The council met in regular session with the following present: Mayor Jack E. Rowden, Councilmen Dean Banker, Dan Corpening, Brad Niehues, Jason Teeter and Frankie Thomas.
Others present were City Clerk Carrie L. Baeza, Electric & Parks Systems Supervisor Logan Frederick, City Inspector Josh Grubbs, Chief of Police Courtney Leslie, Outside Utilities Supervisor Paul Nordyke, City Attorney Wayne R. Tate, Lindsay Campbell, Steve Epperson, Matt Green, Mark Dahlstrom, Brad Musgrove, Alvin Riley, Todd Westfall and Ruthie Winget.
Mayor Jack E. Rowden presided.
Motion by Councilman Frankie Thomas, seconded by Councilman Dan Corpening, that the minutes of February 8, 2021 be approve as sent. Motion carried.
Each member of the governing body was provided a copy of Municipal Judge Paula J. Sosa’s report for the month of February, showing 11 new cases and $10,097.00 remitted to the city. Motion by Councilman Dean Banker, seconded by Councilman Jason Teeter to accept the report. Motion carried.
CITY INSPECTOR
City Inspector Josh Grubbs presented his monthly report.
APPOINTMENTS
Mayor Rowden announced the following appointments to the Golf Course Board, Marcus Amerin, Rhea Horyna, and Jeff Ramsey to expire in April 2025. Motion by Councilman Brad Niehues, seconded by Councilman Dean Banker, to confirm the appointments. Motion carried.
Mayor Rowden announced the appointment of Jan Leonard to the PRIDE Committee with term expiring in 2024. Motion by Councilman Jason Teeter, seconded by Councilman Dan Corpening, to confirm the appointments. Motion carried.
Mayor Rowden announced the appointment of Shannon Crawford to replace the unexpired term of Rick Wolters on the Planning Commission with term expiring in June 2023. Motion by Councilman Frankie Thomas, seconded by Councilman Brad Niehues, to confirm the appointments. Motion carried.
PERSONNEL
To hire qualified candidates for the police department it was discussed in the February 11, 2021 meeting to waive the residency limits. Motion by councilman Dan Corpening, seconded by Councilman Frankie Thomas, to approve Ordinance 860, AN ORDINANCE RELATING TO THE RESIDENCY REQUIREMENTS OF POLICE OFFICERS OF THE CITY OF HUGOTON, KANSAS; AMENDING SECTION 1-603.B.1 OF THE CODE OF THE CITY OF HUGOTON, KANSAS, 2011; AND REPEALING ALL ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH. Vote: Dean Banker, yes; Dan Corpening, yes; Brad Niehues, yes; Jason Teeter, yes; Frankie Thomas, yes. Motion carried.
GOLF COURSE
Alvin Riley with the Fore Winds Golf Course Board presented the council a bid from Professional Turf Products for a roller for the greens in the amount of $13,328.98. After discussion of the benefits and use of the equipment, motion by Councilman Jason Teeter, seconded by Councilman Brad Niehues, to approve the purchase of the roller for the greens from Professional Turf Products in the amount of $13,328.98. Motion carried.
FIN+- ANCE
Matt Green and Mark Dohlstrom with Kansas Dairy Ingredients and Todd Westfall with L4 Construction came to update the council on the project at KDI. They are adding production in the way of cheese and butter that will bring 40 new jobs to the area once complete. During the construction phase there will be roughly 200 workers on the site. Matt Green asked the council to consider an Industrial Revenue Bond for the new project expansion. The city is not guaranteeing payment of the bond nor will incur any expense of the bond fees. It was the consensus of the council to proceed with the Industrial Revenue Bond for the KDI construction project.
STREET
Matt Green with Kansas Dairy Ingredients talked to the council about extending Kennedy Street in conjunction with their expansion project. Outside Utilities Supervisor Paul Nordyke will investigate this as it is all private property owned by Kansas Dairy Ingredients and there is no easement in place for the city to build a road.
FINANCE
Brad Musgrove with Musgrove Insurance presented the council with the renewal policy for the City of Hugoton. There was an overall increase of 4% for the policy period. Motion by Councilman Dan Corpening, seconded by Councilman Frankie Thomas, to accept the renewal package for $189,811.00. Motion carried.
ELECTRIC
Lindsay Campbell and Steve Epperson with Pioneer Electric Cooperative presented to the council the events of the polar vortex from February 12-19 and the effects it had on the production of power and the cost of the purchase of power. It was a combination of a perfect storm in the longevity of the extreme low temperatures, the inability to access electric production, the rise in demand for electric and the rise in cost to purchase generation. The City’s incremental Energy Cost Adjustment rate for the month of February will be 28.3₵ per kWh of purchased power. This is up from 1.766₵ billed in January. This will result in an additional $841,000.00 being billed to the City. Lindsay Campbell informed the council that Pioneer Electric understands the burden these increases will be on the City and that they are willing to amortize this billing out over 36 months.
STREETS
Outside Utilities Supervisor Paul Nordyke secured bids to replace curb and guttering, alley entrances and repair streets.
