Board Meeting - July 30, 1015

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 30, 2015, at 9:00 a.m.  This meeting was preceded by notice duly published in the Hastings Tribune on Tuesday, July 28, 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, Zeisler, Hernandez, McCoy, Odom, Goebel, 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.

Schultes introduced Mike Hernandez, the new Director of Electric Production at the WEC.

Schultes informed the Board that a film crew was at the Whelan Energy Center filming a segment for the Nebraska Power Association's booth at the Nebraska State Fair on public power.

Schultes gave a  report on the visit from the delegation from Ozu, Japan.  As part of their visit, some of the group toured WEC.  Odom spoke on the importance of maintaining the relationship and the possibility of economic development through this relationship.

Meyer said that WEC1 and WEC2 are operating well and there were no new peaks to report.

Hartman reported on personnel activities:

-        The posting for the Lineman position came out on 7/29.  We will start working on that position as soon as we get the eligibility list from Kim.

-        We have identified two successful candidates for the Mechanic Assistant positions at  WEC.  One is internal and one is external.

-        We just opened up a fuel handler position at WEC, to backfill for movement into the mechanic assistant position.

-        We have identified a candidate for the Stores Clerk position at the Warehouse.

-        We have opened up a position for an Instrument Supervisor at WEC, due to a retirement.

Chairman Shoemaker announced Service Anniversaries for August 2015:  Tracy Hazen – Business Office – 15 years, Ronald Lewis – Warehouse – 15 years, Jamie Craig – WEC – 5 years, Ryan Parr – WEC – 5 years, Derek Schmidt – WEC – 5 years, John Schudel – WEC – 5 years, Brent Underwood – WEC – 5 years, Steven Fox – NDS – 5 years.

Committee Reports:

Comparability – nothing to report at this time. Land Leases – Hunt and Kully have met and are reviewing the leases. Budgeted Labor – The committee met 7-27-2015.  The committee's primary objective is to show labor in the budget.  The Committee would like Hartman to revise the Tables of Organization so that the committee can have the labor following the charts by department.  Shoemaker has visited with the Mayor on what changes he would like to see in the next budget.  Barfknecht and McCoy were ready to present new information to the Board.  Shoemaker asked that this information be presented to the Committee with a recommendation coming back to the Board from the Committee. Improvement Districts – Policy on Transition Agreements – Staff is in the process of setting up a meeting.  Hunt said that he felt Joe Patterson and Dave Wacker should be invited to the meeting and that some HU staff that are included in this meeting do not need to be.  Chairman Shoemaker said that Council Liaison Goebel is on the committee and he can decide if other city representation is needed.  Hunt asked staff to provide the number of agreements that are in place at this time.

Moved by Dewalt, seconded by Kully, that the following items on the Consent Agenda be approved, with the exception of item a.  Review, correction or approval of minutes of July 16, 2015.

b. Review of payroll for period ending July 25, 2015

c. Review and approval of checks issued July 24, with the exception of check no. 27243 to Kully Pipe & Steel Corp

d. Approval of the following claims:

- General Operating Fund against the Electric Fund – $3,021,619.89

- General Operating Fund against the Combined Fund - $1,790,095.18

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

Hunt asked that the minutes of July 16, 2015 reflect Hastings Utilities' 16.9% share of the net present value savings of $24,000,000 in the PPGA bond refinancing.  Schultes reported that the PPGA Board met on 7-29-2015 in Grand Island.  The net present value savings for the refinancing of the 2007 Series Revenue Bonds was between $24,000,000 and $25,000,000.  Hastings has a 16.9% share of the capacity in the WEC2 project.  16.9% of the $24,000,000 to $25,000,000 is a net present value savings of $4,056,000 to $4,225,000 for Hastings Utilities.  Chairman Shoemaker asked that the savings be reported in these minutes, rather than the Board having to further amend the Minutes of the July 16, 2015 meeting.

Moved by Dewalt, seconded by Kully, to approve the minutes of July 16, 2015, as presented.  Roll Call:  Ayes; Dewalt, Kully, Shoemaker.  Nays; Hunt.  Motion carried.

Moved by Hunt, seconded by Dewalt, to approve check no. 27243 to Kully Pipe & Steel Corp. in the amount of $28.72.  Roll Call:  Ayes; Hunt, Dewalt, Shoemaker.  Nays; None.  Kully abstained.  Motion carried.

Ptak reported that personnel from the Department of Natural Resources will present the North Baltimore Floodway Plan at 2:00 p.m. on August 11, 2015, at City Hall.  Staff will visit with Dave Wacker to get a formal notice of the meeting to be distributed to the Board.

Mike Hernandez and Derek Zeisler presented a Succession Plan for WEC Operations Personnel, which included the request to hire four additional Auxiliary Operator Reliefs.  After the presentation, the Board discussed a possibility of retaining a consultant to look at staffing levels in the entire operation at Hastings Utilities.  Schultes said that he and Shoemaker made a connection at the APPA National Conference with a group from APPA called "Hometown Connections" that may be able to conduct the study for the electric operations.  Shoemaker and Schultes will look into this and report to the Board at budget time.

Moved by Hunt, seconded by Shoemaker, to approve the recommendation of the succession plan as presented by staff and that the implementation of the plan be based upon the Manager's decision on how and when to proceed.  Roll Call:  Ayes; Hunt, Shoemaker, Dewalt, Kully.  Nays; None.

The May 2015 Monthly Report was presented and discussed.

Moved by Hunt, seconded by Kully, that the following work order be approved:

EL-339  Installation of a single-phase underground electric line and a padmount transformer to serve a new "Raceport" and "Green Space Area" at the MPH Racetrack east of Showboat Blvd., south of Hwy. 6.   Estimated Cost:  $7,976

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

Under Board Member comments, Hunt asked for a copy of the Draft Water Management Plan developed by the Little Blue and Tri Basin NRD's to address ground and surface water quality and quantity.   NRD Board members must submit any comments on the draft plan by July 30, 2015.  Several public input meetings are scheduled.  There is a public meeting in Hastings on Monday, August 3, 2015, at 7:00 p.m. at the Adams County Fairgounds.

Chairman Shoemaker informed the Board that he is again providing testimony at a public hearing on the proposed Title 261 rules and guidelines before the Natural Resources Committee on Friday.  Attorney Ptak reported that the League did not take a position on the rules and guides because there were conflicting areas of interest with its member cities.

Schultes reported that the packet included an updated cover letter from McDermott & Miller on the 1st Quarter Financial Review which addressed specific processes they reviewed during the first quarter, including payroll and compliance with the fair labor standards act.

Shoemaker asked that in future minutes of the Employee Committee meeting minutes, the department of each attendee be listed.

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 in that said Closed Session will consist of a strategy session relative to negotiations and litigation.  Roll Call:  Ayes; Dewalt, Kully, Hunt, Shoemaker.  Nays; None.  Motion carried.

The meeting closed to the public at 10:58 a.m.  The executive session consisted of Board Members, the Board's Attorney, Council Liaisons Goebel and Odom, Marv Schultes, Al Meyer, and Lori Hartman.

Moved by Dewalt, seconded by Kully, that the meeting be reopened to the public at 11:26 a.m., and that no decisions were made nor official actions taken during said Closed Session.  Roll Call:  Ayes; Dewalt, Kully, Hunt, Shoemaker.  Nays; None.  Motion carried.

The meeting adjourned at 11:26 a.m.