August 18, 2025 Commission Minutes

Mayor Jason Showalter called the meeting to order with Vice-Mayor J. J. Howard, Commissioner Ann Myers, Commissioner Sarah Artzer 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, Kenton Keith – Director of Streets and Facilities, Neal Thornburg – Director of Water and Wastewater, Danny Krayca – Director of Parks, Zach Hildebrand – Code Enforcement/Building Official, Jake Kling – City Attorney, Shauna Johnson – Deputy City Clerk, Mary Volk – City Clerk and Kent Brown – City Manager.

Mayor Showalter led Pledge of Allegiance

PUBLIC COMMENT

PROCLAMATIONS AND PRESENTATIONS

  1. Senator Moran’s Recognition in the Congressional Record of Kansas First Responders March 14th Incident – Mayor Showalter stated, Senator Moran recognized First Responders in the March 14th incident by presenting them copies of the Congressional Record, recognizing their quick and strategic actions to rescue victims.  The police department was unable to attend.  I ask Chief Erhart to accept this recognition from Senator Moran for the department.  We also want to thank Jason for his leadership during, and days following event.  We appreciate your leadership for the department. 

CONSENT AGENDA

  1. 08/04/2025 Commission Meeting Minutes
  2. Appropriation Ordinances: 2025-16, 2025-16A and 2025-P16

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

ORDINANCES AND RESOLUTIONS

FORMAL ACTIONS

  1. Application for Temporary Community Event Permit: Traditions, Justin Stasser – Kent stated, the presentation last meeting on the temporary permit was pretty thorough.  Jason has reviewed application and recommends approval.  Commissioner Redlin asked, if someone goes beyond barrier and are in a wreck, who is responsible?  Mayor Showalter stated, I assume as long as Justin is not over serving, he is not responsible for people’s bad decisions.  Commissioner Artzer stated, I assume he should have enough time to get wrist bands and cups for his permit.  Kent stated, yes, we believe so.  Mayor Showalter stated, we have to give people the opportunity to exercise their rights and trust our citizens to follow regulations set out.  That is all we can expect.  ON A MOTION by Commissioner Redlin to approve the application for the Temporary Community Event Permit for September 27, 2025 from Stasser Enterprises LLC as presented seconded by Commissioner Myers.  MOTION carried on a VOTE of 5-0. 
  2. Request to purchase 1-2500 kVA3-phase substation transformer – Dustin stated, we are looking at replacing one of our six remote substation transformers.  We began setting money aside a few years ago.  We will receive one, then send one back to have rebuilt and rewound to replace the next one.  We received two bids for the transformer: Midwest Electric Transformer Service in the amount of $109,985 and Sunbelt Solomon in the amount of $123,670.  We usually do business with Sunbelt Solomon but Midwest was much lower and recommend approval of their bid.  I cannot justify cost difference and feel both will be quality products.  Vice-Mayor Howard stated, their lead time for delivery is quicker also.  Dustin stated, that is not a bad lead time.  Commissioner Artzer asked, will this replace oldest transformer?  Dustin stated, they are all about same age.  I have not yet asked for a bid for the next one we have rebuilt and rewound.  We will get money for the carcass.  ON A MOTION by Commissioner Redlin to approve the purchase of the substation transformer from Midwest Transformer Electric Services for $109,985 seconded by Vice-Mayor Howard.  MOTION carried on a VOTE of 5-0.
  3. Fixed Price Agreement Timing proposal by KMEA – Kent stated, we completed paperwork to terminate current power supply contract effective December 31, 2026.  Part of KMEA proposal were a couple products they see working well for market power.  One of the options was to negotiate 5×16 energy supply to handle days and evenings where power is more expensive to operate.  Most of the time, you will get a better static price than the individual day price.  When bids were reviewed, KMEA proposal was $58 per MWH for the trade amount, it is now in low $60’s.  They would like permission to lock in a price for us between $60 to $65.  It has moved enough they feel it is better to act now.  They feel it will increase by year end.  Commissioner Artzer asked, will the $60 to $65 be locked in for 5 years?  Kent stated, yes, if he can get it for five years.  Mayor Showalter stated, I feel it will benefit the city to lock in price.  Is there any negative to this?  Kent stated. none that I know about, they deal with this on a day-to-day basis.  Vice-Mayor Howard stated, it is frustrating that we were quoted a price of $58, now they say they need to negotiate between $60-$65, which is frustrating.  We negotiated a contract, now we have a different price.  Kent stated, it has been three months since negotiated contract and the market changes daily.  They will get us the best deal they can.  ON A MOTION by Commissioner Redlin to authorize KMEA to negotiate a contract proposal for a 5×16 energy supply product starting January 1, 2027 and bring a contract back to the City seconded by Commissioner Artzer.  MOTION carried on a VOTE of 5-0.

