City agrees to contract for new substation

The Hillsboro City Council met for a special meeting Monday, Feb. 7 to sign the contract for a new electrical substation with Onsite and sign complaints against properties that are nuisances or health hazards.

The council was given the contract, general conditions and specs for the substation.

Only a few changes were made in the contract.

David Wheeler, city attorney, pointed out the obligations of the city, including providing a transformer, the step-down transformer, relocating the input line and dismantling the existing substation.

He also told the council the contract did not include anything about arbitration.

The deadline for partial completion is July 1 and the deadline for final completion is Aug. 1. This is subject to change due to delays because of weather.

Before signing the contract, Mike Schmaderer, president for Onsite, told the council of a change in ownership.

The local management is buying out the Kansas subsidiary of Onsite from Onsite Sycom in California, forming Mid State Energy Works. It will be officially purchased on Friday.

?I don?t have any problem with them as long as the noses stay the same,? Wheeler said.

He asked for financial information on the company.

Schmaderer told the council he thought the company would be more bondable and the city would not have to pay more than 1.5 percent of the bond cost. He said if it went above that the company would eat it.

The council also heard from Terry Wilson, from Western Resources, about his company?s part of the project.

Wilson told the council he could not give definite figures until the details were worked out, but the cost to the city would not go above $50,000.

?The intent of Western Resources is not to come in here and charge you money,? Wilson said. ?On everything we can, we are going to look the other way, but I do need to protect our other customers.?

Wilson also expressed concern about meeting the July 1 deadline, but said the price would not be affected by any delays.

The money would cover the cost of extending the line to the new site. The cost is $40,000, with $10,000 for extra expenses.

Wheeler recommended the council sign the contract with the understanding of the condition of assignment of the project and approval of the assignment by the city.

The council authorized the mayor to sign the contract.

The council also approved having the mayor sign the complaints against the properties the county health officer felt should be pursued because of nuisances and health risks.

Those present at the meeting were Mayor Delores Dalke, and council members, Leonard Coryea, Mike Padgett and Wendell Dirks.

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