Agreements top Royal City Council agenda

One agreement was approved while action on two others was tabled by the Royal City Council on Oct. 11.

Acceptance of the compliance agreement for the lift station generator project included authorization of a partial payment. Royal was awarded a grant of $35,070 by the Federal Emergency Management Agency to fund the project. One condition of the grant is that the city must pay half the cost of the generator before it is ordered.

The council approved a payment to Power Solutions, Inc., of Alta, in the amount of $13,447.65.

The annual maintenance agreement with Clay County offers assistance from the secondary roads department whenever the city needs it. Terms of the agreement include hourly rates charged when county equipment is used.

“Prices have gone up a little bit, but not that drastic,” City Clerk Barb Fletcher noted.

Mayor Josh Toft said he would like to visit with the county supervisors and engineer concerning the farm-to-market route in Royal. He feels that adding other streets to the route could result in more funding for street improvements. The council agreed the mayor should pursue that possibility.

The annual street report was approved. It accounts for Road Use Tax (RUT) funds received by the city during the past fiscal year. Royal had RUT receipts of $42,909 and expenditures of $48,991, leaving a balance of $33,557 on June 30.

• Alliant Energy franchise

Also discussed was an agreement with Interstate Power & Light Co. (Alliant), which the city entered into in 2018. At that time, Alliant representatives requested a 25-year, non-exclusive franchise to operate an electric utility in Royal. According to minutes of the July 11, 2018 meeting, the council agreed to approve a franchise, with windows at 10 and 20 years. An ordinance setting out those terms was approved two months later.

Alliant Energy also submitted a letter of intent at that time that outlined plans to replace most of the poles and conductors in the electric distribution system. Work on those improvements was to begin in 2020 and be completed by mid-2022.

Toft said last week that if Alliant Energy failed to meet those terms, the city could cancel the franchise. It must respond in writing by Oct. 27 or the electric franchise will continue. Toft offered to send a letter to Alliant indicating the city is not pleased with the situation as it currently stands.

“We have not gotten anything better because we signed this agreement. We’ve gotten backwards,” he said. “I don’t like that they can put you in the position of not saying anything and it will go on for 25 years.”

Council Member Sara Ricke noted that Alliant may cite pandemic-related issues as a reason for not completing all of the improvements. Toft recommended the city ask for a two-year extension of the current agreement.

“Let them know we want an extension and see what they will do,” he said.