THE MINUTES OF THE MEETING OF THE BOARD OF PUBLIC WORKS
April 18, 2022
The regular meeting of the Board of Public Works was held on April 18, 2022 at 5:00 pm in the City Council Chambers. Those in attendance were President Brian Terry, Vice President David Ausmus, Board Member David Wilt, Board Member Scott Lucas, General Manager Stephanie Wilson, Assistant General Manager and Manager of Energy Resources Ben Stueve, Electric Distribution Supervisor and Manager of Utility Operations Bryce Butner, and Wastewater Treatment Plant Supervisor Ronny Smith. Also in attendance were Mayor Scott Bigham, City Administrator Avis Marshall, City Councilman Tony Petre, City Councilman Caleb Dwiggins, plus Jeff Barnard and Debi Gibbins with Burns & McDonnell, Inc.
President Brian Terry called the meeting to order at 5:00 pm and welcomed newly elected Mayor Scott Bigham.
All agenda items are referenced by number:
1. Approval of Minutes from Prior Board Meetings: Board Member David Wilt made a motion, seconded by Board Member Scott Lucas, to approve the minutes from the March 22, 2022 and April 8, 2022 meetings. The motion carried with four votes for and none against.
2. Presentation of Draft Integrated Management Plan (IMP) for Long-Term Sewer Improvements – Jeff Barnard and Debi Gibbins with Burns & McDonnell presented the draft of the IMP and answered questions. The report focused on separating storm water from the wastewater collection system, infrastructure upgrades, and future water quality standards. Next steps will be discussed at future meetings.
3. Discussion of MMU Strategic Plan – Mission, Vision, Core Values – President Brian Terry and General Manager Stephanie Wilson discussed the overall goals for MMU’s Strategic Plan process in 2022. Board members will work on ideas for the Mission, Vision, and Core Values for the next meeting.
4. Analysis of Gas Adder from February 2021 Natural Gas Commodity Costs – Ms. Wilson shared that as of March 31, 2022, 39% of the $1.9 million in excess natural gas commodity costs generated by Winter Storm Uri has been collected from customers. The Board will continue to review the adder and evaluate if the approach for collection is to be modified.
5. Review of Monthly Dashboard – Ms. Wilson referenced information added for the Board’s review which included additional charts for natural gas – retail rate breakdown and transportation on the high-pressure mains.
6. Review of Monthly Financials – March 2022 – Ms. Wilson noted revenues for the month recognized lingering colder weather and a 32-day billing cycle. Also, quarterly cash balances were noted.
7. Discussion of Natural Gas Hedging for November 2022 – March 2023 and November 2023 – March 2024 – Assistant General Manager and Manager of Energy Resources Ben Stueve shared natural gas market information and volatility with higher-than-expected commodity prices. Additional hedging options were discussed for the upcoming winters, but no action was taken as consensus indicated to monitor opportunities over the next few months.
8. Approval to Purchase Replacement Pumps for Lift Station at the Wastewater Treatment Plant – Wastewater Treatment Plant Supervisor Ronny Smith shared the need to replace the pumps in the lift station that were installed in 2011 for the East Interceptor/Overflow basin. Vice President David Ausmus made a motion, seconded by Board Member David Wilt, to purchase (2) Flygt NP3102 5 HP pumps from Vandevanter Engineering in the amount of $20,245.00. The motion carried with four votes for and none against.
9. Discussion and Approval of Substation 3 Engineering Servicing Fees – Mr. Stueve and Electric Distribution Supervisor and Manager of Utility Operations Bryce Butner provided updates on efforts to expand the capabilities of Substation 3 in order to serve new customer Agri-Genesis, LLC in the long-term. An estimate of engineering fees was received from Toth & Associates, Inc. for design services. Vice President David Ausmus made a motion, seconded by President Brian Terry, to proceed with working with Toth & Associates, Inc. for design fees up to $125,000 for the expansion of Substation 3 to serve a new industrial customer. The motion carried with four votes for and none against.
10. Recommendation to the City Council of Macon, Missouri to Vacate the North-South Utility Easement Between Lots #12 and #13 in Heartland Enterprise Park – Agri-Genesis, LLC is the owner of the aforementioned lots. MMU managers support the vacating of the existing easement as the two lots have been combined. Vice President David Ausmus made a motion, seconded by Board Member David Wilt, to recommend to the City Council of Macon, Missouri to approve an ordinance vacating the utility easement between Lots #12 and #13 in the Heartland Enterprise Park. The motion passed with four votes for and none against.
11. Discussion of Federal Funds for Utility Projects – Ms. Wilson shared information regarding funds becoming available through the American Recovery & Reinvestment Act and Infrastructure Investment & Jobs Act. Municipalities will be receiving training on how to apply for the funds in May 2022.
12. Employee Retention and Recruitment – Ms. Wilson noted that MMU is currently fully staffed.
13. Board of Public Works Member Reports – No additional reports.
14. Approval of Accounts Payable – Board members signed accounts payable.
15. Set Next Regular Meeting: Monday, May 16, 2022 at 5:00 pm.
A motion was made by Board Member David Wilt, seconded by Vice President David Ausmus to go into executive session regarding Legal (Rs. MO.610.021(1)) and Leasing, Purchase, or Sale of Real Estate (Rs. MO.610.021(2)). The motions were as follows: Brian Terry, yea; Davis Ausmus, yea; David Wilt, yea; and Scott Lucas, yea.
When the open meeting reconvened at 7:04 pm a motion was made by Board Member David Wilt, seconded by Vice President Davis Ausmus, to adjourn the meeting. The motion passed with four votes for and none against.