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Marshall Municipal Utilities

"Providing Hometown Reliability"

Board Meeting Minutes

August 10, 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; and Spencer Fricke, Secretary. Member Charles Hird was absent.

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

Environmental Services Director Ginny Ismay reported only one company makes the type of CO2 feed equipment that is needed at the Water Treatment Plant. On July 30, 2010, one proposal was received from Clearwater Equipment (TOMCO2) for $122,363. On a motion by Mr. Heinzler, seconded by Mr. Fricke, the Bard accepted the bid of $122,363 from Clearwater Equipment.

Employee Relations Manager Megan Baldridge reported the flame resistant clothing policy needs some revisions. On a motion by Mr. Fricke, seconded by Mr. Heinzler, the Board approved the proposed revisions to the flame resistant clothing policy, effective immediately.

Electric Production Director Jim Johnson reported the agreement for coal supply has been extended with Knight Hawk through 2013. The fixed price for 2.0 coal was raised from $2.34/MMBtu to $2.84/MMBtu. There may be adjustments for trucking fuel as indicated in the terms of the agreement.

Director Johnson reported the capacity testing on all units went well. Unit #4 ran well after being idle for almost two years.

General Manager Kyle Gibbs reported a letter has been received from Mr. Paul Porter asking the Board to revisit the current policy in regard to the maintenance status of the private sewer along the 300 block of East Eastwood. In 2001, MMU offered to provide the labor and equipment if the residents affected would pay for materials and provide the appropriate easements to replace this sewer. The proper easements were never obtained and the project was put on hold at that time. The Board asked that management inform the residents of this area that the offer made in 2001 is still open, and that if the easements are obtained the project could move forward.

General Manager Gibbs informed the Board that city officials would not be recommending MMU’s proposed ordinance for the inflow and infiltration (I&I) program to the City Council. City officials feel that current codes will allow MMU to implement the I&I program. MMU management feels changes will need to be made to the proposed I&I program in order to accomplish our goal of reducing I&I in the private laterals. Management will review the program and present proposed changes to the Board at a future meeting.

A proposal has been received from Barnes, Henry, Meisenheimer & Gende (BHM&G) for professional engineering services for RICE NESHAP Compliance for the Cooper Bessemer and Cummins/Onan engines for a fee of $60,000. On a motion by Mr. Fricke, seconded by Mr. Heinzler, the Board accepted the proposal subject to negotiations between BHM&G and General Manager Gibbs.

A proposal has been received from Lutz, Daily & Brain (LD&B) for professional engineering services for preparation of ICI Boiler MACT Strategic Assessment of Compliance Alternatives. LD&B would use AECOM as their environmental consultant. The estimated cost for phase 1 of this project is $4,400, and $5,500 for phase 2. On a motion by Mr. Fricke, seconded by Mr. Heinzler, the Board accepted the proposal from Lutz, Daily & Brain for a total of $9,900.

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		$	107,715.87
	ELECTRIC OPERATING FUND		$	832,119.56
	SEWER REVENUE FUND		$	155,828.85
	INTERNET OPERATING FUND		$	 11,776.40
	NATURAL GAS OPERATING FUND	$	  2,135.67
	ELECTRIC CONSUMER DEPOSIT FUND	$	  3,950.00

On a motion by Mr. Fricke, seconded by Mr. Heinzler, the Board voted unanimously to adjourn the regular meeting at 9:58 a.m.