Jamestown, ND (KCSi-T.V. News) — The Jamestown City Council met Friday afternoon (Dec 14, 2012) at 2:30-p.m., at City Hall, to update members on Friday morning’s meeting between the City and Stutsman Rural Water District, and to then possibly award bids for installation of utilities at the Titan Machinery site, under construction west of Jamestown.  Council Member Buchanan was not present.

Mayor Katie Andersen said, both sides were moving in the right direction in negotiations.

Representing the City were, Mayor Andersen, City Administrator Jeff Fuchs, City Engineer Reed Schwartzkopf, and City Attorney Ken Dalsted.

Representing Stutsman Rural Water District were Council Scott Sandness, Manager Geneva Kaiser, board members Roger Florhaug, and Ron Wanzek.

At Friday morning’s meeting the Mayor said the city proposed compensation to Rural Water regarding gallons of water sold to the Rural water district.

The proposal is 65 cents to $1.50 per thousand gallons.

Currently the city’s fee is $3.05 per thousand gallons and the Rural Water District’s fee is $5.00 per thousand gallons.

Also in negotiation is compensation for territories that may not be presently served by either the city or the Rural Water District.

She said the Rural Water District wants to serve the Titan development.

The Stutsman Rural Water District met Friday afternoon to discuss the proposals.

The Mayor said those proposals offered included, Rural Water not requesting compensation for serving the Jamestown Regional Medical Center if they can be the JRMC water backup source. At $5 per thousand gallons of water.

Also a penalty of $2.50 per thousand gallons of water used, retroactive to when JRMC openeed, a year and a half ago.

A mechanism for enforcement of the contract, in place, either the present contract amended or a new contract was asked to be in place.

The Mayor said any agreement should be approved by the USDA and other governing agencies.

The Stutsman Rural Water Users then scheduled their own meeting later Friday.

Following that meeting the City Council scheduled the Friday City Council meeting.

At Friday’s City Council meeting the Council stated the response from The Stutsman Rural Water District.

The City Council reviewed the six points contained in the response.

Among the points was a fine reduction on the city for serving the Jamestown Regional Medical Center retroactive to the facilities opening.

City Administrator Jeff Fuchs said a section of land was not addressed.

He said the royality fees in the Rural Water Users counter were not in line with what the city was looking to have in the agreement, along with open-endedness in some of the terms.

 

City Engineer Reed Schwartzkopf said the document may not be honored, and as such with the 60 days to act on the bids ending Friday, suggests Interstate Engineering be contacted to extend the bid period another 60 days, until or unless the city and Stutsman Rural District reach a contract agreement.

A motion was made to instruct Interstate Engineering to see if any of the contractor bidders want to extend the bid process, which was unanimously approved.

Re-bidding may also have to occur.

Mayor Andersen said it would be a risk to award bids under the proposed agreement.

Council Member Gumke says this is not the final offer from Rural Water District, and that this proposal should be reviewed.

Bids were to be awarded for installation of utilities at the Titan Machinery site, as Friday was the final day of the bid awarding period.

Mayor Andersen the city will send written response to Stutsman Rural Water District on their latest proposal.

The meeting was shown live on CSi 67 followed by replays.