"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 was Dave Haugland, City Administrator; Ron Ott, City Council Member; and Reggie & Natisha Palmer, Marshall Residents.
The agenda was approved as presented on a motion by Mr. Hird, seconded by Mr. Mills. The minutes of the previous meeting were approved as printed on a motion by Mr. Mills, seconded by Mr. Bryant.
In business from the audience, Mr. & Ms. Palmer expressed their concern to the Board of an electric meter mislabeling problem. The incident was made known from a move and disconnection of a neighboring tenant, it was discovered the meter of the neighboring residence was connected to the Palmer residence, and the meter for the Palmer residence was connected to the neighboring residence. The effect of the mislabeling caused a billing error from February 2016 to October 2016, which resulted in the Palmer's being under billed by $1,300. The Palmer's expressed their concern of having to pay the extra amount within 30 days and that it is a financial hardship on them. Mr. Gieringer explained there is an ordinance & policy that has to be followed and they would be allowed to make payment arrangements. The Board listened to their concerns, thanked them for coming and told them they would discuss the issue further and be in contact with them of a solution that would be fair to all parties.
Environmental Services Director Ginny Ismay presented the Board a change order on the THM reduction project. Shafer, Kline and Warren propose to provide onsite construction observation of the project as they have done in the past on the two other major projects. On a motion made by Mr. Mills, seconded by Mr. Bryant, the Board approved change order #4 to the original contract with Shafer, Kline and Warren to provide onsite construction observation of the project for a cost not to exceed $226,980.
Director Ismay updated the Board on the bid opening on November 15th for replacing the 1993 John Deere mower at the Water Treatment Plant. Three bids were received with several companies provided demonstrations of the models they proposed. The preferred bid came from Marshall Service Co. for $6,499 with delivery in one week. Director Ismay answered questions of quality and durability from the Board. On a motion made by Mr. Bryant, seconded by Mr. Mills, the Board approved the bid from Marshall Service Co. for $6,499 to replace the existing mower.
Director Ismay then provided the Board bids opened on November 15th for replacing a mower at the Wastewater Treatment Plant. One bid and demonstration was received. It was from Kansas Golf & Turf of a Ventrac 4500Y for $28,945. Director Ismay also proposed selling the two mowers being replaced with their attachments stating we could get probably $15,000 - $20,000 to offset the cost of the new one. After discussion, a motion was made by Mr. Mills to approve the bid from Kansas Golf & Turf for $28,945 to replace the existing mower, but instead of selling the Kubota mower offer it to the City in kind, if they want and can use it.
Electric Distribution Director Jeff Bergstrom approached the Board to replace the lighting in the Service Center garages. The current halide fixtures have decreased lighting levels. He suggests replacing them with a LED fixtures. The LED fixtures would reduce energy cost by 50%, and retain their light levels better. On a motion made by Mr. Mills, seconded by Mr. Hird, the Board approved installing LED lighting in the Service Center garages.
Director Bergstrom updated the Board that Ram Utilities has completed pole inspections. They inspected 2,218 poles; finding 164 rejects and 12 priority poles. He is reviewing the data received and Ram Utilities is identifying those that could be reinforced.
Underground Facilities Director Grant Piper provided the Board bids for replacing and selling the mini excavator. Bids were opened November 18th. Five bids were received for supplying a new mini excavator. After review of the bids and specifications, Director Piper recommended the bid from Bobcat of Columbia for $58,994. On a motion made by Mr. Hird, seconded by Mr. Mills, the Board approved purchasing a new mini excavator from Bobcat of Columbia for a total cost of $58,994.40.
In addition to the bids received to replace the mini excavator, three bids were also received to purchase the one being replaced. After reviewing the bids and estimates on repairing it, Director Piper recommended selling the mini excavator to Thompson Quality Contractors for $14,651.33. On a motion made by Mr. Hird, seconded by Mr. Bryant, the Board approved selling MMU's mini excavator to Thompson Quality Contractors for $14,651.53.
Director Piper then updated the Board on other projects. The North English Lift Station Improvements is waiting on the building and pumps to be delivered. The MME natural gas take site has had the new meter installed and put into service.
Electric Production Director Jim Johnson informed the Board the need to make room for equipment to handle the additional cardboard recycling coming from ConAgra. To accommodate, Director Johnson would like to remove the pelletizing equipment from the recycle center building and list it on Lundell Manufacturing's website for sale. On a motion made by Mr. Bryant, seconded by Mr. Hird, the Board approved to sell this equipment as a complete unit if we have a buyer.
Director Johnson then announced the plan to discontinue shredding of confidential material as of December 7th. Director Johnson updated the Board about Unit #6's control upgrade. It was operated November 30th, the turbine ran well, but there is an issue that the voltage regulator preventing the unit from going online.
Administrative Services Director Ken Gieringer discussed the request of Mr. and Ms. Palmer. He has no grounds for discounting the bill. The ordinance and policy state MMU has to refund the over payment and collect the under payment. We are willing to make payment arrangements so repayment isn't a financial hardship for the customer. The Board discussed how the meters could have gotten switched and payment options. On a motion made by Mr. Mills, seconded by Mr. Bryant, the Board approved to accept payment of the $1,300 under payment in the amount of $50 monthly for 26 months, starting in April 2017.
Employee Relations Manager Megan Baldridge announced the employee health benefit enrollment is complete but UHC is bogged down with new group installations so we don't have ID cards yet. The order management system for the FR clothing went live on November 29th. And reminded everyone the Christmas Party is December 9th at 6p.m.
General Manager Kyle Gibbs presented the bids for the Warehouse and WWTP maintenance building, after being tabled at the November 3rd and 16th meetings. General Manager Gibbs recommends accepting the bid from Septagon Construction. On a motion made by Mr. Hird, seconded by Mr. Bryant the Board approved accepting the bid from Septagon Construction in the amount of $1,730,000. An ordinance will be needed for City Council approval.
General Manager Gibbs discussed the renewable energy product and agreements between MJMEUC and MMU. MMU is committed to pay an additional $1.00 per mwh for green energy as requested by three industrial customers through December 31st 2024 with a maximum of 14,358 mwh. On a motion made by Mr. Bryant, seconded by Mr. Mills, the Board authorizes the MMU General Manager to sign an agreement between MJEMEC and MMU for the purchase of green energy credits requested by three of MMU's industrial customers.
General Manager Gibbs then reported to the Board that MSDC was planning on building two group homes in Marshall to house residents originally at the the Hab Center. MSDC is asking the Board to waive utility construction fees. A consensus of the Board approved granting this request.
General Manager Gibbs informed the Board that unit #5 needs to be dispatched or decommissioned. The Pool will probably not pay the monthly bill until it is able to be dispatched. After informing them of options for unit #5, the Board decided to table any decision until they have more time and information.
On a motion by Mr. Mills, seconded by Mr. Bryant, accounts payable were approved and warrants ordered issued from the following funds:
WATER OPERATING FUND $124,890.65 ELECTRIC OPERATING FUND $565,099.81 SEWER REVENUE FUND $55,739.17 INTERNET OPERATING FUND $25,350.67 NATURAL GAS OPERATING FUND $9,214.74 ELECTRIC CONSUMER DEPOSIT FUND $ 5,975.00 SEWER EQUIPMENT FUND $ 196,296.08 Total $982,566.12
The next Regular Board meeting will be Thursday December 15, 2016.
On a motion by Mr. Bryant, seconded by Mr. Mills, the Board voted unanimously to adjourn the regular meeting at 10:22 a.m.