VMEU Monthly Board Minutes

VINTON MUNICIPAL ELECTRIC UTILITY BOARD MEETINGS

Minutes For:

JANUARY 11, 2011

A regular meeting of the Vinton Municipal Electric Board of Trustees was held on the 11th day of January, 2011, at 5:00 p.m., at the Line Distribution Office, Vinton, Iowa. Chairman Woodhouse presided and the roll being called the following board members were present and absent: Present: Anderson, Barron, Elwick, Woodhouse. Absent: Kremer. Also Present: Mayor Watson.

Motion by Elwick, second by Anderson to approve the minutes of the December 14th meeting. Question: Yes - All. The Chairman declared the motion carried.

Kremer arrived at 5:03 p.m..

Motion by Barron, second by Elwick to approve the following invoices in the amount of $403,536.09, 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 Elwick, second by Anderson to approve an energy adjustment factor of 3.88 cents per kWh for January billings. Question: Yes - All. The Chairman declared the motion carried.

City Coordinator Lent arrived at 5:13 p.m..

The Trustees reviewed a proposed budget for fiscal year 2011-2012. Chairman Woodhouse stated that VMEU does not plan to contribute to the City the payment in lieu of taxes during the next fiscal year. Manager Ohrt anticipates receiving over $900,000 in federal and state reimbursements for flood expenses, some this fiscal year and some in next fiscal year. Motion by Elwick, second by Kremer to approve the proposed budget for FY 2011-2012 and authorize the secretary to include it with the City’s budget for public hearing and adoption. Question: Yes - All. The Chairman declared the motion carried.

Manager Ohrt stated he had received a revised quote from Cameron for the catalytic converters for the generation plant. This quote was still higher than Farabee’s quote. Ohrt has learned that Farabee’s converters in Winterset have reduced their emissions by more than the required percentage. Motion by Kremer, second by Anderson to award the bid to Farabee for $673,900.00. Question: Yes - All. The Chairman declared the motion carried.

The Kerry expansion project is canceled for now.

Manager Ohrt is still working on a solar and wind energy policy.

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

ELECTRIC FUND

OPENING BALANCE 755,756.47

REVENUES 379,455.17

EXPENDITURES 346,251.92

TRANSFERS IN 152,878.19

TRANSFERS OUT 0.00

ENDING BALANCE 941,837.91

ELECTRIC CAPITAL IMPROVEMENT RESERVE

OPENING BALANCE 1,585,034.71
REVENUES 446.52

TRANSFERS IN 0.00

TRANSFERS OUT 0.00

ENDING BALANCE 1,585,481.23

ELECTRIC SELF INSURANCE RESERVE

OPENING BALANCE 750,000.00

REVENUES 0.00
TRANSFERS IN 0.00
TRANSFERS OUT 150,000.00

ENDING BALANCE 600,000.00

Motion by Kremer, second by Barron to receive and file the audit report for fiscal year ending June 30, 2010. Question: Yes - All. The Chairman declared the motion carried.

Manager Ohrt reported that an apprenticeship meeting will be in February.

There being no further business, the meeting adjourned. Time: 6:25 p.m..

_____________________________

Dr. Alan S. Woodhouse, Chairman

Attest: ___________________________

Cindy Michael, Secretary

DECEMBER 14, 2010

A regular meeting of the Vinton Municipal Electric Board of Trustees was held on the 14th day of December, 2010, at 5:32 p.m., at the Line Distribution Office, Vinton, Iowa. Chairman Woodhouse presided and the roll being called the following board members were present and absent: Present: Anderson, Barron, Elwick, Kremer, Woodhouse. Absent: None. Also Present: Nathan Hesson, Don Eells, Chris Farabee, & ? , Andy Lent, John Watson, Rich Hainstock.

Motion by Kremer, second by Barron to approve the minutes of the November 9th 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 $273,271.03, excluding investments. Question: Yes - All. The Chairman declared the motion carried.

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

Nathan Hesson and Don Eells, Vinton Unlimited representatives, discussed VU’s economic development efforts and asked for any possible financial support. Motion by Barron, second by Anderson to approve the disbursement of budgeted funds to VU in the amount of $6,500.00. Question: Yes - All. The Chairman declared the motion carried.

Motion by Anderson, second by Barron to approve an energy adjustment factor of 3.67 cents per kWh for December billings. Question: Yes - All. The Chairman declared the motion carried.

Manager Ohrt received three bids to upgrade the power plant to meet future NESHAP/RICE regulations. Cameron asked to redo their bid. Exline’s bid and warranty appeared to contain a lot of loop holes. Chris Farabee, Farabee Mechanical Inc., reviewed his proposal, that included a warranty. His bid is good until Jan. 14, 2011. The Trustees will consider this project again at their January meeting.

ESCO Energy Services received three bids for switch gear for the new substation. ESCO recommends the apparent low bid of $228,875.14 from Pederson Power Products. Motion by Barron, second by Anderson to approve the low bid from Pederson Power Products. Question: Yes - All. The Chairman declared the motion carried.

