Board Meeting - November 4, 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 4, 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, Cox, Strom, Schawang, Stange, Odom, Goebel, Ptak, Gary Oetken of AGP, and Tony Hermann (Hastings Tribune)

The purpose of the meeting was to continue discussion on 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 Administrative budget to the Board and discussion was held.   Shoemaker remarked that Dave Rippe from HEDC was unable to attend this meeting but asked for consideration of an additional $25,000 (from $100,000 to $125,000) in the budget to help fund an additional position at HEDC to help with vocational training and placement.  The Board asked staff to include the money in the Outside Services Employed line item.

Items brought up in the Novak study include an Efficiency Study which has been included in the budget for an estimated cost of $85,000 and a recommendation to conduct a national search for an auditor who has audited utilities.  The Novak study recommended this change in auditors as the Board has hired the same auditor for many years.  Shoemaker asked the Council Liaisons who audits the General City accounts and Odom stated that McDermott & Miller has also been their auditor for many years.  Shoemaker noted that there was no recommendation in the consultant's study that the rest of the City department search for a new auditor.  Barfknecht stated that McDermott & Miller has a contract to complete the 2016 Audit.  A new auditor will need to be contracted for the year ending September 30, 2017.  He expects the cost to be higher for an auditor that is not local.

The Board addressed the allocation numbers.  Barfknecht stated that this could be an item that may be addressed with a new auditor.

A discussion was held on the budget for safety training and equipment.  The Board asked that these budgeted items be allocated to the various departments in the monthly HU financial reports.  The discussion also included whether $100,000 would be enough money for the training that Director of Safety Bob Davis would like to achieve in this budget year.  The Board informally decided that $150,000 should be included for this line item.

Kevin Schawang answered questions on the software upgrades and how the general City's business could integrate with Hastings Utilities, if the city chooses to do so.  Schawang remarked that he has been working with the two people doing IT for the other City departments and that any new software purchased this year would be able to integrate the other City department's work.

Dewalt asked to return to discussion on the Water Department Budget.  She questioned the Board Members on to which would be used first, the Rate Stabilization Fund or long term funding, as in Bonds or Loan.  The Board informally concluded that discussed keeping the cash in the Rate Stabilization Fund, since long term interest rates are low, and using the bond or loan proceeds first, made sense.

The Pollution Control Budget was presented with an 8% increase in rates as previously approved by the City Council.

The Board discussed which items should be moved from Contingency up to the regular budget.  A discussion on the Southwest Interceptor Sewer and the 42nd St., Columbine to Showboat project took place.  The following budget items were moved to the regular Pollution Control capital budget:  B.I. 4.40, 4.41, 4.42, 4.43, 4.44, and 4.49.  The Board also asked that the 42nd St. project in each budget be moved to the regular budgets, which would be Budget Items 2.76, 1.43, 3.51, and 4.48.

The Street Lighting Budget was presented with no change in rate.

Ron Sekora gave an update on the street light conversion to LED lights.  The Board questioned how the accounting is done on the debt to the Gas Department from the Street Lighting Department.  Staff will get that information to the Board.

The Board asked to add to the next Board Agenda for Miscellaneous and Future Agenda Items the Insurance Fund and Health Insurance Claim Fund.

Kully left the meeting at 12:45 p.m.

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

The meeting closed to the public at 1:05 p.m.  The executive session consisted of Board Members, Council Liaisons, Marv Schultes, Meyer, Ptak, Vrooman, Barfknecht, Sekora, Leonhardt.

Moved by Dewalt, seconded by Hunt, that the meeting be reopened to the public at 1:18 p.m., and that no decisions were made nor official actions taken during said Closed Session.  Roll Call:  Ayes; Dewalt, Hunt, Shoemaker.  Nays; None.  Motion carried.

The meeting adjourned at 1:18  p.m.