City Council - Regular Meeting

Council meeting will now come to order. March 3rd, 2026 at 6:30 p.m. Would you please stand for the pledge of allegiance and remain standing for the invocation given by Councilwoman Jan Grace? I [clears throat] pledge allegiance 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.

Precious Lord, please give us guidance in this meeting because a lack of guidance causes a nation to fail, but victory is won through many adviserss. Lord, let us not be misguided in this meeting so that we do not lead to decisions that produce ineffective results. I pray that you direct our steps so that this meeting can achieve our kingdom's aims. We place you in the center of this. Amen. Thank you, Jan.

All right, Heidi, can I get roll call, please? Sure. Miss Antonyich here. Mr. Elmore here. Miss Grace here. Mr. Haye here. Miss Lucas here. Mr. West Morland here. Mayor Sorya.

I'm also here. All right. Um, looks like we don't have audience participation, but I would like to uh uh wish a a special person here that's been with the city for seven years. Martha, stand up, please. Martha has taken another position and her last day is Friday. Uh, we're going to miss you. Um, boy, and uh, we know you're going you're going to do a great job where you're going. So again, thank you for all your service and we wish you the best of luck. Thank you. The best the best to you, Mark. [applause]

Going to miss you. Miss you guys, too. [laughter] All right. Uh I need approve motion for uh second consent agenda, which is approval of minutes, approval, appropriations, receipt of city council. Move to approve. Second. We have a motion in the second. All those in favor? I. All those opposed. All right. We're going to start with the reports of mayor and council. I'll start with Councilwoman Antinich. Okay. Let me get my notes. This could take all night. Oh, no it won't. I'm kidding. [laughter] Five minutes.

Five minutes. Get the timer out. Okay. I just I'd like to thank that the tree trimming that's going on around here. Um my neighbor is very impressed. Um and Mr. Porter, could you send me just email me the sidewalk? Is there a sidewalk plan if somebody wants to put a new sidewalk in? Is there an assistance or something from the city or Jamie?

Councilman Anna and Nagege. Uh that is through the public works, but we can relay that message to to Jeremy and and he asked me right after they got the trees cut down. When can I start thinking about the sidewalk and he wants to put up a new private? He really wants to improve that corner lot. So, I told him I'd ask and have you email it to me and then I'll forward it to him. Thank you. Thank you. Um, wrong note. And the I see that the compost is opening on the 7th of March. And it'll be open on Mondays and Thursdays from 12 to 6:00, Wednesdays and Wednesdays from 8:00 a.m. to 1, Saturday from 8:00 a.m. to 4:00 p.m. And if you have a problem trying to get your compost, you know, if you don't have help or anything, this is what you need to go get right here. They're a dollar a piece or six for $5. You put it in a trash bag, wrap this around it, seal it up, and sanitation will pick pick that up for you. Very simple. Uh there's a weight limit, I think, of what, 33 lb, 30 lb, something like that. That I mean, you don't want to overload it. You, you know, they've got to be able to pick it up. And uh I'd like to thank Kyle Tuttle for giving me the paper copy of the budget. I know that's a lot of paper and a lot of tying it up, but I like line item by line item and I lose track on the laptop.

So, but I think that's all I've got. Okay. also on the sidewalk deal. If they look up on the city website, they can get all that information on there. Okay. Okay. Thank you, Joe. You're welcome. Councilman. [snorts]

Yeah. Um I'd like to thank uh Mr. Newberry for taking me out last week and u as a new council member uh taking me through the departments that um are his responsibility, help me understand how the city government functions in that regard. So, thank you again, Jason. I much appreciate that. Um, I also wanted to mention I had an idea for um a potential volunteer project, kind of like a civic pride thing as we're going into the, you know, 250th anniversary of our nation. Um, and so I reached out to Jeremy Jones, the public works director, about that. And he mentioned that there is a community volunteer project list uh that is being put together. So, um, if anybody is watching this or, um, sees in the minutes that, uh, uh, there's a volunteer project you'd like to volunteer for, I would encourage you to do so. Or if you have any ideas, feel free to send them to any of us and we'll see about the feasibility of getting those added. That's all I have. Thank you, Mayor.

Thank you, council. Council,

as [snorts] most of you know or should know, Joe Plum did retire from the library. The interim director is Sylvia Atkins. Please welcome her and please allow the board and Sylvia patience as we go through a transition as we go through potential construction in April through the end of the year. Um we've got a lot going on at the library and we'll continue having a lot going on. So, um, please go introduce yourself. Welcome Sylvia who's been there three years anyway, but as the librarian and we encourage everyone to continue using the librarian in spite of doors may be locked or whatever. Just keep keep trying. We'll keep you informed as to what door you can go in.

Awesome. Thanks.

Uh Jason, where uh where we at on the solar farm? So that that's actually remember that's a KPP project and uh there's been some hurdles. Uh they're trying to get those going in six different cities kind of all simultaneously. Uh so they've told me they've told me before though, but they've told me that they're going to be breaking ground here within the next two weeks. So you should see some activity down there pretty quickly. uh kind of the hurdle they're trying to hit, which I think we're actually going to struggle to get there, is there's some funding opportunities that are more available if we get them energized by the end of this calendar year versus after the calendar year. So, they're really striving to hit that December 2026 for energizing. So,

thank you. And Jamie, any repairs going on on the building here on South Washington? Eight. Uh, no, not that I'm aware of. Just that they have a they having a they've been issued a building permit and they've they've have plans on it now. I'm not sure if they're waiting for a stonemason. I I'm not sure, but they do have a a active uh building permit and those are those are six months. So there it that's what it is. Okay. Thanks. That's it. Great. Council Councilwoman Lucas.

Um I'm I may be misspeaking, but I believe that there has been some work done over there. I mean, I've seen trucks and and equipment on that building. So, yes, they've they've done they've done some work prior to snow and and that they wanted to get that. There's a little footing that they were putting in um and they did that. Uh, and like I said, I just it's an active uh building permit, so it's just up to them to when when the work is done. But yes, you are correct. They have did some They have been doing some work. Okay. Thank you. I don't have anything else. Councilman West. I don't have anything this evening.

I have one more thing. Um, I forgot to mention this because I'm on the library board. I just want people to be aware I abstain from absolutely any nominations for the library board and from voting. So if you're wondering why I pushed back, that's the reason. It's a conflict. And we're accepting one for tonight, but there'll be another position open in April. So those of you who applied for this one, please apply again for April. Thank you.

Okay. Um Jeremy's not here. I was going to ask him a few things. Um Jeff, maybe you might know. Where are we at on the swimming pool? Is it going to be ready? [laughter]

That's kind of a loaded question. Uh no. Uh we believe the swimming pool will be ready. Yes. Uh we did meet with the contractor on site [snorts] last week. Um there is some piping left to do on the new filtration system and the uh chemical dosing, but they believe that they'll be able to get that done pretty quickly. Okay. Thank you very much. Uh I also uh I attended the uh Conway Springs Council meeting last week in reference to the uh EMS taking it over and uh going there, you know, talking to some of the volunteers there. I was a little skeptic of what we were going to walk into, but a lot of them were just uh given their opinion that uh something needed to be happening because no fault to their own or their budget is shot. So, they can't afford the EMS like they have been before. So, they were glad that we were there. I was there in support of uh fire chief uh Jim and Fire Chief, EMS Chief uh Davis. I was there in support of that. And when it came down to uh introducing ourselves, I introduced myself to them and uh [clears throat] they asked they asked, "Okay, so how did how did the council vote on this?" And I told them that the council unanimously voted yes on this. And they were like, "Seriously?" I said, "Yes." There was no no votes. They're all in favor of trying to help you guys out. And and uh they sat there and they said, "Would you please tell the council, this council here, that they thank you very much for the support and uh it's they're very thankful." So, anyhow, I wanted to

stress that I wanted to bring that out tonight. So, council, thank you for for your support. Uh that's I guess that's all I have. Um guess we'll go to reports of uh city officials. Uh Jason the dam.

