Meeting Minutes for November 6th in 2014.
November 6, 2014
The Jetmore City Council met in regular session on November 6, 2014. Mayor Bill Goebel called the meeting to order. Council members answering roll were Michael Hendrickson, Derek Olson, Larry Steinbring, and Mike Thornburg. Not present was Randy Washburn. Also attending were City Administrator Grayson Path, City Attorney Craig Crosswhite, City Clerk Deb McKivergan and Pete Shewry.
Minutes of the previous meeting were approved as presented.
Councilman Hendrickson made a motion to approve the bills for October, Appropriation Ordinance #2014-10, with the exception of check #45529 to Midwest Energy. Councilman Olson seconded the motion; vote unanimous.
Taylor Hess, representing J. Fred Hembright, visited with the council about the possibility of leasing the airport property for oil and gas. Councilman Thornburg made a motion to go into executive session to discuss contract negotiations regarding real property at 7:05 p.m. for 10 minutes with the Council, Mayor, Attorney and Administrator present. Councilman Steinbring seconded the motion; vote unanimous. Councilman Olson made a motion to come out of executive session at 7:15 p.m. Councilman Hendrickson seconded the motion; vote unanimous. No action was taken.
The Sheriff’s monthly activity report was presented by the City Clerk.
Mayor Goebel read a thank you from Parkers Lawn Care for allowing them the park contract this past season.
CITY ADMINISTRATOR’S REPORT: City Administrator Grayson Path presented the updated timeline for the work that needs to be done to the power plant. The Council has approved the bid with Mid States Energy to perform the electrical installation. The Administrator asked if they would like to add a performance bond in the amount of $2,402.04 (1 ½ %). The Council agreed that they would add the performance bond. Councilman Thornburg made a motion that the City of Jetmore sign and execute the contract between the City of Jetmore and Mid States Energy, Inc. for the engineering and construction of the necessary electrical components for the Power Plant Project. Councilman Steinbring seconded the motion; vote unanimous.
The Administrator and the Attorney continue to review the FMI Contract to demo and replace the concrete foundations and to set the engine in place. Councilman Steinbring made a motion that the City of Jetmore award the bid for concrete demolition, foundation and engine unloading to Farabee Mechanical, Inc. for the amount of $69,470.00 contingent to the successful completion of the contract and acceptance of the engine unit by the City of Jetmore following its inspection and testing, and that the City Administrator and City Attorney be authorized to sign and execute the contract upon its completion. Councilman Hendrickson seconded the motion; vote unanimous.
The City will need to complete the final paperwork to publish sale of bonds for the Power Plant and set a sale date for when the council will award a bid. Councilman Steinbring made a motion that the City adopt resolution #2014-07, a resolution authorizing the offering for sale of General Obligation Bonds, series 2014-02, of the City of Jetmore, Kansas. Councilman Olson seconded the motion; vote unanimous.
The City Administrator and Attorney have developed a request for bids to send out for selling and removal of the current obsolete power plant engines. The City Administrator will hold a public bid opening on December 2nd, will review the bids, and will prepare a presentation for the December 4th council meeting. There was some concern about whether the door would be high enough at 10’. The Administrator asked if the council would like to enlarge the door now or wait until we know for sure if we need it for removal of the engines. The Council decided to have Lonnberg Construction go ahead and enlarge the door since the area will be used for a shop after the engines are removed. The Administrator will also send out the RFB for demo.
Mr. Path further explained the Insurance Proceeds Fund from the proposed City Code, Chapter 8, Article 7. He also told that he has made the edits to the proposed Code book based off discussions from the October 15th meeting. These changes will be sent out to the council soon. He recommended that the council take time to review these chapters and others that have been reviewed.
The City Administrator recently learned that the City of Jetmore was suspended from the Kansas Flood Program in 1985. This means that no one in the City can get flood insurance. It was recommended that we get back into the program. This is not a pressing issue, but the Council agreed that the City Clerk should begin the necessary paperwork to get back into the program.
Mr. Path reported that he attended the October EMP3 meeting at which time there was a unanimous vote to bring the City of Altamont, KS into the pool.
In October the Council agreed to sell some of the spare power plant parts to the City of Holton. The City of Holton has offered the City of Jetmore $2,000 for the parts. Councilman Olson made a motion that the City of Jetmore sell the three spare cylinder heads, valve grinder, cylinder head valves, Amont parts and a few smaller miscellaneous parts to the City of Holton for the amount of $2,000.00. Councilman Hendrickson seconded the motion; vote unanimous.
In April of 2014 the Council approved a resolution allowing the KMEA to pursue a power supply portfolio plan using nuclear, coal and gas. Due to a lack of interest across the state the project has been cancelled for now.
