December 2, 2024 Commission Minutes

GOODLAND CITY COMMISSION

Regular Meeting

December 2, 2024                                                                                                                 5:00 P.M.

Mayor Aaron Thompson called the meeting to order with Vice-Mayor J. J. Howard, Commissioner Jason Showalter, Commissioner Ann Myers and Commissioner Brook Redlin responding to roll call. 

Also present were Dustin Bedore – Director of Electric Utilities, Jason Erhart –Chief of Police, Joshua Jordan – IT Director, Neal Thornburg – Director of Water and Wastewater, Danny Krayca – Director of Parks, Zach Hildebrand – Code Enforcement/Building Official, Jake Kling – City Attorney, Mary Volk – City Clerk and Kent Brown – City Manager.

Mayor Thompson led Pledge of Allegiance

PUBLIC COMMENT

PRESENTATIONS

A.  KMEA Ninnescah Flats PPA Solar Project Presentation –Tyson McGreer Manager of Member Services and Neal Daney Director of projects from KMEA are present to discuss solar project.  Tyson stated, KMEA is a Municipal Organization formed by Municipalities in 1980 to assist Communities access to power supply.  We have 88 members and are in every corner of the state.  We offer maintenance to service power supply and power supply planning.  We plan the power service for about 40 members, then some like Goodland where we service the WAPA you purchase.  Other services we offer are Mid-States which we recently purchased, in house rate studies and legal attorney.  Our power supply is structured into three energy management projects.  EMP1 consists of the eastern cities, EMP2 is many western cities and where Goodland would fit and EMP3 are smaller cities in center of the state.  With your power plant you could sell power to other municipalities in the EMP group that need power.  We primarily help Goodland with your WAPA out of Colorado and schedule Mid-States.  If City would use KMEA for power, you would fit in EMP2 group.  There are three main components to power supply; 1.  Capacity and demand, which is the ability to produce energy.  Goodland meets with your power plant energy; 2.  Energy or the power you purchase; and 3.  Transmission of electricity.  We are part of the Southwest Power Pool (SPP) market who manages the energy market within the region.  In energy management, we would bid your daily services by purchasing and balancing energy from the market.  We facilitate and manage SPP transactions and will optimize your power plant.  If you were to go in the market with your plant, we can request your services and sell your power.  Long term we are looking at long term contracts and how we layer in the contract.  We are owned by the members and there for the member. 

      Neal stated, the map of SPP has pricing nodes that differ by location.  KMEA is no different than Sunflower or Evergy Energy.  We look at customer loads and bid market a day ahead based on needs.  If all resources are normal in SPP and there is no congestion local marginal pricing are all same.  But if there is congestion, prices are different by location making it tough to meet all loads.  This is similar to what happened to Kansas in the 2022 freeze.  There are lost components when moving energy across lines, which is normal.  We are working with Neer on a large scale 200 MW solar project in Pratt County, west of Wichita that is expected to be online late 2026 to January 2027.  KMEA signed up for 90 MW.  The expected capacity is when the sun is shining to produce or 27% of energy.  City can claim 100% of WAPA allocation.  Whatever the City allocates in this project would cover 14-15% of City needs during peak hours when prices are predominately most expensive hours. Our expected capacity accreditation is 40-50% because of expected capacity.  In order to lower negotiating prices, they maintain renewable energy components.  Prices bounce around because of the number of factors playing into market prices.  The coal plants are being retired and replaced by renewable energy plants.  With that we are seeing prices double until we receive more fossil fuel.  We would like to know if the City is interested in small modules to get more reliable fuel online.  We have discussed with Kent and Dustin how the City power supply would look like under KMEA module.  We looked at fixed energy 5X16 annual peaking of 5 MW to cover City Monday through Friday from 6:00 a.m. to 6:00 p.m.  That would cover 40% of your energy needs.  If you participate in solar project that will cover about 15% then your WAPA allocation is 5%.  That will leave about 40% you will have to rely on SPP market.  This is a risk but you also have your power plant, which is good negotiating tool.  Your WAPA allocation expires 2054 then in 2027 the City will have 95% of portfolio open.  We want to be competitive in our proposal for the energy.  City’s peak is 12 MW.  There are several times in the year you will have more energy than you need.  With KMEA model, you can sell energy back into market and get compensated at full market price.  Mayor Thompson asked, you are saying on days Goodland has extra power it gets sold at market or the price for solar power?  Tyson stated, it is sold into market at market price that day.  It will depend on the day and price.  Typically speaking should be close to whole.  Neal stated, all resources are bought the day before and you will know closer what the market is in comparison to what you are purchasing for your load needs.  This should be closely correlated.  Fixed energy cost is contracted at $50 MW.  Will this be beneficial to City?  It is hard to tell, because prices are constantly changing; however, it will stabilize your rates for 14-15% of your load.  Tyson stated, timeline for the contract requires KMEA to have contracts back by end of December.  There are a couple outs.  Neer has sold ½ MW allocated for project and believe they have buyer for remaining.  If they do not have buyer by March, it is for not.  Also if tariffs are put in place we have a way out.  Mayor Thompson stated, if we agree to participation in project, it is not binding until those factors are in place.  Commissioner Showalter stated, with changing energy needs we have to look at ways to diversify portfolio and this is a step we need to take.  Mayor Thompson stated, I agree and this is a way to shore up some numbers in portfolio.  We need to rely on Dustin as to load feels we need.  We have discussed 2 and 3 MW.  Tyson stated, we will run any model the City wants.  3 MW is 14% of your load but we are good with 2 MW.  Mayor Thompson stated, we will let you know.  Dustin stated, I am favor of project and running numbers to determine percent we want to take, but feel a step in right direction.  We are hand tied with our current contract.  Commissioner Showalter stated, we need to get moving now to get on board.  Kent stated, our plan was presentation at this meeting and present agreement next meeting.  The agreement is in your packet tonight to review.

