THE MINUTES OF THE MEETING OF THE BOARD OF PUBLIC WORKS
November 19, 2018
The regular meeting of the Board of Public Works was held on Monday, November 19, 2018 at 4:00 p.m. in the City Council Chambers. Those in attendance were President Tim Watts, Vice President John Neer, Board Member Kevin Butner, Board Member J.D. King, General Manager Stephanie Wilson, Assistant General Manager Scott Lucas, Mayor Talt Holman, City Administrator Avis Marshall and Controller Jennifer McLeland. Guests present were Councilman Tony Petre, David Ausmus with Howe Company, Foundation Chair Dan Coons and Director Angie Prenger with the YMCA.
President Tim Watts called the meeting to order at 4:00 p.m. Tim Watts welcomed Board Member Kevin Butner to the Board of Public Works. Vice President John Neer made a motion, seconded by President Tim Watts, to approve the minutes from the October 15, 2018 meeting. The motion carried with four votes for and none against.
First item on the agenda was a presentation from Dan Coons requesting the Board to consider allocating funds to the Long Branch Area YMCA. The Board tabled the allocation request, but encouraged MMU to assist with guidance regarding the facility’s conversion to LED lighting.
Next item on the agenda was a discussion and approval of electric and water rate structures. Electric and water rates were modified using the Toth & Associates, Inc. cost of service study presented at the October 15, 2018 board meeting with modifications. Adjustments to the residential electric rate structures have a net rate decrease of 1% overall when looking at usage patterns with the adoption of a winter and summer rate. Water rates for non-contractual customers were increased by 4% or an average of $0.78 per month for an in-town residential customer. Vice President John Neer made the motion, seconded by President Tim Watts, to approve the new rate structure beginning on the December 2018 customer utility statements. The motion carried with four votes for and none against.
Electric Rate Adjustment
Residential:
Base Fee from $17.75 to $18.24
From All kWh’s at $0.12032 to a Winter and Summer Rate
Winter: November – May Statements
Per KWH @ 0.11170 KWH
Summer: June – October Statements
Per KWH @ 0.12700 KWH
Water Rate Adjustment
Residential Inside City Limits:
Meter Fee from $3.84609 to $4.25
First 1,000 gallons from $6.00 to $6.00 per 1,000 gallons
Over 1,000 gallons from $3.20 to $3.32 per 1,000 gallons
Residential Outside City Limits:
Meter Fee from $3.84609 to $4.25
First 1,000 gallons from $7.95 to $8.00 per 1,000 gallons
Over 1,000 gallons from $4.00 to $4.19 per 1,000 gallons
Commercial (Under 1,000,000 Gallons):
Meter Fee from $6.83898 to $7.40
First 1,000 gallons from $6.09496 to $6.10 per 1,000 gallons
Next 9,000 gallons from $3.65257 to $3.78 per 1,000 gallons
Over 10,000 gallons from $3.33414 to $3.48 per 1,000 gallons
Commercial (Over 1,000,000 Gallons)
Meter Fee from $7.33753 to $10.00
First 1,000 gallons from $6.72961 to $6.73 per 1,000 gallons
Next 9,000 gallons from $3.62260 to $3.73 per 1,000 gallons
Next 990,000 gallons from $3.01616 to $3.13 per 1,000 gallons
Over 1,000,000 gallons from $2.91800 to $3.03 per 1,000 gallons
Also, after an interactive discussion with the Board and audience, Vice President John Neer made a motion, seconded by Board Member J.D. King, that if a customer inside the city limits who heats their home or business with electric or propane switches to natural gas that the fee of $225.00 for installation of the service line and meter will be waived. The motion carried with four votes for and none against. General Manager Stephanie Wilson then presented the 2019 Budget for Macon Municipal Utilities (MMU). After discussion of the major components Vice President John Neer made a motion, seconded by Board Member J.D. King, to recommend to the City Council of Macon, Missouri that the 2019 Budget for MMU be approved as presented. The motion carried with four votes for and none against. Discussion of a cash reserve statement for the utility was also discussed and tabled for adoption until February 2019 so that 2018 financial activity can be considered.
Next item on the agenda was the monthly review of financials for October 2018. For the month of October, electric usage had decreased due to milder temperatures but year to date this fund has increased revenues due to the cold winter and hot summer seasons along with a lower than budgeted commodity price. Water usage also decreased from the prior month but the water and wastewater fund are doing better than expected year-to-date due to a dry summer and an increase in water usage.
Under General Manger Stephanie Wilson updates, she noted that our MMU’s website will go live the week of November 26th and a comparison of natural gas prices to propane. It was also shared that bids for the sandblast and overcoat of the west water tower are due on December 12, 2018 and will be presented at the December 17, 2018 meeting.
Assistant General Manager Scott Lucas’s updates noted operations and inspections for the Macon and Audrain Energy Centers. Electric Distribution crew have spent a considerable about of time on trimming trees. MMU’s tree trimming program has proven to be very beneficial to the infrastructure and preventing outages. Regarding underground facilities, the Burlington Northern Sante Fe permit to replace the water main at the Rollins Street bridge has been reissued. BRS Construction was
awarded the contract for the work previously.
Under Manager Roger Rector’s updates, he notes that the water plant is now fully staffed with the new hire of Seth Shepherd. Staff at the wastewater treatment plant are preparing maintenance work on the ultra-violet disinfection system since it is down for the winter.
After approval of accounts payable and setting the next regular meeting for Monday, December 17, 2018 at 4:00 p.m., a motion was made by President Tim Watts, seconded by Board Member J.D. King to adjourn the meeting. The motion carried with four votes for and none against.
President Tim Watts adjourned the meeting at 6:10 p.m.