So this is the the dam out on the Chicago River. Uh we also have joining us tonight Beth Warren from KMU. Uh she has been instrumental in kind of getting this whole process put together. Uh this is a water TA program which is technical assistance program through KMU. So, she has been kind of guiding us as far as some financial avenues that we could might maybe could take. So, I printed out the document that's actually in your packet electronically, but I printed them out and gave them to you so you could kind of follow along because I figured we could go through this 70page document line by line tonight. No, just kidding. We're not going to do [laughter] that. So, we're going to kind of go through it, catch some highlights, but the idea is to kind of get you guys comfortable with what we're talking about here and then I'm available. I'm sure Beth would be available to field questions in the next two weeks because in two weeks we're going to bring this back to you and we got to kind of make a decision on the direction we're going to go. So tonight, no decision. Tonight's just information to try to help you guys get comfortable with the decision that's potentially ahead of you. So if you go to the first page there, just inside the cover, that kind of lays out the the four alternatives. And down at the bottom, you're going to see some dollar signs that are kind of a little scary. Uh so the Shikaski River, we have a water right out there for 436 million gallons of water. We cannot afford to lose that water right. So you guys are all aware that we have nitrate issues coming from our wells. So we do a blending process from the Wellington Lake with the water that comes from our wells and it it does great. I mean that's the accepted practice that they've they've got us doing. We got to have the water from the Chicago. We pump it straight into the river or straight into the lake. It's not going to stay up with evaporation. We get those calls every year saying, "Why aren't you pumping from the river into the lake? The lake's getting low." We're not probably not going to ever stay up with evaporation with what we're

pumping. The problem is right now we can't pump hardly at all. Uh there's so much silt on the Shicaski, as you can imagine, it moves a lot of sand. So the intakes silt in and it constantly trips the pumps out because we're not we're getting low flow on them. So the water distribution guys go out there and they actually get in the river and they actually clean the intakes out. They got to do this five, six times a summer to try to keep the intakes open and we still fight it and still are constantly tripping out. So this document is kind of some alternatives that they've put together to try to address that issue. So, as you flip through it, if you go to Well, you guys know where it's at. Page 11 kind of shows you where the Chicago River is at. If you haven't been out there, more than happy to take you out there anytime. So, it is kind of interesting to see. Uh, the next page shows the dam where I actually tore my bicep. So, if you remember that fun time, uh, page 15, uh, the highlighted part there, that's kind of what we're doing tonight. We're getting this in front of you so you guys can start making decisions. So that's just kind of the basics of what we're doing. If you flip over to page 19, that shows you exactly what we're dealing with. So when I first started this project, I thought the dam was in very, very bad shape. I thought we were ticking time bomb after the engineers got here and we walked out on it. is not in as bad a shape as I thought. So, I'm not quite as much in panic mode anymore as I was. Um, now that being said, Dwayne, one of the the leads on it, he will tell you straight up that it could fail tomorrow. We don't know that. Uh, so, but he felt pretty comfortable about the dam and the integrity of it as we saw it. That right wing wall, that's what was concerning to me. There is water going around that right that right

wing wall. It is bypassing the dam and going around. You know what water does? We've all seen the Grand Canyon in person or in pictures. It's very powerful and it's going to make its make its way through there. It's going to give way on that side eventually. There's some things that they address in this that we can maybe take care of that. Just depends on how much money we want to throw at this. So, if you flip to page, let's get to the nuts and bolts of it. You guys got a lot on the agenda tonight. So, page 26 are the four the four alternatives kind of laid out there. So, that's just kind of a one paragraph little synopsis of each of the alternatives. Uh, alternative one kind of starts out not doing really too much and then moving into alternative three down the road. Alternative two, I'll tell you straight up, that's kind of where I'm leaning. That's basically a diversion pit off to the side that keeps my guys out of the river to clean the intakes. It puts the intakes over to the side. Makes it a lot safer. Uh we can do it with machinery instead of actually putting guys in swimsuits out in the river uh trying to dredge sand. Alternative three is automated gates. Uh that'd be great if the coffers were overflowing, but that's probably not the direction we're going to lean. And alternative 4 is kind of even bigger version of that. It's got air air actuated gates that would actually drop during flood uh scenarios. So the sand is actually washed through and takes care of the silting issue. That'd be great, but that's high dollar. You're talking $16 million to do that. So we are more than happy to answer any of your questions. the the pig option that is talked about on page 33. That's kind of they're recommending that pretty much regardless of what we do. So

they're they are thinking and we are thinking uh actually council member Elmore saw this. We actually went out there and we dug a hole to try to get down to the line, the intake line. We are thinking that intake line is actually full of sand or partially full of sand. So, this pig option would basically put a device in the line that would shove that sand out of that line because we think though it's a 20-inch line, we probably got about an 8 in hole. So, that's why we're not getting the flow through it. So, we got to get that sand out of there. It's roughly roughly a third of a mile from the intakes to the pump. So, we got to get all that sand moved out of there. So, big undertaking, but this is the way to do it. Beth, is there anything you want to add to it as far as funding? We did try to reach into some funding options and kind of got denied, but [clears throat] Beth can definitely shed some more light on that.

Yes. So, we did apply to SRF the last funding cycle. Um, and the city's project did get on the IUP, but it was below the funding line. So, we weren't able to move forward at that time. Weren't able to really move forward anyway because we don't have we were still developing the project and didn't really know which way to go. So, we wouldn't have been able to proceed if you even if you had fallen above the funding line. Um, so this this year we could try going after SRF funding again. Um, there probably is not going to be as much loan forgiveness available as there was the last funding cycle just because of the cuts at the federal level um just with funding in general of grant and loan programs. Um, but we still there's no commitment to just get you on that IUP for SRF funding to see where you might fall and what loan forgiveness might be available. Um, and then it would be researching other funding options, whether that's other grant programs, loan programs, or bond issues in general. Um, to be able to fund it. There's I sent Jason and Jeff a potential EPA grant coming down the line maybe this year unless it gets um cancelled or not ruled out due to changes at the federal level, but um it's a resiliency grant. Um it could be a potential funding source for this, but we don't have the details on that. There's no notice out for that funding at this point. So that's just kind of guessing that that might become available. Um, Bureau of Reclamation, none of their grant programs is, last time I checked, none of those had opened back up after being paused at the start of last year. Um, the state, the water office grant programs might be potential. Um, but that money is highly sought after because it's state money, so you don't have all the red tape um, and regulations that have to go along

with it. So, that is extremely competitive and highly sought after. Um, I'm trying to think of other programs that might be available, but that kind of would be the next step is researching potential funding sources and just start start kind of trying to coordinate those to apply once we know what direction you want to go with the potential project because that will help field which programs we research and try and go after.

