VINTON MUNICIPAL ELECTRIC UTILITY BOARD MEETING

JULY 16, 2008

A regular meeting of the Vinton Municipal Electric Board of Trustees was held on the 16th day of July, 2008, at 5:00 p.m., at Vinton City Hall, Vinton, Iowa. The meeting date was changed due to conflicts of schedules. Chairman Elwick presided and the roll being called the following board members were present and absent: Present: Anderson, Barron, Elwick, Kremer, Woodhouse. Absent: None.

Motion by Kremer, second by Anderson to approve the minutes of the June 10th meeting. Question: Yes - All. The Chairman declared the motion carried.

Motion by Kremer, second by Anderson to approve the following invoices in the amount of $780,509.38, excluding investments. Question: Yes - All. The Chairman declared the motion carried.

Motion by Barron, second by Kremer to approve the agenda. Question: Yes - All. The Chairman declared the motion carried.

Motion by Anderson, second by Barron to approve an energy adjustment factor of 4 cents per kWh for July billings. Question: Yes - All. The Chairman declared the motion carried.

Manager Ohrt has talked to IDNR about a permit if new generation is added. He stated that engine #8 has too low of resistance. It needs to be dried from the inside out. The #7 generator may have to be rewound. The Trustees asked Ohrt to get 3 firm bids to have the generators rewound. He will also seek a cost estimate for the #9 motor control center.

Manager Ohrt stated that Kurt's Enterprises is now cleaning out the distribution plant's basement. The Trustees will need to look at the floor after the debris is cleaned out.

The 1999 Ford F350 was totaled in the flood. EMC Insurance has paid the VMEU for this loss. Manager Ohrt has received two bids for a new pickup, one from Ervin Motor and one from Craig Griffith Ford. Ohrt will check with FEMA about replacing a 1999 vehicle with a new one. No action was taken.

Manager Ohrt stated that the 2001 Ford Windstar had been totaled by the flood and that EMC Insurance has paid the electric utility for this loss. There is a private owner selling a comparable van, asking $5,200.00. Ohrt stated the utility would need and use a pickup sooner than a van. No action was taken.

Motion by Kremer, second by Barron to receive and file the June revenue and expenditure report. Question: Yes - All. The Chairman declared the motion carried.
ELECTRIC FUND
OPENING BALANCE 1,786,890.11
REVENUES 250,046.53
EXPENDITURES 461,180.28
TRANSFERS IN 0.00
TRANSFERS OUT 0.00
ENDING BALANCE 1,575,756.36

ELECTRIC CAPITAL IMPROVEMENT RESERVE
OPENING BALANCE 1,794,370.44
REVENUES 8,094.52
TRANSFERS IN 0.00
TRANSFERS OUT 0.00
ENDING BALANCE 1,802,464.96

ELECTRIC SELF INSURANCE RESERVE
OPENING BALANCE 750,000.00
REVENUES 0.00
TRANSFERS IN 0.00
TRANSFERS OUT 0.00
ENDING BALANCE 750,000.00

Motion by Barron, second by Woodhouse to receive and file the 2007-2008 investment report. Question: Yes - All. The Chairman declared the motion carried.

Kremer reported an annual cost estimate of $2,393 for flood insurance for $500,000 coverage per location, for the power plant and the distribution plant, each with a $50,000 deductible. No action was taken on flood insurance.

Manager Ohrt reported on: 1) Marion Iron has looked at the 100,000 gallon steel barrel. Fauser Oil may be interested in it. 2) East substation is now repaired. The ESCO bill for this is approximately $14,000. 3) Power plant employee vacations in August. 4) High cell phone bill related to the flooding.

Motion by Elwick, second by Woodhouse to set the power plant operation hours the same as the line crew operation hours. This will allow for better coordination of all electrical personnel. Question: Yes - All. The Chairman declared the motion carried. Ohrt will check the union contract.

The City needs all flood labor volunteers to register their hours at City Hall. Coordinator Lent is planning for the recognition of two electric employees later this year.

Motion by Barron, second by Anderson to adjourn the meeting. Question: Yes - All. The Chairman declared the motion carried. Time: 8:10 p.m..

