Lamar Utilities Board Reviews Insurance Contracts, Board Member Application

Lamar Light and Power Plant

Lamar Utilities Board members voted to continue insurance coverage for its 29 mile gas pipeline.  The coverage with IMA Kansas Inc. routinely renews on September 3 and was initiated in 2005.  Other insurance carriers for the city, such as CIRSA or Traveller’s, covers the power plant substations and wind turbines, but not for the pipeline.  The cost for the renewal year is $13,433.  Lamar Light and Power Superintendent, Houssin Hourieh, said that although the plant is not being supplied with gas at this time, this falls under general maintenance for light plant equipment.

There was a brief discussion regarding the one application received so far for the vacant position on the utility board.  Doug Thrall, who is a party to a lawsuit against ARPA, has applied.  John Lefferdink, LUB attorney, said he didn’t believe there is a conflict of interest, as did Mayor Roger Stagner, who is the city’s liaison to the board.  Current board chairman, Mike Bryant, felt that there should be some discussion with Thrall on the matter and he will be invited to discuss his application during the next board meeting on September 9.  Stagner pointed out that Hourieh, the Light Plant Superintendent, is also a board member of ARPA, and if a conflict of interest should develop, Thrall simply need not vote on that issue.  Applications for the board seat are still open at this time.

Repair work on the plant’s T-3 wind turbine is being completed as the gearbox, shaft and main bearing have been installed, but is still off-line until the batteries needed for the primary breaking system arrive.

The light plant’s July financial report was reviewed.  Cash is down $63,414 from June and accounts receivables increased by $136,747.   Total operating revenue for July is $1,354,844 with operating costs at $1,212,255 for a gross profit of $142,590.  When non-operating revenues and expenses are factored in, there is a net loss for the month of $89,950.

An overview of the proposed 2015 budget was discussed.  Because of some new businesses moving into the area, the light plant estimates a 2% increase in service charge revenues.  A 2% cost of living salary increase for light plant employees is also being discussed at this point.

By Russ Baldwin