approved the proposed changes to MMU’s Personnel Policy creating a smoke-free environment, effective April 1, 2010.

A discussion was held on a proposed safety incentive program that would allow employees to earn up to three hours of “SAFE” time per quarter by participating in creating a safer workplace. On a motion by Mr. Fricke, seconded by Mr. Hird, the Board approved the safety incentive program effective April 1, 2010.

The Twenty-year Club Dinner will be held April 27, 2010.

Electric Production Director Jim Johnson reported problems have developed with mineral deposits in the Unit #5 cooling tower and condenser tubes. The best low cost, long-term solution would be to use sulfuric acid in the cooling towers to lower the pH level. This would involve a capital cost of about $25,000 for equipment, but would result in an approximate 23% reduction, about $2,200 per month, in chemical costs. On a motion by Mr. Fricke, seconded by Mr. Heinzler, the Board approved the purchase of the material and equipment needed to supply sulfuric acid to the cooling towers, through quotes.

Director Johnson reported Unit #5 went on line March 22, 2010. The materials have been ordered for the cooling tower fill project. This project will probably be started in May. The problem with Unit #8 was fouled fuel injectors. The injectors were cleaned and tested and the unit is running well.

Electric Distribution Director Jeff Bergstrom reported a walk-behind trencher is needed to install services where the electric lines are being converted from overhead to underground. The unit would fit through 36-inch gates and dig to a depth of 2½ to 3 feet. A small trailer would also be purchased. On a motion by Mr. Hird, seconded by Mr. Fricke, the Board approved requesting bids for a walk-behind trencher.

Director Bergstrom reported the testing for asbestos in the remaining manholes around the Power Plant and North Street Substation is complete. Four manholes and the transformer cabinet (all tested positive for asbestos) will need to be cleaned. Pricing is being obtained for the cleaning of these areas.

MMU has been recognized as a Reliable Public Power Provider, at the Platinum level, by APPA.

Administrative Services Director Ken Gieringer proposed a new Geothermal and Air-Source heat Pump Rebate Program to replace the current ground source heat pump policy approved January 27, 1999. The new program would have the potential of lowering (or reducing the increase of) MMU’s summer peak through the use of more efficient units, and would increase MMU’s winter load. This should result in a positive effect for MMU of increasing the overall load factor. On a motion by Mr. Hird, seconded by Mr. Fricke, the Board approved the new Geothermal and Air-Source Heat Pump Rebate Program, effective April 1, 2010.

Director Gieringer presented a request from Missouri Valley College to obtain sewer and water service for a new dormitory outside Marshall’s city limits. The College has obtained a release from Public Water Supply District #3. On a motion by Mr. Fricke, seconded by Mr. Hird, the Board approved the sewer and water service to the new dormitory outside the city limits, contingent upon Missouri Valley College signing a consent to annex document, in the event the City of Marshall would want to annex the area of the new dormitory.

A discussion was held on the proposal by Mr. Mills to give MMU customers a reduction in the cost adjustment on their bills. On a motion by Mr. Mills, seconded by Mr. Heinzler, the Board approved a change in the energy “Cost Adjustment” on customer bills from -0.25 cents to -0.40 cents per KWH for all customer classes, effective June 1, 2010.

Installation of conduit for fiber optic lines to the wells at the Water Treatment Plant is in progress. Douglas Pump has started the well maintenance project at the Water Treatment Plant.

General Manager Kyle Gibbs reported there is approximately $312,000 in an account which was established for inspecting and correcting problems with inflow and infiltration on the customer’s side of the sewer drainage system. To do this work, Ordinance #7074 will need to be amended to:

a. allow inspections of all private sewer collection systems (visual, dye, smoke or using cameras),
b. mandate inspections of private sewer laterals when a property transfers ownership, and
c. establish an enforcement authority to keep groundwater from being redirected to the sanitary sewers after drains have been disconnected.

On a motion by Mr. Hird, seconded by Mr. Fricke, the Board approved a request to the City Council to authorize the Mayor to sign the ordinance to amend Ordinance #7074.

General Manager Gibbs stated that the changes to the procedure for paying overtime for a Mutual Aid event approved by the Board at the March 9, 2010, Board meeting necessitates a modification to the Mutual Aid agreement with MPUA. On a motion by Mr. Heinzler, seconded by Mr. Fricke, the Board approved a request to the City Council to authorize the Mayor to sign the ordinance to modify the Mutual Aid agreement with MPUA.

General Manager Gibbs reported that Marshall’s percent of allocations on the MoPEP Pool billing dropped from 8.28% to 7.42% due to additional cities joining the Pool.

EPA’s final rule to control hazardous air pollutants coming from diesel compression ignited engines was issued on March 3, 2010. MMU’s Units #7, #8, #9, #10, and #11 will be impacted by this new rule. The compliance date for the rule is in May 2013.

On a motion by Mr. Heinzler, seconded by Mr. Fricke, the regular meeting adjourned at 10:00 a.m.