_________________________
Michael G. Elwick Chairman

Attest: _______________________
Cindy Michael Secretary

__________________________________________________________________

JUNE 10, 2008
A regular meeting of the Vinton Municipal Electric Board of Trustees was held on the 10th day of June, 2008, at 5:00 p.m., at Vinton City Hall, Vinton, Iowa. The location was changed due to street flooding. Chairman Elwick presided and the roll being called the following board members were present and absent: Present: Anderson, Barron, Elwick, Kremer, Woodhouse. Absent: None.
Motion by Woodhouse, second by Barron to approve the minutes of the May 13th meeting. Question: Yes - All. The Chairman declared the motion carried.
Motion by Kremer, second by Anderson to approve the following invoices in the amount of $163,936.38, excluding investments. Question: Yes - All. The Chairman declared the motion carried.

ABM EQUIPMENT AND SUPPLY rope, spool shield 910.12
ACLARA RF SYSTEMS INC shipping 61.61
ACTERRA GROUP repairs 253.22
AIRGAS NORTH CENTRAL chemicals 62.28
ALLIANT UTILITIES gas service 5,786.88
BATTERIES PLUS batteries 161.08
BORDER STATES ELECTRIC wire 1,765.32
BURMEISTER ELECTRIC COMP insulators 408.69
CINTAS FIRST AID & SAFET safety supplies 55.49
CITY LAUNDERING CO. service 53.00
CITY OF VINTON rebates,utilities,project share 1,291.45
EHLINGER'S VINTON EXPRES fuel 943.53
FARM PLAN 48895 supplies 275.36
FLETCHER REINHARDT CO. meters, hardware, padlocks 329.87
GENERAL FUND contribution 10,698.83
HERB'S GARBAGE HAULING garbage service 35.00
IAMU newsletters, training 3,045.26
IOWA ONE CALL one call service 28.20
IOWA UTILITIES BOARD assessment 546.00
LAMCO SLINGS & RIGGING hoist 210.00
LIVEWIRE PUBLISHING CO. publication 85.12
MCMASTER-CARR SUPPLY CO. thermometer 243.30
MEYER, SCOTT reimbursement for meals 74.93
MOEDING, KURT reimbursement licenses 30.00
P.C. MCKENZIE CO temp valve 775.87
PAYROLL ACCOUNT insurance 7,671.38
PETTY CASH postage, meal, misc 44.24
QUAD CITY TESTING LAB inspection 424.00
QWEST telecommunications 179.96
REFUND TO: utility payment 5.94
RESALE POWER GROUP OF IA purchased power 112,130.94
RESCO rods, anchor 213.44
RJ ENDER COMPUTERS office supplies 51.94
SMITH, MARK reimbursement for meals 73.10
STAMP FULFILLMENT SERVICE postage 600.00
STEINFORD, KIRK A. reimbursement for CDL 20.00
STETSON BUILDING PRODUCT sand 194.10
TERRY DURIN CO. wire 6,435.20
TREASURER STATE OF IOWA sales tax 6,736.00
US BANK antivirus updates 79.98
US CELLULAR telecommunications 92.59
VAN METER COMPANY rebuild kit 66.98
VINTAGE GLASSWORKS shipping 17.12
VINTON AUTO PARTS INC. supplies 41.21
VINTON FAMILY MED. CLINIC testing 50.00
WILSON HITE INS insurance 538.00
ZEP MANUFACTURING CO. supplies 139.85

 Motion by Barron, second by Kremer to approve the agenda. Question: Yes - All. The Chairman declared the motion carried.
Motion by Kremer, second by Anderson to approve an energy adjustment factor of 2 cents per kWh for June billings. Question: Yes - All. The Chairman declared the motion carried.
Motion by Barron, second by Kremer to set the General Manager's salary at $61,000, plus 25 vacation days per year. Question: Yes - All. The Chairman declared the motion carried.
Motion by Anderson, second by Barron to increase the clerical wage by 4 percent. Question: Yes - All. The Chairman declared the motion carried.
The IAMU annual conference starts September 30th. All Trustees are encouraged to attend this conference.
Motion by Woodhouse, second by Anderson to again participate in the Change A Light, Change The World program. The program runs in the months of October and November. Question: Yes - All. The Chairman declared the motion carried.
No decision was made to purchase a used 3 phase welder, with stick and wire.
Motion by Kremer, second by Barron to receive and file the May revenue and expenditure report. Question: Yes - All. The Chairman declared the motion carried.

