Utilities
Board Meeting - June 11, 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, June 11, 2015, at 9:00 a.m. This meeting was preceded by notice duly published in the Hastings Tribune on Tuesday, June 9, 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, Crecelius, Hartman, Cox, Strom, Stange, Odom, and Tony Hermann (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. He also declared a quorum of members present.
The Pledge of Allegiance was recited.
There were no public comments.
Marv Schultes reported that Hastings Utilities has hired Mike Hernandez as the new Director of Electric Production. He has worked more than 20 years with Xcel Energy in South Dakota, Minnesota and Colorado. He will start on June 29th.
Al Meyer reported that WEC-2 is functioning very well. WEC-1 came down at the end of May for repairs of a steam leak. Problems with a turbine stop valve have surfaced and is being repaired. The unit is scheduled to go back on line June 12th. The refined coal process is going well. The Board asked for a report on the refined coal process at budget time, at which time staff can analyze the benefits and costs of the process.
Lori Hartman reported positions that are open at Hastings Utilities.
Shoemaker reported that he and Schultes had attended the American Public Power Association’s Annual Conference in Minneapolis, Minnesota and felt it was a valuable conference to attend. He encouraged other members to attend this conference in future years.
There was nothing to report from the Comparability Committee, however, Shoemaker remarked that he visited with people from other utilities at the APPA Conference regarding comparability and learned that Nebraska’s comparability laws are unique to the State of Nebraska. Most use competition in the marketplace.
Willis Hunt gave a report on the Upper Big Blue Natural Resource District committee meeting that he attended on June 9th. The UBBNRD committee voted to send a budget amount of $20,000 for the budget year 2016 and $30,000 for the budget year 2017 to the UBBNRD Board for approval a portion of which would be available to help Hastings Utilities offset the cost of the Hastings Vadose Zone Study conducted by UNL. Their Board will meet June 18, 2015 in York.
Moved by Kully, seconded by Dewalt, that the following items on the Consent Agenda be approved:
Roll Call: Ayes; Kully, Dewalt, Shoemaker, Hunt. Nays; None. Motion carried.
Moved by Hunt, seconded by Dewalt, to write off uncollectible accounts in the amount of $29,472.49, for accounting purposes only and that staff be instructed to continue collection efforts on these accounts. Roll Call: Ayes; Hunt, Dewalt, Shoemaker, Kully. Nays; None. Motion carried.
Marty Stange gave a presentation on nitrate levels and the need to approve a construction contract for Injection Well No. 5 and three Monitoring Wells.
Moved by Dewalt, seconded by Hunt, that upon the recommendation from staff, to award a contract for a Construction Contract for Injection Well No. 5 and Three Monitoring Wells (Contract No. HU 2015-02 IC-16 B.I. 3.01) to Layne Christensen Co., Valley, Nebraska, in the amount of $103,500.00, and that the Chairman of the Board be authorized to sign said contracts. Roll Call: Ayes; Dewalt, Hunt, Shoemaker, Kully. Nays; None. Motion carried.
Moved by Dewalt, seconded by Kully, to bring from the table the Recommendation for UNL Research Agreement for Hastings Vadose Zone Study. Roll Call: Ayes; Dewalt, Kully, Shoemaker, Hunt. Nays; None. Motion carried.
Original Motion: Moved by Hunt, seconded by Kully, to approve the Recommendation for UNL Research Agreement for Hastings Vadose Zone Study. Roll Call: Ayes; None. Nays; Hunt, Kully, Shoemaker, Dewalt. Motion failed.
Moved by Dewalt, seconded by Hunt, to approve the Recommendation for UNL Research Agreement for Hastings Vadose Zone Study, contingent upon approval by legal counsel that the City of Hastings and Hastings Utilities would be able to participate and share in any revenues resulting from the Study with UNL and that the City, Hastings Utilities, and the Natural Resource Districts who helped fund the research be recognized for their contributions. Roll Call: Ayes; Dewalt, Hunt, Kully, Shoemaker. Nays; None. Motion carried.
There was no new information on the North Baltimore Floodway Study.
Mark Barfknecht gave a presentation on budgeted labor. Barfknecht presented an amended worksheet that could be included in the next budget. Dave Ptak also prepared a worksheet that could be used for strategic planning. Staff will work with legal counsel on the strategic planning worksheet. Shoemaker appointed a committee of Jeanette Dewalt and Willis Hunt to work with staff to devise a way to report budgeted labor in the next budget. They will report back to the Board with their recommendation.
