Board Meeting - February 27, 2014

 

A regular meeting of the Board of Public Works was held at the Hastings Utilities Board Room on Thursday, February 27, 2014, at 9:00 a.m.  This meeting was preceded by notice duly published in the Hastings Tribune on Tuesday, February 25, 2013, and by notices duly posted in the lobby of Hastings Utilities, 1228 North Denver Avenue, and the City Hall, 220 N. Hastings Avenue, and was therefore open to the public.

Present: Hunt, Krieger, Kully, Shoemaker

Absent: Dewalt

Also Present: Schultes, Meyer, Sanders, Leonhardt, Cox, Sekora, Odom, Goebel, Ptak, Hartman, Crecelius, and Laura Bernero (Hastings Tribune)

Chairman Shoemaker stated that the Board of Public Works is subject to the Open Meetings Laws and acknowledged that the Open Meetings Law poster has been posted in the room.

The Pledge of Allegiance was recited.

There were no public comments.

Marv Schultes told the Board that since the packets are now available electronically, any comments and suggestions can be given to Kevin Schawang or Carol Crecelius. He also reported that the new video equipment is installed and being used this meeting.

Marv Schultes introduced Lori Hartman, the new Director of Human Resources.

Schultes informed the Board that Chairman Shoemaker signed a letter of support for Legislative Bills LB 940, LB 1-46, and LB 1-98 which deal with funding of the Nebraska Water Sustainability Plan. Council Liaison Odom also suggested the Board get familiar with LB 999 to Adopt the Criminal Justice Reentry and Data Act and Create the Reentry Programming Board and effects the future of the Hastings Regional Center.

Al Meyer informed the Board that the Integrated Market in the Southwest Power Pool begins on March 1st. He also reported that last Monday, February 17th, Unit 1 experienced a tube leak. The unit came off line and came back online on Friday, February 21, after repairs were made. Both Units 1 and 2 were back on all this week and performed well. Scheduled outages for Unit 1 will be from April 1 to April 15 and Unit 2 will be from April 18 to May 7.

Shoemaker asked the Board to think about interest in trying to get the Nebraska State Law changed so that Board of Public Works Members can be represented from outside city residency. Some members of the Board said they would think about it but not in favor at this time.

Shoemaker reported that a committee has met with representatives of the Little Blue NRD and the Upper Big Blue NRD regarding funding participation for water treatment. Both parties are visiting with their respective Boards and more meetings will take place.

Moved by Krieger, seconded by Kully, that the following items on the Consent Agenda be approved:

  •  Review, correction or approval of minutes of February 13, 2014
  •  Review of payroll for period ending February 22, 2014

Roll Call: Ayes; Krieger, Kully, Hunt, Shoemaker. Nays; None. Motion carried.

Moved by Hunt, seconded by Krieger, to approve the award of a contract for a Truck Cab & Chassis (B.I. 2.61) to Hastings Ford of Hastings, Nebraska, for a total cost of $32,560.00 including the two options for $1,013.00 and a trade in of $12,000; and a contract for the Line Body and Aerial Device to Altec Industries of St. Joseph, Missouri for a total cost of $84,898.00; for a grand total of $117,458.00, and that the Mayor and City Clerk be authorized to enter into contract with said company accordingly. Roll Call: Ayes; Hunt, Krieger, Shoemaker, Kully. Nays; None. Motion carried.

Don Cox gave a short presentation on the gas price spike on February 6th. He reported that it spiked to unprecedented levels for one day and will result in a significant increase in the Purchase Gas Adjustment for March 2014. Staff recommends the use of the rate stabilization fund to levelize the purchase gas adjustment for March 2014. Schultes reported that the natural gas rate stabilization funds available equals $8,655,869. The implementation of the action will use approximately $250,000 - $300,000 of the rate stabilization fund and save the customers from paying the $250,000 - $300,000 in March 2014.

