Osage City to purchase
additional power from Westar

DeAun Michael |
Reporter

OSAGE CITY—Osage City has reached an agreement with Westar for the purchase of electrical power beginning in June.

At the April 14 Osage City Council meeting, David Shupe, a representative of Westar, and Greg Wright, with Energy Management Group (EMG) Inc., presented information regarding the agreement that allows the city to purchase power from Westar for the next two years.

“I believe this is a good agreement for the city,” Wright told the council.

The council unanimously approved Osage City Manager Nick Hernandez signing the agreement, allowing for the purchase of wholesale power needed above the base amount used by the city. Currently, the city has a low-cost agreement with the Grand River Dam Authority (GRDA) to purchase electricity to meet a portion of the city’s needs. However, the agreement with Westar was for any needed resources exceeding the energy supplied by GRDA.

The council also heard from Corey Linton, Osage City recreation director, who offered an update on the results from the Smoke in the Spring event held April 10-11 in Osage City. Linton told the council over 69 teams participated in the contest.

On April 11, the Osage City Band Boosters sold out of pork at the club’s lunch, and over 200 entrants were reported at the car show on Saturday afternoon, Linton said.

“With the weather, with the number of teams selling food and the amount of public out there, it was a really awesome year,” he said. “This weekend was what the event is supposed to be.”

The council also considered a proposal for the purchase of trash containers for city residents. A bid was received from Otto-USA for the purchase of 1,350 trash containers at a price of $60,030.

Hernandez explained the city would finance the expenditure with a lease-purchase agreement with the Bank of Osage City at a rate of 3.55 percent interest for a four-year period.

Osage City Council Member Becky Brewer asked the reason for considering the purchase. Hernandez explained it was approved in the budget last year, and the recently purchased trash truck is designed to lift these types of containers. Benefits to the city will include a decrease in time it takes to complete trash routes, which will free staff for other projects, and will reduce the amount of heavy lifting.

Hernandez said each residence will have one container with a serial number that ties it to a household address. Additional containers are available at an additional charge. An informational handout will be distributed for residents prior to the arrival of the containers.

The council unanimously approved the purchase of trash containers and financing agreements.

In other business, the council:

• held discussion on designating specific truck routes within the city to reduce the amount of wear on city streets and curbs. No action was taken.

• studied several city code sections regarding the number and type of accessory buildings allowed on a property, and a code section relating to weeds and vegetation nuisances. No action was taken.

• approved a motion for up to $10,000 in improvements at the community building.

• authorized the mailing of additional letters to residents regarding junk and abandoned vehicles.

• approved additional burn days of April 19 through May 4.

• met in executive session for attorney-client privilege, including the city manager in attendance. After the session, the council authorized Hernandez to enter into a subordination agreement with Ironstone Bank as it pertains to Hawkeye Helicopter, which is located at the city’s airport. The agreement allows the bank to have first right of retrieving funds in the event of default, however, because the building is located on city property, the city retains the first right of refusal if the property is offered for sale.

• heard in the city manager’s report that a building permit has been issued for a cell phone tower construction. Hernandez also informed the council of the outcome of the city’s lawsuit against Schroeder Drugs, in which the city received a judgment for approximately $113,000.