Keith Leonhardt gave a presentation on recent major air quality rules; Mercury Air Toxics Standard (MATS) and Cross State Air Pollution Rule (CSAPR). Compliance for MATS is April 2016 and will require installation of monitors, activated carbon and refined coal systems for mercury. CSAPR became effective January 1, 2015. To help meet the requirements, Hastings Utilities will use a SO2 compliance strategy which will include purchasing coal with lower sulfur content, purchasing SO2 allocations, extend scheduled outages as necessary, reduce the minimum operating load, continue to test sorbent injection to reduce SO2, and recommend proceeding with natural gas study option.
Keith Leonhardt gave a presentation on converting WEC-1 to natural gas. His presentation included reasons for converting to natural gas because of possible new regulations, potential uses for natural gas at the plant, sources of natural gas, different fuels, fuel effects on boiler performance, possible scope of boiler modifications, study scope, and capital costs of conversion. Keith recommended approved of a Black & Veatch proposal for the WEC-1 natural gas study, along with recommending some of the options be accepted from Alstom.
Moved by Dewalt, seconded by Kully, that upon the recommendation from staff, to accept the proposal from Black & Veatch to conduct a natural gas study for WEC-1 in the amount not to exceed of $34,500.00 and to exercise options 2, 4, and 5 of the Alstom proposal for the natural gas study in the amount not to exceed $250,200.00. Roll Call: Ayes; Dewalt, Kully, Hunt, Shoemaker. Nays; None. Motion carried.
Moved by Hunt, seconded by Dewalt, to approve checks issued June 5, 2015, with the exception of check no. 26736 to Kully Pipe & Steel Corp., check no. 26781 to Sullivan Shoemaker PC LLO, and check no. 26809 to SID #1 of Clay County Nebraska. Roll Call: Ayes; Hunt, Dewalt, Shoemaker, Kully. Nays; None. Motion carried.
Moved by Shoemaker, seconded by Hunt, to approve check 26736 to Kully Pipe & Steel Corp. in the amount of $650.50. Roll Call: Ayes; Shoemaker, Hunt, Dewalt. Nays; None. Kully abstained. Motion carried.
Moved by Hunt, seconded by Kully, to approve check 26781 to Sullivan Shoemaker PC LLO in the amount of $245.69 and check 26809 to SID #1 of Clay County Nebraska in the amount of $256.26. Roll Call: Ayes; Hunt, Kully, Dewalt. Nays; None. Shoemaker abstained. Motion carried.
Moved by Dewalt, seconded by Kully, to approve the following Work Order:
EL-333 Relocation of a pole and underground riser and rerouting of existing underground for a new driveway north of Community Dr., east of the Hall Building at CCC in Hastings. Estimated Cost: $2,273
Roll Call: Ayes; Dewalt, Kully, Shoemaker, Hunt. Motion carried.
The Board discussed land leases. Shoemaker appointed a committee of Hunt and Kully to review the land leases and report back to the Board.
Agenda Items (19. Report on APPA Annual Conference and Discussion on Voting Delegates) and (20. Presentation on Municipal Utility Plan for the Hastings Truck Route) will be postponed until the next meeting.
Under Board Member comments, Hunt said that he felt Hastings Utilities needs to foster a relationship with the Upper Big Blue Natural Resource Committee as the continuing problem of rising nitrates will be a focus for some time.
There were no Miscellaneous and Future Agenda Items.
Moved by Dewalt, 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 and that said Closed Session will consist of a strategy session relative to negotiations. Roll Call: Ayes; Dewalt, Kully, Hunt, Shoemaker. Nays; None. Motion carried.
The meeting closed to the public at 11:31 a.m. The executive session consisted of Board Members, the Board’s Attorney, Council Liaison Odom, Marv Schultes, and Don Cox.
Moved by Dewalt, seconded by Kully, that the meeting be reopened to the public at 12:20 p.m., and that no decisions were made nor official actions taken during said Closed Session. Roll Call: Ayes; Dewalt, Kully, Shoemaker, Hunt. Nays; None. Motion carried.
The meeting adjourned at 12:20 p.m.