The City Administrator approached the council last month with a report on the city lake surface water permit #39111. He approached the council about extending the permit for possible future municipal usage or allowing the permit to expire and just accept the recreational permit. The Council agreed to an extension. When the Administrator contacted the KDWR to proceed, they replied that we need to check with the Kansas Water Office. When the KWO was contacted Mr. Path was told that when the lake was built in the late 1980’s it was agreed that the City and Pawnee Watershed would mutually pay for and install the lake with the intent of it becoming a future water source for the City. The KWO paid with the expectation that the City would pay them back and 20 years later the City has not paid. A past Mayor and council member were contacted and to their recollection, this was to be a matching grant. After visiting with Mr. Westrup from KWO it appears we may have two options: The City proceeds with extending the permit and the City reimburses the KWO for the total amount plus about 4% interest for each year since, OR option two, the KWO might be willing to forgive and write off the debt if the City agrees to never pursue the lake as a potential municipal water source (can still be used for recreation) or due to the lake being a failure since it dries up nearly every year thus its reliability as a municipal water source is zero. This isn’t a promised scenario, but could be likely. The Administrator recommends option two and for the City Administrator and Attorney to be allowed to handle the situation as it evolves from this decision. The Council agreed for the Administrator and Attorney to proceed with this plan to seek forgiveness of this debt.
In the September Council meeting, the council met with Dennis O’Connor and Jesse Romo of the KDOT Division of Aviation. They presented information regarding the Jetmore Airport and a wind farm looking to be developed just south of the airport. The Council approved the Administrator to write a letter to the FAA asking for a discretionary review of these turbines. The due date was misread by KDOT, thus the letter was late and the FAA rejected our request/petition. There is nothing further the City can do at this time.
A citizen has requested permission to install a solar panel within the City’s distribution system for the purpose of offsetting his power sales from the City. According to Kansas House Bill 2010 the City is required to allow this citizen the opportunity to hook up a solar panel. Cities across Kansas have developed different ordinances/policies governing parallel generation and net metering. The Administrator has developed a policy that blends the two. He asked the Council to examine these documents through November in preparation for a decision in December. The Administrator and City Foreman met with the citizen and informed him that the City needed time to prepare and pass the needed ordinances and he agreed to wait.
The wind turbine maintenance contract with Lawrence Wind and Solar is due for its second year payment of a three year contract. The Administrator presented a summary of the revenues and expenses for the year November 2013 – November 2014. After review, Lawrence Wind and Solar agreed to drop the price from $7687.50 to $6750.00. The Council agreed to pay the second year’s payment per the contract.
Mr. Path looked into the Franchise agreement with Black Hills Energy and prepared a chart with dollar amounts that would be collected with increases from 1 ½% up through 5%. There was no action taken at this time.
The Council requested that the Administrator look into the number of pole attachments for United Wireless and Fairpoint using the Osmose data.
Mr. Path presented a sample ordinance for updating the franchise fees. No action was taken; this will be revisited at the December meeting.
The bill from Midwest Energy for the completion of the SCADA metering was discussed. The Administrator and the Foreman thought the bill was high for the amount of work done. The Administrator will write a letter to Midwest disputing the amount of labor on the bill.
CITY ATTORNEY REPORT: City Attorney Craig Crosswhite reported that he is working with the Administrator on the pole attachment contract. He continues to monitor the contract with The Great American Dirt Track and will take photographs of the track and address the contract after the beginning of the year. Matthew Bradshaw has approached Mr. Crosswhite about the procedure for closing Golden Avenue. He reported that City Court continues to go well. The vicious dog has been removed from the City and he continues to work on delinquent accounts. He is working on language for the code book to incorporate the Kansas Set-Off program. He expanded on and further explained the pole agreement. He reported that he has written a termination notice for the ASCAP music license so we can review the contract at the end of the year and not automatically renew it.
CITY FOREMAN REPORT: City Foreman Brian Beil reported on the city crews activities including replacing the pole that was knocked down at Presto and other electric services around town; the runway lights at the airport; blading roads; flushing hydrants and finishing up mowing.
NEW BUSINESS: Councilman Olson made a motion to approve the CMB license for Presto Convenience store for sale in original and unopened container and not for consumption on the premises. Councilman Hendrickson seconded the motion; vote unanimous.
Councilman Olson reported that the Park-It Committee had applied for and been awarded a grant from the Southwest Community Foundation in the amount of $3000. They would like to purchase a swing for the park and asked the City for an additional $3400. Councilman Hendrickson made a motion to purchase the swing in the amount of approximately $6400, with the City paying approximately $3400. Councilman Thornburg seconded the motion; vote unanimous.
Councilman Hendrickson made a motion to adjourn. Councilman Steinbring seconded the motion; vote unanimous.