Board Meeting - November 18, 2014

MINUTES OF THE MEETING OF THE BOARD OF PUBLIC WORKS

A special meeting of the Board of Public Works was held at the Hastings Utilities Board Room on Tuesday, November 18, 2014, at 4:00 p.m.  This meeting was preceded by notice duly published in the Hastings Tribune on Monday, November 17, 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, Krieger, Shoemaker, Kully, Dewalt

Also Present:  Schultes, Meyer, Vrooman, Cogley, Hartman, Leonhardt, Stange, Ptak, McCoy, Barfknecht, Crecelius, Odom, Goebel, Dave Rippe (HEDC), Tony Hermann (Hastings Tribune), and the following joined the meeting at 5:00 p.m.: Joe Patterson, Lori Vorderstrasse, and Councilpersons Michael Krings, Chuck Niemeyer, Kathy Peterson, Sarah Hoops, and John Harrington

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.

The purpose of the special meeting was to continue discussion on the Hastings Utilities 2015 Budget and to hold a joint work session between the Board of Public Works and the City Council to present the 2015 Budget.

Dave Ptak gave a short presentation on the electric bond ordinance covenants in regards to "In Lieu of Tax" payments that are allowed.  He explained that even though the Board plans to call the bonds as of the first of the year, there will be a length of time that the process will take and as long as the bonds are outstanding, "In Lieu of Taxes" cannot be paid on wholesale sales, per the bond covenants.  At such time that the bonds are retired, the Board can re-address the issue of of paying "In Lieu of Tax" on wholesale sales.  The Board decided to not make a change in the budget that is being presented to the City Council.

The meeting adjourned at 4:30 p.m.

Chairman Shoemaker withdrew the 4:30 p.m. closure of the Board Meeting in order to continue a joint budget work session with the City Council.

Marv Schultes gave a presentation on the Hastings Utilities 2015 Budget, along with action items that will appear on the November 24th City Council Agenda for approval.

Councilmembers questioned the 2.49% Market Adjustment, as compared to the 1.50% COLA that was given to General City employees.  The Comparability Committee explained how the market adjustment percentage was determined.  Council members asked that a joint committee of General City employees and Hastings Utilities employees meet before the next budget year to discuss the methodology of salary adjustments.

Dave Ptak repeated his presentation for the City Council on the "In Lieu of Taxes" allowed by bond ordinance covenants and explained that the Board of Public Works plans to recommend calling the bonds after January 1st.  After that is completed the bond covenant restrictions on wholesale sales will no longer be in effect and the Board of Public Works/City Council will be able to discuss if "In Lieu of Taxes" should be paid on wholesale sales, along with the retail sales.  The Board Chairman committed to the City Council that the Board will have a further discussion at that time about whether the Board would recommend to the Council that the "In Lieu of Taxes" transfer be applied to wholesale sales for the balance of the fiscal year.

The meeting adjourned at 6:10 p.m.