Metropolitan utilities district changes proposed

The Urban Affairs Committee heard testimony Feb. 12 on a bill that would make several technical changes to state law governing metropolitan utilities districts.

LB208, introduced by Omaha Sen. Burke Harr, would make the following changes:
• allow the board to decrease the president’s salary;
• eliminate a requirement that the district obtain a bond of not less than $10,000 on the president’s performance;
• allow the board to establish its own standards for fire hydrant placement, as long as such standards do not violate any state Department of Health and Human Services regulations; and
• remove a requirement that an employee must first have been made a permanent employee by a unanimous vote of the full board of directors in order to be removed from his or her position.

The board still would be able to remove an employee for cause by a two-thirds vote.

Harr said he would offer an amendment to remove another provision from the bill that would increase the employee salary cap from $10,000 to $75,000 per year.

Representing MUD, the metropolitan utilities district that supplies water and natural gas to the Omaha area, Rick Kubat testified in support of LB208. He said the bill would bring state law governing MUD in line with regulations that apply to other public utilities in the state.

“The purpose of LB208 is really to update and remove some obsolete language,” he said, “some of which is roughly 100 years old.”

No opposition testimony was given and the committee took no immediate action on the bill.