DISCUSSION

  1. Waterworth Presentation – Kent stated, Aryan Chawla will present the initial review of the Waterworth Model for the electric and water rate design.  Aryan stated, past few months we have spent a lot of time with city staff creating models and forecasting future for the water and electric utilities.  We will begin with water model and show actual revenues from 2022 through 2024 and budgeted revenues for 2025, anticipating 2% annual inflation in future.  The model represents operating expenses plus current debt plus deposits to CIRF and MERF plus Capital Improvement’s to determine revenue requirements.  The model shows expenses compared to revenue required to meet expenses.  Future projections show without a rate increase, the city will not have revenue to cover expenses by 2029.  CIRF and MERF do well with deposits, but does not help cash position.  Our focus is the cash position needs to stay above operating threshold.  Mayor Showalter asked, with increases in CIRF and MERF I am assuming we are not withdrawing from them.  Aryan stated, you do have withdrawals, but the deposits grew early.  You want to ensure cash stays level and is available for expenses.  We looked at 2% rate increase to keep up with inflation which shows cash is stable with reserve at healthy margin.  We will provide proposed rate card for commission to review.  Kent stated, when it gets down to rates, water is typically a six-month watering season.  One option is to have higher costs for outdoor watering.  If people want to water, they spend the money to water.  Our usage per capita is typically 85 gallons per day while Hays is 200 gallons per day but they have had dire circumstances.  If commission would like, there are things we can include in rate card to encourage conservation.  We need to begin addressing the situation now.  Aryan stated, electric is a bit different with a lot of items.  There is no recommendation at this time but I will show what is occurring.  The OCA plays a huge factor in your rates. If you try to eliminate OCA, you will need to address a sharp increase in rate.  Again, projections for inflation are 2%.  Your OCA directly corelates with power purchase costs and accounts for about 15% of revenue.  With OCA formula, if there are cost increases in a month, it is accounted for in OCA.  If want to cover OCA in rate, you will need major adjustment in rate.  If you take no action, your cash position is doing well but it relies on revenue from OCA.  Doing away with OCA would cause a rate increase of about 15% for revenues to cover expenses.  Commissioner Redlin asked, I am trying to understand what happens if we do not do anything?   Aryan stated, we started looking at two models for electric.  The first is if you remove the OCA, you are looking at about a 15% increase.  The other model increases power contract costs and eliminates OCA which is an increase of about 25%.  Kent stated, the OCA is controversial for staff with public.  The OCA is spelled out in code and causes a big increase on the bill when put into play.  The amount varies a lot but the purpose is only to cover costs.  It is based on user’s consumption.  These models are without additional power costs or an economic development project that may incur city debt.  This is simply to keep systems for both utilities whole.  We have to have a balance with money set aside to address big problems.  Mayor Showalter stated, if we remove OCA, it would give people a better opportunity to budget for their bill.  Kent stated, that is one of the main concerns.  Shauna stated, keep in mind when he says a 15% increase, customers are paying that now in the OCA.  You just need to put it in the rate to cover costs.  Aryan stated, I feel in the next month we will have options for rates.  Staff has said the OCA is complicated and are looking for alternative options.  Mayor Showalter stated, this has been the writing on the wall for a number of years, but how do we get information to public so they understand our public messaging?  Aryan stated, we are financial forecasters and our models tell the story.  We can help you with communication strategies.  Commissioner Artzer stated, we will need to water information down for the public to understand, it is difficult for me to understand.  Mayor Showalter stated, it is a difficult situation, but we have been discussing this for a number of years.  Vice-Mayor Howard stated, the utilities need to be self-sufficient.  Mayor Showalter stated, it is good to have the education.  Kent stated, these models show information for several years not just one budget year.  With this model we can see what occurs with changes in revenue.  Aryan stated, if anyone wants additional information, let me know what is needed.   
  2. Request to submit for next round of MIH grant – Kent stated, commission talked to Connor Hampton from Bridger Companies last winter to create a Rural Housing District (RHD) next to Topside Manor.  The RHD is more attractive with an MIH grant application.  There is another round of MIH funding due October 3rd, with notice to apply by mid-September.  There are details required for the commission to develop a Resolution for formal action.  Connor indicated he is interested in five duplexes in the area and wants to know if commission is still willing to proceed.  Commissioner Artzer asked, if we get grant, are they prepared to move forward with Goodland?  Kent stated, yes, he has received bids and felt they were high, but MIH grants can help with funding.  MIH can assist with utility extensions.  Commissioner Artzer asked, the grant is $6M but is that spread throughout multiple applications?  Kent stated, yes multiple applications but uncertain how they will distribute money.  Mayor Showalter stated, I still feel it is a worthwhile project.  There have been many different builds across town and the duplexes are popular.  If other economic development projects continue, we will need the housing plus they do the leg work for project.  Kent stated, the MIH application is from the city to authorize project.  I made contact with Brenna Henry who assisted on last grant application.  The developer is the other entity involved in project.  Mayor Showalter asked, what is the financial impact on the City?  Is it just what we would pay grant writer to work on paperwork?  Kent stated, yes, plus staff time to work on application.  If grant is awarded, there are additional costs but uncertain amount.  Mayor Showalter stated, I feel minimal impact for a big financial gain.  Consensus of commission is to proceed with grant application.  Kent stated, I will have documents to approve next meeting. 
  3. 404 Harrison – Kent stated, this was a request from a commissioner to reiterate deadlines on property.  Zach stated, owner applied for demolition grant on property and if awarded will have 90 days to demolish structure, which will run past 60 days outlined in resolution.  Mayor Showalter stated, that is reason I asked for clarification.  If they can get property taken care of with demolition application, we need to do what we can to assist.  Do we know where they are in finding housing?  We are not in business to remove people from the home.  Zach stated, they are unable to get ahold of Grant Apartments and the towers have a waiting list. 
  4. 321 Broadway-City purchase at sheriff’s sale – Zach stated, Kent and I went to tax sale as this property was a previous nuisance property.  Staff recommendation is we move the property into the land bank for people to build on property.  Kent stated, the cost for the property was $500, which is just over the amount for past due taxes then the demolition costs of $3,000 will be abated.  With Sheriff Sale we do not get a clean title.  Do we want to ask the City Attorney to go through process to get quiet title before property goes to land bank so people can borrow money on property.  Commissioner Artzer asked, what is cost to get clear title?  Kent stated, around $2,500.  Mayor Showalter stated, I feel we need to clear title before property goes to land bank.  Consensus of commission is to work with Jake to get clear title prior to moving property to land bank.