CONSENT AGENDA

  1. 11/18/24 Commission Meeting Minutes
  2. Appropriation Ordinances: 202-23, 2024-23A and 2024-P23

ON A MOTION by Commissioner Showalter to approve Consent Agenda seconded by Commissioner Myers.  MOTION carried on a VOTE of 5-0. 

ORDINANCES AND RESOLUTIONS

  1. Ordinance 1793: Annexation of City owned property west of Topside Manor – Kent stated, this is the 35 acres west of Topside Manor, including the waste ponds from water treatment plant.  According to K.S.A. 12-520(a) and (f) it fulfills conditions since City owned property.  ON A MOTION by Vice-Mayor Howard to approve Ordinance 1793: Annexation of City owned property west of Topside Manor seconded by Commissioner Showalter.  MOTION carried on a VOTE of 5-0.

FORMAL ACTIONS

  1. 2025 Renewal of BCBS Health Insurance – Kent stated, staff met with Jalaa Miller from IMA regarding insurance renewal.  Jalaa stated, the change is a 9.5% increase in the amount of $71,243 due to increase in utilization.  Looking at trends, this increase is right on board.  Administration costs remain flat, stop loss which is currently at $30,000 level is 9.4% increase and largest increase are expected claims at 10.5%.  We recommend City remain with grandfather plan but increase stop loss limit from $30,000 to $40,000 which means city will take on more costs.  This would drive premium for stop loss down.  In evaluating plan and how has been running, we feel it is time to take extra risk on stop loss.  Mayor Thompson asked, explain how adjusting from $30,000 to $40,000 is worth taking risk for $3,000 cost difference.  Jalaa stated, we look at number of claims over stop loss limit.  If increase limit to $40,000, we estimate three over stop loss where in 2023 there were five over $30,000.  For 2024 there is only one that has exceeded $30,000 and $40,000 limit.  The stop loss premium at $40,000 is $274,318, which is an annual difference of $43,542 in savings.  The City would have to have four individuals go over the $40,000 limit for savings not to benefit the City.  The way the plan is running, we do not believe that will happen this year.  We reviewed non-grandfathered plans.  There was not much price difference but the maximum out of pocket expense for the employee is $5,000.  Employees and families take on more risk of out of pocket expenses.  I know city uses benefit for recruitment and this plan would not be good for recruitment and retention.  The way prescription plan runs today, there is deductible, then co-ins of 50% which is keeping down cost of plan.  Overall city averages prescription costs of $2,303 a year.  If change to non-grandfathered plan this is an unknown liability with the way drugs could hit the plan.  There are many unknown costs in pharmacy and new medications when city prescription costs currently are so low.  If they become stop loss hits, it will affect the plan.  We have put together 3 options for renewal.  The first is keep plan the same with City paying insurance cost, increasing stop loss limit to $40,000.  The second is same as first but increasing employee contribution to 2% in 2025.  Annually that is $16,281 paid by employees.  To maintain a grandfather plan, employee can pay up to 5%.  The third option is same as option two but no employee contribution on employee only plans.  Mayor Thompson stated, any option we look at the City has to come up with a lot of additional money.  Kent stated, we budgeted an 8% increase for insurance in 2025 so the majority of increase is budgeted.  We will have to take a minimum amount from somewhere else.  Past renewals have been well.  Jalaa related that most municipality increases are 14-15%.  Commissioner Showalter asked, we budgeted 8% of increase, where do we get remainder?  Kent stated, cash reserves from employee benefits and Self Insurance fund.  We have made strides to make those two funds healthy.  The decision can be to maintain plan and we can work with it.  