Utilities
Board Meeting - May 14, 2015
MINUTES OF THE MEETING OF THE BOARD OF PUBLIC WORKS
A regular meeting of the Board of Public Works was held at the Hastings Utilities Board Room on Thursday, May 14, 2015, at 9:00 a.m. This meeting was preceded by notice duly published in the Hastings Tribune on Tuesday, May 12, 2015, 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, Kully, Dewalt, Shoemaker
Also Present: Schultes, Meyer, Vrooman, Ptak, Leonhardt, Cogley, Strom, McCoy, Barfknecht, Crecelius, Hartman, Odom, Tony Hermann (Hastings Tribune), and Allison Petr from McDermott & Miller
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.
There were no public comments.
Marv Schultes shared a copy with the Board of the Official Statement of the Public Power Generation Agency’s Revenue Refunding Bond Refinancing for the 2015 Series A.
Al Meyer reported that both WEC-1 and WEC-2 are operating. A RATA Test (continuous emission monitoring) is taking place on WEC-1. Also, a steam leak has been discovered on WEC-1. They hope to have it repaired without taking the unit out of operation.
Hartman reported positions that are open at Hastings Utilities.
Chuck Shoemaker reported that Neil Quig is retiring after 34 years at the Whelan Energy Center. He thanked him for his service.
Shoemaker shared a rate comparison article that had been published in the Omaha World Herald showing the comparisons of LES, OPPD, NPPD, and Mid America in Iowa. Steve Cogley updated the article showing where Hastings Utilities falls on the chart. HU rates in 2015 were lower than all except for Mid America.
Allison Petr from McDermott & Miller presented the Hastings Utilities 2014 Annual Audit where she noted that they have issued a clean audit opinion.
The Board asked staff to provide an update on the Trailblazer contract renewal and a report on the Bond Covenants.
McDermott & Miller submitted a proposal to perform the 2015 Quarterly Financial Reviews and the Board discussed the proposal and need for the reviews.
Moved by Hunt, seconded by Kully, to approve the proposal from McDermott & Miller to perform the 2015 Quarterly Financial Reviews for a cost of $7,500. Roll Call: Hunt, Kully, Dewalt, Shoemaker. Nays; None. Motion carried.
Committee Reports –
The Cola/Market Adjustment Committee met last week and the committee decided to use the same adjustment in the years that a comparability study is not done. The City and HU will use the larger of the two market adjustment amounts. This will be the committee’s recommendation and the Board can review the impact at budget time.
The In Lieu of Tax Transfers on Wholesale Electric Sales committee met and have determined that the market is too soft to assess in lieu of tax transfers on wholesale electric sales. Odom suggested the committee give a presentation on the subject to the City Council.
The Board received the PPGA minutes from the March 23, 2015 meeting.
Moved by Dewalt, seconded by Kully, that the following items on the Consent Agenda be approved:
Roll Call: Ayes; Dewalt, Kully, Shoemaker, Hunt. Nays; None. Motion carried.
Moved by Shoemaker, seconded by Hunt, to approve Resolution No. 2015-04 Thanking Scott Krieger for his time on the Board of Public Works. Roll Call: Ayes; Shoemaker, Hunt, Dewalt, Kully. Nays; None. Motion carried.
Moved by Hunt, seconded by Dewalt, to approve Resolution No. 2015-05 for Assignment of Alternate Director to the PPGA Board of Directors. Roll Call: Ayes; Hunt, Dewalt, Kully, Shoemaker. Nays; None. Motion carried.
The purpose of the assignment was to conform with the procedures in the PPGA Amended Bylaws.
Moved by Kully, seconded by Dewalt, to bring from the table the recommendation from staff to award a contract for Water and Sanitary Sewer Main Improvements (HU 2015-03 IC-19 B.I. 3.42, 3.13, 3.10, 4.21) to Van Kirk Brothers Contracting, Sutton, Nebraska, in the amount of $469,439.64, and that the Chairman of the Board be authorized to sign said contract. Roll Call: Ayes; Kully, Dewalt, Shoemaker, Hunt. Nays; None. Motion carried.
Vote on main motion with an amendment to approve subject to review of easements by the Hastings Utilities’ attorney. Roll Call: Ayes; Kully, Shoemaker, Dewalt, Hunt. Nays; None. Motion carried.
Moved by Kully, seconded by Hunt, to bring from the table the approval of the following Work Orders:
Roll Call: Ayes; Kully, Hunt, Shoemaker, Dewalt. Nays; None. Motion carried.
Moved by Kully, seconded by Hunt, to approve the following Work Orders, subject to receiving the final license agreement from the UPRR.
Roll Call: Ayes; Kully, Hunt, Shoemaker, Dewalt. Nays; None. Motion carried.
Moved by Dewalt, seconded by Shoemaker, to approve checks issued May 8, 2015, with the exception of check no. 26440 to Kully Pipe & Steel Corp., check no. 26483 to Sullivan Shoemaker PC LLO, and check no. 26513 to SID #1 of Clay County Nebraska. Roll Call: Ayes; Dewalt, Shoemaker, Kully, Hunt. Nays; None. Motion carried.
Moved by Hunt, seconded by Dewalt, to approve check 26440 to Kully Pipe & Steel Corp. in the amount of $818.44. Roll Call: Ayes; Hunt, Dewalt, Shoemaker. Nays; None. Kully abstained. Motion carried.
Moved by Hunt, seconded by Kully to approve check 26483 to Sullivan Shoemaker PC LLO in the amount of $28.27 and check no. 26513 to SID #1 of Clay County Nebraska in the amount of $409.91. Roll Call: Ayes; Hunt, Kully, Dewalt. Nays; None. Shoemaker abstained. Motion carried.
Moved by Dewalt, seconded by Kully, to approve of the following Work Orders:
Roll Call: Ayes; Dewalt, Kully, Shoemaker, Hunt. Nays; None. Motion carried.
Ptak reported that there is no new update on the North Baltimore Floodway Study.
Shoemaker reported that he, along with Schultes and Stange, had attended the May 12th Upper Big Blue Natural Resource District (UBBNRD) committee meeting and stated the need for financial help to go forward with the Hastings Vadose Zone Study. The Board of the UBBNRD will meet on May 21st.
Moved by Kully, seconded by Dewalt, to table the approval of recommendation for UNL Research Agreement for Hastings Vadose Zone Study. Roll Call: Ayes; Kully, Dewalt, Shoemaker. Nays; Hunt. Motion carried.
Moved by Hunt, seconded by Dewalt, 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 and that said Closed Session will consist of a strategy session relative to negotiations. Roll Call: Ayes; Hunt, Dewalt, Kully, Shoemaker. Nays; None. Motion carried.
The meeting closed to the public at 10:40 a.m. The executive session consisted of Board Members, Council Liaison Odom, Marv Schultes, Al Meyer, Keith Leonhardt, Lee Vrooman, and Lori Hartman.
Moved by Dewalt, seconded by Hunt, that the meeting be reopened to the public at 12:16 p.m., and that no decisions were made nor official actions taken during said Closed Session. Roll Call: Ayes; Dewalt, Hunt, Kully, Shoemaker. Nays; None. Motion carried.
The meeting adjourned at 12:16 p.m.