ELECTRIC FUND
OPENING BALANCE 1,746,872.97
REVENUES 246,247.66
EXPENDITURES 206,230.52
TRANSFERS IN 0.00
TRANSFERS OUT 0.00
ENDING BALANCE 1,786,890.11
ELECTRIC CAPITAL IMPROVEMENT RESERVE
OPENING BALANCE 1,794,123.53
REVENUES 246.91
TRANSFERS IN 0.00
TRANSFERS OUT 0.00
ENDING BALANCE 1,794,370.44
ELECTRIC SELF INSURANCE RESERVE
OPENING BALANCE 750,000.00
REVENUES 0.00
TRANSFERS IN 0.00
TRANSFERS OUT 0.00
ENDING BALANCE 750,000.00

Manager Ohrt reported on: 1) ESCO has replaced the capacitor and arrestors at the east substation and it should be running soon. Ohrt gave an update on the cause of the May 5th power outage. Claims have been filed with EMC Insurance. 2) Lenny Geiger plans to repair the generation roof this month. 3) Water coming in the power plant. Using a new 3 inch pump. Predictions are the river will crest at 22 feet. 4) Basement control panels could be moved. The National Guard will be helping sandbag.
The next meeting will be held on July 15th.
There being no further business, the meeting adjourned. Time: 6:05 p.m..
Michael G. Elwick, Chairman Attest: Cindy Michael, Secretary

__________________________________________________________________
MAY 13, 2008

A regular meeting of the Vinton Municipal Electric Board of Trustees was held on the 13th day of May, 2008, at 5:00 p.m., at the Line Distribution Office, Vinton, Iowa. Chairman Elwick presided and the roll being called the following board members were present and absent: Present: Anderson, Barron, Elwick, Kremer, Woodhouse. Absent: None.

Motion by Kremer, second by Anderson to approve the minutes of the April 8th meeting. Question: Yes - All. The Chairman declared the motion carried.

Motion by Kremer, second by Woodhouse to approve the following invoices in the amount of $308,992.85, excluding investments. Question: Yes - All. The Chairman declared the motion carried.

Motion by Woodhouse, second by Barron to approve the agenda. Question: Yes - All. The Chairman declared the motion carried.

Richard Schoonover and Michal-Jon Elwick told the Trustees of electronic damages that happened on May 5th, when there was a power outage. Manager Ohrt explained that preliminary indications are that a three phase capacitor located in the east substation blew up as a result of two lightning arrestors, one on East 6th Street and one behind LaGrange Pharmacy failing. The failure of one arrestor can happen and go undetected but when two fail, damage can result. ESCO Energy has been here to look at the substation. They will be sending a written report as to why this happened. Three sub station arrestors located in the east substation were damaged by the capacitor blowing and have been ordered and will be here in between 4 and 6 weeks. Manager Ohrt has a list of residents affected by the power outage that have called.

Motion by Kremer, second by Barron to approve an energy adjustment factor of 2 cents per kWh for May billings. Question: Yes - All. The Chairman declared the motion carried.

The Trustees reviewed energy use at the IBSSS. A new 3 phase meter will be installed for Palmer Hall at the Braille school. The separate metering will make it easier to track AmeriCorps energy consumption. IBSSS plans to pay for the transformer.

The Manager’s salary and clerical wage were reviewed. No decisions were made tonight. This will be discussed again at the next meeting.

Motion by Woodhouse, second by Kremer to receive and file the April revenue and expenditure report. Question: Yes - All. The Chairman declared the motion carried.

ELECTRIC FUND

OPENING BALANCE 1,758,113.89

REVENUES 276,705.92

EXPENDITURES 300,596.84

TRANSFERS IN 12,650.00

TRANSFERS OUT 0.00

ENDING BALANCE 1,746,872.97

ELECTRIC CAPITAL IMPROVEMENT RESERVE

OPENING BALANCE 1,793,646.85
REVENUES 476.68

TRANSFERS IN 0.00

TRANSFERS OUT 0.00

ENDING BALANCE 1,794,123.53

ELECTRIC SELF INSURANCE RESERVE

OPENING BALANCE 750,000.00

REVENUES 0.00
TRANSFERS IN 0.00
TRANSFERS OUT 0.00

ENDING BALANCE 750,000.00

Manager Ohrt reported on: 1) The expenses are under budget so far this year and the revenues are greater than the budget. 2) He will be attending a RPGI meeting. 3) Plant roof repair to be done in June.