Commissioner Showalter stated, we almost have it covered.  I feel we could go one more year.  Vice-Mayor Howard stated, I feel we need to keep same plan and then in March when plan is effective, discuss with employees that they have a year before they may have to contribute to plan.  I am in favor of City paying plan this year.  Commissioner Showalter stated, we have had conversation and it is clear at some point there will have to be employee contributions, but longer can leave plan as is the better the benefit.  Mayor Thompson stated, getting off plan will be hard as it is a good plan.  You will need to evaluate in budget because you will need to know at that time the amount expect employee to pay.  It is a hard decision six months before you know renew.  I am in favor of leaving plan as is with the minimal cost we need to make up.  Commissioner Myers stated, we are close to what we budgeted.  ON A MOTION by Mayor Thompson to approve renewal of 2025 BCBS Health Insurance raising the stop loss limit to $40,000 with plan paid 100% by City seconded by Commissioner Redlin.  MOTION carried on a VOTE of 5-0. 
  2. Banking Services RFP – Mary stated, it has been some time since we performed a request for banking services.  This has been a learning experience.  We received bids from all three banks which are designated depositories with the City.  FNB bid outlined fees for some of the main banking services.  Western State Bank and BANKWEST offer main banking services at no charge.  These two bids outline tools used to manage money in the main account to ensure balances are adequate for daily processing.  BANKWEST uses ICS which is where they deposit money in banks all over to ensure adequate pledging.  They transfer money in or out of account to cover transactions at City request.  Western State Bank has a similar tool with a money market account; however, they monitor the account to ensure the City’s requested balance remains in the account and the money remains local.  They ensure we are adequately insured through securities pledged to the City.  Western State Bank guaranteed the rate for this fund at 3.25% for one year.  ICS rate has been 3.15% since April.  I have requested an increase couple months back which was declined.  Both banks have merits and I am intrigued by the money being invested locally.  Joshua Dechant Western State Bank Center President stated, with our money market account, everything Mary does manually with ICS account at BANKWEST, our system does automatically.  ON A MOTION by Commissioner Showalter to approve the bid from Western State Bank for banking services seconded by Commissioner Redlin.  MOTION carried on a VOTE of 5-0.
  3. Appointment of Koal Artzer: Housing Authority Board – Kent stated, this recommendation is from Housing Authority and staff recommends appointment.  ON A MOTION by Mayor Thompson to approve the appointment of Koal Artzer to the Housing Authority Board seconded by Commissioner Myers.  MOTION carried on a VOTE of 5-0.
  4. Resignation of Dustin Stephenson: Airport Board – Kent stated, Dustin submitted his resignation from the Airport Board as of December 31st to review the AIP that is approved in January.  Board will meet next week and they will discuss board applications received.  ON A MOTION by Commissioner Showalter to approve the resignation of Dustin Stephenson from the Airport Board effective December 31, 2024 seconded by Commissioner Vice-Mayor Howard.  MOTION carried on a VOTE of 5-0.
  5. Pay Estimate #5: Goodland Industrial Park Improvement Base Grant – Kent stated, sewer main is almost complete with this pay estimate in the amount of $93,341.82 to Miller Construction.  Project is close to completion.  ON A MOTION by Mayor Thompson to approve pay estimate #5 in the amount of $93,341.82 to Miller Construction seconded by Commissioner Redlin.  MOTION carried on a VOTE of 5-0.

