City approves AMPI coverage

The Hillsboro City Council agreed at its Oct. 21 meeting to continue replacement coverage on the portion of the former AMPI building now housing the new Butler Community College welding center.

John Kullman, the city?s insurance broker representing IMA, said a $1.44 million policy had been taken on that portion, based on a replacement cost of $150 per square foot. At the next renewal period, the premium will be $1,268.

Kullman said the city isn?t required to carry insurance on the building beyond liability coverage, but City Admini?strator Larry Paine recommended the initial coverage be continued because of the investment the city has made to prepare that portion of the building for the Butler program.

He said the investment has been around $60,000.

Kullman also reported to the council that recent evaluations indicate replacement value of the city?s main water tower, raw-water pump station and electrical substation exceeds the city?s present insurance coverage by about 50 percent.

Kullman said the city had three options: ignore the new appraisals and continue its coverage at the current rate; increase coverage immediately to meet the new appraisal; or phase in the additional coverage over two years to lessen the budget impact of the premium increase.

The council decided to increase coverage to match the new valuations.

In other business, the council:

n approved a contract with Terracon, an engineering company based in Wichita, to do soil borings in the newly designated Hillsboro Business Park.

The borings will determine if the ground where the former AMPI cooling pond was located was adequately compacted when it was filled in.

The tests are necessary to ensure that compaction is adequate to support the construction of Midway Motors? proposed new dealership facility.

Pain said the project will cost between $2,000 and $4,000, depending on how many holes will need to be drilled.

n approved Resolution 2008-13 that formalizes existing city office practices to protect the privacy rights of its utility customers. The Federal Trade Commission is requiring cities to comply by Nov. 1.

n tabled the selection of a new financial adviser for the city until Councilor Bob Watson could attend the meeting. Represent?atives from three companies have been interviewed.

n agreed to use the $24,486 left over from the Kansas Depart?ment of Transportation grant for the Adams Street project to replace the water line on C Street from Adams to Wilson?if KDOT approves the project.

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