THE MINUTES OF THE MEETING OF THE BOARD OF PUBLIC WORKS

December 19, 2022

The regular meeting of the Board of Public Works was held on December 19, 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, Mayor Anthony Petre, City Administrator Avis Marshall, Councilman/woman Caleb Dwiggins, Dick Schlanker, Jerold Carr, Greg Wiggans, and Cheryl Blaise, Officer Jeremy Nelson and several citizens (Joan Schlanker, Steve Metzger, Vicki Buster, Madeline Hall, Merle Hall, Janet Collins, Brenda Lowery, Ralph Lowery, Susan Earle, Sandra Dawson and Robert Dawson).

President Brian Terry called the meeting to order at 5:00 pm.

  1. Approval of Minutes from prior Board Meeting: Vice President David Ausmus made a motion, seconded by Board Member David Wilt, to approve the minutes from the November 14, 2022 meeting. The motion carried with four votes for and none against. 

Under old business:

  1. Discussion of 2023 Budget and Code of the City of Macon, Missouri, Section 2-250, was moved to executive session, Personnel (Rs. MO.610.021(3)).

Under new business:

  1. Discussion and Decision on Continuation to Blow Whistle – General Manager Stephanie Wilson gave a brief overview regarding a citizen complaint that has been continuously received since mid-2022 with concerns regarding the blowing of the whistle. She also shared Code of the City of Macon Section 12-151 and history of whistles in cities being used to notify citizenry of time. President Brian Terry asked if anyone in the audience had questions or comments regarding the matter. Following an open floor discussion with all attendees supporting the whistle, Board Member David Wilt made a motion, seconded by Board Member Scott Lucas, to continue the current schedule Monday – Saturday of blowing the whistle: 6:45 am – 3 short toots (3 seconds long each toot), 7:00 am – 5 seconds continuous, 12:00 pm – 5 seconds continuous, 12:45 pm –   3 short toots (3 seconds long each toot), 1:00 pm – 5 seconds continuous, 6:00 pm – 5 seconds continuous. The motion carried with four votes for and none against.

4. Review of Financials – November 2022 – Ms. Wilson noted activity for the month and year-to-date. The electric and natural gas funds realized losses due to paying for commodity in colder temperatures prior to billing customers for revenue. Activity for the water and wastewater funds was also noted.

5. Review of Proposed Water Rate Increases for 2023 – Ms. Wilson presented Option 1 water retail rates proposed for 2023 from a study performed by Toth and Associates in June 2022. President Brian Terry made a motion, seconded by Board Member Scott Lucas to implement the overall 9.6% water rate increase as presented for February 1, 2023 utility bills. The motion carried with four votes for and none against. Water rates were most recently adjusted in December 2018. (summary of rates below)

6. Review of Proposed Wastewater Rate Increases for 2023 – Ms. Wilson reviewed the 2023 budgeted rate for wastewater rates for Inside and Outside City Limits customers. Board President Brian Terry made a motion, seconded by Board Member Scott Lucas, to proceed with newspaper advertisement for a public hearing to be held on January 30, 2023 at 5:30 pm at 106 W. Bourke Street, Macon, MO 63552 to tentatively implement a 6% increase to wastewater rates for March 1, 2023 utility bills if approved by the City Council. The motion carried with four votes for and none against.

7. Discussion to Request Qualifications for Engineer for Stormwater/Sewer Separation Projects – American Rescue Plan Act Stormwater Grant: Oakwood, Bourke & Pearl, South Storm Sewers – Ms. Wilson relayed information from the Missouri Department of Natural Resources (MDNR) that MMU should proceed in early 2023 to advertise for engineering services and enter into an agreement. MDNR is to issue guidance on how to administer the grant funds in early 2023.

8. Review and Approval of Memorandum of Understanding for Audrain Energy Center – Ms. Wilson noted that no changes were made to this agreement other than annual cost adjustments. These adjustments increased the annual revenue from $108,314.26 in 2022 to $111,099.86 in 2023. Board Member Scott Lucas made a motion, seconded by President Brian Terry, to approve the proposed Audrain Energy Center Memorandum of Understanding. The motion carried with four votes for and none against.

9. Review and Approval of Memorandum of Understanding for Fredericktown Energy Center – Ms. Wilson presented Memorandum of Understanding for maintenance at the Fredericktown Energy Center. MMU currently bills Missouri Electric Commission for expenses incurred during routine maintenance two times a year. The proposed annual agreement formalizes the current arrangements. Board Member Scott Lucas made a motion, seconded by President Brian Terry, to approve the proposed Fredericktown Energy Center Memorandum of Understanding. The motion carried with four votes for and none against.

