THE MINUTES OF THE MEETING OF THE BOARD OF PUBLIC WORKS
February 20, 2023
The regular meeting of the Board of Public Works was held on February 20, 2023 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, Mayor Anthony Petre, Councilman Caleb Dwiggins and Councilwoman Cheryl Blaise.
President Brian Terry called the meeting to order at 5:00 pm.
- Approval of Minutes from prior Board Meeting: Board Member David Wilt made a motion, seconded by Board Member Scott Lucas, to approve the minutes from the January 30, 2023 meeting. The motion carried with four votes for and none against.
Under old business:
- Review of Engineering Fees for Substation 3 Expansion – Wilson and Mr. Stueve presented engineering fees from Toth & Associates for the expansion of Substation 3 to serve Agri-Genesis, LLC. After discussion of the changes made to the substation design since the beginning of the engineering for the project, Board Member Scott Lucas made a motion, seconded by President Brian Terry, to increase engineering fees approved on April 18, 2022 (up to $125,000.00) to accept unbilled fees of $29,190.00 for a total of $147,043.87 and to accept proposed fees for completion of the substation expansion not to exceed $20,000. The motion carried with four votes for and none against.
Under new business:
- Review of Financials – December 2022 and January 2023 – In regards to the December 2022 financials, Ms. Wilson shared noteworthy activity from the 2022 budget to year-end actual which included additional revenues from new industrial users plus auditor required entries such as pension liability. Regarding January 2023 financials, Ms. Wilson shared that the electric fund saw a larger than usual net income due to the budgeted revenue from the environmental cleanup at 708 S. Missouri Street, Macon, Missouri which is to be complete by April 2023.
4. Approval of Change Order No. 2 for 2022 Wastewater Collection Relining – Visu-Sewer – Ms. Wilson shared that the 2022 relining is complete but to finalize the project and remit the final payment a change order to address the pipe sizing corrections is needed. Vice President David Ausmus made a motion, seconded by Board Member David Wilt, to accept Change Order No. 2 which represents a deduct of $5,955.00 from Visu-Sewer of Missouri, LLC. The motion carried with four votes for and none against.
5. Acceptance of Bid for Purchase and Removal of Six Caterpillar 3516B 1825KW Prime Generator Sets –Ms. Wilson shared that three bids were received on January 31, 2023 for the purchase of the generators at Substations 2 and 3. After discussion, Vice President David Ausmus made a motion, seconded by Board Member Scott Lucas, to accept the high bid of $1,111,001.00 from Iron Flag Power Systems, Merion Station, Pennsylvania. The motion carried with four votes for and none against.
6. Selection of Engineer for American Rescue Plan Act (ARPA) Stormwater Grant Projects – Ms. Wilson shared that ARPA grant selections were announced on November 18, 2022 and the projects are to be complete by December 31, 2026. The City of Macon, Missouri was selected for ARPA Stormwater Grant funding in the amount of $3,457,260.00. After a review of qualifications submitted, interviews were conducted with three engineering firms by the following panel: City Administrator Avis Marshall, Transportation and Recreation Superintendent David Coleman, MMU General Manager Stephanie Wilson, and MMU Underground Facilities Supervisor Mike Llewellyn. Following completion of the interviews, the panel scored the qualifications per guidance from the Missouri Department of Natural Resources (MDNR). After discussion of the scoring criteria and process, President Brian Terry made a motion, seconded by Board Member Scott Lucas, to accept the panel’s results and to recommend to the City Council of Macon, Missouri that they concur to proceed with negotiating an engineering agreement with Burns & McDonnell with Howe Company for the projects selected for the ARPA Stormwater Grant. The motion carried with three votes for and none against. Vice President David Ausmus abstained from the vote.
7. Discussion of Natural Gas Retail Rate and Natural Gas Adder – Ms. Wilson shared information on the volatility related to this winter’s natural gas prices. Discussion was held regarding options for rate stabilization for the current month’s retail rate and the natural gas adder for cost recovery of expenses as a result of Winter Storm Uri in February 2021. Vice President David Ausmus made a motion, seconded by President Brian Terry, to continue with the natural gas adder as planned and to allow up to $100,000 in rate stabilization from the cash reserves to lower the natural gas retail rate for the March 2023 customer statements. The motion carried with four votes for and none against. The board requested that management bring additional details to the next meeting regarding the natural gas adder.
8. Discussion on Strategic Planning and Cash Reserve Statement – Ms. Wilson shared high points to consider as work will begin on an updated strategic plan and cash reserve statement during the course of 2023.
9. Employee Retention & Recruitment – Ms. Wilson noted that MMU is currently fully staffed.
10. Board of Public Works Member Reports – No additional reports.
11. Approval of Accounts Payable – Board members signed accounts payable.
12. Set Next Regular Meeting: Monday, March 20, 2023 at 5:00 pm.
A motion was made by Vice President David Ausmus, seconded by Board Member Scott Lucas to go into executive session regarding Legal (RSM0.610.021 (1)), Leasing, Purchase, or Sale of Real Estate (RSMo.610.021(2)), and Sealed Bids & Contract Negotiations (RSMo.610.021(12)). 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 7:29 pm a motion was made by Vice President David Ausmus, seconded by Board Member David Wilt, to adjourn the meeting. The motion passed with four votes for and none against.