THE MINUTES OF THE MEETING OF THE BOARD OF PUBLIC WORKS
March 22, 2022
The regular meeting of the Board of Public Works was held on March 22, 2022 at 5:00 pm in the City Council Chambers. Those in attendance were President Brian Terry, Vice President David Ausmus (via phone), Board Member David Wilt, Board Member Scott Lucas, General Manager Stephanie Wilson, Assistants to the General Manager Benjamin Stueve and Bryce Butner and Supervisor Ronny Smith of the Wastewater Treatment Plant. Also in attendance were Mayor Talt Holman, City Administrator Avis Marshall, City Councilman Tony Petre, City Councilman Caleb Dwiggins, and Scott Tuttle with Poet Biorefining, Inc.-Macon.
President Brian Terry called the meeting to order at 5:00 pm and General Manager Stephanie Wilson welcomed Mr. Scott Tuttle with Poet Biorefining, Inc as an attending guest.
All agenda items are referenced by number:
- Approval of Minutes from Prior Meeting: Board Member David Wilt made a motion, seconded by Board Member Scott Lucas, to approve the minutes from the February 21, 2022 meeting. The motion carried with four votes for and none against.
2. Review of Results from Wastewater Treatment Plant Pilot Project with Heartland Environmental Solutions/Advanced Microbial Solutions, LLC: Supervisor Ronny Smith presented a summary letter along with data of the pilot project from November 8, 2021 to March 9, 2022. At MMU’s mechanical wastewater treatment plant, Mr. Smith shared that he did not notice an impact towards Biochemical Oxygen Demand (BOD), Total Suspended Solids (TSS), or Ammonia. The pilot project may have attributed to a slight reduction of sludge. MMU has visited with other communities who have had success with the product in lagoons.
3. Delivery of Draft Integrated Management Plan for Long-Term Sewer Improvements: A draft report was delivered to members. Burns & McDonnell will present it at the Board of Public Works meeting to be held on April 18, 2022.
4. Approval of Amendment to Electric Policy Regarding Emergency Disconnects: MMU managers recommended to the Board to adopt an emergency disconnect for electric meters policy for Macon Municipal Utilities (MMU) and also request the City Council adopt it as well. Suggested policy language is below:
All new meter sockets installed after DATE are required to include an emergency disconnect. Existing structures shall be required to upgrade to an emergency disconnect when the following occurs:
1. upgrading the electrical service to include changes of the meter base and internal electrical panel,
2. upgrading an overhead or underground electrical service,
3. City of Macon permitted remodel affecting the electric panel entrance to a structure,
4. or any other changes deemed necessary by Macon Municipal Utilities personnel.
Board Member David Ausmus made a motion, seconded by Board Member Scott Lucas, to present the policy recommendation to the City Council of Macon, Missouri and that the policy not be adopted by MMU until also adopted by the City of Macon, Missouri. The motion carried with four votes for and none against.
- Approval of New Construction Fee Sheet: After discussion and review of material costs, Board Member Scott Lucas made a motion, seconded by Board Member David Wilt, that while material costs have increased due to supply chain issues and inflation to maintain using the charges noted on the current New Construction Fee Sheet in order to promote new construction. The motion carried with four votes for and none against.
6. Approval of Truck & Labor Rates: Labor rates were updated to reflect 2022 rates while equipment charges were suggested by management to remain the same. President Brian Terry made a motion, seconded by Board Member David Wilt, to approve the 2022 Truck & Labor Rates as presented. The motion carried with four votes for and none against.
7. Review of Policy for Customer Deposits: Discussion was held regarding MMU current policy for customer deposits on customer accounts and the purpose to reduce bad debt expense. A consensus was that management can deviate from policy on a case-by-case basis.
8. Review of Monthly Dashboard – General Manager Stephanie Wilson referenced the monthly dashboard for all services for February 2022.
9. Monthly Review of Financials – February 2022: Ms. Wilson noted comparisons to the prior month and prior year with the most significant difference for the electric and natural gas funds relating to increased expenses due to Winter Storm Uri in February 2021. For the water fund, increased chemical expenses will affect the fund all year. For the wastewater fund, expenses for the new headworks facility and revenue streams were noted.
10. Analysis of Natural Gas Adder from February 2021 Natural Gas Commodity Costs – In March 2021, a Natural Gas Adder was included on customer statements to recover $1.9 million in extra natural gas commodity costs from customers over a 3-year period. To date, 37% of the funds have been collected from customers. Discussion was held and additional aspects of the Adder will be presented to the Board to review at the next meeting.
Vice President David Ausmus exited the meeting due to loss of the phone connection.