You know, the dam is 63 years old. Uh we're we're guessing. Uh we really are struggling to find any records and they dug pretty deep. Uh so it's it's probably time to give it a little bit of love. We put some some uh um they call it RAC, which is um concrete that's broke up that we bring in. Um we put some there to try to help on some of the the erosion, but it it it needs a little love. So big decision, big money. um with some of those funding opportunities that Beth mentioned, as you guys all know, there's matching pieces to those puzzle. Uh so we're going to have to come up with some cash in hand probably on some matching funds to even go after some of those funds. So or be ready to have that available,

questions. Uh thank you, Jason. And what was your name again? Beth.

Beth. Thank you, Beth. Yep. Um, so I'm in 100% agreement with you that uh we need to maintain those senior water rights. I think that's critical for our community uh and its long-term uh health. Uh I did have one question though. So the uh I made it through this document over the weekend and it was very comprehensive, but I was wanting to request to see if we could add another alternative. I know we didn't do the no action alternative because we expect it to continue to deteriorate and thing fall apart. Um the alter alternative I wanted to suggest is um identical to alternative one but without starting alternative three in year 10 but we add the pigging stations um and but we don't build the intake just to kind of see what the on andm is for that and what the overall costs would be for that just because our budget is shrinking a little bit you know and it's anticipated to continue to shrink.

Um so would it be possible to get that alternative added? Yeah, we can send that feedback to the engineering team because again all this work is being funded by EPA's water TA program. So the city is not paying okay for this per um but yeah we can send that feedback for an additional requested alternative to be built in um and we'll work with them on working through that process to get it incorporated. It might not be cost effective as compared to option two, but I know especially when you and I talked the pigging stations were really going to be critical to help clearing that out and at least getting some water. What um I don't recall if we talked about it, but is there a minimum draw that we have to do to retain those senior water rights?

We've done a lot of digging to try to find out on that. I I don't think there's nobody can tell us exactly if there's a minimum draw. Okay. Uh we did not draw from it much this year because we just couldn't access it. Um, well, we just submitted a water report, so we're anxious to see what we're gonna get back on that. Right. Right. So, we may get dinged a little bit, but I think we can tell them, hey, we're working on this, trying to figure out better ways of accessing that water and be able to dance around a little bit. So, okay. Those are all the questions I am thinking. You have something? Yeah. So, you're recommending two is what you were thinking.

That's that's the direction I would lean. Uh, and mainly that's because it's easier access as far as the dredging. I don't like putting the guys out in the river. Uh, accents happen. Uh, so we it's just safer if we can keep them on dry land, use our hydro excavator to clean out the pit. Uh, and that takes care of the silting issue. So the build time on that is construction time on that is I'd have to look at that chart again. I I've read it, but I can't remember. Yeah, that's on one of my many tabs here. So Okay. So that would be one of the quicker remedies to

Yeah, they're saying they're saying design's one year, construction's two years, and then ongoing on and M after that on option two. Uh you know that timeline on page 28 is a 20-year timeline. So some of those builds get out there quite a ways. So yeah, in design could take longer depending on what comes up with some of the other investigative work they've suggested that might be required as part of the design phase of the project that if they find additional issues that might have to be taken into account that could drag things out as well. There always is. And in the meantime, in the meantime, we're going to do what we can to be safe,

right? In the meantime, we're going to do what we can to try to access the water with and that's going to be dredging the way we've done it traditionally for the last several years. So, we need those water rights. Yes, ma'am. That's the bottom line on it. Got to have it. Questions? I don't have anyone. Mike, else okay. Thank you. So, if any questions come up, feel free to reach out to me and we can drive out there and take a look at her or whatever. You know, we will. Thanks. Thank you. Thank you. Thanks, Beth. [clears throat] Thank you, Beth.

Thank you. All right. Next, we have Heidi, board commission.

So, mayor and councel, uh, let's do library board applicantations first. Uh due to resignation in February, a 15-day vacancy notice was sent out which ended February 20th. Four applications were received. So this appointment is for the remainder of the term which expires April 30th of 29. The member must be a city resident. There are four applicants. Donna Grimes, Andrew Stanfield, Chase Weber, and Sandra McVan. Since more than one application was received, a separate session is required to to review them tonight and then next session we can make an appointment. So this just a reminder. Um I think there might be a few in the audience if you if anybody has questions. I think Sandra's here anyway. I saw her. I

think we actually had a couple S. Oh library. Yeah. Yeah. That's up to you guys. What's that? Can we um invite up whoever is whoever is applying, come on up for the library board. Good evening.

I'm Donna Grimes and I was uh the library director for a time in the uh 19 95 to like 2002. Before that, I was the children's librarian. Um, and I just am excited to know that the library is moving forward with new opportunity that there's going to be some reconstruction. Uh, during my time there, I automated the library with the help of the South Central Kansas library. Just won his heart. Go ahead. [laughter]

And, um, yeah, it's just exciting place. Uh my we family we all love the library and we use it regularly and I know the staff that's there now and um my little granddaughter's tan she participates in every activity and Chelsea McNeel my daughter-in-law she worked there a couple years uh

a few years ago and so I just thought it'd be a nice opportunity to contribute and to uh be involved and uh I'm excited for the construction that's going to take place and you know I know how uh promising it is to get a new life going on there. So I wanted to get my application in. Appreciate that. Thank you. Thank you. Thank you very much. It's Jerry's position you're taking. So So um so uh we have an interim director and she's been on the job what about two weeks now? one week, not even a week, three days.

So I I um Jan could probably speak more to it, but um so we're going to be searching for a new library director coming up here uh pretty soon or or somebody to fill the position on a permanent basis, I should say. So is that something that you'd be interested in helping out with? Yes, I would. Um, I worked with sickles in the past and when I came on I I hired my staff, so I have been through that kind of process and um and I know how important it is and um did you I'm sorry. Go ahead. I know Sylvia, you know, she and I we've had some really nice engagements at the library. She's wonderful and um so yes, I just think it's a really important step. And

so I guess Sylvia has been the interim for a couple weeks. Joe's official last day was the 28th, but yeah, for about a month she's been it. I misspoke. I'm going all over. But um do you know Paul Hawkins at Sickles? Yes, I do. I work closely with him. Good. Because we work closely with Paul too on a lot of things. So that would that's helpful. I don't [clears throat] have any other questions. Okay. Anybody else? Thank you. Thank you, Donna. I apologize. I got your name wrong. Pardon? I said I apologize. I got your name wrong. Oh, [laughter]

thank you. Now, the next meeting that you have, uh, the 17th, I will be babysitting for my son and, [laughter] uh, you know, that's spring break week. And so, we've got commitments. Listen in. All right. Nobody else. Anybody else for the library board? Okay. Thank you for coming. Thank you. Number two. Mhm.

Yes. Okay, the next one is the housing authority board and this was a resignation from January of this year. [snorts] Two vacancy notices were sent out to the media and we didn't have any response but shortly thereafter. Two applications were received and this appointment is also for the remainder of the term. This one ends though a year earlier, April 30th of 28. Uh two applica two applicants are Sandra McVan and Sandra Mory. I don't know if I'm saying that correctly. Since there's more than one application, a separate session just like the last as I mentioned, review them at this one and then the next one you can appoint someone March 17th.

Okay. None of them are here. Anybody?

That it. [clears throat] So, since at your last meeting you tried to make an appointment after you'd moved to adjourn, uh, now would be an appropriate moment to appoint a Memorial Auditorium board member. I'd like to nominate Councilman Elmo for the position on the Memorial Auditorium. Second. Do I have a motion and second? All those in favor? I. All those opposed? You're on. All right. Okay. Uh, next we have a public hearing. I'm going to open up for the public hearing. And Jeff, I believe you're up on this in here.