Moved by Hunt, seconded by Kully, that due to volatile natural gas swing pricing during the month of February 2014, natural gas rate stabilization funds shall be utilized to lessen the impact of higher natural gas costs to HU customers. For purposes of the Purchased Gas Adjustment calculation (PGA) for billings issued during the month of March 2014, the PGA base cost of gas shall be increased from $3.111 to $4.611 per MCF. This will result in savings to HU ratepayers of $1.50 per MCF ($0.15 per CCF). A customer using 120 CCF for the March billing period will save $18.00 in comparison to normal rates. Anticipated cost impact to the rate stabilization fund is within an estimated range of $250,000 to $300,000. Roll Call: Ayes; Hunt, Kully, Krieger, Shoemaker. Nays; None. Motion carried.

Moved by Krieger, seconded by Kully, to approve checks issued February 21, 2014, with the exception of check 22095 to Kully Pipe & Steel Corp. and check 22149 to Sullivan Shoemaker PC LLO. Roll Call: Ayes; Krieger, Kully, Hunt, Shoemaker. Nays; None. Motion carried.

Moved by Hunt, seconded by Krieger, to approve check 22095 to Kully Pipe & Steel Corp. in the amount of $816.36. Roll Call: Ayes; Hunt, Krieger, Shoemaker. Nays; None. Kully abstained. Motion carried.

Moved by Krieger, seconded by Hunt, to approve check 22149 to Sullivan Shoemaker PC LLO in the amount of $1,101.12. Roll Call: Ayes; Krieger, Hunt, Kully. Nays; None. Shoemaker abstained. Motion carried.

Moved by Kully, seconded by Krieger, to approve the following claims:

  •  General Operating Fund against the Electric Fund – $1,812,212.34
  •  General Operating Fund against the Combined Fund - $3,716,736.16

Roll Call: Ayes; Kully, Krieger, Hunt, Shoemaker. Nays; None. Motion carried.

Moved by Krieger, seconded by Kully, to approve the following work orders:

GA-296 New 2” PE gas main on Denver Ave., “G” St. to “H” St., and new 4” PE gas main on “H” St., Denver Ave. to St. Joseph Ave. Estimated Cost: $ 55,079

GA-298 Replacement of 4” gas main on Spencer Ave., “D” St. to “B” St., “B” St., Spencer Ave. to 1st Ave.; 1st St., “B” St. to 150’ south of South St.; and “A” St., 5th Ave. east 300’, then north to South St. in easement; and new 2” gas main on “C” St., Elm Ave. to the west 150’. Estimated Cost: $212,354

Roll Call: Ayes; Krieger, Kully, Shoemaker, Hunt. Nays; None. Motion carried.

Moved by Hunt, seconded by Kully, to approve the following work order:

CO-152 Replacement of existing metal halide high bay lighting in the warehouse at 200 W. 14th St. with LED fixtures. Estimated Cost: $ 55,436

Discussion took place on the process of bidding the LED fixtures for the project and the fact that none of the bidders could meet the specifications.

Roll Call: Ayes; None. Nays; Hunt, Kully, Shoemaker, Krieger. Motion failed.

Schultes and Sekora reported to the Board that the project specifications will be reviewed and changed as necessary and will be rebid in the fall of this year.

Discussion was held on the current Mission Statement and Core Values. The Board felt that the Mission Statement and Core Values should be reviewed. Shoemaker will appoint a committee in the near future to consider appropriate changes to those documents.

Under Miscellaneous and Future Agenda Items, the Board decided to discuss the Overhead/Underground Policy at the April 3rd meeting.

The Board will review the Water Service Policy related to the dividing point between HU’s responsibility for maintenance and repair and the property owner’s responsibility for the same (Residential vs. Commercial and Industrial) at their meeting on May 1st.

A list of committee assignments will be distributed in the next packet. Shoemaker asked the Board to consider their current assignments and let him know if they want to continue on a certain committee or be added to a committee. It was suggested by Shoemaker that this list should be reviewed at the beginning of each year.

There was no executive session.

There were no further Board Member comments.

The meeting adjourned at 11:40 a.m.