Special Meeting
March 11, 2008
The
Mayor and Council of the City of Fairbury met in special joint session with
the Board of Public Works in the Council Chambers, 612 D Street, Fairbury,
Nebraska, on the 11th day of March, 2008, at 7:00 p.m. Mayor
LaVeda L. Fry called the meeting to order for the City Council. Board of
Public Works (BOPW) Chair Shirley Howell called the meeting to order for the
BOPW.
Notice of meeting was given in advance thereof by publication in the
Fairbury Journal News, Fairbury, Nebraska, the designated method of giving
notice, as shown by affidavit of publication. The Open Meetings Act is
posted in the Council Chambers as required by law.
Roll call found the following Council Members present: Brown, Friesen,
Byrd, Trimm, Nelson, Bender, Schacht, and Polson. BOPW members present:
Howell, Preston, Phillips, Schultis. Absent: Schacht. Others present:
Tobias Tempelmeyer, City Attorney, Board of Public Works Supervisor, Mike
Beachler, Larry Naiman, and Jim Ferneau, City Administrator.
A
discussion was held of doing an ordinance to protect the Board of Public
Works Fund. Preston stated they want to keep the rate stabilization fund
stable and to protect the money from being acquired by any outside group –
it isn’t a slush fund, it’s the rate payer’s fund. They want the power
board to have a better handle on the fund. Tempelmeyer asked who all the
rate payers are. Beachler stated that we cover approximately 168 miles of
rural line. We have several villages that we sell wholesale to: Gladstone,
Gilead, Reynolds, Thompson and Endicott. Those that we sell retail to:
Steele City, Jansen, Harbine and Ellis. We go clear to the Kansas Line. We
sell the water through the NRD. Larry Naiman provided an overview on
utility reserve funds and utility debt service. Naiman distributed copies
with the figures of the utility reserve funds, the current utility debt
service, sewer debt service payments, water debt service payments, and
required capital improvements. The utility reserve funds for the fiscal
years of April 30, 1988-87 that were on the audit was $3,462,890.00 – these
were not cash balances – it was money in certificate of deposits for
reserves. The next few years they were declining and in January 2006 they
had slipped to $2,663.638.00. The unencumbered funds in February 2008 are
$3,147,644.00. In the last 27 months along with consumer deposits and NDEQ
revolving loan it has increased about $645,807.00. Naiman stated they now
have a NPAIT account that is more accessible at any time to pay some of the
debt. They’re looking at getting a new bucket truck in the next couple
years, updating water mains and sewer lines. Beachler stated the days of
cheap power is over. It’s a good thing that we have a rate stabilization
fund – the number one goal is customers have the lowest and cheapest
electricity that we can provide. Howell mentioned hearing rumors of closing
the light plant. Beachler says the power plant is very beneficial to
everyone not just the rate payers. Preston stated that they get reimbursed
for fuel from the power pool however it takes about sixty days to get the
reimbursement. Brown wanted to know how many hours it takes to get the
plant started. Beachler says between 10-12 hours to get everything up and
going. Howell mentioned that they had been getting good interest rates
before of 5% and now it’s 2.8% so they aren’t able to increase the funds
like they use to. They want to be very conservative with the funds. Bender
wanted to know when the north substation was completed. Beachler said about
three years ago at a cost of about a million dollars. Our cost was about
$700,000.00 because we used a lot of own supplies and did a lot of the work
ourselves. Tempelmeyer wanted to know what kind of protection they want,
what funds they want protected – all BPW funds or what ones, who we’re
protecting them from. Preston stated all BPW funds should be protected.
Bender stated if it was an ordinance another group could come back in three
years and reverse it. Brown said it would make the next council responsible
for their actions. Trimm wanted to know if they have had any problems in the
past. Howell said “L” Street Sewer would be an example – it was supposed to
be a general obligation bond -- light and water funds had to help pay for
it. The “L” street project was done in 1999. Tempelmeyer stated he will put
something together and will bring it to a council meeting. Polson stated it
would make it hard for future councils to take money away from the BOPW.
Howell commended Beachler and Naiman for the good work they’ve done.
Fire
hydrant maintenance and inspections were discussed. Fire Chief Eric Voss
distributed copies of a map illustrating hydrant locations as well as a
computer printout as an example of information maintained on hydrants.
Information tracked includes location, barrel size, valve size, and main
size. According to Voss, the data entry is time consuming and that is what
they’ve been doing this winter. Voss’s goal is to have all the data on the
software by next year. 311 hydrants have been inspected. The water
department is going to start inspecting and testing the rest of the hydrants
when the weather gets better. The Girl Scouts and Boy Scouts are going to
help paint the hydrants. They will be red, blue, yellow and orange. Most
will flow about the same. They had a hydrant at 14th & H they
had to replace. They haven’t found many major problems like they thought
they might – they have had some minor repairs. They have to keep a 15’
radius around the hydrants maintained so they have access to the hydrant.
Beachler stated it’s a good deal that he has both departments working
together – fire and water departments. Beachler stated having them
inspected will enhance the possibility of good ISO ratings for insurance.
Bender
made a motion to adjourn the meeting. Motion seconded by Byrd.
All in favor say aye.
Nay none. Motion carried. Meeting adjourned at 7:54 p.m.
LaVeda
LaVeda L. Fry, Mayor
ATTEST:
Sharyl Preston, City Clerk