Sure. So, several weeks ago, uh, you approved a potential development plan for the Crest View Heights edition, which had previously been designated as a reinvestment housing incentive district. So, uh, as part of the requirement of actually implementing, uh, the overlay district for, uh, Crest View Heights, you published a rather lengthy, uh, ordinance and map and all kinds of fun stuff in the paper and notified both uh, the school district and the county commission of the hearing as well as, you know, notify ified the public via publication in the paper. So this is an opportunity for people to come and provide testimony for against neutral towards this uh concept so that we can use basically a tax increment to retire debt for infrastructure to try to develop the property.

Do we have where do we go from here? You open up the floor. Uh also Larry Cleman from Ranson is here because one of the requirements is that we have a independent uh evaluation of the uh finances that was performed by Ranson uh on your behalf and Larry can speak to the uh financial aspect of the analysis. I can speak for a moment. Yes, you can, sir. Please.

Hey, good evening. Larry Kleman with Ransom Financial, uh city's financial adviser. we often help with bond issues and such. Um but yeah, as part of the RHID process, a feasibility analysis is required as Jeff said. And so that is part of um I think exhibit D of that big package that you have there. And I have a bigger version of it here in front of me, but basically I can just kind of conceptually describe it to you. I mean the idea is that you want it to be feasible and that the increment so we start with a bare piece of land basically building a house on it. So there's an increment of valuation there. Typically that valuation, the property tax on that valuation would go to the city. But in this case, the increment then can go toward paying off the infrastructure that you would propose to put in. Um so in this case, street water sewer infrastructure probably um engineering estimates uh suggested that would be a little over 1 million in cost. When you [snorts] add in uh interest, assuming we uh issue a 20-year geo bond for this, we're talking about about one and a half million um in total uh debt service to be paid back over 20 years. So roughly about 75,000 a year. And the idea is that these houses and these 23 lots will be built up um in a certain fashion to um bring in revenue to pay that debt service, the 75,000 a year. So ideally the city would not pay anything in the long run. Um the feasibility analysis assumes certain things including you know the estimate that the engineer gave for the street water sewer and also assumes certain buildout of homes. Um in this case we um basic after some discussions we have in here four homes um in the first year three in the second and then it kind of gradually goes down to two and one um over a 10ear span. the RHID typically

the bonds would be over 20 years. And so this feasibility study predicts or projects that um uh tax revenue increment would then cover the debt service over the 20-year bond so that the city would come out positive. It does show a little bit of a deficit in the early years because it takes a little bit for uh the homes to fill in for all these 23 lots. So it would be uh under this projection a deficit to the city that the city would cover and then gradually uh the valuation the increment would be such that once all these lots are filled out um there would be more revenue uh than ultimately the debt service that the city paid on it. Um yeah, so the RHID the bond we'd envision first of all I guess um if you approve this tonight the ordinance I think Jeff mentioned um maybe didn't there's a 30-day protest period that the county and the school district could could veto this assuming they don't then the RHID can be established the city can move forward with um the infrastructure improvements would probably issue say a three-year temp note during which time the infrastructure is put in because the developer time to start building up homes and there would be no debt service owed on the temp note. Um until we issue a bond after year three. Um then at that time the debt service would kick in. Um hopefully uh increment from uh homes would be coming in and gradually enough to pay off the debt service over a 20-year period. So uh yeah, the the feasibility study shows a positive assuming these assumptions. I'm happy to answer any questions, delve into any of that if you want or any of the process.

Hello, uh, Larry. Right. Right. Thank you. Um, the, uh, we show a couple or three different interest rates for the annual debt service. Where does that interest rate come from? Yeah, that's basically, uh, market rates. I mean, we moni we help issue bonds all the time for for you guys and other cities around the state. So, basically, that's just an estimate. kind of conservative, probably on the high side because rates kind of been trending down and we usually try to estimate on the high side. Typically, the longer a bond issue goes, um, the higher the interest rate. So, if 20-year bond may be about 4.4%. If you were to issue a 25-year bond, the average interest rate over the 25 years might be 4.65. So, basically kind of market rates for municipal bonds in Kansas.

Okay. And the annual debt service looks looks pretty reasonable actually. Um, I'm curious the cost of in infrastructure improvements, uh, when were those numbers calculated? Is it recently or is that something that's been Yeah, I mean, we we've met with city staff and engineer. Jeff may know better, but, uh, they came up with some estimates in the past several months, I think, for for that. Okay. It was Octoberish. Oh, so it it was very recent then. Okay. I just, you know, stuff's in so much flux these days, right? [laughter]

Make sure we're talking apples apples. I don't have any other questions. Thanks, Larry. Are these lots obligated to this company? I mean what if somebody come in two months want to buy one of these lots are these lots all obligated to this company

presently no. So the concept would be so we're doing this backwards. Normally the with since these are in the land bank they we would have the land bank get into some kind of agreement for sale of the lots to the company. uh but they are uninterested in participating unless there's some guarantee infrastructure is going to go in. So I I don't blame them on that particular point. The concept they have is that they would probably be the developer of the first four. They would allow select developers to build within a pre-selected set of site plans. uh because as you recall one of the requirements of the RHID is they hit certain targets for affordability. Uh those were identified in the large document that was uh previously issued out for the housing needs assessment. So by nature there is going to be some level of control um on one developer but they have articulated that they would allow for other developers so long as they would keep within the spirit of what we were trying to do for the designation of the RHID.

Thank you.

Sorry I didn't send this to you beforehand, Jeff. Um how do so the we see estimated house price of 250k roughly. Um how does that compare with the uh costs of the houses around it because the lots or this addition is partially developed? Right. Is that within um a band I guess? So, yes, but um so since a number of those houses were constructed a number of years ago, um a $250,000 house that was built there probably 10 years ago is probably not going to be the same as $250,000 house built now. Um but based on the affordability that was identified in the HNA uh and council was given an opportunity to review the HNA and provide feedback as was the land bank as you know these properties in the RH is largely within uh basically their holdings. Uh you know no objections were given to that kind of being the target realm.

Okay. Okay. Yeah. Any other questions? Is there anybody in the audience that What's that? Is there anybody in the audience that would like to speak since it's public? This is the public hearing, right? [snorts]

Never met a microphone. I didn't like [laughter] Bob Lewitch here in Wellington citizen. Just a couple of of real basic questions. Uh but I think you were addressing some of those. You know, we definitely need housing here in town. Nobody will argue that point is a $250,000 price point, which that's the house it takes to make this cash flow work. [snorts] That is of some concern. Maybe uh I don't know what the real estate market is, the income levels of our employees that we have within our city. Just a question. So, will we support selling four $250,000 houses the first year, three more the second, and etc. Just a question. And there's no answer to that. It's just sometimes you have to go out and and risk it. Build it and they will come. Uh, you know, current costs $150 to $200 a square foot for a house. So, we're talking 14,500 square foot house approximately, which is a decent size house. Um the one question I have probably for you uh and and the council is on the cash flow and that was pretty small print and my eyesight's my eyesight is not great but I did not notice u the neighborhood revitalization program addressed in there where we have five years of tax rebate on new construction and so that would impact the cash flow flow on the uh on the project. So that's that's a a question because that would almost negate the cash flow to make the bond payments at least the first five years of each house. Uh I don't know if the city can exempt this division from the countywide

revitalization program. That's I would defer to our council and the and the county's council. I I don't know what provisions are available in the re revitalization program, but that would significantly impact the cash flow. Yeah, I'd have to check to see what the details are.

