Council - Regular Meeting

Turn it delay on it.

One minute. Perfect.

I think that was your start. Order. You do a roll call. Heather, please. Vanessa, first here. Lucas, second w here. Dennis, third, present. Mr. Mayor, thank you. This time we'll do the invocation. Lord be with us tonight as we go through our meeting that we make the wise decisions for the people in the city of Gerard. I ask this in Jesus name. Amen.

Amence to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all.

I have a motion for acceptance of the agenda. Mr. Mayor, a motion we accept the agenda as presented. Second. All those in favor? I opposed. Motion carries. Mr. Mayor, a motion that we approve the consent agenda as presented. Second. All those in favor? I I opposed. Motion carries. Thank you. No one.

Nobody for public forum will go on to regular business. Item A, Holly Powers with Midwest for stainless steel M and USDA update. Good evening. So, we are here just to give you guys an update on what we're calling the stainless steel mile. So, um Heather is passing out a couple pieces of information. One is just a cost that we'll be talking about here in just a little bit. But, um as far as the stainless steel mile project is going itself, all the line is installed. They are in the middle of uh pulling some disinfection test on the line that's been installed. So, we've already pulled one sample. We'll pull the next sample tomorrow. Um, so hopefully by Wednesday or Thursday, we'll have tests back on disinfection and then they were planning on pressure testing all the line tomorrow. So, if we get all of that to pass, we are hoping that we can have all connections to the new water line made by the end of the week and have the water line completely fully functioning online um and in service. So, in regards to it, there's been a couple of the changes um that has been made in the design and we should have a final pay application for the whole project end of next week or beginning of the following week. But there's a couple things that the contractor wanted and discussed and I think this was discussed a couple of commission meetings with you guys. Um they had sent a request um one asking if the commission would consider giving a 14-day extension on their contract time to accommodate um working in the 12 1/2t easement area.

Um it kind of slowed him down. They didn't have the quite the area to get the welder, the excavator, and the pipe all in at the same time. So they would kind of have to excavate, then move the excavator out, then move the welder in to weld the pipe, then move the welder out to weld the pipe, and then, you know, put the pipe in the ground. So it it just took um quite a bit of extra maneuvers in the equipment in that very tight 12 foot tight um constraint for them to get every all the pipe welded up, excavated, dropped in, and then back filled. So the one request was for 14 days to be added to the contract time. And then since The project started on October 6th. Their construction day started on October 6th. They there's been four weather delays that have commu accumulated until then. Um so by contract they have the right we would suggest to award them the four weather delays built up on the project and that's from December 1st to October uh 6th when the contract time started. Um the other thing that Heather passed out um and then there's a couple other things to talk to you. So this is an estimate and because of that 12 and a half foot area. They they didn't have a real good place to stockpile the the the amount of dirt and rock that they were taking out excavating in the trench. So they ended up taking about 200 250 ft worth of fencing out existing fence. and a lot of it was tangled up in the brush that was there. Um, they were really weren't trees. They were kind of more like saplings. So, the contractor taken that fence out and this is an estimate they got to replace the fence with a brand new fence. They thought part of it we could probably put back, but after it all got tangled up with all the weed, all the brush and everything that was along it, um, they couldn't dig some of it out and so they um, a lot of it just got piled up.

The quote that they got was if they don't get into rock for the four posts that need to be set, it would be $2,518. If they do get into rock and they have to bring in um a little bit heavier piece of equipment to drill out the post hole, it could be uh $3,718. Now, so they they've asked to request that this be added on to the project as a change order. So it could be anywhere from 2500 to 3,700. the fence guy is supposed to be out there um next week to put up the new fence. So, with that in mind, let me tell you though, there's been some changes on it and we took out the fire hydrants and a couple of the valves from the project. And by taking those out of the project, the project will now come under budget. Um taking the valves out alone would bring the project down by $23,500. And then the two valves were each $6,600. So, there's about $40,000 that's going to come off the project cost. Um, so, you know, you you're you're saving some money by making some changes, adding possibly at a max $3,700 to the project. You know, I don't I don't feel that is um an outrageous amount for the contractor to ask for some of the constraints and stuff with the 12 and a half foot easement they had to work in. So, we'd like to present an uh change order to possibly um discuss adding the cost for the fence and then adding 19 days to the contract time.