Manager Ohrt stated that Manatt’s has 50 concrete barriers at $25 each plus tax, on hand that would work well for building a sand bunker. Motion by Elwick, second by Barron to approve the purchase of these concrete barriers. Question: Yes - All. The Chairman declared the motion carried.

Rich Hainstock inquired about installing solar generation on top to two buildings he owns in the downtown business district. The Trustees will review other electric utility policies regarding solar generation with electric utility backup and selling cost versus purchasing cost of kWs. They will discuss this again at their next meeting.

Iowa Soy Specialties/Kerry Ingredients is planning a building expansion. Another transformer

may be needed. The cost of the transformer could be rebated based on the increased kW consumption. Manager Ohrt and Chairman Woodhouse will visit with Dan VanSteenhuyse about this project.

The Trustees reviewed a preliminary budget for fiscal year 2011-2012. The budget will be discussed again at their next meeting.

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

ELECTRIC FUND

OPENING BALANCE 614,252.62

REVENUES 627,095.36

EXPENDITURES 485,591.51

TRANSFERS IN 0.00

TRANSFERS OUT 0.00

ENDING BALANCE 755,756.47

ELECTRIC CAPITAL IMPROVEMENT RESERVE

OPENING BALANCE 1,584,636.11
REVENUES 398.60

TRANSFERS IN 0.00

TRANSFERS OUT 0.00

ENDING BALANCE 1,585,034.71

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) Updates on FEMA reimbursements. 2) Replacing inventory parts.

Motion by Barron, second by Anderson to adjourn the meeting. Question: Yes - All. The Chairman declared the motion carried. Time: 8:38 p.m..

____________________________ Attest: _______________________

Dr. Alan S. Woodhouse Chairman Cindy Michael Secretary

November 9, 2010

A regular meeting of the Vinton Municipal Electric Board of Trustees was held on the 9th day of November, 2010, at 5:00 p.m., at the Line Distribution Office, Vinton, Iowa. Chairman Woodhouse presided and the roll being called the following board members were present and absent: Present: Anderson, Barron, Elwick, Kremer, Woodhouse. Absent: None.

Motion by Elwick, second by Barron to approve the minutes of the October 12th meeting. Question: Yes - All. The Chairman declared the motion carried.

Motion by Elwick, second by Kremer to approve the following invoices in the amount of $534,973.68, excluding investments and an invoice to Junge for part of a truck. Question: Yes - All. The Chairman declared the motion carried.

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

Motion by Elwick, second by Anderson to approve an energy adjustment factor of 3.63 cents per kWh for November billings. Question: Yes - All. The Chairman declared the motion carried.

Manager Ohrt is seeking quotes for catalytic converters for the 5 generators. Cost estimates are roughly $300,000 for materials and labor. New EPA standards will go into effect in 2013.

Coordinator Lent explained that the water department purchased a new pickup and that the old meter reader pickup would be sold and that the meter reader was now using a better pickup than the old ’96 Ford Ranger. Motion by Kremer, second by Anderson to approve paying $7,551 towards the new Ford pickup from Junge. Question: Yes - All. The Chairman declared the motion carried.

Manager Ohrt stated that a cost estimate for the purchase of a GIS-GPS for mapping system was $10,000. He would like to map locations of poles, lines, transformers, etc.. Possibly the cost would be shared with the City for mapping water and sewer information. Ohrt will seek bids.

Elwick left the meeting at 5:42 p.m..

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

ELECTRIC FUND

OPENING BALANCE 368,170.82

REVENUES 616,144.14

EXPENDITURES 370,062.34

TRANSFERS IN 0.00

TRANSFERS OUT 0.00

ENDING BALANCE 614,252.62

ELECTRIC CAPITAL IMPROVEMENT RESERVE

OPENING BALANCE 1,584,224.35
REVENUES 411.76

TRANSFERS IN 0.00

TRANSFERS OUT 0.00

ENDING BALANCE 1,584,636.11

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

Elwick returned to the meeting at 5:44 p.m..

The Trustees may review the payment in lieu of taxes to the City at budget time.

Coordinator Lent stated that the Planning & Zoning Commission is discussing a possible ordinance regulating the placement of wind energy systems.

Manager Ohrt reported on: 1) Received counter offer from Grundy Center for spare parts for unit 9 without the fuel pump. Not interested in counter offer. 2) 34.5 kV substation is in place at 2009 South K Avenue. 3) ITC construction to start soon. 4) Central States completed boring to the new law enforcement center 5) Refund issued for electric meter not metering correctly. 6) Corona repair is done. 7) Closed small FEMA project worksheets with representative from Iowa Homeland Security. 8) Nov. 27th is deadline to complete worksheets but some will likely have to be extended. 9) Considering placing a new transformer at City parking lot on 4th Street in case of another flood disaster. Homeland Security mitigation grant may be available. Federal funding would be 75% and state funding 15%. Rough cost estimate is $100,000. 10) Working on next year’s budget.

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

____________________________

Dr. Alan S. Woodhouse Chairman

Attest: _______________________

Cindy Michael Secretary