Motion by Woodhouse, second by Barron to adjourn the meeting. Question: Yes - All. The Chairman declared the motion carried. Time: 6:25 p.m..

_________________________

Michael G. Elwick Chairman

Attest: _______________________

Cindy Michael Secretary

__________________________________________________________________

 APRIL 8, 2008

 A regular meeting of the Vinton Municipal Electric Board of Trustees was held on the 8th day of April, 2008, at 5:00 p.m., at the Line Distribution Office, Vinton, Iowa. Chairman Elwick presided and the roll being called the following board members were present and absent: Present: Anderson, Barron, Elwick, Kremer, Woodhouse. Absent: None.
Motion by Kremer, second by Anderson to approve the minutes of the March 11th meeting. Question: Yes - All. The Chairman declared the motion carried.
Motion by Kremer, second by Barron to approve the following invoices in the amount of $128,667.10, excluding investments. Question: Yes - All. The Chairman declared the motion carried.

Motion by Woodhouse, second by Barron to approve the agenda. Question: Yes - All. The Chairman declared the motion carried.
Motion by Anderson, second by Kremer to approve an energy adjustment factor of 2 cents per kWh for April billings. Question: Yes - All. The Chairman declared the motion carried.
Manager Ohrt received a cost estimate of $1,000,000 for replacing the 34.5 KV substation with a 15MVA, with a load tap changer and dual voltage. Installation and wiring would be extra. This may be a future project, because ITC is wanting to improve transmission lines.
Manager Ohrt and Chairman Elwick talked with AmeriCorps director Merlene Mazyck and fund raiser Peter Wolf. VMEU might offer an incentive to AmeriCorps per full time professional employee hired that resides in Vinton.
The Trustees reviewed the Braille School consumption history from January 2005 to March 2008. They will be upgrading an electrical panel before AmeriCorps gets started.
Manager Ohrt reported that maintenance on a wind turbine can be costly. The Trustees questioned how long a warranty might be and the cost of a maintenance contract. Ohrt stated that the school system might pursue a wind turbine on their own. If the school builds a turbine, the electric utility would use standard metering. Ohrt will correspond with Superintendent Braden again on this subject.
Manager Ohrt stated that an investment through IAMU for green energy had a high cost.
The Trustees approved continuing a membership with APPA, even with their projected rate increases.
Motion by Anderson, second by Woodhouse to approve an ARC flash study. Question: Yes - All. The Chairman declared the motion carried. The study cost should not exceed $9,000.00.
Motion by Anderson, second by Kremer to receive and file the March revenue and expenditure report. Question: Yes - All. The Chairman declared the motion carried.

ELECTRIC FUND
OPENING BALANCE 1,718,366.56
REVENUES 323,574.69
EXPENDITURES 283,827.36
TRANSFERS IN 0.00
TRANSFERS OUT 0.00
ENDING BALANCE 1,758,113.89
ELECTRIC CAPITAL IMPROVEMENT RESERVE
OPENING BALANCE 1,779,999.96
REVENUES 13,646.89
TRANSFERS IN 0.00
TRANSFERS OUT 0.00
ENDING BALANCE 1,758,113.89
ELECTRIC SELF INSURANCE RESERVE
OPENING BALANCE 750,000.00
REVENUES 0.00
TRANSFERS IN 0.00
TRANSFERS OUT 0.00
ENDING BALANCE 750,000.00

The Trustees reviewed accounts receivable steps: deposit required, billings, payments, reminder notices, tags, disconnects, payment agreements or extensions, budget billing and automatic bank payment.
The camshaft is back in after being repaired and runs great.
Manager Ohrt reported on: 1) Will be attending an Alliant Energy "Energy Summit" meeting, a software program on electronic meters and an RPGI general membership meeting and wind turbine committee meeting. 2) Tested a new radio read meter with our new ITRON meter reader. 3) Still not sure if Lenny Geiger will be able to do the plant roof. If not, the Trustees approved using the second low bid from Terry Marter. 4) Traer water and electric utility rates will be increasing over the next three years.
There being no further business, the meeting adjourned. Time: 6:35 p.m..
Michael G. Elwick, Chairman Attest: Cindy Michael, Secretary

__________________________________________________________________