City seeks payment from railroad

The City of McCook may hold an easement hostage if the Burlington Northern Santa Fe railroad doesn't pony up the $3 million it owes by Oct. 17.

City Council members will decide whether to take that route at their 7:30 p.m. meeting Monday night.

BNSF asked for changes to be made in the temporary easement agreement, which the city adopted in May 2005, before releasing the payment to the city, according to the City Council packet.

The payment is for damages and costs associated with diesel oil contamination surrounding the city's water supply system.

This temporary easement involves property owned by the city in Barnett Park, where BNSF wants to construct pipes to discharge wastewater into the Republican River.

Council members also will be asked to authorize the city staff to continue efforts to obtain the entire $13,422,000 from state revolving loan funds from NDEQ, in construction of the water treatment plant and related improvements.

According to the council packet, the City of McCook was "shorted" $3 million of the original amount of the loan, and was told by officials from NDEQ that this amount would come from the city's settlement with Burlington Northern Sante Fe Railway Co.

Since that payment from BN has still not been received, the city staff is asking for an additional $3 million in state revolving loan funds in order to stay on schedule to meet the March 31, 2006 compliance date.

Options concerning the replacement, removal and installation of the broken shaft at the wastewater treatment plant also will be considered by council members Monday night.

One option recommended will be the removal and installation of another shaft unit, without removing the roof at the waste water treatment plant.

If accepted, this will be submitted to the Nebraska Department of Environmental Quality for approval.

Taking into account bidding processes and manufacturing time, the unit would not be installed until summer 2006. With the council's recommendation, a capital outlay fund would be included in next year's budget for future RBC unit replacement.

The cost of the project, estimated at $115,000, will be funded by the contingency fund available for use through the waste water treatment project.

Other agenda items include:

* approve an escrow agreement with McCook National Bank providing financial surety to NDEQ, in relation to the plugging and abandonment of the deep injection test well.

* authorize the city manager to meet with U.S. Department of Transportation officials concerning the service from Great Lakes Airlines.

* conduct a public hearing concerning the application of Duckwall-Alco Stores for a retail liquor license.