City commissioners relinquished a Community Development Block Grant for infrastructure improvements and granted an amendment to an incentive compliance agreement during a short meeting Wednesday evening in the city commission/municipal courtroom.
Commissioners also approved a $403,300 reduction in a water treatment facility improvement project.
City Engineer Mike Novak told commissioners that the original low bidder, UCI of Wichita, remains the contractor for the project, which has been reduced from $2,797,000 to $2,393,700.
The $403,300 reduction in cost was achieved through concessions from the contractor and, primarily, from reducing the scope of the original project, Mayor Jeff Longbine explained.
The vote on the changes was 4-0-1, with Commissioner Jim Kessler abstaining.
The approval is contingent on review and approval of the change order by the Kansas Department of Health and Environment.
Commissioners voted unanimously to relinquish a $750,000 block grant that was to have been used for water, sewer and road improvements for the REG biodiesel project, Assistant City Manager Mark McAnarney said.
“As you know, the project was placed on hold in 2008,” McAnarney said, “... and so the state has asked us to relinquish our right to the grant, knowing that if something comes up in the future, we can reapply.”
Longbine said that REG officials say Emporia remains a viable site and that they hope to be able to finish the project.
“But right now, the capital markets are still out of favor,” he said. “There’s numerous things going on in Washington that will determine the future success ...”
The city and REG are in the process of renegotiating the company’s incentive compliance agreement. The original agreement had some payments to be made in lieu of taxes.
“They are current on all payments that were required to be paid to the city, at this time,” Longbine said.
The city plans to assess water and sewer line improvements to the REG property, and a background provided at the meeting stated that the city recently had received a U.S. Department of Economic Development grant to pay 50 percent, or up to $300,000, for street improvements for the extension of Penny Lane that will serve the REG and Hill’s Pet Nutrition operations.
“It is anticipated that 50 percent of the cost of street expansion will be special-assessed against the REG property,” a background summary noted.
Commissioners voted unanimously to amend the compliance agreement with Hill’s Pet Nutrition until June 2010, to allow the company to complete and occupy the plant and put it into production. The date for that had been January 2010.
“Due to circumstances ‘way beyond their control, they need that additional time to get up and going,” City Attorney Blaise Plummer said. “... Every day you can see progress is being made.”
The amendment of the start date will keep the state’s deadline and the city’s deadline the same, rather than having one date for the state’s tax credit agreement and a different date for the incentive agreement with the city.
The commission approved the consent agenda, which included a resolution to invest $2,000,000 for 180 days at .2000 percent, with a projected yield of $1,972.60.
The consent agenda also included a grant agreement with the Federal Home Loan Bank of Topeka for $247,500 that is to be used to assist 40 first-time home buyers with $4,000 each in down payment and closing cost assistance. The grant also contains provisions for assistance to 25 additional homeowners to make repairs on their homes, up to $3,500 each.
The vote on the consent agenda was 4-0-1, with Kessler abstaining.
In other action, the commission approved:
• a proclamation recognizing the 20th anniversary of the Americans With Disabilities Act.
• a proclamation recognizing Messiah Lutheran Church volunteers for restoring the city’s 1940’s-era Nativity scene.
The scene was removed from the city building’s front lawn in the late 1980s, after vandalism and local controversy forced the city to put the scene into storage, the proclamation stated.
Buildings supervisor Ed Rathke congratulated the volunteers on their work.
“They did some rebuilding on animals that I didn’t believe could be done,” Rathke said. “It just looked the best I have ever seen.”
• a license agreement for a sewer service line on city right-of-way for a house at 1101 W. South Ave., west of South Chestnut Street.
The house was built outside the city limits before 1900 and had never been connected to the sewer system.
City Manager Matt Zimmerman said that the homeowners will pay for the sewer line, as all property owners do, and the license agreement will not transfer automatically if the land is sold.
• rezoning Lots 3 and 5 of Block 4 on Bel Aire Drive in the Anderson Addition from R3 to I1.
The property owner wants to build a storage building, which the planning commission earlier had voted 6-0 to recommend approval by the city commission. No one spoke in opposition to the plan, Zimmerman said.
Commissioner Kevin Nelson said he had concerns about handling water runoff from a building of the size proposed. Novak said that storm water runoff will be a consideration when the owner applies for permits.
Commissioners met in closed session to discuss matters involving attorney-client privilege. No action was taken.
Zimmerman gave commissioners an update of the Commercial Street water main project, which staff hopes will begin early in June and be completed before classes resume for the fall semester.
Zimmerman described the project as difficult and complicated, involving “old infrastructure in an old, old part of town.” Water will be shut off by necessity at businesses downtown as the work progresses. Zimmerman also anticipated parking issues, trying to connect to old water mains, moving water meters, and service lines as some complications that would arise as the work progresses.
“So what we’ve done is we’ve done a QBS — quality based selection process — to contract out for engineering firms,” Zimmerman said.
Seven packets were sent out, and five were returned. The city is looking for a firm with experience in dealing with old infrastructure as well as with local merchants in similar projects, while still trying to hold down costs, he said.
City staff will meet with the Golf Advisory Board members this month to discuss prices for the coming year at the Emporia Municipal Golf Course.