Board Meeting - November 3, 2015

MINUTES OF THE MEETING OF THE BOARD OF PUBLIC WORKS

A meeting of the Board of Public Works was held at the Hastings Utilities Board Room on Tuesday, November 3, 2015, at 9:00 a.m.  This meeting was preceded by notice duly published in the Hastings Tribune on Friday, October 30, 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, Shoemaker, Dewalt

Also Present: Schultes, Meyer, Vrooman, Leonhardt, Cogley, Crecelius, Davis, Hartman, Barfknecht, McCoy, Stange, Cox, Odom, Goebel, Gary Oetken of AGP, and Tony Hermann (Hastings Tribune)

The purpose of the meeting was to discuss the 2016 Hastings Utilities Budget.

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.

Staff presented the proposed Electric, Gas and Water budgets to the Board and discussion was held.   The total budget presented for 2016 totaled $93,666,000 for the electric, natural gas, water, sanitary sewer, street lights, and administration.

The electric budget was presented to the board with no rate change.

Discussion was held on the timing of the change in In-Lieu-of-Tax Transfer since this budget will be cut off in nine months.  The national average is reported by the American Public Power Association every two years and is published in the spring.

Discussion was held on dropping the contingency items from the capital budget and reporting them on a separate page in the budget and dropping the contingency items from the proprietary budget statements.

After discussion, the Board felt a rate increase would be necessary this year.

Moved by Dewalt, seconded by Shoemaker, to increase the Electric Rates 5% effective January 1, 2016.  Roll Call:  Ayes; Dewalt, Shoemaker, Kully.  Nays; Hunt.  Motion carried.

A rate ordinance will be prepared for Board action at their November 12, 2015 meeting to recommend the change to the City Council.

Moved by Dewalt, seconded by Hunt, to remove the contingency items from the electric proprietary budget statement.  Roll Call:  Ayes; Dewalt, Hunt, Kully, Shoemaker.  Nays; None.  Motion carried.

The Gas Budget was presented with no change in rates.

Don Cox gave a presentation on the wholesale natural gas market.  Natural gas prices are very soft going into the winter.  The Purchase Gas Adjustment for November is zero.

The Board discussed the gas rates in surrounding communities.  Further information from Kearney and Grand Island will be obtained.

The Board discussed adding a line item in the Gas Operating Budget for an Intra-City Services Fund.  The Board discussed adding $100,000.

Moved by Shoemaker, seconded by Hunt, to recommend adoption of the 2016 Gas Budget with removal of the contingency items from the gas proprietary budget statement and move Budget Items 1.45, 1.46, and 1.47 into the regular capital budget.

Moved by Hunt, seconded by Dewalt, to amend the motion to add $100,000 into an account called Intra-City Services Fund in the Gas Operating Budget for city services.

Roll Call on Original Motion as Amended:  Ayes; Hunt, Dewalt, Shoemaker, Kully.  Nays; None.  Motion carried.

The Board did not changer rates in the Gas Budget.

The 2016 Water Budget is presented with no change in water rates.

While discussing the Water Budget, discussion was held on the amount the Board is applying for in the Water Sustainability Grant Application.   The Board agreed to apply for approximately $4 million as recommended by staff.  Other funding may be considered, therefore, staff has recommended the Board approve a Resolution of Intent to issue bonds.  Schultes will check with Joe Patterson before preparing a Resolution of Intent to coordinate the amount with any intent that the rest of the City, for the benefit of other City departments, has to issue debt in 2016.

A discussion on the need to raise water rates took place.

Moved by Dewalt, seconded by Hunt, to increase the water rates 12% effective January 1, 2016, remove the contingency items from the water proprietary budget statement and move Budget Items 3.40, 3.41, and 3.42 into the regular capital budget.

Discussion on the administrative, pollution control, and street light budgets will continue tomorrow, November 4th at 9:00 a.m.

The meeting adjourned at 1:35  p.m.