Yeah, that's just just a question observation. You know, as my dad said, the only dumb question is the one you don't ask. So, um, and what's the impact on existing homes in the area? those people that are already there paying property taxes, they I think there were specials on those lots to some of those folks if I recall right. Is that correct? Okay. So, they're paying specials now. Uh so, it's kind of a what's what's fair. I mean, this is what's current. We know what we need now. Uh then just last observation on this project. Uh later on you're going to be talking about a data center and one of the the the builder on that Corore uh on their website notes that they also build homes. So if you end up having a data center here in town, there could be economies of scale between building the data center and building a speck home which would uh I think revert to can they can they build a home out there or is it restricted? I think that's Mr. Elmer what you were asking earlier or somebody biggest Tim asked that are we restricted on developers because there's not a lot of we don't have a lot of speck home builders in the current location we have that's my thoughts

thank you thank you

anybody else okay close the hearing and now we're going to move [snorts] On to the ordinance. First ordinance, an ordinance of the city of Wellington, Kansas, establishing a reinvestment housing incentive district within the city and adopting a plan for the development of housing and public facilities in such district and making certain findings in conjunction there with Chris View Heights addition reinvesting reinvestment housing incentive district. Jeff council, this would be presented. Uh you were you gave the community some opportunity to provide some feedback. I will say that there are a couple things we have considered. We did actually uh when we were meeting with the developer did ask him to kind of make a decision whether or not he wanted to access either the RHID or the uh county's NRP. since they're both based off the same increment, he indicated that it would be more beneficial to him to have the infrastructure uh be retire the infrastructure debt retired by the increment rather than the housing. Um, so we kind of are proceeding under that, you know. Um, whether or not we have the true ability to ex keep him from doing that, I don't know, but at least we did try to have that conversation and he did seem receptive to picking one or the other. So, uh, we I I'm not as concerned about that not being incre in the financial projections, but it is definitely something that we might want to look at before we, you know, commit to any final uh developers agreement or something like that. So, that that was great feedback. Um, and yeah, I do think the the schedule's a bit aggressive, but at the same time, we're never going to

have any development in there if we don't actually get infrastructure in there. So, um, the the and the longer they stay in the land bank, the longer the value of them is zero. So, they technically aren't producing any tax revenue at the moment. Questions. Jeeoff, can we table this until we can get those answers that Mr. Leftwitch had as far as the five-year?

We can do that. Yeah, I mean, you can table it. It would kind of make me feel a little better if the we if I knew we weren't rep for the payment of the 75 I know it was going to cancel out but if that's the fiveyear we may be responsible for that

we can do that and I will say you know previously we ended up eating a lot of the specials on the on the projects uh on the first phase so there's there's obviously risk no matter which way we take it uh we thought that this one could potentially mitigate some risk a and b uh one of the other things is uh so you you might recall we previously tried with another developer to do mih and we were going to use mih to basically buy down the infrastructure costs so that we could probably get rid of specials um because especially when you're trying to market a house to a more moderate income family the specials costs become a concern so we felt this might be a way to try also continue that and that's kind of in the spirit of the RHID when it was built out as a as a tool for communities to use.

Okay. Thank you. [clears throat] We need to make a motion to I'll make a motion to table it. Table it. Second. Motion in a second to table this. Can I get a You want a roll call? Okay. Mr. Elmore, I'm going to say no on this one. Okay, Miss Grace, I'm going to say no also. I'm ready. Okay, Mr. Haye, no. Miss Lucas,

yes. Mr. West Morland, yes. Miss Antonich. Yes. Senator Collins, the mayor, right? Right now, it's the tie. Yeah. So, Mayor Sora, you could break the tie. No, not to table it. Okay. So, one, two, three, four. So, that's four no votes and three yes votes to table it. So, I guess we are not going to table it, right? Okay. So, now do we need to go back to this and make a motion?

I would I would say that you probably need to make a motion to either accept or reject. Okay. I make a motion that we accept the ordinance as written. Second. We have a motion and a second. Honey, roll call, please. Miss Grace? Yes. Mr. Haye? Yes. Miss Lucas? Yes. Mr. West Morland? No, Miss Antonich. No, Mr. Elmore. Yes.

Or so that's four yes votes and two no votes for ordinance number 4360. Okay. [clears throat and cough] Uh resolution first resolution a resolution of intent to enter into energy sales agreement between the city of Wellington and Komar for the purpose of development of a tier five data center four

four excuse me um Jeff or Jason so uh we put in your packet a letter of intent with Cormore who has requested that we consider uh use of an economic development rate to allow them to build a tier 4 data center uh within our service territory. They're um the basic terms of what will become a full-fledged agreement at a later date were in there. uh I believe they want some assurance as to what is being offered and what is on the table and what terms basic TNC's are are going to be moving forward so that they can take it to their investors to uh secure financing for their ultimate project. Uh one of the representatives of Cormore is in the back of the room. Uh if you have specific questions about their project, um Jason and I have been working on this for a while. Uh we're happy to answer any questions from the staff perspective when it comes to the basic letter of intent.

Okay. So Ryan, you have you have anything to say on this? Yes. Mhm. If you guys have questions, I'll gladly answer. Is there any questions? Okay.

Um so let me just state we all know that data centers are a hot topic these days. Um, and no matter what we say or do, we're going to be using a device tonight, you know, um, that's going to flow data through a data center. So, um, they they are kind of a requirement of modern life. Um, with that, um, I maybe it's because I'm new. I just would like to see if you could give us a highle overview of, uh, what you guys are planning on doing, what you're planning on building out. I did take a look at your website um and got a little bit of information of that but I want to hear it straight from your

Sure. So I, you know, I'm not the guy to do this speech, right? So we'll get them here sometime, right? But um you're right, data is coming, AI is coming, right? Um our projects have twisted quite a few times both in cost and design just in order to allow for AI, right?

Um and supercomputers, right? Uh Nvidia servers and stuff like that. Um, I'd like to point out that I know there's a lot of negative press about data centers. Um, that's where we think we're different. We've got some utility patents and I want you to know that ours is waterless. That's part of our utility patent. We aren't dumping it back into the equeds. Um, we'll use just enough to run the bathrooms, right? So, just like any other office, right? Um, we also don't use batteries. We're going back to the old flywheel because we know the how batteries and the connotations with batteries and we also find it to be uh a better system and part of it's again part of the 30% energy saving in our utility patent to what we're doing. So there's a lot more that's coming and there will be a lot more education to it, but we can be as green as we can be, right? And I think that what they're having like in Cedric County and stuff like that and we all know we've got multiple sites throughout North America that we're dealing with and they want mega power and you know we're getting calls every day for 100 megs of power. Here we're trying to do 14.6, six, right, Jason?

Not 15. Yeah. Oh, seven. Sorry. Um, but ours is to be part of the community. We think this will help the community. Um, it'll drive a revenue stream. It'll bring somewhere around 18 full-time jobs, well-paying jobs, 75K plus, right? That will come into the community. um not including the 200 or so workers that we'll need to construct the site about a 31,000 square foot site depending on final design

and we build them in kind of five kilowatt I guess right uh pods so that we can expand them and that's you know I'm sure you've heard of Meta's data center in Indiana right so there's some big ones going on and so I don't who's your uh who's your partner for this. Um I've got three partners. Uh like so who's going to be operating the data center once it's so uh we have a joint venture with data shelter. Mh. Um they're originally based out of Florida Fort Pierce, right? Um they're we'll construct them and they'll operate them. Okay.

