THE MINUTES OF THE MEETING OF THE BOARD OF PUBLIC WORKS
September 18, 2023
The regular meeting of the Board of Public Works was held on September 18, 2023, at 5:00 pm in the City Council Chambers. Those in attendance were President Brian Terry, Vice President David Ausmus, Board Member Scott Lucas, Assistant General Manager and Manager of Energy Resources Ben Stueve, and Controller Jennifer McLeland. Board Member David Wilt was absent.
President Brian Terry called the meeting to order at 5:00 pm.
Vice President David Ausmus made a motion, seconded by Board Member Scott Lucas to the amend the agenda to approve closed meeting minutes from August 21, 2023 and September 13, 2023. The motion carried with three votes for and none against.
- Approval of Minutes from Prior Board Meetings – Board Member Scott Lucas made a motion, seconded by Vice President David Ausmus, to approve the minutes from the August 21, 2023 open meeting, August 21, 2023 closed meeting and September 13, 2023 closed meeting as written. The motion carried with three votes for and none against.
Under old business:
- There was no old business to discuss.
Under new business:
3. Review of Financials – August 2023 – Jennifer McLeland, Controller, shared electric fund revenues in increased following the sale of the 2004 Komatsu mini excavator and natural gas fund revenues were elevated from the prior month due to the addition of Macon Turbine transportation charges being added following the approval of the Macon-POET Co-Generation agreement. She added that water fund expenses were increased due to the replacement of the variable frequency drive at the raw water treatment plant.
4. Approval to Transfer Cash Reserves into Certificates of Deposit – Mrs. McLeland shared the current cash fund balances and known cash outlays for the remainder of 2023. Following discussion of the current interest rate on 60-month certificates of deposit the Board tabled the transfer of cash reserves into certificates of deposit until April 2024, at the next established investment time.
Discussion continued while reviewing debt, cash outlays, and cash reserve balances into all funds. Vice President David Ausmus made a motion, seconded by President Brian Terry to cash out a maturing water fund certificate of deposit as of October 1, 2023 to pay off the remaining US Army Corps of Engineers water storage lease for Long Branch Lake. The motion carried with three votes for and none against.
5. Approval of Panhandle Right of First Refusal 2024 to 2026– Mr. Stueve shared that every three years Panhandle requests a signature to guarantee natural gas delivery. The approval of this agreement includes monthly fees to Panhandle, although if the Board did not approve the agreement Panhandle could take our capacity to market, another entity could purchase our capacity, and MMU customers would not be guaranteed natural gas supply. Vice President David Ausmus made a motion, seconded by Board Member Scott Lucas to approve the Panhandle right of first refusal for 2024 to 2026. The motion carried with three votes for and none against.
6. Approval of Natural Gas Hedging for Winter 2023-2024 – Mr. Stueve reviewed the approved natural gas hedge for winter 2023-2024 and unfilled orders. January 3, 2023 25 percent of a three year average monthly quantity was filled at $5.00 per dekatherm and January 13, 2023 and additional 25 percent was filled at $4.77 per dekatherm. The Board submitted an additional 35 percent order at $3.00 per dekatherm that has not filled. Board Member Scott Lucas made a motion, seconded by President Brian Terry to approve the order of 35 percent of the three-year average monthly quantity at $4.50 per dekatherm. The motion carried with three votes for and none against.
7. Approval for Capital Electric Line Builders to Rent 28927 Business Route 36 W – Mr. Stueve shared that management was approached by Capital Electric Line Builders, a contractor for Northeast Power, to utilize the property that is slated for the future water treatment plant construction to be used as a laydown yard during 2024 at $750.00 per month during their construction. Following brief discussion President Brian Terry made a motion, seconded by vice President David Ausmus to approve the rental of 28927 Business Route 36 W, commonly known as the Ellyson Property, to be used as a laydown yard by Capital Electric Line Builders during construction of Northeast Power transmission lines throughout 2024 at $1,500 per month, with the stipulation that they agree to pile any rock used for parking equipment and return the lot to its original state at the completion of their construction. The motion carried with three votes for and none against.
8. Employee Retention & Recruitment – Mrs. McLeland shared that Bryce Butner has submitted his resignation effective Friday, September 22, 2023.
9. Board of Public Works Member Reports – No reports were given.
10. Approval of Accounts Payable – Board members signed accounts payable without revision.
11. Set Next Regular Meeting – Monday, October 16, 2023, at 5:00 pm.
A motion was made by Board Member Scott Lucas, seconded by Vice President David Ausmus, to adjourn the meeting at 6:14 pm. The motion passed with three votes for and none against.