Board Meeting - July 15, 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, July 16, 2015, at 9:00 a.m.  This meeting was preceded by notice duly published in the Hastings Tribune on Tuesday, July 14, 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, Barfknecht, Sekora,  Odom, Goebel, Tony Hermann (Hastings Tribune), Cameron Trumble (McDermott & Miller), and Dave Rippe (Hastings Economic Development Corporation (HEDC)

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.

Schultes reported the PPGA Refinancing of the 2007 Bonds is completed and netted a $24,000,000 net present value savings to PPGA.

Schultes reported the July 4th Parade at Fisher Fountain went very well and was very successful.

He mentioned that the Organizational Consultants returned to Hastings and visited with staff at the Whelan Energy Center.

Schultes mentioned that he saw an article on the internet that reported there is more electric generation on natural gas at this time than coal as reported by using data from the U.S. Energy Department.  However,  the EIA said in a May report that it expects the level of coal-generated electricity to rebound as natural gas prices rise later this year and coal-fired plants return from spring maintenance.  And he reported that he also read that Source Gas sold to Black Hills Corp. as per the article he included in the packet.

Willis Hunt read that NPPD is partnering with the City of Kearney to develop a solar generation project.

Al Meyer reported that WEC 1 and 2 are operating at full peak during the day with a peak of 89.3 reached on Tuesday, July 14th.  The Don Henry Power Center was on line last Sunday.

Hunt informed the Board that he had spoken with some irrigators and he feels that the Board may want to review the demand charges in the irrigation rates.  Shoemaker said that one thing that was discussed at the APPA National Conference was the importance of correct pricing so that power users are not subsidizing the distribution users.  The Board will discuss this item in the next few months.

Lori Hartman reported on personnel activities:

-         Two Wastewater Plant Operators started at Pollution Control on 7/13.  Both are external hires – John Richards and Keith Kopisch.

-         Currently conducting interviews for two Mechanic Assistant positions at WEC.

-         Currently interviewing for a Stores Clerk at the Warehouse.

-         Current opening for a Lineman.

Chairman Shoemaker reported that he read in the Omaha World Herald about another city converting to LED lights and he felt good that we are not behind the curve.  The article also mentioned that other items can be used with the street lighting; video cameras, air quality controls, wifi routers, etc. and that HU may want to educate ourselves on the new technology available along with the LED street lights.  He mentioned that he read the LED lights can also be adjusted for brightness.

The Chairman thanked Everett Goebel and Phil Odom for helping get the City Council meeting video on the City's website.

The Board discussed the Chairman's suggestion to include the approval of the check list and the claims on the consent agenda.  The Chairman asked the Board Members to let the Manager know ahead of time on any questions on checks so that unnecessary time is not spent looking up checks at the meeting.  The approval for both the check list and the claims will be on the consent agenda in the future.

The Chairman asked for other ideas to save time at the meeting.  Dewalt suggested combining the motions for approval of checks where board members have a conflict of interest after a fifth board member comes on board.

Committee Reports:

Comparability – nothing to report at this time.

Land Leases – nothing to report at this time.

Dewalt said she has reviewed the budgeted labor information and will get back to staff on times available to schedule a committee meeting.

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

a. Review, correction or approval of minutes of July 2, 2015

b. Review of payroll for period ending July 11, 2015

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

The Board received the 1st Quarter Financial Review from McDermott & Miller and Cameron Trumble from McDermott & Miller presented the report.  The Board asked Mr. Trumble to prepare an updated cover letter addressing specific processes reviewed during the first quarter, including payroll and compliance with the fair labor standards act.

Dave Rippe from HEDC gave an update on his economic development efforts.  He reported that Hastings needs more skilled labor and talent as there at 80+ good jobs that need to be filled n Hastings.  He reported that housing is also a shortage.  Rippe reviewed the preliminary plans for utilities along the truck route as presented to the Board at their last meeting and he feels it is a good plan.

Rippe also cited the need for additional staff for workforce development as a talent coordinator to match talent to jobs.  He would like the Board to discuss additional funding for HEDC at the budget workshops.  He credited the Hastings Public Schools along with area manufacturers for helping to develop manufacturing programs in the area high schools.

