Board Meeting - August 13, 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, August 13, 2015, at 9:00 a.m.  This meeting was preceded by notice duly published in the Hastings Tribune on Tuesday, August 11, 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, Hernandez, Stange, 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.

Marv Schultes shared Thank You Notes from the Hastings International Exchange Organization for the contribution toward transportation when the Ozu delegation visited in July.

Schultes thanked staff for their participation in the Kool-Aid Days Parade held on Saturday, August 8th, at Central Community College.

Schultes reported that he met with Joe Patterson, Lori Hartman, and Kim Woolery on market adjustments and have determined that the market adjustment for the year 2016 for all city employees will be 2.93%.

Schultes reported that the Marketing Department has purchased the natural gas for next year.  The Board would like a presentation at the budget worksession.

Willis Hunt mentioned a miscellaneous item in the packet from Standard & Poors showing they lowered its long-term rating to 'A' from 'AA' on the City of Hastings, Nebraska's series 2011 electric system revenue refunding bonds.  Staff and Hunt have noticed errors in the report.  Barfknecht will visit with Standard & Poors to see if an update could be provided.

Al Meyer reported that both WEC-1 and WEC-2 are operating well.  North Denver Station Unit 5 was tested this week and generated 25 mw and resulted in a good test.  Unit 4 will be tested next week.  Reliability testing on the units is required annually to insure the units are qualified for rated capacity.

Lori Hartman reported on personnel activities:

  • Currently advertising for an Instrument Supervisor at WEC
  • Currently advertising for four Auxiliary Operator positions at WEC
  • Interviewing for a Lineman position
  • Stores Clerk starting at the Warehouse on 8/17
  • Mechanic Assistant starting at WEC on 8/24
  • Fuel Handler starting at WEC on 8/24
  • Mechanical Engineer starting on 9/8

Chairman Shoemaker mentioned that he had received a letter from a customer on a billing matter.  Staff had already resolved the issue.  The Chairman thanked Brian Strom and his staff for taking care of the issue.  It was mentioned in the letter that they didn't feel it necessary to receive an HU return envelope if their account is paid by autopay.  The Chairman has brought this issue to the attention of staff and staff told the Board at that time the programming would be too costly to make the change.  Brian Strom will check to see if that has changed.

Shoemaker recognized Myron Sadler, who retired last week after 35 years of faithful and loyal service at the Whelan Energy Center.

Committee Reports:

Comparability – nothing to report at this time. Land Leases – nothing to report at this time. Budgeted Labor – The committee met 8-12-2015.  They are working on a plan to show the cost of labor and benefits in the HU Budget.  Hartman will be revising the Tables of Organization.  The committee will meet again before making a recommendation to the Board.Improvement Districts – Policy on Transition Agreements – The committee met 8-12-2015.  The concern of Legal Counsel is that the current Connection Agreements/Transition Agreements do not allow HU to collect upon bankruptcy.  Some of the members on the committee recommended discontinuing the Connection Agreement/Transition Agreement.  Some members felt that annexing and creating the districts are an easier sell when the landowner can transition the connection and payments.  Council Liaison Goebel will visit with the Council at a Council Worksession for their input.

Moved by Kully, seconded by Dewalt, to approve the following items on the Consent Agenda, with the exception of  c. Review and approval of checks issued August 7, with the exception of check no. 27399 to Kully Pipe & Steel Corp., check no. 27448 to Sullivan Shoemaker PC LLO, and check no. 27469 to SID #1 of Clay County, NE:

a. Review, correction or approval of minutes of July 30, 2015

b. Review of payroll for period ending August 8, 2015

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

Moved by Dewalt, seconded by Kully, to approve checks issued August 7, with the exception of check no. 27399 to Kully Pipe & Steel Corp., check no. 27448 to Sullivan Shoemaker PC LLO, and check no. 27469 to SID #1 of Clay County, NE.  Roll Call:  Ayes; Dewalt, Kully, Hunt, Shoemaker.  Nays; None.  Motion carried.

Moved by Hunt, seconded by Dewalt, to approve check no. 27399 to Kully Pipe & Steel Corp. in the amount of $1,848.08.  Roll Call:  Ayes; Hunt, Dewalt, Shoemaker.  Nays; None.  Kully abstained.  Motion carried.

Moved by Hunt, seconded by Dewalt, to approve check no. 27448 to Sullivan Shoemaker PC LLO in the amount of $23.40 and check no. 27469 to SID #1 of Clay County, NE in the amount of $370.55.  Roll Call:  Ayes; Hunt, Dewalt, Kully.  Nays; None.  Shoemaker abstained.  Motion carried.

Marty Stange gave a presentation on Environmental Updates, including Mercury Air Toxics Rule – Supreme Court Ruling, Clean Power Plan – Status, Fly Ash – Werner Marketing, Scrubber Ash – Gypsoil Marketing, and Coal Combustion Residual Rule – Compliance Status.  The Board would like staff to schedule a tour for the Board of the Whelan Energy Center.

Personnel from the Department of Natural Resources presented the Floodway Plan which will affect the North Baltimore ASR Project at a meeting in the City Council Chambers on August 11th.  Staff from Hastings Utilities and several Board Members were present to hear the presentation.  Staff will now review the maps and hope to split the project into two phases as the Floodway Plan will not be finalized for 2 to 2-1/2 years.  To split the project into two phases, phase one could be complete by next spring.  Staff will also visit with Dave Wacker on the project.

Under Board Member Comments, Hunt asked staff to purchase a book from the American Public Power Association "Distribution Generation Guide Book".  Staff will purchase the book for the HU library for staff and Board Members.

There were no new 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 in that said Closed Session will consist of a strategy session relative to negotiations and litigation.  Roll Call:  Ayes; Dewalt, Hunt, Shoemaker, Kully.  Nays; None.  Motion carried.

The meeting closed to the public at 11:17 a.m.  The executive session consisted of Board Members, the Board's Attorney, Council Liaisons Goebel and Odom, Marv Schultes, and Al Meyer.

Moved by Dewalt, seconded by Hunt, that the meeting be reopened to the public at 11:44 a.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 11:44 a.m.