REPORTS

  1. City Manager – 1.  Manager memo is in the packet.  2. Police monthly activity report for July is in the packet.  3.  The First Responder Awards Ceremony is 7:00 p.m. August 23rd at the High School Auditorium.  They have gone to a lot of effort to put ceremony together.  Jason stated, commission is invited and would like commission on stage to recognize people getting awards.  It is for police, sheriff, EMS and fire.  Mayor Showalter stated, thank you for putting this together for these heroic actions.  4.  Friday night is concert in park and BBQ for public in Steever Park.  We will start grill at 5:00 and eat at 5:30 until food runs out.  Several staff will be there and we welcome commission help.  5. We need a short executive session for attorney client privileges at end of meeting please. 
  2. City Commissioners

Vice-Mayor Howard – 1.  No Report

Commissioner Artzer – 1.  I have been watching Planning Commission meetings; can we do same for SCCD since they are also public meetings.  Kent stated, they are public meetings but will have to evaluate possibilities. 

Commissioner Myers – 1.  No Report

Commissioner Redlin – 1.  Thank you to water department.  We had issues at plant and you had items on hand.  Appreciate the help.   

EXECUTIVE SESSION

  1. Under the authority of KSA75-4319(b)(2) for consultations with an attorney for the public body which would be deemed privileged in the attorney-client relationship – Mayor Showalter made a motion at 6:18 p.m. to recess into executive session under authority of K.S.A.75-4319 (b) (2) for consultation with an attorney for the public body which would be deemed privileged in the attorney-client relationship not to exceed five minutes. I request City Commission, City Manager and City Attorney be present.  Commissioner Myers seconded the motion.  MOTION carried by a VOTE of 5-0.  Meeting resumed at 6:23 p.m. 

ADJOURNMENT WAS HAD ON A MOTION BY Commissioner Redlin seconded by Vice-Mayor Howard.  Motion carried by unanimous VOTE; meeting adjourned at 6:24 p.m.  Next meeting is scheduled for September 2, 2025.

_____________________________

ATTEST:                                                                                Jason Showalter, Mayor

_______________________Mary P. Volk, City Clerk

Leave a Reply

Skip to content