10. Review and Approval of Memorandum of Understanding for Macon Solar Farm – Ms. Wilson noted that Missouri Electric Commission purchased the solar farm located on Kellogg Avenue during 2022 and requested that MMU perform visual inspects and vegetation management for $5,582.96 in 2023. Board Member Scott Lucas made a motion, seconded by President Brian Terry, to approve the proposed annual Macon Solar Farm Memorandum of Understanding. The motion carried with four votes for and none against.

11. Review and Approval of Bid for Worthington Generator – Ms. Wilson and Assistant General Manager and Manager of Energy Resources Ben Stueve provided an overview on the history of the Worthington generator and its retirement on April 1, 2018. As the generator is not utilized by MMU it was put out for bid to remove and purchase the engine parts. A bid from the City of Jackson, Missouri in the amount of $13,500 was received on December 16, 2022 for the removal and purchase of the fulcrum box, rocker arms push rods, piston with rings, bolts, rods and liner, head unit complete, including air start and gas valves consisting of 16 units. The City of Jackson, Missouri with the assistance of Steve Payne with IDS will remove the parts by June 30, 2023. Board Member Scott Lucas made a motion, seconded by Vice President David Ausmus, to approve the City of Jackson, Missouri bid of $13,500 for the purchase and removal of Worthington generator engine parts. The motion carried with four votes for and none against.

12. Approval of Materials and Contracted Labor for Substation 3 Expansion – This item tabled until further instruction from Agri-Genesis, LLC regarding timing for implementation to expand their operations.

13. Review of Engineering Fees for Substation 3 Expansion – Ms. Wilson and Mr. Stueve noted engineering fees with Toth and Associates. Ms. Wilson and Mr. Stueve will meet with Toth and Associates to discuss fees.

14. Review of Utility Rates for Environmental Cleanup – Ms. Wilson and Mr. Stueve noted that the cleanup process at the former Toastmaster site, 702 S. Missouri, has been underway for approximately six weeks. Due to the additional electricity to MMU’s normal demand load the project is expected to raise MMU’s demand charge for one full year. Ms. Wilson will communicate with the vendor regarding the details of the additional charges.

15. Selection of Analyst for Natural Gas Bypass Study – Ms. Wilson and Mr. Stueve had conversations with engineering firms that submitted qualifications. After discussion, Board Member Scott Lucas made a motion, seconded by Vice President David Ausmus, to negotiate and agreement with Black & Veatch for natural gas bypass study. The motion carried with four votes for and none against.

16. Comparison of Natural Gas Hedged to Actual Market Prices – Ms. Wilson shared the comparisons for the Board to review. Winter heating prices have been volatile due to storage and heating needs due to temperature.

17. Discussion of Fleet Plan for Trucks and Equipment – Ms. Wilson and Electric Distribution Supervisor and Manager of Utility Operations Bryce Butner shared information regarding availability of budgeted vehicles and equipment plus lead times. All were in agreeance for management to be allowed to issue purchase orders to reserve a vehicle or piece of equipment with the option to cancel the order if it does not receive final Board of Public Works approval.

18. Appointments to Macon County Economic Development Board – Ms. Wilson shared that MMU currently has three open seats on the Macon County Economic Development Board. Vice President David Ausmus made a motion, seconded by Board Member David Wilt, to approve Rusty Neill, Jill Williams, and Zach McLeland to serve on the Macon County Economic Development Board for an initial 2-year term. The motion carried with four votes for and none against.

19. Employee Retention & Recruitment – Ms. Wilson noted that MMU is currently fully staffed and some employees are enrolled in training programs.

20. Board of Public Works Member Reports – No additional reports.

21. Approval of Accounts Payable – Board members signed accounts payable.

22. Set Next Regular Meeting: Monday, January 30, 2023 at 5:00 pm.

A motion was made by President Brian Terry, seconded by Board Member David Wilt to go into executive session regarding Legal (Rs.MO.610.021 (1)), Leasing, Purchase, or Sale of Real Estate (Rs. MO.610.021(2)), and Personnel (Rs. MO.610.021(3)). The votes were as follows: President Brian Terry, yea; Vice President David Ausmus, yea; Board Member David Wilt, yea; and Board Member Scott Lucas, yea.

When the open meeting reconvened, at 6:45 pm a motion was made by President Brian Terry, seconded by Board Member David Wilt, to adjourn the meeting.  The motion passed with four votes for and none against.