Why are we taking those other things out? Um they were requested to be taken out. So, by Jackie, yeah, because when we're not building the new water plant, so the line is not going past the plant, there had to be a plumbing change to accommodate the It's not going to be raw. So, so you move the pipes so you don't need the extra things. Now, the one thing I wasn't sure, you were saying the hydrants they purchased the hydrants and they're sitting there. So,

which is fine because we can use them in town on your distribution project. So, what we'll do is we'll just have the contractor on the distribution project buy them from this project and they'll get installed. They're not a waste. Or the contractor can send them back. I hate sending them back when we can use them on the distribution line. So, we'll just swap them out from project to project.

Now, you said 19 days. Yeah, 19 days. Okay. Now, we did approve the 14. Okay. So, that includes the 14 that um I didn't know if you guys had officially approved it or not. Yes, we did at the last meeting. Okay. So then adding that then you would just need to award them the four days for the weather delays that that they're due. So four days and the 3700 per fence is what they're up to 3700. If they don't get into rock it could be as low as 2500. If they get into rock it could be as much as 37.

Now is this one stretch of fence or is it because when I was out there there were just spots where the fence was gone and spots where it was still there. No, this is just one stretch from the corner. I'm not 100% sure. 300 ft. Yeah. Say from the corner back almost to his driveway. Yes. No, not to his driveway. I said almost just a little bit about 300 ft. Okay. Yeah. As far as a change order, that's not significant. Yeah. Anybody have any questions? Sounds reasonable to me. Yeah, I have no problem with it.

I just kind of wonder why when this contractor bid this that he didn't think that fence was going to be a problem. Like why it wasn't already included in it. Something we have to because typically we typically contractors especially in rural water districts get 30 to 50 foot of easement right away to work with it. this one because of the constraints of the existing easement that was chosen to be used and it was only 12 and a half feet. The contractor was given the easement at the pre-construction meeting. That's another thing I have an issue with is that that easement. Why didn't we write that and get approved a bigger easement?

Seems silly. Any more? Mr. Mayor, a motion that we approve up to $3,718 for fivestar fencing to put in the fence for the five or for the 300 ft that this would require as well as approving the four days of weather delays. I'll second that. All those in favor? I opposed. Motion carries. Thank you.

Okay, one other thing real quick. The water distribution line. So, everything is set up with rule development to have the pre-construction meeting on January 5th. Um, we just got the letter um Friday in the email from them saying that they have officially awarded the project. Rural development has, you guys have already signed all the paperwork. Rural development has reviewed it. So the contractor can now start putting his bonds and um contracts together. So we will get with him on that. We got the pre-construction meeting set for January 5th. Now rule development is still waiting for the official state engineer to um approve the construction plans which Dan Fiser has been in contact with that person um a couple of times and so we are ant he is anticipating that we will have that back before January 5th. Since rural development has restructured with them doing all the layoffs in the summer, they now have no state engineer. So all their projects get sent to another state engineer that they combined with. And so it actually got sent to this project I believe got sent to uh Nebraska. A couple other projects we've had with them get sent to we've been sent to North Dakota. Um so they Dan Fiser um is pushing them to get that but he has went ahead and go went ahead and gave us the okay to get let's have the pre-construction meeting let's get the contract documents. Let's get the agreement together. Um that way everything is ready and then he will keep pushing on signing the official construction plan. So we will be ready to go uh once we have that all together. So you guys have any questions on that project?

January 5th at two. January 5th at 2. So if any of you guys want to come to that come to that one, that one's a pretty good one. I think all the department heads are planning to coming. Two, it ended at 3:30. Yeah. And it'll probably be an hour and a half by the time we get through everything. And rule development will be there and they will be present also. So this is like the official kickoff with them. And then from here on we'll have to have monthly progress meetings with them um just to throughout the progress of the project. So Would that be in a civic center or here? Probably here. Any other questions while I'm here?

