Board Meeting - November 6, 2014

MINUTES OF THE MEETING OF THE BOARD OF PUBLIC WORKS

A meeting of the Board of Public Works was held at the Hastings Utilities Board Room on Thursday, November 6, 2014, at 9:00 a.m.  This meeting was preceded by notice duly published in the Hastings Tribune on Friday, October 31, 2014, 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, Dewalt, Shoemaker, Krieger, Kully

Also Present:  Schultes, Meyer, Barfknecht, McCoy, Vrooman, Hartman, Cox, Cogley, Leonhardt, Odom, Goebel, Crecelius, Stange, Sekora, Ptak, Patterson, Tony Hermann (Hastings Tribune), and Gary Oetken from AGP

The purpose of the meeting was to continue the discussion on the 2015 Hastings Utilities Budget.

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.  He also declared a quorum of members present.

The Pledge of Allegiance was recited.

Additional discussion about the reporting of the Economic Development Incentive funds in HU"s financial statement and the presentation in the budget regarding those funds was held.  The tentative decision made the previous day's meeting was revisited, and it was decided that those funds should be set forth in HU's Balance Sheet as a separate line item, with a title of 'Economic Development  Incentive Fund and that expenditures from that Fund should be shown in the Gas Department budget as Revenues from that Fund, and a line item for Gas Department expenditures with the title of "Economic Development Project" which should be separate from the "Operating" expenditures.  It was further decided that all of the balance in that Fund should be shown as being authorized for expenditure from the Gas  Department in the 2015 budget.

Further discussion was held on the In Lieu of Tax transfer from the Electric Department's wholesale sales to the City General Fund.  The Board agreed to not include wholesale sales in the transfer at this time.

The Pollution Control Department budget was presented using the 8% rate change as approved last year.  The Board agreed to transfer $1,450,000 from the rate stabilization fund to help fund the Pollution Control Department budget.

The Street Light Department budget was presented.  The Board asked staff to get a legal opinion from the Bond Counsel regarding the Street Light Department's ability to borrow from the Electric Department.  Discussion took place on how many streets lights in the system still needing to be converted from mercury vapor to LED and from high pressure sodium to LED and the costs to do each.  The Board decided not raise the street light rate, to reduce the reserve as needed to hold the line on the street light rate, and delete the contingency item of lighting at the Thom Subdivision.  The Board asked staff to conduct an energy audit on the street light system, and include the costs of maintenance of street lights in that report.  It was requested that that report be added to an upcoming regular Board meeting agenda as soon as it is completed.

The Administrative Department Budget was presented.  The Board asked Mark Barfknecht to give a presentation on allocations of the Administrative Department at a regular Board meeting.  Also, they would like staff to research what other utilities are doing to allocate the administrative departments.  The Board approved the addition of adding a Director of Safety and a change in title, job description and salary schedule from the Credit & Collection Supervisor to Credit & Collection Representative.  The General City is planning to hire a consultant to do an Organizational Study.  The Board asked staff to include $40,000 to Outside Services Employed for Hastings Utilities to participate in the study.

Members of the Comparability Committee asked for an Executive Session to visit about the comparability study.

Moved by Krieger, seconded by Kully, that this Board go into Closed Session, which Closed Session is clearly necessary for the protection of the public interest and for the prevention of needless injury to the reputation of an individual, which individual has not requested a public meeting, in order to discuss certain matters relating to personnel.  Roll Call:  Ayes; Krieger, Kully, Hunt, Dewalt, Shoemaker.  Nays; None.  Motion carried.

The meeting closed to the public at 1:25 p.m.  The executive session consisted of Board Members, Council Liaisons, and the Board's Attorney.

Moved by Kully, seconded by Krieger, that the meeting be reopened to the public at 2:45 p.m., and that no decisions were made nor official actions taken during said Closed Session.  Roll Call:  Kully, Krieger, Hunt, Dewalt, Shoemaker.  Nays; None.  Motion carried.

The meeting adjourned at 2:45 p.m.