Sallisaw City Commissioners approved a fee hike for DiamondNet services, the purchase of 130 acres for a Youth Sports Complex, and the engineering designs for a raw water transmission line and a 1.5 million gallon clearwell during the city’s meeting Monday.

City Manager Bill Baker said the $3 rate increase for DiamondNet, which includes Internet, video and telephone services, was prompted by local broadcasters implementing a retransmission fee for their broadcasts. The $3 rate hike will go into effect March 22.

Keith Skelton, assistant city manager, explained the rate increase will raise the base cost of the expanded basic video program package to $37.95.

He said DiamondNet is working on a DiamondNet Limited Basic video package that will include about 20 channels.

The commissioners also approved dropping the deposit on converter boxes after Skelton explained that the recovery of converter boxes is “excellent.” However, those households requesting three or more converter boxes will be required to pay a $50 deposit.

DiamondNet is dropping the video on demand services due to low demand. Dropping the service will allow DiamondNet to offer more high definition channels, Baker said.

DiamondNet is also expanding Internet services, which will provide greater speed for Internet users, at no cost to subscribers.

Skelton reported that DiamondNet has between 1,660 and 1,670 subscribers.

The commissioners approved the purchase of 130 acres for a Youth Sports Complex, provided City Attorney John Robert Montgomery approves the final plat and contract. Montgomery said that a survey of the property, which lies east of Sallisaw between U.S. Highway 64 and old Highway 64, is taking longer than planned.

The price of the property is $460,000 and First National Bank of Sallisaw has agreed to a lease-purchase agreement which will include a $100,000 down payment and a 48-month contract at an interest rate of 4.15 percent. The monthly payment will be $8,152.65.

Baker said the hotel/motel tax approved by Sallisaw voters is collecting more money than originally projected, and the Youth Sports Complex fund has $223,792 to date.

Dr. Bob Wells, member of the Youth and Recreation Board, said board members believe the 130 acres will be sufficient to include facilities for all the sports planned, including football, softball and soccer fields.

During the Sallisaw Municipal Authority meeting, the commissioners approved a design contract with Hawkins-Weir Engineers Inc. of a 24-inch raw water transmission line and a 1.5 million gallon clearwell at the Sallisaw Water Treatment Plant.

Baker explained that the two water projects were originally included in the plans for the new water treatment plant, but had to be excluded due to the high cost of the plant’s construction. Now, he explained, due to the economic problems, Hawkins-Weir has lowered their price for the design, and it is expected that President-elect Barack Obama will promote an economic stimulus package, which will include public projects to put money into the hands of builders and communities.

Baker also explained that those communities with plans that are “shovel ready,” meaning ready to start immediately, will most likely be the projects which are funded. The engineering fee for the design of the raw water transmission line will be $237,500 and $40,00 for the clearwell design.

Brett Peters of Hawkins-Weir estimated the design will take about 120 days.

Baker emphasized that both projects were needed, and now is a good time to start on the projects because the engineering design fee costs were reduced and the possibility of getting federal money for the projects.

In other business, Baker told the commissioners that the city, the Sallisaw Chamber of Commerce and the Grand River Dam Authority (GRDA) which provides wholesale electricity to the city, are working on getting an LED display sign that will most likely be placed at the northwest corner of the intersection of Cherokee and Wheeler. The sign will carry the GRDA logo, Baker said, and will announce city events and plans.

Baker also announced that Scott Neel of Neel Harvell and Associates in Sallisaw is working on the application for water rights in three watershed areas north of Sallisaw — Sallisaw Creek, Brushy Creek and Dry Creek.

Baker said, “There is an unbelievable amount of water in the three water sheds, over 100,000 acre feet. The city needs about 4,700 acre feet to meet the city’s demands for the next 50 years.”

He explained that the city must submit to the state the exact amount of water the city wants to take from the watersheds, and Neel will be working on that project. Baker explained the city is considering using water from the watershed dams on the three creeks.