11. Natural Gas Hedging Option for November 2022 – March 2023: Wilson and Assistant to the General Manager Ben Stueve shared that the orders approved at the Board of Public Works meeting held on February 21, 2022 and the City Council meeting held on March 8, 2022 have not been able to be filled due to higher-than-expected commodity prices in the market. President Brian Terry made a motion, seconded by Board Member David Wilt, to recommend to the City Council of Macon, Missouri to approve a 50% hedge option for 117,602 dekatherms at a commodity cost up to $6.50 per dekatherm. The motion carried with three votes for and none against.
12. Approval for One-Year Extension of Panhandle Eastern Pipeline Transportation Contract: MMU has received a Right of First Refusal for natural gas transportation from Panhandle Eastern Pipeline. The recommendation is for a one-year extension of the current agreement that expires on March 31, 2023. Board Member Scott Lucas made a motion, seconded by President Brian Terry, to extend the transportation agreement until the expiration date of March 31, 2024. The motion carried with three votes and none against.
13. Review of Bids and Approval of Purchase of a Transformer for Substation 3: The addition of a transformer is needed in order to serve Agri-Genesis, LLC load in the Heartland Industrial Park. After discussion of the project and bids, Board Member David Wilt made a motion, seconded by Board Member Scott Lucas, to accept the bid from Power Solutions – Pennsylvania Transformer Tech, Inc. in the amount of $440,918.70 with 50% due up front and a delivery of 56-60 weeks. The motion carried with three votes for and none against.
14. Review and Approval of bids for Wastewater Relining Project: Ms. Wilson presented bids to reline 8”, 12”, and 24” wastewater collection mains and grout the laterals in 2022. The areas of town addressed are Briggs Drive, Englewood Drive, Gieselman Drive, Holman Lane, Lee Drive, Melrose Lane, S. Rollins Street, Vine Street, and W. Goggin Street. President Brian Terry made a motion, seconded by Board Member David Wilt, to accept the low bid from Visu-Sewer, Inc. in the amount of $139,810.30. The motion carried with three votes for and none against.
15. Approval to Purchase Skidsteer; Assistant to the General Manager Bryce Butner presented bids to replace the current 2000 ASV 4810, to be sold on Purple Wave auction site, for distribution crews. Board Member David Wilt made a motion, seconded by President Brian Terry, to purchase the Kubota SVL97-2HFC in the amount of $68,107 from Crown Power & Equipment to be delivered in September 2022. The motion carried with three votes for and none against.
16. Approval to Purchase Tractor/Mower for Wastewater Treatment Plant: Mr. Butner and Mr. Smith also discussed replacement of the 2013 unit and uses for the tractor/mower at the wastewater treatment plant. Board Member Scott Lucas made a motion, seconded by President Brian Terry, to accept the trade-in offer for the current equipment for $7,400 and purchase a 2022 John Deere 1025R in the amount of $21,222.61 from Sydenstricker-Nobbe. The motion passed with three votes for and none against.
17. Approval to Proceed with Electric and Water Cost of Service Studies: Ms. Wilson shared that the most recent cost of service studies were performed in 2018 and proposals to have electric and water services reevaluated. President Brian Terry made a motion, seconded by Board Member Scott Lucas, to accept the proposal from Toth & Associates, Inc. for an electric cost-of-service study in the amount of $19,740 and for water in the amount of $5,740. The motion passed with three votes for and none against.
18. Discussion of MMU Strategic Plan: President Brian Terry encouraged Board members to be thinking of ideas for Mission, Vision, and Core Values statements to be discussed at the next meeting as a starting point for the strategic plan process in 2022.
19. Employee Retention & Recruitment: Ms. Wilson referenced that new employees Josh Myers and Terrance Duncan will begin in the Underground Facilities department on Monday, March 28, 2022.
A motion was made by Board Member David Wilt, seconded by Board Member Scott Lucas 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 motions were as follows: Brian Terry, yea; David Wilt, yea; and Scott Lucas, yea.
When the open meeting reconvened, the Board voted on the final agenda item.
- Approval of Revised 2022 Budget for Macon Municipal Utilities: As requested by the City Council of Macon, Missouri on December 22, 2021 an amended budget is to be presented by April 12, 2022 to address salaried exempt positions. Board Member Scott Lucas made a motion, seconded by Board Member David Wilt, to present the amended budget and organizational chart to the City Council of Macon, Missouri. The motion passed with three votes for and none against.
21. Board of Public Works Member Reports: No additional reports.
22. Approval of Accounts Payable: Board members signed accounts payable.
23. Set Next Regular Meeting: Monday, April 18, 2022 at 5:00 pm,
A motion was made by President Brian Terry, seconded by Board Member Scott Lucas, to adjourn the meeting at 7:40 pm. The motion passed with three votes for and none against.