"Providing Hometown Reliability"
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 Ken Bryant, President; Jim Heinzler, Vice President, Spencer Fricke, Secretary; and Chuck Hird member. Also present Mr. Everett Baker, DNR Regional Office.
The agenda was approved as presented. General Manager Kyle Gibbs reviewed the safety briefing. The minutes of the previous meeting were approved as printed on a motion by Mr. Heinzler, seconded by Mr. Fricke.
Mr. Baker discussed the reasons behind the need for MMU to complete the THM/HAA (trihalomethane/haloacetic acid) project at the Water Treatment Plant. Shafer, Kline & Warren has completed their evaluation and their engineering report has been approved by DNR. Environmental Services Director Ginny Ismay indicated the next step would be to talk to Shafer, Kline & Warren about the design costs, and also to talk to MMU’s wholesale customers to explain how this affects them.
Director Ismay reported we have received the Operation and Maintenance manuals for the disinfection/headworks project at the Wastewater Treatment Plant. We have also received a CD with the lien wavers on them, but not all of the wavers are accounted for.
Mr. Baker left the meeting.
Electric Distribution Director Jeff Bergstrom explained that the electric service to the North Street Pump Station is fed from the old 4.16 kV switchgear in the Power Plant. This Pump Station should be fed from the 13.2 kV system for reliability. On a motion by Mr. Fricke, seconded by Mr. Heinzler, the Board approved updating the electric service to the North Street Pump Station.
The following bids were opened October 23, 2014, for substation breaker maintenance.
Maintenance on 13 Medium Voltage Breakers | Labor Rates for Additional Work | |
---|---|---|
Emerson Process Management Lee's Summit, MO | $11,658.00 | $147/hr. |
Independent Electric Kansas City, KS | $8,450.00 | $105/hr. |
Director Bergstrom indicated that the low bid met specifications. On a motion by Mr. Heinzler, seconded by Mr. Fricke, the Board accepted the bid from Independent Electric for a sum of $8,450.00, plus an hourly rate of $105 for any additional work that may be necessary beyond the scope of the bid specifications.
Director Bergstrom reported crews are moving customer services to the new line on E. Eastwood; and, all work is complete on the West Substation relays.
Underground Facilities Director Monty Chase explained the 6” water main on Slater, from Commercial to Brunswick, is in poor condition and needs to be replaced. On a motion by Mr. Hird, seconded by Mr. Fricke, the Board approved replacing the water main on Slater Street, from Commercial to Brunswick, with an approximate cost of $56,000, using in-house labor and equipment.
Director Chase reported crews have started on the sewer main replacement project on N. Jefferson.
Administrative Services Director Ken Gieringer stated that the job description for the vacant Network Technician position has been updated to address needed assistance and support for the Communication Systems Specialist. The updated job description indicates the need for reassigning the position to a higher pay range. On a motion by Mr. Hird, seconded by Mr. Fricke, the Board approved reassigning the Network Technician position to Pay Range 14 effective immediately.
Director Gieringer indicated the auditors would be here the week of November 3rd.
Employee Relations Manager Megan Baldridge stated three proposals were received for employee medical coverage for 2015. None were competitive with our Blue Cross Blue Shield coverage. The renewal rate with Blue Cross Blue Shield is a 9.9% increase, which amounts to a $51,000 increase to MMU and a $12,000 increase to employees with dependent coverage. Also, in 2011 MMU temporarily instated some additional assistance with dependent premiums, and began phasing out this additional assistance in 2013. On a motion by Mr. Fricke, seconded by Mr. Hird, the Board approved 1) renewal of medical coverage with Blue Cross Blue Shield on December 1, 2014, and 2) eliminating the temporary additional dependent premium assistance being provided effective with the first payroll in December 2014.
A high deductible health savings account plan with Blue Cross Blue Shield was evaluated. In the future, MMU might consider making such a plan available. A full flexible benefits plan, or a credit-based plan, whereby the employee is provided with a fixed amount of dollars and they select from an array of health benefits might also be considered. These options will be studied for the future.
Ms. Baldridge indicated ten proposals were received for various ancillary health benefits, including renewal offers from the current carriers Guardian and Unum. Unum’s renewal for disability and life insurance amounts to a $13,000 annual increase. Only two proposals were lower but neither one included an employee assistance program. Guardian has the dental and vision insurance and administers the Section 125 Flex Plan. Guardian’s renewal amounts to a $4,300 increase annually. Principal’s proposal would reduce the dental and vision premiums by $11,200 annually, but would not include administration of the Flex Plan. On a motion by Mr. Fricke, seconded by Mr. Hird, the Board approved 1) renewing disability and life insurance with Unum for 2015, and 2) accepting Principal’s proposal for dental and vision insurance effective December 1, 2014. It is our current understanding that Guardian will continue to administer our Flex Plan for one year without any paid lines of coverage.
Electric Production Director Jim Johnson stated Unit #6 has been disassembled. Indications are this unit will need a complete rewind on the stator, which could cost around $1 million. A new generator could cost around $8 million. General Manager Kyle Gibbs explained that a consultant is needed to evaluate the options for this generator and to talk with MPUA to see what could be done through that organization.
Director Johnson reported that while doing the initial testing on Units #10 and #11, it was discovered that the catalysts for these units are not working properly to reduce CO emissions. We are trying to work with IEC (formerly Maxim) to see what the warranty may cover.
General Manager Kyle Gibbs explained that Central Missouri Electric Coop (CMEC) and Missouri Valley College (MVC), along with MMU, have signed affidavits to show support for MMU to serve the electric service at the new MVC rodeo arena. Once the Board approves the amendment to the territory agreement with CMEC and the Mayor signs it, the amendment and various documents will be compiled by Healy and Healy and sent to the Public Service Commission for review. On a motion by Mr. Hird, seconded by Mr. Heinzler, the Board approved a request to the City Council to authorize the Mayor to sign an amendment to the territory agreement between MMU and Central Missouri Electric Coop.
General Manager Gibbs recently attended a meeting with MPUA and representatives of CenturyLink, a telephone and internet provider. Various legislation was discussed which CentruyLink plans to support, but which may be detrimental to municipal utilities.
General Manager Gibbs and Director Bergstrom met with representatives of MC Power, a solar power promoter. MC Power is trying to acquire land near Marshall to develop a solar power facility. A representative of MC Power will be at the next Board meeting to explain their project.
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 $ 91,658.68 ELECTRIC OPERATING FUND $ 277,369.29 SEWER REVENUE FUND $ 78,134.75 INTERNET OPERATING FUND $ 28,268.83 NATURAL GAS OPERATING FUND $ 682.13 ELECTRIC CONSUMERS DEPOSIT FUND $ 3,900.00
The next Board meeting will be held Thursday, November 13, 2014.
On a motion by Mr. Heinzler, seconded by Mr. Hird, the Board voted unanimously to adjourn the regular meeting at 10:32 a.m.