Discussion took place on a request for a Sanitary Sewer District on North 2nd Avenue.  The Board reviewed the policy for the property owner's responsibilities when a district is created.  The Board discussed the Utility Transition Agreement which has been used in the past to transition the process of abandoning water wells and septic tanks and connecting on to city water and sanitary sewer.  It would also allow the property owner to pay the connection fees over a ten year period.  Attorney Ptak said that this method could still be used but does not provide the security that a lien would provide and he suggested that a lien be filed on the property.   Shoemaker appointed Hunt and himself to a committee to review the transition agreements and come back to the Board with a recommendation.

Moved by Dewalt, seconded by Shoemaker, to recommend to the Mayor and Council to create a Sanitary Sewer Extension District on North 2nd Avenue and including adjacent properties as shown on the attached drawing.  Roll Call:  Ayes; Dewalt, Shoemaker, Kully.  Nays; Hunt.  Motion carried.

Moved by Hunt, seconded by Kully, to authorize the expenditure for travel expenses for the Ozo Japon Delegation from the Chamber Retail Budget in the amount of $2,500.  Odom said that the $2,500 may not be the final expense amount.

Hunt and Kully then agreed to revise their motion to authorize the expenditure for travel expenses for the Ozo Japan Delegation from the Chamber Retail Budget in the amount of the actual cost but not to exceed $3,000.  Roll Call:  Ayes; Hunt, Kully, Dewalt, Shoemaker.  Nays; None.  Motion carried.

Dave Ptak visited with Dave Wacker  to get an update on the North Baltimore Floodway Study.  Wacker reported that in the first weeks of August someone from the Department of Natural Resources will come to Hastings and share their findings.

The April 2015 Monthly Report was presented and discussed.

Moved by Hunt, seconded by Kully, to approve checks issued July 10, with the exception of check no. 27105 to Kully Pipe & Steel Corp, check no. 27148 to Sullivan Shoemaker PC LLO, and check 27170 to SID #1 of Clay County, NE.  Roll Call:  Ayes; Hunt, Kully, Shoemaker, Dewalt.  Nays; None.  Motion carried.

Moved by Hunt, seconded by Dewalt, to approve check no. 27105 to Kully Pipe & Steel Corp. in the amount of $1,145.79.  Roll Call:  Ayes; Hunt, Dewalt, Shoemaker.  Nays; None.  Kully abstained.  Motion carried.

Moved by Hunt, seconded by Kully, to approve check no. 27148 to Sullivan Shoemaker PC LLO in the amount of $7410 and check no. 27170 to SID #1 of Clay County, NE in the amount of $839.46.  Roll Call:  Ayes; Hunt, Kully, Dewalt.  Nays; None.  Shoemaker abstained.  Motion carried.

Moved by Hunt, seconded by Dewalt, to approve the following work orders:

EL-335    Installation of a single-phase overhead electric line south of South St., west of the Kansas Ave. right-of-way for Dieker Towers Subdivision.  Estimated Cost:  $  9,414

EL-336    Installation of an underground electric line, padmount switch and padmount transformer on Hwy. 6, east of Marian Rd. for Vontz Paving at 2355 W. Hwy. 6. Estimated Cost:  $33,124

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

The Board referred to miscellaneous information in the packet regarding street lighting operation and maintenance expenses since LED street lights have been purchased and the process of installing has begun.  The Board asked for a detailed report at budget time on the operation and maintenance expenses.

There were no Miscellaneous and Future Agenda Items.

Moved by Dewalt, seconded by Hunt, 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 and litigation.  Roll Call:  Ayes; Dewalt, Hunt, Kully, Shoemaker.  Nays; None.  Motion carried.

The meeting closed to the public at 11:27 a.m.  The executive session consisted of Board Members, the Board's Attorney, Council Liaison Goebel, Marv Schultes, Al Meyer, Lee Vrooman, and Lori Hartman.

Moved by Dewalt, seconded by Hunt, that the meeting be reopened to the public at 11:45 a.m., and that no decisions were made nor official actions taken during said Closed Session.  Roll Call:  Ayes; Dewalt, Hunt, Shoemaker, Kully.  Nays; None.  Motion carried.

The meeting adjourned at 11:45 a.m.