The Carmi City Council met Tuesday, April 5th 2016 at 5:30 p.m. in the Council Room of the Municipal Building, 225 East Main Street.
Prior to opening the council meeting, Mayor Pollard asked Alderman Winkleman to give the invocation. The prayer was followed by the Pledge of Allegiance.
Mayor Pollard presided with the following Aldermen present: Steve Winkleman, Mark W. Blake, Keith Davis, Lance Yearby, Sheila Jo Headlee, Jack Lamont, Doug Hays and Mike Knight.
Minutes for the March 14th, 2016 council meeting were presented. Motion made by Alderman Knight and seconded by Alderman Hays to approve the minutes as presented. The motion carried on roll call by each Alderman answering “yes.”
Mayor Pollard asked the council to consider Ordinance No. 1499, Annexation of Territory to the City of Carmi at 1301 West Main Street, Jerry L. and Patricia K. Woodrow property owners. Motion made by Alderman Winkleman and seconded by Alderman Lamont to approve Ordinance No. 1499 as presented. The motion carried on roll call by each Alderman answering “yes.”
Mayor Pollard asked the council to consider Ordinance No. 1500, Rezoning of the property at 1301 West Main Street, property owners Jerry L. and Patricia K. Woodrow and 1305 West Main Street, property owner Patricia A. Lovins as Business (Zone II). Motion made by Alderman Headlee and seconded by Alderman Blake to approve Ordinance No. 1500 as presented. The motion carried on roll call by each Alderman answering “yes.”
City Administrator Sandra Irvine introduced Andrew Hanfland of the engineering firm Farnsworth Group. Mr. Farnsworth is the engineer for the new Dollar General Store that would be built on the properties at 1301 and 1305 West Main Street. Mr. Farnsworth wanted to thank the council for annexing and rezoning the properties for his client. He also wanted to note that the Dollar General Corporation is expanding and is a great asset to many communities.
Mayor Pollard then presented City Electrical Engineer David Coston to give an update and report. Mr. Coston stated that he wanted to discuss some options and issues for the city electrical power system. He explained that failure at the Bradshaw substation means no power for the city. It can run on generators at a cost of five thousand dollars ($5,000) per hour. The city gets revenues of six million dollars ($6,000,000) a year and gets rebated back around six hundred thousand dollars a year ($600,000) from IMEA for being able to run their generators. He stated that it costs three hundred thousand dollars a year ($300,000) to operate the power plant. They are still using the 1940s switch gear, which is a manual breaker and very dangerous. Mr. Coston stated that the future plan is to maintain power plant to keep getting credits. The city needs to manage the effects of the EPA clean air act and fix old equipment issues. He stated that the city needs to think about getting a second standalone incoming substation and install it at the power plant. They also need to build a sixty-nine (69) kV tie line to be able to power the substation. The short term goal is to upgrade the lower bus and generator. The long term goals include the building a second substation or purchase a re-conditioned transformer and install it at the existing transformer bus station at Bradshaw Park. Duke Energy has offered a contract to service agreement to maintain what they install; the lower bus and generator. They would also maintain the generator cooling system. He stated that it cost twenty thousand dollars a year ($20,000) to maintain cooling for the radiators. It would cost six hundred and fifty thousand dollars ($650,000) for the city to install air cooled radiators for the generators.
The cost of a second substation is three million nine hundred and fifty thousand dollars ($3,950,000) to install themselves or fifty-eight thousand seven hundred and five dollars a month ($58,750) for Duke Energy to maintain and install it. There is also the option of purchasing the second substation transformer from the city of Marshall, IL for around two hundred and twenty-five thousand dollars ($225,000) which is around fifteen percent (15%) of the price of a new unit. There is also a managed service option which is a monthly fee to Duke Energy to install, inspect and maintain the generator. Mr. Coston explained the comparison: Duke Energy total for a twelve (12) year cost would be two point two three two million dollars ($2.232) for the lower level switchgear, and eight point four six million dollars ($8.46) for the substation and tie line. The city total for a twelve (12) year cost would be two point two five three million dollars ($2.253) for the lower level switchgear, and eight point four seven million dollars ($8.47) for the substation and tie line. Mr. Coston stated that the bottom line is that the upgrades need to be implemented. If the city had the capital, there would be a slight advantage for owning the assets. The service agreement is a good alternative to the city borrowing money to do the needed upgrades. The equipment has a thirty (30) year lifespan. Mayor Pollard stated that if the city does the service agreement it takes the “what if” away from the city. The priority right now is to make a decision on the transformer from Marshall, IL. Mr. Coston stated that the radiator is a priority to him because of the safety for the engines and insurance.
Reports and/or updates from Mayor Pollard
City Supervisor Mike Buckman gave a quick update on the Burrell Street project. He stated that it will be closing on April 7th for Kieffer Brothers to complete construction. It will be closed for around three (3) months.
Reports from Standing Committees
Alderman Knight stated that the Burrell’s Woods is open and the ballparks are in full swing..
Alderman Yearby wanted to thank Whitney Barbre for helping with the Shriners Easter Egg Hunt.
Business or Comments from Visitors
Motion made by Alderman Headlee and seconded by Alderman Davis to adjourn. The motion carried on roll call by each Alderman answering “yes.”
At 6:16 p.m. the council adjourned.
Brian K. Allen, City Clerk
Jeff Pollard, Mayor