And then they they have if if you know anything about data centers, there's not a lot of tier 4 in North America. When we started there was 17 tier 4 in China and there was two in United States. That's changing rapidly as we all know. Um and tier four is about redundancy. So it's up time or nines. Yep. Yeah. So it's like 99.9 and whatever number you want to put in at the end, right? But they stay up, right? And with AI and ours will be an AI factory, right? It's common.

So I I would like um I would really like to get your operating partner out here and ask them questions as well. Um so my background is in um uh cloud engineering. And so uh when I saw this was coming up, I'm like this fits right in my kind of my wheelhouse. So um how soon do you could you get your partner to come speak at the next meeting or do we need more time? So um we've got multiple so with the data shelter guy former data shelter is a combination of executives right so a lot of XJ&J right

executives right so there's like nine of them on the data shelter side right plus our side um we could definitely get them here um I hate to say it there's a lot going on Oh yeah that it's almost data center fatigue going on right now so we get them here. What we're really trying to do is finalize with our investors the checklist that we've been trying to get. You know, it's somewhere around $126 million project, right?

And so in order to get them, every investor has checklist and this is one of them that we need to have to get the final go ahead so we can go to design. So we have a predicate design with the uptime institute. Do you know? Yeah. So we can fasttrack a design. We figure it'll take three to four months to be shovel ready.

So that brings up a good question. So buildouts right now are really delayed um because of supply chain issues and um I just got you know an email today about even routers and switches are being delayed because of DRAM availability. So, do you do you or your partners uh have the equipment ready to go in there or is that something where we're going to have to order and we're kind of at the mercy of the supply chain? So, it could be 2028, 2030 before we actually start putting servers in there.

Yeah. No, we figure a two-year build and that builds into some of the scheduling problems of getting uh product delivery, right? Um but we're in constant contact. We've got, you know, we're kind of a global company and so we're always talking to people. We're in line with Coler for their generators. We keep changing that, right? But, um, we all know that they'll tell you one thing and then it'll be a different thing after you sign the PO. But, yeah, we're we're on that every day. Okay. How, uh, how many data centers do your data shelter partners currently operate?

Uh, actually none. They sold the one in uh Fort Pierce and uh one of the operators is or [snorts] one of the I guess you say executives is working for another company. I get again startup, right? So they're not all doing it right now, but there's quite a number of them that are still in the the business as I don't want to say part-time, right? But they're still working as we're lifting these off.

Okay. Do you guys um and and maybe you already uh released this. I am a new member to the council. Do you guys have um any sort of documentation or more thorough documentation about how you anticipate the buildout going? Um what kind of customers are going to be leveraging it and uh when you can meet some of them uh I guess goalposts or objectives? Sure. I I will tell you that the last was it it's 80% full right now. Mhm. Um it's a I forget what they call it, but a collocation, right? Yeah. Collocation site. We get plenty of that. They just want to buy them all. But um but they're all on letter intent. What we what I found out in the data center world is no one will sign anything until we give them an end date.

Yeah. You know, because they already got their stuff in the cloud somewhere. Right. Right. So, there's a lot of boring documents that you could read and you probably understand them better than I do, but we could definitely send them to you. Yeah. Okay. Yeah. Mr. Mayor, I'm done. Yeah. Talk to me about the amount of electricity you use daily. Well, [snorts] I I probably don't know. I know we use Jason might be able to help me on this, but it's it's a steady load of And we're looking at 14.7, right?

Correct. A ramp rate, which is kind of what Dwayne was leading into as far as uh kind of that buildout. So, they're going to start at zero and build out five in the first two years and then 10 and then up to the 14.7 I think at four years, right? Yeah. Is where that ramp rate ends. Okay. And [snorts] it will be like like you mentioned, it'll be a 247 load, which is I mean that's the loads that you look for. I mean those are those are good constant loads. They're not up down. So

Okay. Do we have what it takes to keep that keep that up even with when the temperatures if we get those summers where it's 100 105 110 day after day after day? How is that going to affect the the people and their electric use uh when the breakers are blowing and [snorts] things like that? Do we have what it takes to support what they're going to be using versus what we already use? And sometimes we're under alerts to shut it down a little bit. Uh so yes, our our current distribution system has the capacity to to hold the 14.7. Uh beyond that would be a stretch. So we're we're kind of making sure that they're understanding that we're kind of limited at the 14.7. U correct correct correct. Uh they would be they would be located close to the Crusader substation which is up north of town. uh is one of the is the site that they're looking at. Uh so it would be proximity to that and the transformer there has a total load of 27 uh meg. So it it it would it would be able to hold it. Uh currently today I went and looked uh we had a load of 5meg on that transformer. So we would probably offload a couple circuits uh to put them back on the main substation. uh kind of dedicate a circuit to this. Uh I mean I'm I'm not going to sugarcoat it. I mean they're the the load they're talking about is more than the entire load of the city of Wellington today when they're at full buildout. So I mean it is it's a it's a big load. Uh but I

mean that's what I'm in the business of is selling electricity. So this will actually um put us back up to where our load roughly was when Tech was fully operational. Right. It would put us higher than that load. Higher. How how much higher than that? I'd have to look exactly, but it it would be it would be higher. I mean, I think our peak, don't hold me to this, but I think our peak was around 31. They're talking 15 right there. So, I mean, that that's a lot. Will we profit from this?

147. Yeah. Uh, so that that's part of the agreement that's in front of you is I mean, the the agreement that that uh city manager and I worked on was a penny over our cost with KPPP. So, yes. I mean this isn't we're not asking the citizens to subsidize this. So yes there is profit there. I mean yearly I mean will we be getting as addressed in the manager's uh memo? Yeah I mean he he spells that out in there as far as the estimated revenue at buildout. So the revenue I had this question so I'm just going to go ahead and clarify. The revenue is for the electricity but the buildout is in the county. So we wouldn't leverage any like property taxes or anything like that.

Correct. Okay. And that's uh north of MKC, right? Is where that talking one more south. Yes. Um are you asking for special tax relief? So the state of Kansas has already granted us those.

Okay. Um, we're not asking anything from Wellington other than a purchase agreement for the power and we understand that power fluctuates and that, but we we need something for our investors to feel happy to put a check mark on. Um, and I will add that we will work with the city on the infrastructure that they need to do is on us and on our project. And we will be working with them closely to make sure that as design has gone that they're included and that we take care of the needs for the city's power that relates to anything that we're doing to them. Okay.

Okay. I have two questions. One, how will this affect the businesses that are already there if they choose to expand, which will give us more employees and people there? Would that affect them with electricity and the demand and everything? If that area, you're referring to the airport area. Yes, the airport area. If those businesses currently there choose to expand, what is that going to do with this electric and what we currently have?

So, as mentioned, we got we got 27,000 KW up there at that transformer as it sits right now. Uh if they're 14.7 of it, then we got the delta of that to push to the airport. Uh currently, uh that substation is also supporting uh three other circuits. Okay. uh we we may end up doing some rerouting on those circuits to put them back on the main substation uh which they were there originally. We've just kind of spread our load out just because we had the ability to do that. So that leads to my question because I know your electric needs keep changing as you've talked over the last three years.

They haven't changed. the demand the demand is there if you choose if you end up growing to the point where you need more how is that going to affect our system I mean if they after they build they realize that they're growing and need more electricity uh so those would be some lengthy discussions uh okay as as mentioned the current transformer that's setting at Crusader is tapped out at 2700 kW there is a spot at that substation where another transformer can sit on there side by side. Okay. So, their max is 14.7. You're saying totally built out, correct? Right. Okay.