Um, do you want to stay for the next agenda item in case we have a question? It won't take. Yeah. Okay. Yep. Thank you.

Moving on to item B. Consider quotes for meters for USDA project update on pre.

There's two quotes on your guys's dropbox. Those are for meters that the city is supposed to procure. They weren't in the contract for the contractor to procure those for the distribution project. I sent both of those to Fiser today and I talked to him on the phone. He was First of all, he approved for the refurbishment at the well and using the additional fundings we have for not building the new treatment plant for that. Jackie sent him a powerpoint and a scope of work and he was good with that. We had already approved the 150 thou 150,000 for one of the wells. That was while they were all in the shutdown. He says from now on we need to get more than one quote. Um, and we either have to go with the low bidder or have a very good reason for going with a higher bidder. But at this point, he's kind of just letting Jackie manage which parts of the plant we are going going to update. He read through all of that. Um, the meters he was going to look at cuz we use it. These are Itron meters. The two quotes that you have, one's for 80 something, one's for 50 something. That'll also go on the USDA project. I believe you got 300, didn't you? Will it 300?

Yes. Okay. So, um, if you guys will approve those expenses, they'll go on the interim financing, but we would like you to approve those contingent on Dan or on USDA approval. So, you need both of them approved or we need both. Jackie can explain why. Why were there two quotes? They're too close because the base of the meter and the register is built by Badger, the antenna is built by they used to be all one, but said I don't want to share anymore. So to get the same thing we have from two companies

and Dan did ask me why we didn't include that in the contract with contractor. Was there a reason? I don't think we knew about it. Honestly, that's the first I've ever heard about it. Okay. But we do want the 300 meters to replace. Yeah. Oh, yeah. We've got lots of meters that we're replacing, but Okay. So, what I understood is we need to buy the number we need and we don't want extra to put on the shelf because USDA won't. Okay. Okay. Now, wait. I'm I'm confused a little bit. Okay. So, what what was it you guys were buying? How many of them were there?

300. Typically, we don't include them in the project um because most of the cities like to have what they have either they're trying to match an existing reader system or something and if you put them in the project, you have to allow it to be open to or Okay, that makes sense. Yes. And it's under $250,000 development will allow you to go out by yourself and buy them. Now, if it was over $250,000, you had to get and he told me the 250 changed to Just by the way, he thinks it did recently is what he said. He was going to double check.

We usually do that with all of these projects with the water districts. We let them purchase their own meters and readers because there's so many different kinds and we're trying to match. We just let you guys take care of it and then just have the contractor install it. Okay. So, well, that's and the bid the So, the contractor installation was in the bid. Yes. Yeah, they'll install it, but we have to buy the meters apparently. And I I get what Holly is saying because if we purchase them ourselves, we can purchase basically what we want without having to follow all the procurement rules. Like if a as equal or whatever came in as a lower bidder, USDA might say you have to use them even though they might not communicate as well with our software, right?

So I mean that makes sense, but still in the motion, if you guys motion to approve these, I would be more comfortable if you say contingent on USDA funding. because I've already sent them to Dan and he usually gets back with me quick and he'll probably say by tomorrow. Yes, these are fine. Is this all the meters? Because 300 sounds like a lot. It does sound like a lot. Yeah, it's probably light, but I figured the requirement of not having any on the shelf. We may end up having buy a few more later on. And those will also be covered by USDA if we order more.

Yep. Yeah. So that big huge long spreadsheet um I passed out to you guys, that one kind of that's KWO and USDA bunched together kind of, but there's columns for each one. So that's the 17 million. So that's Stainless Sto, which we're going to talk about later. All of these meters, distribution project, and refurbishment of the well. And there's Well, there's two different funding sources, three different funding mechanisms. So, that's why it's all y looks like that,

right? And we'll provide an update to you guys every month now with this sheet and to so you guys know exactly where we're at on all three funding sources with all projects and it'll be updated every single month and you can it'll be down to the dollar. You know exactly how much money you spent and how much money. And I think the only thing we were missing on that was that 285 interim financing interest payment, but we also didn't have any interest earned on it. So, we need to get that from Brett probably. So, by next month, we'll try to have all of that added. I think Heather found all of those invoices to get or I know you found the 285. So, Mr. Mayor, a motion that we approve be the meters would be a two-part process. the amount of um $87,459 as well as in the amount of uh $54,000

