County approves wind agreements
By GAYLE WEBER
The Ellis County Commission unanimously approved road maintenance, payment-in-lieu-of-taxes and decommissioning agreements between the county and Hays Wind LLC on Monday night.
All three agreements are pending approval by Hays Wind representatives.
"With all the back and forth that's been going on and none of us being experts in a new industry, I think we've done pretty good," Commission Chairman Perry Henman said.
The PILOT agreement calls for Hays Wind to pay Ellis County $3,000 per megawatt for the first and second years of operation of its proposed wind project southwest of Hays. That amount would increase to $4,000 per megawatt in each subsequent year with a 1-percent increase after that.
That would result in about $600,000 for the first two years and about $800,000 for the ensuing years.
County Counselor Dennis Davidson said the commission would need to establish a new fund for collection of the PILOT and then decide how to use the money.
Although a 30-year schedule for PILOT payments is included in the contract, Davidson said the agreement would last as long as the wind project was in operation.
The PILOT replaces property tax collection on the project, which is exempt under state law.
"If for any reason during the life of this wind farm project, the state law changes and the county has the right to assess tax ... then to the extent the taxes are paid, it would reduce the PILOT," Davidson said, also noting taxes likely would exceed the amount of the PILOT.
The commission also approved a decommissioning agreement that would require Hays Wind to submit its plan for removing the project before construction starts. The agreement would kick in eight months after the expiration of easement agreements or if Hays Wind has failed to operate the project for 12 continuous months.
Hays Wind would hire an independent engineer to determine the amount of a surety bond that would be paid to Ellis County if it were left to tear down the project.
"The bond will be set in the amount that is the greater of 50 percent of the project decommissioning or the actual cost of decommissioning less salvage value," Davidson said.
The bond will be reviewed every five years to take into account inflation, Davidson said.
The company's conditional-use permit for the project could be revoked if the decommissioning agreement is breached.
Also approved Monday was a road maintenance agreement that covers the anticipation that Hays Wind will apply for permits to cross county right of way for transmission lines and dictates Hays Wind will pay for any damage done to county roads as a result of construction of its project.
A $100,000 escrow account will be established by Hays Wind to pay for immediate road repair work if it is needed. Hays Wind also will pay $4,900 per month to compensate staff's time in the public works department.
At Davidson's suggestion, the commission approved the three agreements that the county and Hays Wind have been working on since both parties and 21 plaintiffs agreed to a mediated settlement in May.
There still is work to do before the case is dismissed or the project is built, but commissioners commended Davidson and Public Works Administrator Mike Graf for their work on the agreements for the county.
"It's been a long process," Commissioner Vernon Berens said. "We need to move on."
In other business:
* Commissioners approved a change order for work on a bridge southwest of Walker. The additional $2,028.12 requested by the Kansas Department of Transportation will cover the cost of production and installation of four signs to designate the project as an American Recovery and Reinvestment Act project.
* Commissioners approved a three-year contract with Adams, Brown, Beran and Ball for budget and audit services through 2011.
The county will pay $33,530 in 2009, $34,365 for 2010 and $35,220 for 2011. However, Auditor Ken Beran said he knew his services to Ellis County could be reduced if the commission opted to hire an administrator.
"We don't know what we'll be involved with, whether we'll be involved in the budget or not," Beran said. "It will probably depend on when you hire somebody ... and depending upon what that person's experience and knowledge in budget preparation is."
* Commissioners voted to sell a tract of land on West 11th Street in Hays via sealed bids with a minimum bid of $1,040, the 2009 appraised value. A public hearing tentatively has been scheduled for Jan. 18.
* Information Technology Director Mike Leiker requested the commission consider contracting with CivicPlus, a Web site developer based in Manhattan, for the redesign of the county's Web site. Commissioners agreed a new Web site would be beneficial for the county; however, they instructed Leiker to get more bids for a new Web site that would contain all the information department heads and elected officials would like to see.
* Space needs committee member Errol Wuertz presented a bid from Spangenberg Architects, Stockton, to develop an architectural plan for the county's 601 Main building. Commissioners tabled a decision until next week.
* Commissioners approved a cereal malt beverage liquor license for St. Catherine Catholic Church Knights of Columbus for retail sales on the church grounds for 2010.
* Commissioners approved two resolutions dealing with economic development incentives for Ellis County.