That's our plan. And as Jason said, like there's that's why we built them in fives. We're trying to do it in rural to help the community we're coming to instead of the mega centers, right? So, our plan is, hey, we'll be retired, right? But maybe we're talking about it and we want to do another five. But that's a conversation that'll be part of a business plan later on. But our our goal is to get this one lifted here. And and not only are we bringing some highpaying jobs and construction jobs, but we're also bringing the AI machine that's coming and that's going to attract people because it's going to be right here in town. Jason, you mentioned it's a substation. Let me understand this correctly. There's plenty of electricity coming in to that substation. I you just have to modify that substation to put to discharge more. Is that

we got a 69 KV line coming into that substation that our our crews built uh coming from the Duke substation. We pick up Every's feed at the Duke substation. Uh we carry it to the Crusader substation. We got a transformer there that's 27,000 KW. So, uh, there's that capacity left at that substation after they get their site built. So, yes, it can it can be expanded. It was designed, it was built with the intentions of expanding at some point in time. Uh, now the the the big question mark that I have is the capacity piece of it. Uh, I think I've brought this to your guys's attention before. Uh, we we're fine with their current ask. um the next ask and the next ask. We got to start getting a lot of pieces on the chessboard moving, but that's far enough down the road that, you know, we we have enough uh runway on that to start dealing with it. Uh but we we got to get looking down the road real quick on that. KP is short on capacity in the coming years. Uh part of that is because the goalposts have been moved on us. uh SP changes the the winter capacity on us and changes the summer capacity on us as far as uh capacity reserves. Uh so that mark is going up. So KP is going to have to buy additional power. That's why there is a provision in there uh and could be a sticking point may not be a sticking point as far as a take or pay. So at some point in time we are going to say we need X energy. If they don't take X energy we're still on the hook for X energy. So there's got to be a little bit of stickiness there. So just full disclosure on that.

That and that that revenue that's that's in the memo is that [clears throat] after what we pay for electricity. Okay. And that is with a 3% line loss which is we estimate that to cover our line loss on that. So the future annexation I mean is that as far as property taxes.

Maybe I don't know. Uh other thing I would point out is I don't know what his state incentive package says. So if he's getting a property tax abatement, it kind of becomes mute to us. True.

Jason, just to clarify, excuse [clears throat] me. Can those businesses already out there at the airport, can they expand once this is put in and they're running at the 14.7? Can they expand buildings and still be able to function and we provide the power? Yes. Everything [snorts] you got to remember, I mean, the the Crusader substation is relatively new. It has been commissioned since I've been in this position. So before the Crusader substation, this entire town was carried on that main sub. So the capacity that we have gained by the Crusader substation uh is above and beyond what the city needed even back in the tech days uh as far as carrying the load of the city. So uh yes, it's going to maybe take a little leg work out in the distribution system to tie some circuits back to the main sub. It does increase our exposure. I've talked about that many times where you want to get your your transformer, your substation as close to the end user as you can because it's less points of exposure for wrecks hit taking out poles or whatever the case may be. Uh but yes, it can be done.

Okay. Thank you. Um are you considering other communities for this buildout? Yeah, we're basically all over the world talking like everybody's wanting data set. We get calls every day that they want data centers. So, that's the business I guess we're [snorts] in. I guess what makes uh because I could think of several places that probably have much cheaper electricity uh than we have um or uh would uh already have the infrastructure in place. What makes Wellington the go-to place for this particular project for you guys? Well, I live close to here. Okay.

I mean, and that's that that's fair. That's fair. No, I mean I to to me we want to been down here for like four years and we want to see where we can help the community. It's going to bring our robots here. It's going to bring jobs here. Um and it'll let us reach out into the community. Um yeah, we're talking to all over, right? And all I could say is everyone wants to know where the power is, right? And they'll go wherever the power is. I can tell you our company's based out of Canada and if you've been to the Northeast power and they don't care. Yeah,

it's the cost and I hate to say it, it get passed on to the customer in the end. Right. So that's why this purchase agreement, we know it's flexible, but we just need to have something and then it just becomes part of a spreadsheet that I don't understand. What What other comm are you? So are you looking at other communities in this region in South? looked at a couple um in eastern Kansas and one close to here.

Um but yeah, we've got some in Toronto, we've got some in Ontario, I guess you could say. We've got some We've even talked to Iceland, right? So, we've got them all over. We got Ohio, Texas. Everybody's looking for data centers. So, if we approve this LOI, um, what kind of time frame would we know if you guys do actually intend to? So, I got I think we have a Jeff, is it a 60-day to uh to is that to finalize everything or get the draft agreement in place or the concept would be

at least to get [snorts] some kind of draft agreement in place and to show some kind of movement on purchase of the property. Okay. Okay. Questions?

I Yeah, I have a couple more. Sorry. Um, so would you be able to send me information on this gel-based cooling technology? So I I used to work in a data center in Northern Virginia, for example. So you talk about the Northeast and you know how expensive it is. I I get that 100%. Um, but I'm I'm curious if you're running AI workloads, uh, how the jailbased technology is going to compare to to liquid cooling. And certainly with AI workloads, GPUs, as you're aware, you can't do a hot oil aisle, cold cold aisle sort of build out because the air just can't transfer the heat out fast enough. So, would you be able to send me documentation related to that to your jailbased cooling technology? I'll even sales as far as

Yeah, I'll I'll have to talk to them. Again, it's a utility patent that they don't like to share. So, I'm sure there's a way to get you the information. It's it's not a secret really on how we're doing it. It's just whatever your sales guys are given given to your potential client that works. I'll let you I'll you know probably the best to to talk to some of those guys that understand it a little bit better and they can reach out to me directly. That's fine. Um the other question um actually I may not have another question. Nope actually I don't have any other questions.

Okay, one more. I have one more question. Have you been turned down in places? I mean, where you're at right now, have you been turned down to not in communities? Mhm.

No, we we haven't, but we're relatively new in the game. So, but part of part of what we're doing with the waterless and the energy patents that we have is to to kind of get rid of the stuff that happened in the early 90s, I guess, you know, that that that they really did that. Um, and we aren't we haven't talked to Sedvic County, right? Um, but we're trying to go rural. That's that's kind of where we want to bring it. So if they can get us power they they're they're ready, right? Jason, I got a question for you. Yes, sir.

Can you reinsure us that we won't have any outages or it's not going to eliminate any capacity for any future building out there? No, I can't assure you that you're not going to have outages. So, we could have outages if this thing happens. And you can have outages without it, too. Well, true. But as far as what we have out there right now for a AR and GKN, you you can have outages now just like you could with it. So I I can't assure that. No. Okay. Thank you.

So one thing that I did note as I was looking through the agreement there, the the backup generation, remember you guys are proud owners of two, actually more than that, but two main generators, a steam plant and a gas turbine, roughly 20 megs a piece. So that's 40 between them with this addition. Uh I just pulled up July's numbers last year. We were at 21.5 for a peak. So with the 15 added on to that, that puts us at 35. That's putting us right towards the top of our generation capacity for the entire city. So if we get a really hot summer, I may not be able to have enough generation for backup generation for the entire town. Now, very rarely do we use the steam generator as backup generation. That's mainly the gas turbine. Um, but just so you're aware [snorts]

and should I note too, Jason, that we've got generators ourselves, too. Yeah, they're going to have on-site generation. We have an A and a B side to each one. So, there's two generators for every pod. How long can those run? Depends on the size and model, but yeah, they can they're big, so they can go six, seven hours without refueling anyway. Any other questions?