contingent contingent on the USDA funding approval. A second. All those in favor? I opposed. Motion carries. Thank you. And Holly just had one question. So just I'm reading this correctly. So the budget for the the stainless steel mile was 1.5 million. That's the KW. Go ahead. Okay. That was the KW grant. So I think you got 1.2 million with the KW grant and then um the engineering fees and the construction observation fees was coming out of the rural development money. So the USDA

Yeah. Yeah. The USDA money. So that's why you still see the water treatment plant on there because um the engineering fees, observation fees, construction ads, all coming out of that rule development money. So once we get the stainless ste,

right? But the main point down at the bottom, the very very small number down bottom that's in yellow, 2.6 million. Y right now, um that's what we've got projected. leto funds um after but that counts the 10% contingency. That counts the 10%. So there's also a 10% contingency built into what we have left over. Yes. So there's a if cost could go over by 10% if cost did go over by 10% we think we'll have 2.6.

So like I said that 285 is not accounted for there thousand and the interest earned on the arbitrage arrangement is not on there. in rural development is the USDA. We're using it interchangeably. I just don't want to confuse everybody. But the KWO grant, we use some of the USDA money for the engineering design and observation as a match for the KWO. That's why you might see Okay. It's confusing. So, I guess the only question I really have is the 1.7 million we've spent is more than the stainless steel model then, correct? Because we only budgeted for 12 or 1.2. 1.7 million is what you spent the whole project so far. Yeah.

Not just the mile, not just the stand. Okay, that makes sense. So, and the leftover leftover from the KWO grant is what we'll talk about later that we want to use for the interconnect for the regionalization piece of the KWO grant we've received. And Jackie has some ideas with that with Bone Creek or Crawford 4 depending because I think the way it was originally thought about and how um Midwest started on the design was if we built a brand new plant. Now we're not re we're refurbishing the plant. So there might need to be some changes.

Yeah. And you have to remember the K was written with regionalization piece and that regionalization piece was to interconnect with Bone Creek. So it's really kind of important to try to fill that piece because that was the whole basis for the grant was and you got more points for regionalization. So yeah. So at the end of it when we're done completely the stand still model will have a number on it that was just for it and we'll see. Yes. And then we'll still have money from that grant for the interconnect.

And we should know what the final cost amount for the stainless steel is by the end of the week. We're setting around. It's probably going to come in somewhere around and you write this down your hand for talk later. I would imagine around $630,000 is what we're going to come in. If it is 667,000, but we've taken some out. So it's going to the final cost is going to be somewhere around 63. 650,000. So you have 1.2 million in the KW grant to subtract that 630. That'll tell you how much you have to play around with the interconnect and fulfill that regionalization component of the KW.

Any other questions? Not quite yet, but we're getting there. Thanks, Holly. Thanks. Thank you. It was going forward. Yeah.

Okay. Moving on to item C. Approved title work expense.

I don't even know what this is. Is that for the solar

um title work expense is for easements for the USDA distribution line project. Steve had already ordered some of the um title work and evidently we need more which Holly can answer that probably too. We need who owns the parcel at this specific time and what we received was descriptions. Anyways, we need more title work. Um, they wanted to charge $250 per parcel. We have 42 parcels that came out at more than my spend authority. This will also be a USDA expense. U, I did email the attorney we hired for the easements back and I said, "Hey, get it under 10." And I can approve it. And right before the meeting, she emailed me and said, "Hey, I got it under 10 or at 10."

