THE MINUTES OF THE MEETING OF THE BOARD OF PUBLIC WORKS
July 15, 2024
The regular meeting of the Board of Public Works was held on July 15, 2024, at 4:00 pm in the City Council Chambers. Those in attendance were President David Ausmus, Vice President Jeff Roberts, Board Member David Wilt, Board Member Chris Nelson, Secretary Lauren Watson, General Manager Dana Ulmer, Controller Jennifer McLeland, Councilman Talt Holman, Mayor Tony Petre, Economic Development Director Laura Bradshaw, and Mike Siefert and Steve Stodden from MPUA.
President David Ausmus called the meeting to order at 4:00 pm.
- The minutes from the last regular meeting of the Board of Public Works were reviewed. Board Member David Wilt made a motion to approve the minutes of June 17, 2024. The motion was seconded by Vice President Jeff Roberts. The motion carried with four votes for and none against.
Under old business
- There was no old business to discuss.
Under new business:
3. MPUA Recognition of MMU American Public Power Association eReliability Award – Mike Siefert and Steve Stodden, Missouri Public Utility Alliance staff, recognized Macon Municipal Utilities for their work and dedication by presenting the American Public Power Association eReliability Award. Mr. Siefert explained that the certification of eReliability is awarded to electric utilities that maintain service with minimal outages measured within the first quarter of providers nationwide. He continued sharing that there were 12 utilities in Missouri, including MMU, who received the eReliability Award, and MMU recorded a 99.997% reliability rate.
4. Review of Financials – June 2024 – Secretary Lauren Watson shared that electric revenues increased due to summer temperatures, while expenses decreased slightly as there were three payrolls in the prior month. Water and wastewater revenues, like electric, both increased with summer pools and watering. Water expenses decreased from the additional service installed at Agri-Genesis in the prior month. Wastewater expenses increased significantly with the installation of the municipal pool service and the relocation of the main at 818 Walnut. Natural gas revenues increased with a second receipt of Panhandle transportation rate case settlement, while expenses decreased mainly from three payrolls in the prior month.
5. Approval of Kinect Energy Natural Gas Purchasing Contract – General Manager Dana Ulmer shared that Kinect Energy currently performs natural gas pipeline scheduling on behalf of MMU, contractually established in 2008. Kinect Energy would like to do a one-year contract extension with a 4% rate increase from the $0.128 per dekatherm that has been consistent since the inception of the contract. City Attorney R. Timothy Bickhaus reviewed the existing and newly drafted contract and found no concern in its acceptance and approval. David Wilt made a motion, seconded by Chris Nelson, to approve the Kinect Energy natural gas purchasing contract with a singular change of the 4% rate increase from the $0.128 per dekatherm. The motion carried with four votes for and none against.
6. Approval of 2024-2025 Natural Gas Hedging Purchase – Controller Jennifer McLeland shared that Greg Walters, Kinect Energy Account Manager, recommends hedging 50% of our historical natural gas usage November 2024 to March 2025. Daily prices have been steady at approximately $3.65 per dekatherm. Management recommends utilizing Greg Walters’ counsel for approval of 50% historical usage at a price not to exceed $3.85 per dekatherm. Mrs. McLeland shared that Assistant General Manager Ben Stueve is in contact with Greg Walters daily and will continue to monitor for the best rate. Board Member David Wilt suggested that Mr. Stueve should have permission to buy up to 75% if the price does not exceed $3.85 per dekatherm. David Wilt made a motion, seconded by Chris Nelson to approve hedging up to 75% of our historical natural gas usage at a price not to exceed $3.85 per dekatherm. The motion carried with four votes for and none against.
7. Approval of Economic Development Contributions – Secretary Lauren Watson shared that the Board of Public Works approved the 2024 budget with the quarterly approval of the Economic Development contributions. The second quarter approval was missed, and payment has not been made to Economic Development since first quarter 2024. Mrs. Watson noted that Economic Development contributions are $12,000.00 per quarter and inquired of the Board a recommendation to pay second and/or third quarter contributions. President David Ausmus made a motion, seconded by Board Member David Wilt to pay Economic Development contributions for second and third quarter in the amount of $24,000.00. The motion carried all for and none against.
8. Approval of Documents for Destruction – Secretary Lauren Watson shared that with the completion of the 2023 audit in June, office staff has established and boxed documents eligible for annual destruction. The list of documents qualified for destruction were provided to the Board. Board Member David Wilt made a motion, seconded by Vice President Jeff Roberts to approve the destruction of the thirteen boxes of documents. The motion carried with four votes for and none against.
9. Employee Retention & Recruitment – No employee changes have occurred since the June Board meeting.
10. Board of Public Works Member Reports – President David Ausmus shared that Cody Lewis paid his portion of the wastewater main relocation at 818 Walnut.
Mr. Ulmer shared information regarding a failed section of the 72” brick combined sewer following a rain event. Mr. Ulmer noted that approximately 22-feet of the combined sewer appears to have blown outward during or after the rain event. Mr. Ulmer noted that management has been in contact with engineers assisting with the combined sewer separation project to coordinate repairs with the section of main, as this site was in the existing proposal of grant repair.
- Approval of Accounts Payable – Board members signed accounts payable without revision.
A motion was made by Board Member Chris Nelson, seconded by Vice President Jeff Roberts, to hold a closed executive session regarding Leasing, Purchase, or Sale of Real Estate (RsMO 610.021 (2)). The votes were as follows: President David Ausmus, yea; Vice President Jeff Roberts, yea; Board Member David Wilt, yea; and Board Member Chris Nelson, yea.
A motion to adjourn was made by Vice President Jeff Roberts, Seconded by President David Ausmus to adjourn the meeting at 5:00 pm, with the next regular board meeting set for Monday, Aug 19, 2024, at 5:00 pm in the City Council Chambers. Motion carried with four votes for and none against.