THE MINUTES OF THE MEETING OF THE BOARD OF PUBLIC WORKS
June 20, 2022
The regular meeting of the Board of Public Works was held on June 20, 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 Controller Jennifer McLeland. Board Secretary Renita Waldron was absent. Also in attendance were City Administrator Avis Marshall, Mayor Pro Tem Tony Petre, and Macon County Public Water District General Manager Brian Bender. Craig Woycheese and Lali Handwerker, Toth & Associates, were also in attendance for a special presentation.
President Brian Terry called the meeting to order at 5:00 pm.
- Approval of Minutes from the prior Board Meeting: Vice President David Ausmus made a motion, seconded by Board Member Scott Lucas, to approve the minutes from the May 16, 2022 meeting. The motion carried with four votes for and none against.
Under old business:
- Discussion of Macon Municipal Utilities (MMU) Strategic Plan –Core Values & Goals: Due to other discussions this topic was tabled until a future meeting.
3. Discussion of Submission of Integrated Management Plan for Long-Term Sewer Improvements: Discussion was held to allow Burns & McDonnell to submit the draft of the IMP to the Missouri Department of Natural Resources. The Board was supportive of the plan being submitted with the understanding that it is a draft and adaptive document.
4. Analysis of Gas Adder from February 2021 Natural Gas Commodity Costs: General Manager Stephanie Wilson noted that $801 thousand (41%) of the extraordinary costs from Winter Storm Uri in February 2021 has been collected. The Board was in agreeance to maintain the $.17/ccf adder for residential customers and $.12/ccf for commercial customers versus increase the gas adder rate per the schedule established in 2021 until more information can be learned from Federal Energy Regulatory Commission regarding transportation rates.
Under new business:
- Presentation of Electric and Water Cost of Service Studies: Craig Woycheese and Lali Handwerker, Toth & Associates, presented their suggestions for electric and water retail rate design following an analysis of MMU’s cost of providing services. The board will review the cost-of-service study information and revisit possible retail rate changes at the August 2022 meeting.
6. Monthly Reviews of Financials – May 2022: Ms. Wilson highlighted usage increases for electric and water services and correlated natural gas usage decreases due to warmer temperatures.
7. Approval of Bid to Repair Concrete Driveway at 404 E. Vine Street: Discussion was held regarding the process to remove and repour the driveway plus third-party testing to ensure bid specifications are met. Vice President David Ausmus made a motion, seconded by Board Member David Wilt, to proceed with the low bid of $68,000 from Anderson & Walk Construction for the driveway repair at 404 E. Vine Street, Macon, MO 63552. The motion carried with four votes for and none against.
8. Approval to Hedge Natural Gas for Future Winters: Assistant General Manager and Manager of Energy Resources Ben Stueve shared the current and forecasted natural gas pricing for winter 2023-2024. President Brian Terry made a motion, seconded by Board Member Scott Lucas, to recommend to the City Council of Macon, MO that MMU be allowed to enter into two contracts to procure two 25% layers based on historical usage (117,602 dekatherms, 58,801 dekatherms each) up to $5.00 per dekatherm for November 2023 – March 2024. The motion carried with four votes for and none against.
9. Discussion of Projects and Matching Federal Funds – American Recovery & Reinvestment Act (ARPA): Ms. Wilson shared information regarding meetings with McClure Engineering to split the prior stormwater/sewer separation report into eligible projects for wastewater and stormwater funding eligibility, as well as, drinking water projects from MMU’s Owner Supervised Plan. The City of Macon is potentially eligible for significant ARPA grant funding through Missouri Department of Natural Resources. Prior to deciding the amount of funds MMU will put toward the projects, additional information will be gathered regarding the amount of sewer the proposed projects would relieve from the wastewater plant. A special meeting will be set prior to the July 12, 2022 City Council meeting and July 14, 2022 application deadline to approve funding amounts for each application.
10. Employee Retention and Recruitment: Ms. Wilson shared that Desmond Lucas will begin duties as a water treatment plant operator on June 23, 2022 and BreeAnna Basler will begin duties as the utility billing clerk on June 29, 2022. Following these hires MMU is fully staffed.
11. Board of Public Works Member Report: Discussion of the City of Macon implementing a social media policy was discussed in addition to specific items within the operational updates.
12. Approval of Accounts Payable – Board Members signed accounts payable.
13. Set Next Regular Meeting: The next regular meeting was set for July 18, 2022 at 5:00 pm.
A motion was made by Board Member Scott Lucas, 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; David Ausmus, yea; David Wilt, yea; and Scott Lucas, yea.
When the open meeting reconvened at 7:50 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.