Hillsboro council OKs oil lease

The Hillsboro City Council agreed at its Nov. 15 meeting to authorize the mayor to sign an amended oil and gas lease for property the city owns a mile east of Hillsboro, pending a final review of the lease by the city attorney.

Prior to the meeting, City Administrator Larry Paine said he met with Chaz Doffing, a land leasing agent with J. Fred Hambright Inc. of Wichita, regarding a proposed lease addendum developed by Dan Baldwin, city attorney.

The two parties agreed that a significant portion of the proposed addendum would not be necessary to cover the city?s concern that its property not be subject to drilling or trespass without city approval.

The council approved the late change, pending Baldwin?s review.

Doffing said the company leasing the property ?will be drilling soon,? using a horizontal drilling approach to limit the number of surface pumps.

In other business, the council:

? accepted a bid for a 2013 Ford Taurus for the police department from Hillsboro Ford at a cost of $21,440.

Midway Motors submitted bids of $21,845 for a 2012 Chevrolet Impala, $22,370 for a 2012 Dodge Charger and $20,834 for a Ford Taurus.

The council followed Paine?s recommendation to purchase the Taurus from Hillsboro Ford because Midway Motor?s dealership authorization to sell Ford products is designated for its McPherson location.

City policy allows the council to accept a bid up to 10 percent higher from Hillsboro-based businesses than a bid from an out-of-town business. The difference between the two Taurus bids was 2.9 percent.

? set 4 p.m. Dec. 20 for a public hearing to receive comments regarding proposed adjustments to the 2011 city budget that need to be approved before the calendar ends.

Paine said such adjustments are routinely required to accommodate ?special projects that were not anticipated when the budget was prepared? in July 2010.

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