Aldermen discuss fuel contract, water and sewer issues

Wednesday, January 2, 2019

During the Dec. 17 regular meeting of the Concordia Board of Aldermen, the board discussed a potential fuel contract for 2019. Mike Moulton of MFA Oil was present to explain the proposed program. He explained that fuel prices are very low right now, for different reasons, but will go up, so it is important to contract early to take advantage of the low prices. He said if Russia and other resources do their cuts in fuel production, as anticipated, prices could go down, but he warned what is predicted for July is ugly.
The proposal states it will not be an issue if contracted gallons arenít used each month. Moulton also said these are gallons that have been purchased by MFA Oil, and if they donít sell all the gallons to the city, they can always resell it to someone else and still make money.
The contract would include total gallons for the year, and the contract would start Feb. 1, 2019. City Administrator Dale Klussman said he would like to lock the prices in beginning Jan. 1 if it doesnít affect the prices, and recommended signing the contract the night of the meeting. He also recommended watching the prices in the next week to lock in the lowest prices possible.
Moulton stated diesel had dropped in price but unleaded was up 2 cents as of Dec. 17. He said he anticipates prices to go back down.
The board approved an ordinance to enter into a fuel contract with MFA Oil Inc., for 10,000 gallons of unleaded gasoline at $1.70 per gallon, and 4,200 gallons of diesel fuel with price to be determined before the contract commences. The fuel is to be made available between Jan. 1, 2019, and Dec. 31, 2019.
In addition, the board heard an update on taste and odor issues concerning the cityís water system.
After receiving several complaints about taste and smell issues with residential water, the city checked the chlorine levels in the standpipe. Klussman said the cityís system is set up to fill the 400,000-gallon standpipe overnight. The standpipe then fills the north tower for city usage. Upon testing, the city found high levels of chlorine in the water coming out of the standpipe. The standpipe was immediately shut down and water is now going straight from the water plant to the north tower.
The city has obtained quotes for getting the standpipe cleaned out and repaired. Funds can be taken out of general funds since the city has taxes coming in and can reimburse it at a later date.
The board unanimously approved an ordinance to enter into an agreement with Maguire Iron of Sioux Falls, S.D., for a chemical washout and inspection of the standpipe. The work is to be completed around Jan. 15-18 at a cost of $4,800.

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