Board Minutes Jan. 30, 2023

From the Board of Public Works

THE MINUTES OF THE MEETING OF THE BOARD OF PUBLIC WORKS

January 30, 2023

 The regular meeting of the Board of Public Works was held on January 30, 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, Electric Distribution Supervisor and Manager of Utility Operations Bryce Butner, Mayor Anthony Petre, City Administrator Avis Marshall, and Councilman Caleb Dwiggins. Ted Seiler and DJ Loken from Missouri Department of Conservation attended the beginning of the meeting.

 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 December 19, 2022 meeting. The motion carried with four votes for and none against. 

Under old business:

  1. There was no old business for discussion.

Under new business:

  1. Discussion with the Missouri Department of Conservation Regarding Macon City Lake Projects – Ted Seiler, Private Land Conservationist, shared information relating to a grant for an archery range to be placed near Macon Lake. The grant includes up to 50% match which can be paid in the form of in-kind services. The City of Macon is requesting that MMU assist with their portion in-kind services. These services would include the use of the brush cutter during the establishment of the archery range, weekly emptying of trash cans, and mowing as-needed.

DJ Loken, Fisheries and Management Biologist with the Missouri Department of Conservation, shared information related to updating the Community Assistance Program Agreement on file for Macon City and Blees Lakes. The current agreement was approved in February 2015. The new proposed agreement reviewed also removes the listing of specific projects to be completed in a 25-year period and allows for the opportunity to participate in cost share projects. Board Member Scott Lucas made a motion, seconded by Board Member David Wilt, to propose that the City Council approve the proposed Missouri Department of Conservation Community Assistance Program Agreement. The motion carried with four votes for and none against.

The open meeting for the Board of Public Works was paused from 5:34 pm to 5:43 pm to conduct a Public Hearing regarding a proposed Wastewater User Charge Ordinance.

  1. Review of Financials – December 2022 – Ms. Wilson and Controller Jennifer McLeland shared December 2022 and 2022 Year-To-Date income statement and balance sheet information in the process of being verified. A written analysis will be shared with the Board upon completion.

5. Approval of Proposed Wastewater Rates – After the public hearing, Ms. Wilson presented wastewater retail rates proposed in the 2023 budget. Ms. Wilson also shared the current wastewater cash balances, of which would be negative if transfers from electric and gas did not occur in December 2020. The wastewater fund is expected to require a larger revenue stream to afford projected maintenance and to meet Missouri Department of Natural Resources regulations in the future. Vice President David Ausmus made a motion, seconded by Board Member David Wilt, to propose to the City Council that the wastewater rates be increased as presented for March 1, 2023 utility bills. The motion carried with four votes for and none against. Wastewater rates were most recently adjusted in March 2015.

6. Approval of Bid for Wastewater Collection Main Camera – Bids were presented for a replacement wastewater collection main camera. President Brian Terry made a motion, seconded by Board Member David Wilt, to accept the bid from Coe Equipment Inc. in the amount of $181,340.79 which includes the trade-in of the current camera and trailer for $7,500. The motion carried with four votes for and none against.

7. Approval of Wastewater Relining Projects for 2023 – Ms. Wilson shared that management would like to proceed with a bid from Advanced Rehabilitation Technology, OD-347-21, through Purchasing Cooperative of America for the relining of about 50 manholes using OBIC Armor 1000 for this year’s budgeted wastewater collection relining work. Vice President David Ausmus made a motion, seconded by Board Member Scott Lucas, to proceed with the bid from Advanced Rehabilitation Technology utilizing certified installers for our region, Midwest Infrastructure Coatings, for the lining of manholes at $270.00 per linear foot, not to exceed $135,000. The motion carried with four votes for and none against.

8. Review of Engineering Fees for Substation 3 Expansion – Ms. Wilson and Mr. Stueve shared information from a meeting held with Toth & Associates regarding encumbered fees for the substation expansion. Based on discussion, additional conversations will be held in order to formalize an engineering agreement. Also, Ms. Wilson will send a letter to Agri-Genesis, LLC noting 12 months’ notice is required regarding additional phases of their expansion to allow MMU sufficient time to complete necessary electrical work within the substation serving their business.

  1. Discussion of Natural Gas Transportation Fee Analysis and Macon Energy Center Contract – Ms. Wilson shared that management is still in conversation with Poet Bioprocessing, LLC regarding the contract renewal for the natural gas transportation fee and Macon Energy Center contract. As the current contract expires February 28, 2023 an extension will likely be necessary. 
  1. Approval of Consulting Services Agreement for Natural Gas Bypass Study –Black & Veatch Management Consulting, LLC was selected to perform a natural gas bypass study based on qualifications at the meeting held on December 19, 2022. After discussion of the agreement presented, Vice President David Ausmus made a motion, seconded by Board Member Scott Lucas, to accept the agreement with Black & Veatch Management Consulting, LLC for a fee up to $25,000, which also notes the study is anticipated to be complete by March 31, 2023. The motion carried with four votes for and none against. 
  1. Discussion of Natural Gas Hedging Strategies – Ms. Wilson shared that MMU has locked in 50% of historical usage for November 2023 through March 2024 (25% at $5.00/dkt and 25% at $4.77/dkt). Mr. Stueve noted current market prices are remaining volatile. After discussion Vice President David Ausmus made a motion, seconded by President Brian Terry, to recommend to City Council we place an order for an additional 35% of historical usage at $3.00/dkt for November 1, 2023 to March, 31, 2024. The motion carried with four votes for and none against. 
  1. Approval of Truck & Labor Rates for 2023 – Management presented recommended changes to the Truck & Labor Rates. After discussion, President Brian Terry made a motion, seconded by Board Member David Wilt, approve the Truck & Labor Rates for 2023 as presented. The motion carried with four votes for and none against. 
  1. Approval of New Construction Fee Sheet for 2023 – Management shared actual cost details for installation of each item on the New Construction Fee Sheet. The Board reviewed the frequency for each type of construction installation from 2020 – 2022. Vice President David Ausmus made a motion, seconded by Board Member David Wilt, approve the New Construction Fee Sheet for 2023 as presented. The motion carried with four votes for and none against. 
  1. Employee Retention & Recruitment – Ms. Wilson noted that MMU is currently fully staffed. Various trainings and certifications were discussed as well as ways to promote morale. 
  1. Board of Public Works Member Reports – No additional reports. 
  1. Approval of Accounts Payable – Board members signed accounts payable. 
  1. Set Next Regular Meeting: Monday, February 20, 2023 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 (RSM0.610.021 (1)), Leasing, Purchase, or Sale of Real Estate (RSMo.610.021(2)), and Personnel (RSMo.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 8:33 pm a motion was made by Vice President David Ausmus, seconded by Board Member Scott Lucas, to adjourn the meeting.  The motion passed with four votes for and none against.