Hickman officials opt for Alliance Water Resources’ proposal
The Hickman City Commission heard the reading of Resolution 18-02 during special called session Dec. 20 and unanimously voted to accept the proposal from Alliance Water Resources.
The discussion on a proposed contract with Alliance Water Resources was conducted at 7 p.m. with Commissioners Roger Adams, Heath Carlton, Brian Major, and Phillip Williams present. Newly elected Commissioners, James Adams, Robert Griggs and Judy Powell were also present.
Alliance Water Resource representative Evan Romo was also present to help answer any questions.
Hickman City Manager James Gray reported he has looked over the contract, reviewed the budget, and stated he could answer any questions the Commissioners had.
Commissioner Carlton stated, “My main concern is did you, City Attorney Leeanna Wilkerson, read over the Resolution and is there anything from a legal aspect that concerns you?”
Wilkerson replied, “I did not see anything concerning as long as the Commission agrees to what is in there. Last week there was discussion about if it did not work three or six months down the road. Provisions are in the contract and it is pretty standard. We discussed the section about purchasing repair fees.”
Carlton stated, “That is basically all I wanted. I just wanted to make sure you read over it before we agreed. I didn’t want anything to be gray like previous contracts with other companies.”
“The problem with these kinds of things is the proposal and contract is just that, you can’t predict things that will come up,” stated Wilkerson.
Commissioner Williams asked, “What is the difference in the monthly amount?”
Gray replied, “It is $39,982 a month for 18 months if signed. There are five months on the current budget cycle that will be included for a total of $199,910. There is a shortfall with what we have, almost $2,000, not counting salaries, until they start. If you take into account salaries, you are looking at $20,000 shortfall.”
Gray stated it will actually be cheaper, because Alliance will provide the director, employees, and license, and will not be paying the state retirement rate.
Carlton said part of the shortfall of the $20,000, is the $14,000 for the media at the water plant.
“Also not budgeted was $2,000 for pumps and almost $2,000 in meters,” stated Gray.
Commissioner Williams said, “I don’t see how we can lose. If it turns into an issue we can get out in three months.”
Gray said, “There is 45 days we have to give notice and 90 days they have to try remedy the problem. It will actually be close to six-month.”
Wilkerson stated, “You also need to keep in mind if you want to terminate the contract you have to think about it about month 14 of the 18 month contract, to evaluate. That will be the 90-day notice given.”
Williams stated, “If you compare the ‘pros’ and ‘cons’, the ‘pros’ outweigh the ‘cons’.”
Commissioner-elect Griggs stated, “I’m with Phillip. It is not really the fact about the money, but we don’t have a certified operator, and we will run into some real problems there, quicker than we will the money problems. If you don’t have certified operators, in just a few months, the state will be on us. And we certainly can’t afford that.”
Judy Powell, Commissioner-elect said, “I have some questions. Did you try to get other proposals? You should have. I don’t feel comfortable. It has happened too fast. We do need it however.”
Commissioner Major said, “I tried to look for others to give a proposal. Companies are either too big or too small.”
Grey reported some companies want to own the system and the rates.
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