McCook signs new NPPD lease

Wednesday, October 3, 2018

McCOOK, Neb. — In exchange for a longer lease term with a utility company, the City of McCook will realize a slight uptick in revenue payments.

At its regular meeting Monday night, the McCook City Council unanimously approved a resolution that authorized a professional retail operations agreement between the City of McCook and Nebraska Public Power District. The current agreement expires Dec. 31.

NPPD operates an electrical distribution system to serve McCook residents and businesses. NPPD then makes lease payments to the city from retail revenues, adjusted to eliminate revenues from tax-supported agencies, such as schools and cities, fuel costs and other adjustments.

The new agreement extends the lease from the prior 15 years to 25 years, requested by NPPD. In return for the longer lease term, NPPD has agreed to increase lease payments from 12 percent to 12.5 percent. Also, the agreement allows for the city, by city council approval, to implement additional one-half percent incremental increases to a cap of 14 percent, with sufficient notice given to NPPD.

Other differences in the new agreement include lease payments to be made monthly instead of the current quarterly payments and forming a new retail advisory committee.

Stan Clouse, NPPD account manager and Kearney, Neb. mayor, also told the council that NPPD will be “unbundling” its bills for customers, to be more transparent and show how the charges are accrued. Clouse said at the first of the year, bills will itemize amounts, such as customer charge, administration charge, energy charge, delivery charge and state/city sales tax, “so the customer can see what makes up their bill,” he said.

The retail advisory committee, made up of local individuals, will be a liaison of sorts to NPPD, about issues that impact utility rates, such as solar power.

Also on Monday night, the council unanimously approved a request from “The Thinkery of Southwest Nebraska,” to waive rental fees for the use of the city auditorium’s gym on Oct. 12-13, using Community Betterment funds for the waived rent and allowing the use of the former city office area for storing cardboard for the group and as a stage area to a children’s “Global Cardboard Challenge.”

Organizer Mary Dueland, who address the council with fellow organizer Cathy McDowell, said without a facility, “The Thinkery” is currently “a museum without walls.” The cardboard challenge last year was very successful, Dueland said, with kids making everything from unicorns to skyscrapers out of boxes.

Although they have plenty of large boxes, small and medium-sized boxes are still needed, as well as embellishments such as small plastic tubs, yarn, ribbon, sequins and buttons, wallpaper and rolls of tape “of all kinds,” McDowell said, including packing tape.

Those who have items to donate can call Dueland at (308)737- 6111.

At the beginning of Monday night’s meeting, McCook Area Chamber of Commerce director Jamie Mockry thanked the city for all the work staff did for the Heritage Days celebration over the weekend.

And at the end of Monday’s meeting, Heritage Days came up again, with Mayor Mike Gonzales congratulating Councilman Bruce McDowell and his wife, Cathy, as being parade marshals. McDowell commented that the event was a success despite the damp weather on Sunday and that he heard two comments about restrooms over the weekend: one about needing more stalls at Norris Park and another about Karrer Park restrooms needing attention.

Councilman Gene Weedin showed the council the “Ace” sticker that will be placed on the new public transit vehicle that ACE funds helped pay for. The city has used funds from Ace for a number of projects, Weedin said, such as for the skate park, demolition a house on West fourth and for the bandshell in Norris Park.

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