"Providing Hometown Reliability"
The Board of Public Works convened in regular session at 8:30 a.m. at the Marshall Municipal Utilities Business Office. Board members present were Spencer Fricke, President; Chuck Hird, Vice President; Ken Bryant, Secretary; Steve Mills, Member. Also present were City Council Members Kirk Arends, Ron Ott, and Charles Guthrey; and Saline County Fair Board Members Sam Igo, Glen Eilers, and Shelly Arth.
The agenda was amended to include business from the audience then approved on a motion by Mr. Bryant, seconded by Mr. Mills. The minutes of the previous meeting were approved as printed on a motion by Mr. Bryant, seconded by Mr. Hird.
Fair Board Members approached the Board requesting a reduction in the demand charge being assessed on their electrical bill. They stated the fairgrounds are an asset to the community giving the High School, 4-H, FFA, Missouri Valley College, and the community use of the grounds for little or no charge. Mr. Hird agreed that the fairground is a great asset to the community and stated their request should be looked into carefully. Mr. Mills stated he would like to do more research on the issue. Mr. Fricke thanked them for coming and stated the Board will do further research into the request and would get back with them.
Administrative Services Director Ken Gieringer provided the Board with the following business incentive as requested from the City Council hoping to attract a grocery store to Marshall.
MMU will approve the following credits to a grocery store's utility account for a period starting with the lease, purchase and/or construction of a building. Such credit will be calculated monthly based on the electric portion (defined as energy, demand and area lights) of the customer's utility bill. The credit shall be given on the following month's utility bill of said customer. The credit will expire three years after the store has been open for business. Customer must have an estimated summer monthly demand of 100 KW or greater. Customer must maintain an annual load factor of 40% or greater once they are open for business. If not, credits will be retroactively adjusted based on the actual percentage of the 40% that was incurred. Customer will be located in a building that has been vacant for at least one year.
The amount of the credit shall be:
20% until store is opened for business
15% during the first twelve consecutive months of business
10% during the second twelve consecutive months of business
5% during the third twelve consecutive months of business
The Board of Public Works shall retain the right to limit the number of customers and the duration of time this incentive shall be available.
After some discussion a motion was made by Mr. Bryant, seconded by Mr. Fricke to provide the noted incentive plan in order to attract a grocery store to the City.
Director Gieringer then discussed the numerous calls he and General Manager Gibbs have been receiving in regard to the October '15 electric rate structure changes. Customers are just now noticing due to the winter demand charge being changed to the summer demand charge.
Environmental Services Director Ginny Ismay updated the Board on the water treatment plant roofs covering the shop, penthouse, and #1, #2, #3, #4 and #5 filters. There are numerous leaks caused by their age. Repairs have been made but are only temporary fixes. Director Ismay would like to request proposals for replacing these roofs in conjunction with the replacement of the Power Plant unit #10 and #11 roofs. The Board reached a consensus to allow Director Ismay to request proposals for roof replacement on the previously mentioned buildings.
Director Ismay then requested the Board to approve the bid received to replace the rotating assemblies for three return activated sludge (RAS) pumps and to replace one pump elbow base. The department is down to one pump, following a failure this week. There is only one source for parts to the Fairbanks Morse pumps. DXP (Power and Pump) quoted $62,280.00 for three rotating assemblies; $13, 511.00 for one pump elbow base. The installation of parts will be done with in-house labor. On a motion made by Mr. Bryant, seconded by Mr. Hird the Board accepted the quote from DXP to replace the three RAS pump rotating assemblies and one base elbow for $81,791.
Electric Distribution Director Jeff Bergstrom informed the Board of the need for an additional small bucket truck. Due to increased workload from bad electric meter displays, failed AMI modules and at times lighting repairs and replacements. An additional bucket truck would allow the Service/Meterman to be split into two groups to keep up with their usual duties and to expand the in-service meter testing. An estimated cost is $110,000 with a lead time of one-year turn-around time when ordering the new unit. No action is needed at this time, but Director Bergstrom would like to include it in next year's budget.
Director Bergstrom updated the Board on the product safety advisory received about the Siemens breakers at Miami #1. The breakers were installed new in 1984 and a kit that was thought to address the problem was installed in 1994. Director Bergstrom is doing research to determine if the improvements in the new advisory are needed. Making the upgrades as requested in the new advisory will require the switch to be sent to Siemens to be done by them in the factory and would cost MMU a total of $40,000 - $50,000.
Director Bergstrom then stated that work on the overhead to underground conversion on Shamrock Dr. and High St. has been completed. They will start on Grant Ave. and Mar Dr. soon.
Chief Engineering Technician Joe Trapp, reporting for Underground Facilities Director Grant Piper reported street repairs on North English Ave. continue with Municipal Services as time permits. The Seargant Street sewer replacement has been completed except for yard work that will be done in the fall. The water main replacement on Eastwood St. has started, with a scheduled completion date before school starts.
Electric Production Director Jim Johnson reported on the cooling tower fan blades on Unit #4 and # 5. They were inspected due to the recent hail storm to check for damage. There were some cracks on #4 and some plugs broken or missing on #5. SPX Cooling Technologies (Marley Rep) was contacted and they came to inspect them. They replaced any broken or missing plugs, and didn't think there were any other balance or water issues. The fans have been run and have no balance problems.
Employee Relations Director Megan Baldridge answered a question on which department the injuries/incidents report were in. She will include the department in future report summaries.
General Manager Kyle Gibbs reported on Monday's conference call with MoPEP. The Green Energy Rate for industrial customers was finalized and approved. Information will be sent out to solicit the local industries. MMU needs to notify the Pool of interested industries by the end of August. General Manager Gibbs then updated the Board on the meeting with the City of Marshall, Burns & McDonnell and MC Power to discuss the issues with the Solar Project. The FAA is reviewing and will be commenting on the contract between the City and MC Power. It is expected to be another 30+ days before MC Power will be able to start working on completing the Project.
On a motion by Mr. Hird, seconded by Mr. Bryant, accounts payable were approved and warrants ordered issued from the following funds:
WATER OPERATING FUND $ 103,182.40 ELECTRIC OPERATING FUND $ 271,186.14 SEWER REVENUE FUND $ 59,447.17 INTERNET OPERATING FUND $ 31,442.13 NATURAL GAS OPERATING FUND $ 9,807.89 ELECTRIC CONSUMER DEPOSIT FUND $ 1,400.00 SEWER EQUIPMENT FUND Total $ 476,465.73
The next Board meeting will be Thursday, July 14, 2016.
The Board voted unanimously to adjourn the regular meeting at 9:55 a.m. and go into executive session to discuss matters under Mo Rev. Stat. Section 610.021  (Supp. 2009) concerning personnel actions.
Roll call vote:
Mr. Hird yes
Mr. Bryant yes
Mr. Mills yes
Mr. Fricke yes