The Hastings Utilities Advisory Board on Aug. 14 voted to recommend a new line-extension ordinance to the City Council that sets standard developer contributions and preserves council discretion for large, unique customers.

Under the recommendation staff presented, residential developers would be responsible for 25% of the estimated project cost for a line extension; general-service (nonresidential) customers would receive, as the utility contribution, a credit equal to two years of estimated revenue with the developer responsible for the remainder; irrigation accounts would receive a utility contribution calculated at $74 per nameplate horsepower; and large light-and-power applicants would be evaluated case-by-case, with City Council retaining authority to set terms.

JC and Kyle described the policy as intended to keep Hastings competitive while avoiding open-ended obligations by ratepayers. “This policy will give us that opportunity to have that conversation and, for a lack of a better term, work out the details of what potential this has for the city and what we can do to contribute,” Derek said. Board members said the policy puts the city in a position to negotiate rather than absorb full upfront costs.

Board members asked whether the ordinance permits council to waive or adjust fees for competitive bids; staff replied that for large light-and-power cases council discretion applies. The ordinance number the board moved to recommend was 4774; board members moved and seconded the recommendation and recorded “yes” votes from Heitzman, Himji, Mieske and Coles.

Staff said the board can review the policy after six months to a year to determine whether adjustments are needed. The recommendation will go to City Council for adoption and implementation details.