Um, yes, I do. So with data centers and what you're developing specifically um what is like the lifespan of that and with different technology and stuff as they come

so it's changing every day right um I like to say hundred years right and and that's usually what it is in 99 year lease if you don't buy the land right um but again cutting edge technology we're on an A and a B side so You're never on. It's either powered on A or it's powered on B. It's never on. So when we need to update, we'll just switch over to B and update A and then switch it over to A and update B. They'll it's almost seamless. We can do a shutdown and a total remod without every effect in the data center.

Yeah. council. I guess we need a No. So, Jason, you don't think in five or six years this is going to come back and bite us, right? If I had that crystal ball, I probably wouldn't be working there. [laughter]

Would like to make a statement. Um Jerry, go ahead. Oh, yeah. Yeah.

So, um I I I do want to state that um like I I'm not patently anti-data center. I think data is a critical part of our modern society. Um and I think that data centers in general uh despite a lot of what you see online can be a um a positive uh can bring positive benefits to a municipality. um the uh besides you know higher tech workforce and some of the higher paying jobs I think I think that they can uh bring um again just positive benefits I just think we need to tread very carefully as we um navigate through this. So I guess my question then Jeff is uh we signed this letter of intent. Um they have 60 days to come back demonstrating site control and providing the city with a draft easement agreement like my my thought is to table this for at least one more meeting so I can review some of the literature um that Corore is going to uh send make sure I feel comfortable with you know how the buildout is going to go that it's it's a legitimate opportunity and it's going to you know be good for this area. But if we do the letter of intent to get things moving and we have a chance later on to say, you know, we don't feel comfortable with this as a council, um, I might be more inclined to say, yeah, let's move forward with the LOI tonight rather than hold. So, will we have that opportunity, Jeff? So the idea of the resolution and the LOI before you was at least so that they could go to their investors and with the understanding that we would be working to negotiate a full, you know, set of agreements, but this was to kind of give some some guidance and some maybe some guard rails on either side for for the party so that we kind of have a base understanding of what are probably some

of the more sticky issues that we have found out there when it comes to trying to negotiate. U you know energy sales agreements um from a staff perspective you know tableabling it is kind of immaterial to us. Um I think it impacts the applicant and their investors more than than staff. So I guess um you know if you do want to table it to another meeting that's okay. Um but I I I don't know that that you know will hold well with them. Um been in play for 3 years though, right? I mean this So we've been waiting for 3 years for this agreement.

So I thought originally that it was supposed to be fully operational at the end of 2025. Is that when it was originally presented? That's what we thought was going to happen. Again, it's a rather large project and those guys won't sign off and we're trying to check all these boxes and we've been trying. Those guys aren't going to give out hundred and some million dollars without everything that they want checked off. And that's what we're trying to do right now. And and I can guarantee you it's going to be a sit down and make sure that everyone's happy before we go. But we need to get these [snorts] before they lose interest. um get some of these check marks so then they could say this is something we're looking at then we can talk but until they get that they'll go to another they'll go elsewhere.

I'd like to make a motion to table this because I need my own check marks I'm not comfortable saying yes or no tonight too many things um are bouncing around in my head that I would need answers on also. So that's my motion. Second. Motion. Second. Second. Can I get a roll call vote? Sure. Mr. Haye, no. Miss Lucas, to clarify, the no is to not table it. A yes is to table. Motion to table it. To table. Motion to table. Yes. Motion to table. Yes. No. Mr. West Morland. Yes,

Miss Antonich. Yes, Mr. Elmore. Um, yes. To table. Okay. Yes. To table it, Miss Grace. Yes. [clears throat] Thank you. So, that's four yes votes to table it and two no votes. So, we are tableabling the motion for the resolution. Okay. Do we don't you don't need a number for that. Huh? We don't need a number for that. No, not when it's tableing. But now we got to go back. It's just on hold. So we going to bring this up next meeting. Does that have time? I'm fine.

Yeah, I think I can resolve my concerns by next meeting or against. It'll be next meeting 17th. What's that? You brought up on the 17th. Okay. We'll move on to uh second resolution rejecting all bids to con to contract for the Hibs Hootinfield audio system project. I guess J uh

yeah so we went out to bid for the Hibs hootin sound improvements based on the uh previous direction from council. We received bids um that were all a lot higher than anticipated. The low bid is recommended for rejection by our engineering firm because they said it did not meet the specifications as as bid. Um we have reached out to some of the other parties that were going to be you know contributors to the project and at that cost there doesn't seem to be a lot of interest. So, we're recommending that bids be rejected. In the interim, we have ordered a new soundboard and we will reinstall uh speakers and wires uh for the existing sound equipment so that we do have sound for the summer season. But we will get with PEC and potentially re-evaluate how we might be able to shave cost or if this is just what the cost of, you know, a modern sound system for the facility would be. Any questions?

Move to approve. Second. Have a motion and a second. Heidi, can I get a roll call vote? Mr. Elmore? Yes. Miss Grace? Yes. Mr. Haye? Yes. Miss Lucas? Yes. Mr. West Morland? Yes. Miss Antonich? Yes. So that's six votes to reject all bids for the contract on the Hibs Hootin sound system. That is resolution number 6427.

All right. Uh third resolution. Resolution fixing the time and place and providing notice of a hearing before the governing body of the city of Wellington, Kansas, at which the owners, their agents, any line holders of record or any occupants of the buildings located below may appear and show cause why such building should not be condemned and ordered demolished. Jamie,

yes. Uh, Mr. Mayor, council, uh, you got before you a resolution to set a time and date for a public hearing regarding the property conditions located at 8:16 East 4th. Um, back in October of last year, a fire uh was was on the property uh, rendering the structure there uh, completely at a loss. Uh, there was no home insurance for this building. Um couple days after the fire, the owner did contact our office, talked to me personally. Um said that they were in the middle of getting a contractor to clean up the property, said great. Um and that's the last contact I've had since October. Um I've sent them a couple letters. Um they've received them, but no contact with them. And uh prior to that, it it we know we we did have some uh nuisance issues with it. They were in the middle of cleaning this up prior to the fire happening, but then we've lost I've lost all contact with them. They haven't answered any any of my letters or or made any contact with me. Um so I'm just looking for a motion to to bring any interested parties and so we can get the property cleaned up. questions.

Move to approve. Second. We have a motion and second. Heidi, can I get a roll call vote, please? Miss Antonich, yes. Mr. [clears throat] Elmore, yes. Miss Grace, yes. Mr. Haye, yes. Miss Lucas, yes. Mr. West Morland,

yes. So that's six yes votes to set the time and place for resolution number 6428. Okay. I want to remind the council I kind of I've let it go but when we have these uh ordinance and resolutions when I ask you if you have anything say please address the chair because we're start to talk over each other. So please, if anytime something like this comes up, address the chair and you will be noted and you will speak. But right, just like tonight, everybody's trying to butt in on everybody, which I know you don't mean to, but let's just get this straight right now. So from now on, that's going to be um Jeff, no uh study items besides the work session,

25th, correct? And then for the alcohol and meeting, we've got to be here. Who's on that? 5:45. 5:45 on the 17th before the meeting at 6:30 on the 17th. Okay. No exact session. Move to adjourn. We have a motion, a second to adjurnn. All those in favor. All those opposed. We are journ.