Agreement for Spire to purchase natural gas system approved by Oronogo Board but must get PSC OK
Amount owed to the city will climb as gas lines are extended to new housing developments
An agreement for Spire Missouri Inc. purchase the equipment and other assets of Oronogo’s municipal natural gas system was authorized Monday by the Board of Aldermen.
Voters in November approved the proposal to sell the system for $620,000 by a vote of 55-32.
The actual handover of the operation to Spire is contingent on the deal being approved by the Missouri Public Service Commission. City Attorney Derek Snyder said it’s hoped the PSC’s will approve the agreement for closing in late spring.
Of the $620,000 sale price, $520,000 is for the existing system, and $110,000 is to reimburse the city for expenses incurred while extending gas service to new housing developments.
The city had spent $80,000 to extend the service so far, primarily to the Greystone II addition, according to Mayor Charles Wilkins.
On Monday, the board voted to accept the recommendation of Public Works Superintendent Tony Cantrell that the city pay Goins Construction $75,000 to extend gas lines to the first phase of the Hawthorn Hills subdivision. Goins will also be extending water lines to the new subdivision, which is north of Jason Place.
That will exceed the $110,000 reimbursement amount due from Spire by $55,000 to $165,000.
In addition to receiving income from the sale of the system, Oronogo will collect a franchise from Spire, which Wilkins is typically 5% of sales. The board passed an ordinance for Spire to have a 20-year franchise to supply natural gas in the city.
Final plat for Greystone II’s fourth phase approved
The board approved by motion the final plat of the fourth phase of Greystone II, including lots 78-99.
Bob Russell, a member of the Planning and Zoning Board, explained that two members voted against accepting the final plat because an existing sewer main is inadequate.
Wilkins, however, said the line in question will still be adequate as most of the new 21 homes are connected.
Meanwhile, Best Construction’s bid has been accepted to replace the undersized line.
A motion was passed to allow the new firm more time to present a construction bond. If that doesn’t happen by Dec. 30, the board will ask the engineer to contact with the next lowest bidder.
There’s a plan to increase the entire system’s capacity, which has been delayed. Wilkins said that after the last necessary easement is obtained the project will be ready to send out for construction bids.
The board also approved two motions pertaining to the development of Greystone II by Schuber Mitchell Homes.
One accepts the declaration of covenants, conditions and restrictions. The other stipulates that the Greystone Property Owners Association will be responsible for maintaining the storm water detention pond.
Mayor urges incumbents to seek re-election
The terms of three board members will expire in April. They are Mark Lloyd (1st Ward), Jason Grossman (2nd Ward) and Kima Francis (3rd Ward).
They and other potential candidates have until Dec. 28 to get their names on the April 5 ballot.
Wilkins, who is also up for election, said, “I know some of us butt heads, but dissension is good sometimes.”