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Council OKs 80K to worker camp project
For the second time in less than a week, the Fort Stockton City Council dealt with a SandRidge Energy Inc. request for as much as $80,000 for utilities infrastructure.
After previously voting to send the request back to the Fort Stockton Economic Development Corporation for further study and discussion, the council Nov. 25 approved the request after it was put back on the agenda by Mayor Ruben Falcon.
Falcon said he felt the council sent the item back to EDC because of confusion over impact fees, which the city cannot levy without initiating a process that could take as long as a year.
"The city needs to come up with a plan for impact fees," Falcon said. "But we still need to discuss this more."
According to EDC executive director Doug May, the $80,000 will go toward purchasing pipe for utilities to a site designated as lodging for the construction workers on the planned Century Gas Plant southeast of Fort Stockton.
SandRidge will provide the labor for the project of installing the pipe, May said.
He added that during the two years the Century Plant will be under construction, the workers will have an estimated $77 million payroll, which should benefit the local economy and the city through sales tax collections, and more than offset the $80,000 the city will spend on the pipe.
"This is a high priority," May said. "This is our highest priority right now, to get this line in.
"This is the largest capital project submitted to the school system ... and it will allow for the ramp up of drilling when it's completed."
City Attorney Martin Adams cautioned that some details will need to be decided and put into writing. City manager Rafael Castillo said the city will make sure those issues are included in the contract.
Among other business, the council:
>> approved the accounts payable of $154,968
>> approved the monthly cash report ending October 2008, and the revenue and budget report
>> approved Ordinance 08-126, which adopts Amendment No. 2 to the budget for fiscal year 2008-09; the amendment is to the recreation department budget
>> approved Resolution 08-196R authorizing Castillo to purchase an RT 40 Ditch Witch Trencher for the water department through BuyBoard and Ditch Witch Machinery Company for $48,350
>> approved Resolution 08-197R authorizing purchasing director Brad Newton to execute a bid recommendation from Parkhill, Smith & Cooper for chemicals, filters and lab supplies from Bob Johnson and Associates and Big Bend Welding Supply; Newton estimated the cost to the city at about $97,000
>> approved Resolution 08-198R authorizing the city to accept bids for reverse osmosis water treatment membranes from one vendor, based upon the best value of listed individual items
>> approved Resolution 08-200R authorizing the selling of the city's old Christmas lights to the City of Balmorhea for $219
>> approved Resolution 08-201R authorizing and directing Falcon to execute a contract for the collection of EMS receivables
>> approved, with councilman Steve Hampton dissenting, Resolution 08-202R authorizing and directing Castillo to enter into an agreement with Pate & Associates for the Dickinson Boulevard-Four Corners Project
>> approved, with Hampton dissenting, Resolution 08-203R authorizing and directing Castillo to enter into an agreement with Connolly Architects Inc. for the city animal shelter project
>> approved a request for $4,000 from the recreation department for officials and supplies for a Pop Warner football tournament; the tournament is scheduled for Saturday and Sunday
>> approved a contractual agreement between the city and EDC relating to the 17th Street Project; the agreement calls for the city to pay EDC $49,999
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