M&R Construction V&B Construction
Curb & Gutter 8th Street between Jackson & Van Buren $5,400.00 $10,200.00
Alley 9th Street between Polk and W City Limits $1,820.00 $1,920.00
Alley 12th Street between Monroe & Madison $2,680.00 $2,736.00
Alley 10th Street between Main & Monroe $2,890.00 $3,168.00
Street 4th Street & Washington Street $2,890.00 $3,168.00
Alley 7th Street between Jackson & Van Buren $3,800.00 $4,949.00
$19,480.00 $26,141.00
Motion by Councilman Dan Corpening, seconded by Councilman Dean Banker, to accept the bids from M&R Construction for $19,480.00 for curb & guttering, alley entrances, and street repair. Motion carried.
SANITATIOIN
Outside Utilities Supervisor Paul Nordyke was only able to secure one bid for a new sanitation truck.
Southwestern Equipment Company $180,156.00
Less Trade-In ($15,000.00)
$165,156.00
Motion by Councilman Dan Corpening, seconded by Councilman Frankie Thomas, to accept the bid from Southwestern Equipment Company for $165,156.00. Motion carried.
WATER
City Clerk Carrie Baeza presented the council with the Water Emergency Plan and the Water Conservation Plan to be reviewed and approved at the April meeting.
EMERGENCY
City Clerk Carrie Baeza has had time to review the Multi-Jurisdictional Hazard Mitigation Plan and has presented Resolution 2021-2 for approval. Motion by Councilman Dean Banker, seconded by Councilman Jason Teeter, to approve Resolution 2021-2 ADOPTING THE KANSAS HOMELAND SECURITY REGION C HAZARD MITIGATION PLAN. Motion carried.
EMERGENCY
City Clerk Carrie Baeza presented a resolution to the council to declare a locale state of financial emergency. With the increased billing due to the cold weather event in February, a declaration will need to be made to be able to receive assistance if any is made available. Motion by Councilman Frankie Thomas, seconded by Councilman Dean Banker, to approve Resolution 2021-3 A RESOLUTION OF THE CITY OF HUGOTON, KANSAS DECLARING A LOCAL STATE OF FINANCIAL EMERGENCY. Motion carried.
FINANCE
City Clerk Carrie Baeza presented the council with an accounting of the electric production budget and reserves as well as options for paying off the additional $841,000.00 in Energy Cost Adjustments from the weather event in February. The 2021 approved budget had a total expense of $3,303,349.00 for production expense. Of that budgeted amount, $2,000,000.00 was the line item for purchased power. The additional billing of $841,000.00 is 42% of the line item budget for the 2021 budget year. The Kansas state legislature passed a Low-Interest Loan Program to aid in cities with utilities that have been hit with a financial burden due to the event. City Clerk Carrie Baeza had prepared a Resolution and Ordinance to approve to apply for this Low-Interest Loan Program.
After the presentation by Pioneer Electric Cooperative, it was the consensus of the council to take advantage of the offer of amortizing the $841,000.00 over a 36-month period and save the city the interest costs. In order to recoup these expenses, the city would need to charge an ECA, Energy Cost Adjustment, as a separate line item on customer utility bills. To match the 36-month amortization of Pioneer Electric Cooperative, this would add a $0.00758 per kWh or $7.58 per 1000 kWh used.
Motion by Councilman Dean Banker, seconded by Councilman Dan Corpening, to approve Ordinance 861, AN ORDINANCE ESTABLISHING ELECTRICAL SERVICE CLASSIFICATIONS AND RATES AND CONDITIONS FOR ENERGY COST ADJUSTMENT WITHIN THE CITY OF HUGOTON, KANSAS AND AMENDING, ARTICLE 1, ELECTRIC SERVICE, OF CHAPTER XV, UTILITIIES SECTIONS 15-126b INCLUSIVE, CODE OF THE CITY OF HUGOTON, KANSAS, 2011. Vote: Dean Banker, yes; Dan Corpening, yes; Brad Niehues, yes; Jason Teeter, yes; Frankie Thomas, yes. Motion carried.
Motion by Councilman Dan Corpening, seconded by Councilman Jason Teeter, to approve Resolution 2021-4, A RESOLUTION OF THE CITY OF HUGOTON, KANSAS, IN RESPONSE TO RESOLUTION 2021-3 DECLARATION OF A FINANCIAL EMERGENCY, TO IMPLEMENT A TEMPORARY ENERGY COST ADJUSTMENT. Motion carried.
PERSONNEL
Chief of Police Courtney Leslie asked the council to consider the hiring of two full-time officers to replace the positions recently vacated by the resignations of Officer Andy Davis and Officer James McCann. Motion by Councilman Dan Corpening, seconded by Councilman Frankie Thomas, to hire Aaron Koehn and Jacob Cosper as full-time officers at the rate of $22.00/hour. Motion carried.
Motion by Councilman Dean Banker, seconded by Councilman Jason Teeter, that the meeting go into executive session for non-elected personnel, K.S.A. 75-4319(1) for 5 mins to return at 7:18 p.m. Motion carried.
Reconvened at 7:18 p.m.
Motion by Councilman Frankie Thomas, seconded by Councilman Dean Banker, to accept the Appropriation Ordinances No 2169 & 2170. Motion carried.
Motion by Councilman Frankie Thomas, seconded by Councilman Dan Corpening, to adjourn. Motion carried.