Hillsboro considers contract with Westar
Staff reporter
Hillsboro City Council is reviewing an electrical base load contract with Westar Energy that will provide lower cost capacity energy to the city.
During the Oct. 16 meeting, the council heard a presentation from Kansas Power Pool President Bill Calloway.
Calloway is the director of utilities at Clay Center and said the Clay Center Council approved its agreement.
The agreement is for 20 years with Westar Energy at a total cost of less than $38 per megawatt for the city's base load or the maximum amount of energy required during any given time. The current base load price is based on a demand charge of $12.69 per kilowatt, operation and maintenance charges, and an energy charge of approximately $18 per megawatt which all adds up to the $38 per megawatt price.
That amount was determined by taking an average of electrical use by the city during a three-year period.
Westar also agreed to a 10 percent cap on increases.
The formula used to determine the future demand and energy costs is the same formula that Westar uses for all wholesale contracts within Westar's control area.
In a written executive summary from Colin Whitley, general manager of Kansas Power Pool, base load contracts are difficult to find. Cost-based base load contracts only are available by either participating in or the city building its own new unit. The contract is being offered because of Westar's commitment to being a partner with the public power communities in Kansas and its willingness to partner with Kansas Power Pool, the memo stated.
If the council approves the contract, the Federal Energy Regulatory Commission will have to approve it which typically takes about 90 days.
A decision was tabled until a future meeting.
In other business:
— The council approved the sale of Lot 1, Block 1 at the newly-platted Hillsboro Business Park. Clint Seibel had negotiated a sale with Albert Reimers and the city received an earnest money deposit. The purchase price of the lot was $20,000, and will be located long Ash Street.
City administrator Larry Paine said the proposed business is a retail business of recreational vehicles.
— More than $65,000 will be spent for chip sealing city streets. APAC Construction presented a proposal for the project for a total of $65,016. The special highway fund will be used which currently has a balance of $111,000.
— A conditional use permit was approved for Cottonwood Valley Independent Baptist Church at 108 W. C Street which is zoned commercial. The church currently meets at 114 S. Main, Hillsboro, and is in the process of purchasing the property on C Street.
— City engineer consultant Bob Privatera reported he will meet with city officials regarding the city's new business park and drainage, and had completed a survey for Hillsboro Development Corporation for property recently purchased by USD 410 from HDC.
— During Paine's administrator's report, he advised the council that a utility analysis was needed to determine possible cost increases, and safety inspections were completed of all city facilities.
Paine also advised the council that it needed to discuss options related to a county hospital per the request of Marion County Commission. The council decided to meet at 4 p.m. Tuesday.
— Councilman Bob Watson asked the council to consider a work session to discuss the future use of the former AMPI building.
— The rental of city safety equipment such as barricades and cones, will no longer be allowed. Paine told the council that he was concerned about the city renting its equipment to contractors because there may be a time when the city would need the equipment and won't have it available.
— The council approved the purchase of 13 jackets for its local Emergency Medical Services volunteers at a total cost of approximately $1,000.
— As reported in last week's edition, the city council tabled a decision regarding the designated zoning of allowing liquor by the drink in restaurants.
The next regular council meeting is at 4 p.m. Nov. 6 at city hall.
