City working out water funding details

While not all the final details have been worked out, the McCook City Council approved an ordinance that would allow McCook to receive a loan for State Revolving Loan Fund money for the city's new water treatment facility.

Two of the three concerns City Manager John Bingham expressed in the City Council agenda were addressed by the Nebraska Department of Environmental Quality in a fax delivered Monday afternoon.

According to Bingham, the state will consider accepting prepayments of $50,000. The original contract indicated that the city could only make a prepayment greater than 10 percent of the outstanding loan amount. Bingham had expressed his concerns over that stipulation, saying it would not allow the city to use sales tax revenues.

A second stipulation was simply a misunderstanding on the part of the city.

According to the Council agenda, the contract was written in such a way that the only revenue that could be used to pay down the loan would be revenue made from the city's water revenues and the money received from sales tax revenues. In the fax, the state explained that stipulation was made to determine where the state could collect the funds if the city were to default on the loan and had no bearing on what funds the city uses to pay down the loan.

While the council voted 5-0 to approve the ordinance, one issue remains to be resolved. NDEQ is waiting for an environmental impact study, Bingham hopes that study will be back by the second reading of the ordinance

The council approved the construction of a new booster station to replace the existing station on West Fifth Street.

Chris Miller of Miller & Associates recommended the replacement due to the condition of the existing facility. According to the report, Miller Associates found several deficiencies in the building and equipment including a leaking roof, window replacement and a need for new ventilation for the new pumps.

Councilman Jim Kenny told the council that the 40 year old station needed replaced, however he questioned whether the facility could be considered dilapidated.

The action passed on a 5-0 vote.

The council approved the renovations at the city's two water towers and set the date to receive bids for Feb. 22 on a 5-0 vote.

The plans call for the removal of lead-based paint on both the inside and outside of the tanks followed by new zinc-based primer and epoxy paint on the inside and zinc-based primer and two coats of Spra-Safe on the outside.

The plan also calls for new vents for the towers, installation of new access ladders, access port to the tank from the balcony, a safety climb system, the addition of a safety ladder on top of the tank, and installation of new clips and supports of the communication cable on the legs railing and roof of the tanks.

The bid specifications will call for three completion dates: both towers completed in 2005, one each completed in 2005 and 2006, and both completed in 2006. The council will choose the best option at the time of bid opening.

A 16 percent increase in city sewer rates was passed with a 5-0 vote on first reading. The increase will go to meet operating costs and make loan payments through the construction and start-up phase of the newly renovated waste water treatment plant. The city expects to adjust the rates after the completion of the project.

An engineering agreement with Miller & Associates to repair and replace problem areas with the city's sewer system was also approved on a 5-0 vote.

Councilman Jim Kenny abstained from voting on a measure to approve the specifications for the city's waste water treatment plant ammonia removal agreement, saying he did not agree with the type of treatment Miller & Associates had recommended.

The motion, which passed on a 4-0 vote, calls for bids on Biological Aerated Filter equipment to be received on Feb. 11.

The council approved an extension of the tolling agreement with the U.S. Department of Justice until Feb. 15. The agreement allows the city and federal agencies to continue negotiations on fines being considered against the city without accumulating additional daily fines.