We don't. So, I don't know. Do you think we could get it cheaper or do we? No. No. Okay. Well, we already negotiated down with them a little bit and now I mean I would have I wouldn't have put it on the agenda except for it was like at 10:4 now it's at 10. So total or what's the difference between what you were budgeted for and what it ended up you said we didn't have a budget amount for okay that uh yeah we have easement cost um and I'm not sure I don't think there was anything specific for the title award I don't know maybe there was okay okay I don't think that's an unreasonable expense $250 a parcel

it's not I mean they run anywhere from 250 $375. So 250 is the very bottom end. No longer any approval since it's in your spend authority. Yeah. And I got that email right before this started. So I couldn't take it off the agenda. The 42 parcels have we already contacted the I guess because I guess my question is this is for the easement

work. So do we need to make sure that they're notified or does that matter? who they will be. Usually Terry and I go door to door is what we do for easements for projects because usually a face to face is best to explain what the project is and why and if they have questions. So we've actually already got three. Um, one of the issues we were having was, um, once you do go to their house and meet with them, um, we have to send them up here for a notary and sometimes for whatever reason it's hard for people to do that. So, I told Terry to get his notary so that when he goes, he can just do it when they're I don't know if he's working on that still or not.

And if not, we'll just keep doing it like we were. And if we have to and we do have people like last time we had a big project there was a guy that had two broken legs. So I mean we could always Heather's a notary, Kelly's a notary. Because this could slow us down, right? If we don't have everything, huh? It could slow us down if we don't have everything, right? And sometimes they're like, "Oh yeah, we'll be up there tomorrow to sign this." You know what I mean? Like they have no problem with it, but then they have a problem just making it up to the office to get the paperwork done. So it it'll probably just be quicker that way. or we can offer to have Paulie, Abby, or Kelly run out there. So, anyways, we actually don't need a motion on this anymore. Thank you. 38.

What's the date yet to have those all? Um Dan has said that that we can work on them. We can start the project while we're working on easements, but we can't do an area where we don't have the approved easement. So up until the day we start construction, um we can still be working on them even after we start construction. We just can't work in the areas where we need ease. Yeah. So till the day we need to dig up their driveway. Okay. In January. Moving on to item D. Consider priority power agreement.

Uh this is for the solar um contract and Jess Murphy, Cliff, myself, Steve A have all reviewed the contract. We do have some questions we want to go over with Rick Borie um and their attorney, priority powers attorney, if that who if that's who is authorized to make changes. So, I think our plan was to Jess was going to set up a meeting with them and then we weren't going to sign it until um I guess Steve's happy with it. You know, we just want to make sure that there's some variables in there that when took a look at it, there's some variables in there orally stated that we're not seeing the contract. And so

there was a couple missing references where they referred to something and then I mean the capacity testing I think they were fine with. There was a couple on financial side that we we had questions about. For example, page 15, it says error exclamation point resource um reference source not found. Pretty sure that's a mistake. Um there was one where if they come in under budget, we pay 30% of the amount they come in under budget, which we've had some questions about. Heather and I went over um how long we have to make payments, and I think we were good with the amount of days after they invoice us that we could get payments submitted, but we still had some questions. So, if we if we do want to approve that, we would like to that to be approved contingent upon um Steve and I, I guess, going through and making changes with their representative. If you look on your Dropbox, I did um upload Steve's notes on the agreement.

Those were some of the questions we had. I actually didn't have that 42 something questions like Steve did, but I think I went through it and every spot that I marked he had plus some. So, which I never messed with the indentification or enforcement error because I know you're all over that. So, are we at the point to where we can wait till the next meeting to approve it after you guys have a talk with them? Um, that's more of a close question than we are. I mean, we'll have a meeting December 29th, so it's still before the new year. And Jess did try calling them before this meeting, but we can

Yeah, that's what we were kind of worried about, too. We didn't even know. We're hoping we can get maybe a team's meeting fit in with them before the end of the year. So it's up to you guys if you just want to wait and we can give you a more detailed update considering the number of seems like a lot of questions and a lot of money differences. So I would say question some of them are minor Jess was all right. Yeah the LMI bonus we were

so is priority power they only in Texas or they have office like in Kansas City. I don't know. They're big. They're all over. I really don't foresee this being a huge issue. I think they'll try to work with us. Sounds like Jess has a good relationship. Jess and Cliff both do. So, we were we were told something and we got this. Well, a lot of times when like even with KMA when Tyson and all them come here and they're talking to us about the agreement, it they didn't write it. Their attorney did. So sometimes it's attorney attorney that need to talk because what happens is it'll be me and Cliff telling Steve telling us telling the contractor contractor telling their lawyer lawyer contractor us Steve. So right so it doesn't

we have learned that it's easier to get the the lawyers together on on this part. Sounds right. Okay. So no motion made we can table it if you guys want. We just want to table it. Maybe not to the next meeting in case we need to approve it beforehand or