DISCUSSION

  1. Initial presentation of proposed multifamily development – Connor Hampton, Bridger Companies – Connor stated, I am looking into a multifamily development in Goodland.  I have been around construction my entire life.  We recently completed a similar model of which I would like to concentrate.  I like to model plans for smaller communities because state is trying to build housing in the rural communities.  Colby is currently building what I am proposing.  First step is to zone property as a Rural Housing Incentive District (RHID).  I will work with the City.  In theory this is what will pay for infrastructure and development which keeps the City from being responsible for the costs.  You do a special assessment bond up front, then the RHID pays off the assessment.  There is no missed income from the property.  No money is taken from the City or developer to build.  I will be writing grants on behalf of the City for vertical construction.  We are starting with 20 units or 10 duplexes, then build more as needed.  We would like to partner with a local bank to purchase tax credits.  One modification to our plan is we would like to build one closet as a shelter.  We are the developer and hire local contractors and banks for project.  Commissioner Showalter asked, what is the timeline and what do you need from commission?  Connor stated, we need an updated housing assessment.  Julica Ohara Executive Director of SCCD stated, we completed one in 2021 and are negotiating a new assessment in 2025.  Connor stated, RHID is first step with a resolution establishing the 35 acres for the development.  I will write grants and the city may need to send a letter stating land is available.  I feel we need the updated housing assessment for grant applications.  A lot of steps come together quickly but RHID zoning is first step.  We start with 10 duplexes but if entire property is zoned as RHID, we will be able to continue building duplexes as needed.  The city approves the project but there is a 30 day veto period.  The county or school district can veto the project in that period.  Once the City approves the project and 30 day veto period passes, the state must approve.  Mayor Thompson asked, have you built other projects?  Connor stated, yes we have many projects going on now.  Mayor Thompson asked, what are the costs for the recent one?  Connor stated, units are in Wichita selling for $183,500 per side and rent for $1,500 to $1,550 per side.  Numbers look different in all communities.  In western Kansas, property values are lower but the demand is there.  It will cost more to build in Goodland than in Wichita because there are less contractors.  That is why we need grants or project will not move forward.  Looking at new construction, this is more cost effective to a home owner or renter.  Commissioner Redlin asked, what is square footage?  Connor stated, about 400 square feet.  Mayor Thompson asked, is purchasing tax credits something Western State Bank does Joshua?  Joshua stated, yes we have purchased them in the past.  Mayor Thompson stated, sounds appealing and we will not know what they will sell for here.  First thing is to do assessment and resolution for RHID zoning.  Connor stated, I will talk to state to see if we can use 2021 assessment for RHID zoning. The updated assessment will help with grant application.  Kent stated, the updated housing assessment will strengthen grant applications.  Joshua stated, when I was commissioner the city negotiated purchase of this land for the water treatment plant.  We pursued to purchase the entire 35 acres from school for this reason.  Commissioner Showalter stated, I am in favor to keep working toward goal.  Kent stated, this is one tool and like the land banks, meeting with the school and county prior to project will be advantageous. 

REPORTS

  1. City Manager – 1.  Manager memo is in the packet.  2.  North sewer main line is complete on the Industrial Park Project.  Contractor has a couple clean up items to address.  They are approaching wrap up.  City has completed water main connection but it has not been charged.  All infrastructure is in the ground.  3.  Zach stated, on November 4th commission gave property owner at 321 Broadway 30 days to address issue.  That time period ends Wednesday.  I would like to send out bids that day so commission can approve bids next meeting.  We do not expect communication from property owner as all mailings have been returned.  4.  We have had a request to improve a couple streets west of Alex’s Radiator from 17th Street to 18th Street, between Texas and Montana.  The streets have become in disrepair with the railroad employees and Scoular expansion.  Kenton is planning on adding mills to the streets.  5.  Snow Plow for the snow removal grant with FAA has arrived and is operational. The technician was onsite and ran into another hurdle where it attaches to loader.  They will have to make a small adjustment to the connection.  The hydraulics are getting replaced and operational for winter.  These are large pieces of equipment.  6.  Land Bank ordinance was discussed with Sherman County Commission and School Board last week.  Good meetings, both are in favor and look to move forward.  They had a couple questions but it will be ready for next meeting.    
  2. City Commissioners

Vice-Mayor Howard – 1.  No Report 

Commissioner Showalter – 1.  No Report 

Commissioner Myers – 1.  No Report 

Commissioner Redlin – 1.  No Report 

EXECUTIVE SESSION

  1. EXECUTIVE SESSION – Under the Authority of KSA 75-4319 (b) (1) for personnel matters of non-elected personnel – Mayor Thompson made a motion at 6:50 p.m. to recess into executive session under authority of K.S.A.75-4319 (b) (1) to discuss personnel matters of non-elected personnel not to exceed ten minutes.   I request only City Commission be present.  Commissioner Redlin seconded the motion.  MOTION carried by a VOTE of 5-0.  Meeting resumed at 7:00 p.m.  Mayor Thompson made a second motion at 7:00 p.m. to recess into executive session under authority of K.S.A.75-4319 (b) (1) to discuss personnel matters of non-elected personnel not to exceed ten minutes.  I request City Commission and City Manager be present.  Vice-Mayor Howard seconded the motion.  MOTION carried by a VOTE of 5-0.  Meeting resumed at 7:10 p.m. 
  2. Action from Executive Session – ON A MOTION by Mayor Thompson to approve a 2024 bonus in the amount of $5,000 over contact amount for City Manager Kent Brown seconded by Commissioner Showalter.  MOTION carried on a VOTE of 5-0.

ADJOURNMENT WAS HAD ON A MOTION BY Commissioner Redlin seconded by Commissioner Myers.  Motion carried by unanimous VOTE, meeting adjourned at 7:15 p.m.  Next meeting is scheduled for December 16, 2024.

_____________________________

ATTEST:                                                                               Aaron Thompson, Mayor

_______________________

Mary P. Volk, City Clerk

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