Board Minutes May 16, 2022

From the Board of Public Works

THE MINUTES OF THE MEETING OF THE BOARD OF PUBLIC WORKS

May 16, 2022

 The regular meeting of the Board of Public Works was held on May 16, 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. Also in attendance were Mayor Scott Bigham, City Administrator Avis Marshall, City Councilman Tony Petre, and City Councilman Caleb Dwiggins.  Sue Goulder, Director of Macon County Economic Development was also in attendance for a special presentation. 

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

  1. Approval of Minutes from the prior Board Meeting: Vice President David Ausmus made a motion, seconded by Board Member David Wilt, to approve the minutes from the April 18, 2022 meeting. The motion carried with four votes for and none against. 

Under old business:

  1. Discussion of Macon Municipal Utilities (MMU) Strategic Plan – Mission, Vision, Core Values: The Board of Public Works discussed ideas to update MMU’s Mission and Vision statements. Vice President David Ausmus made a motion, seconded by President Brian Terry, to adopt the following statements:

 Mission:   “Powering a brighter future for our customers through safety, reliability, and competitive utility services”.

 Vision:     “Providing the most reliable utilities in the State of Missouri through innovative technology and creative futuristic planning, while advancing economic growth and improving quality of life to our community”.

 The motion carried with four votes for and none against. Core Values and Goals will be discussed at a future meeting.

 Discussion of Next Steps for Integrated Management Plan for Long-Term Sewer Improvements: Discussion was held regarding the draft of the Integrated Management Plan that was presented by Burns & McDonnell at the prior meeting. The Board was in agreeance with requesting qualifications from environmental attorneys to assist with negotiating long-term wastewater improvements compliant with regulations enforced by the Missouri Department of Natural Resources and Environmental Protection Agency.

  1. Analysis of Gas Adder from February 2021 Natural Gas Commodity Costs: General Manager Stephanie Wilson highlighted that 41% or $789 thousand of the $1.9 million in excess natural gas commodity costs generated by Winter Storm Uri in February 2021 has been collected. Due to the lingering cold temperatures during the April 18 – May 19, 2022 billing cycle for June 1, 2022 statements, Board Member Scott Lucas made a motion, seconded by Board Member David Wilt, to maintain the $0.17/ccf adder for residential customers and $0.12/ccf for commercial customers versus increase the gas adder rate per the schedule established in 2021. The motion passed with four votes for and none against.

Under new business:

  1. Presentation of Macon County Economic Development (MCED) Partner in Growth Certificate – MCED Director Sue Goulder presented MMU with an appreciation certificate for allocating funds to assist in supporting its operations.
  2. Review of Monthly Dashboard: The dashboard of activities for all services was noted. Additional items to measure were discussed.
  3. Monthly Reviews of Financials – April 2022: Ms. Wilson highlighted activity for all funds noting impacts of the shorter billing cycle for the month and other notable events.
  4. Approval to Purchase Switches for Substation 3 Expansion: Expansion of Substation 3 is needed in order to serve a new customer, Agri-Genesis, LLC. Due to lead times, management suggested that switches be placed on order from KD Johnson/Royal Switchgear in the amount of $60,920.00. Board Member Scott Lucas made the motion, seconded by Vice President David Ausmus, to proceed with the purchase.  The motion carried with four votes for and none against. 
  5. Discussion of Additional Regulators for Substations: Assistant General Manager and Manager of Energy Resources Ben Stueve shared that MMU has an opportunity to bid on three (3) Cooper 333 KVA Voltage Regulators from another municipality that can be utilized as back-ups or for an upcoming rehabilitation of Substation 2. Vice President David Ausmus made a motion, seconded by President Brian Terry, to allow a bid up to $50,000.00.  The motion carried with four votes for and none against. 
  6. Natural Gas Hedging for November 2022 – March 2023: Ms. Wilson and Mr. Stueve shared that natural gas prices continue to be elevated. President Brian Terry made a motion, seconded by Board Member David Wilt, to submit an order to purchase 164,643 dekatherms of natural gas, or 70% of historical usage, at a contracted price up to $8.50 per dekatherm for the upcoming November 2022- March 2023 winter heating season. The motion carried with four votes for and none against.  If this order is filled, MMU will have secured 95% of the 3-year historical average in usage for next winter.
  7. Approval of Bid to Rehabilitate Natural Gas Regulator Station – Rollins & McGee Streets: Ms. Wilson shared the bids for the rehabilitation of the regulator station budgeted for this year. Board Member David Wilt made a motion, seconded by Board Member Scott Lucas, to accept the bid from Utility Safety & Design, Inc. in the amount of $34,885.96. The motion carried with four votes for and none against. 
  8. Discussion of Federal Funds for Utility Projects – American Recovery & Reinvestment Act (ARPA): Ms. Wilson noted that she attended MDNR training virtually to learn requirements and opportunities for ARPA funds for drinking water, wastewater, stormwater, and lead service line inventories. Applications for the funding became available on May 16, 2022 and are due back to the MDNR on July 14, 2022.
  9. Review of Draft Agreement for Assistance with Missouri Joint Municipal Electric Commission (MJMEUC) Electric Generation Sites – Macon Solar Farm and Fredericktown: Ms. Wilson noted the intent of both agreements and shared that they would be brought to a future board meeting for formal review.
  10. Employee Residency Requests: Ms. Wilson presented two residency requests. Water Treatment Plant Supervisor Ed Samel submitted a request to move to 39198 Greenwood Place, Excello, Missouri. President Brian Terry made a motion, seconded by Vice President David Ausmus, to approve the re-establishment of residency request.  Wastewater Treatment Plant Operator Sam Schmidt submitted a request to temporarily reside at 28338 Ironwood Avenue, Macon, MO. until the real estate transaction is complete for permanent residency at 205 St. Francis Street, Macon, MO.  Board Member Scott Lucas made a motion, seconded by Vice President David Ausmus, to approve the re-establishment of residency request.  The motion carried with four votes for and none against. 
  11. Employee Retention and Recruitment: Ms. Wilson noted that Water Treatment Plant Operator Joe Terrell and Utility Billing Clerk Jessica Cross submitted resignations from their respective positions to be effective on May 27, 2022. The positions will be advertised and filled.
  12. Board of Public Works Member Report: There were no additional items to report.
  13. Approval of Accounts Payable – Board Members signed account payable.
  14. Set Next Regular Meeting: The next regular meeting was set for June 20, 2022 at 5:00 pm.

A motion was made by President Brian Terry, 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; Davis Ausmus, yea; David Wilt, yea; and Scott Lucas, yea.

When the open meeting reconvened at 7:20 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.