Yeah, let's just move on then. Okay, go ahead. Okay, moving on to item E. approved November judges report showing total $2,524.50 with a total to the city is $2,173. Mr. Mayor, I motion we approve the judges report for November collecting $2,524.50 with a total to the city of $2,173. I second that.

All those in favor? I I motion carries. Item F, executive session for non-elected personnel to discuss departmental employee performance evaluations, raise pool and vacation. Mr. Mayor, motion we go into executive session for non-elected personnel to discuss part departmental employee performance evaluations, raise pool, and vacation. Recommend a 10-minute session to include mayor, council, city attorney, city administrator, and public works director. Second. All those in favor? I

motion carries. One, two, three,

10 time

call the meeting back to order. Mr. Mr. Mayor, motion we go into executive session for non-elected personnel to discuss departmental employee performance evaluations, raise pool, and vacation. Recommend a 10-minute session to include mayor, council, city attorney, city administrator, and public works director. Second. All those in favor? I motion carry. I did.

Sweet.

It looks from

throw. Yeah, there are times, but I this year it was different. I think I feel I feel it.

Call the meeting back to order. Mr. Mayor, I motion that we approve the vacation time as prevent presented as well as the uh raise pool as presented. Second. All those in favor? I I motion carries. Item G, executive session for contractual to discuss water project engineering agreement regarding interconnect and refurbishment.

Mr. Mayor, I move we go into executive session for contractual to discuss water project engineering agreement regarding interconnect and refurbishment. 15-minute session to include mayor, council, city attorneys, administrator, and public works director. All those in favor I motion carries.

I Call the meeting back to order. No further regular business. Go to governing governing body comments.

So thank everybody. I know it's cold and you're working out in that. It's just going to get colder. So, please remember to take care of yourselves. On that note, please take care of your neighbors, your animals, all of those things, your pipes. It is going to hit us and it's going to hit us hard. I have a feeling. I know that Jackie's got prepared. Cliff's been prepared. So, we're going to do the city the best we can to keep everybody's services on and running. But, please remember, you can call the ladies at the office and they will take care of your needs. We have a great staff in our office right now and everybody's trying really hard and I want them to know that we appreciate you guys. Um really just everybody keep on trucking, keep safe. Christmas is right around the corner and then New Year's. So please be careful on the roads. Don't drink and drive. Just all those normal things that you hear from all the infomercials. Take care of yourselves. Take care of others. Lucas,

as Morris want to echo what Lanessa said and additionally this is the month look at my calendar the next actually till the end of the year there's be a lot of holidays that come up so whatever you I guess celebrate celebrate it with friends and family uh enjoy this the those moments because we don't get very many of them other than that that's all I have Mr. there. Yes.

Uh I just uh like to thank public works again. I saw street sweepers out today. It's it's good to see little things like that going on because those are the things people see. So thanks again to Jackie and his crew. I'd also like to thank Clifford Scales. Uh a couple of weeks ago I went on a tour of our generator plant and it was very interesting. Philip Stevens wrote up wrote it up in the paper and there were a lot of good pictures, but it's another thing entirely to be in there because it's warm in there.

The engines aren't running, but they have to keep keep the oil warmed up so that they can at a moment's notice. So, it's quite an experience and it's good to see what what goes on in electrical department. So, thank you, Cliff Scales. That's all I have, Mr. Mayor. Darl, all I've got echo everyone else and this is the last opportunity I'd have to tell everybody have a merry Christmas. That's all I have. Merry Christmas. I just echo what everybody said and stuff and wish everybody a merry Christmas and thank everybody for what they're doing. That's all I have. Mr. Mayor, motion we adjourn. Second. All those in favor?

Opposed? Thank you.