
Council approves $12M Capital Project Ordinance
(February 17, 2021 Issue)
By Loretta Cozart
City Council unanimously approved a $12.02 million dollar Capital Project Ordinance during an Energy Utilities Update in its January 26 meeting. The ordinance for improvements to the electric system infrastructure of the City of Kings Mountain which consists of the construction of an additional Delivery 5 electrical distribution substation and transmission lines that will be installed that will serve the new Delivery 5. Also, there will be six (6) new distribution lines that will come from the substation that will tie into existing distribution lines that are served from other existing City electric substations. The resolution authorizes the Mayor to execute a resolution Declaring Official Intent to Reimburse pursuant to United Treasury Regulations.
“This project has nothing to do with the casino and we are doing this work without a rate increase to customers,” said Assistance City Manager/Energy Services Director Nick Hendricks. The project is generally being funded through wholesale electric savings we have experienced when switching to the Kings Mountain Energy Center Power Plant. “We are preparing for anticipated growth in that area as well as addressing our general growth." To date our existing three substations general capacity at peak is as follows: Gaston St: (95%), York Rd: (100%) and Margrace Rd. (90%). The new Delivery 5 will assist in freeing up the load at other station as well as providing shorter circuits therefore assisting in electric reliability.
This ordinance includes improvements to the electric system infrastructure of the City of Kings Mountain which consists of the construction of an additional substation (Delivery 5) and transmission lines to the substation and distribution lines from the substation totaling $9.02 million.
The following revenues are anticipated to be available to complete these projects:
Proceeds from debt issuance $9,020,000
Transfers from
other funds-Electric $3,000,000
Total $12,020,000
The following amounts are appropriated in the fund:
Capital Outlay-Delivery $3,015,000
Capital Outlay-Substation $4,600,000
Capital Outlay-Distribution $1,405,000
Transfers to other
funds-Electric $3,000,000
Total $12,020,000
Essentially, the city plans to use $3,000,000 from the Electric Fund and will finance the entire project at a later date. At that time they will apply for the entire project cost of $12.02 million and will reimburse the Electric Fund at that time. “This is a common practice many municipalities use,” according to Hendricks.
Other items from the report share that Benestar Brands has begun grading at a fast pace. “We are excited because Benestar could be, should be based upon our load numbers, the largest natural gas user 4x larger than our current largest client, which is astronomical,” said Hendricks.
Hendricks also reported the completion of two projects: Kings Mountain Blvd. Project and the Floyd Street Project.
Kings Mountain Blvd. was completed, and all engineering, design, and easements were handled by staff in-house. This project eliminated back ally exposure by moving Kings Mountain Intermediate School and Life Enrichment Center to the new line on Kings Mountain Blvd. The project included 4000 feet of three phase electric primary circuit construction within the NCDOT 140 foot right-of-way, installation of 20 45-foot poles spaced 200 feet apart, and two 3-phase aerial crossings.
The Floyd Street Project includes work along I-85 to Woodlake Parkway and Canterbury Road. An extension of the Industrial circuit provides better reliability and re-routing flexibility, and to serve new economic projects on Woodlake Parkway and Canterbury Road to extend mainline circuit to connect to new build. The project has added new LED lighting on Floyd Street. Additional new LED roadway lighting on Canterbury Road and Woodlake Parkway will take place once the new electric distribution line is completed.
The next step is to cross the road in front of Firestone and connect at Canterbury Road to an existing line. This gives the city a total redundant loop, back feed, served by two substations.
“The Sarah Lee Road project been planned, engineered, and right-of-way obtained by in-house staff. The city will not put additional funds toward this until that particular project becomes more solidified,” Hendricks concluded, “Once we move forward with this project, we will be placing an existing wastewater pump facility that is connected to Duke Energy and connect it to City electric infrastructure.”
By Loretta Cozart
City Council unanimously approved a $12.02 million dollar Capital Project Ordinance during an Energy Utilities Update in its January 26 meeting. The ordinance for improvements to the electric system infrastructure of the City of Kings Mountain which consists of the construction of an additional Delivery 5 electrical distribution substation and transmission lines that will be installed that will serve the new Delivery 5. Also, there will be six (6) new distribution lines that will come from the substation that will tie into existing distribution lines that are served from other existing City electric substations. The resolution authorizes the Mayor to execute a resolution Declaring Official Intent to Reimburse pursuant to United Treasury Regulations.
“This project has nothing to do with the casino and we are doing this work without a rate increase to customers,” said Assistance City Manager/Energy Services Director Nick Hendricks. The project is generally being funded through wholesale electric savings we have experienced when switching to the Kings Mountain Energy Center Power Plant. “We are preparing for anticipated growth in that area as well as addressing our general growth." To date our existing three substations general capacity at peak is as follows: Gaston St: (95%), York Rd: (100%) and Margrace Rd. (90%). The new Delivery 5 will assist in freeing up the load at other station as well as providing shorter circuits therefore assisting in electric reliability.
This ordinance includes improvements to the electric system infrastructure of the City of Kings Mountain which consists of the construction of an additional substation (Delivery 5) and transmission lines to the substation and distribution lines from the substation totaling $9.02 million.
The following revenues are anticipated to be available to complete these projects:
Proceeds from debt issuance $9,020,000
Transfers from
other funds-Electric $3,000,000
Total $12,020,000
The following amounts are appropriated in the fund:
Capital Outlay-Delivery $3,015,000
Capital Outlay-Substation $4,600,000
Capital Outlay-Distribution $1,405,000
Transfers to other
funds-Electric $3,000,000
Total $12,020,000
Essentially, the city plans to use $3,000,000 from the Electric Fund and will finance the entire project at a later date. At that time they will apply for the entire project cost of $12.02 million and will reimburse the Electric Fund at that time. “This is a common practice many municipalities use,” according to Hendricks.
Other items from the report share that Benestar Brands has begun grading at a fast pace. “We are excited because Benestar could be, should be based upon our load numbers, the largest natural gas user 4x larger than our current largest client, which is astronomical,” said Hendricks.
Hendricks also reported the completion of two projects: Kings Mountain Blvd. Project and the Floyd Street Project.
Kings Mountain Blvd. was completed, and all engineering, design, and easements were handled by staff in-house. This project eliminated back ally exposure by moving Kings Mountain Intermediate School and Life Enrichment Center to the new line on Kings Mountain Blvd. The project included 4000 feet of three phase electric primary circuit construction within the NCDOT 140 foot right-of-way, installation of 20 45-foot poles spaced 200 feet apart, and two 3-phase aerial crossings.
The Floyd Street Project includes work along I-85 to Woodlake Parkway and Canterbury Road. An extension of the Industrial circuit provides better reliability and re-routing flexibility, and to serve new economic projects on Woodlake Parkway and Canterbury Road to extend mainline circuit to connect to new build. The project has added new LED lighting on Floyd Street. Additional new LED roadway lighting on Canterbury Road and Woodlake Parkway will take place once the new electric distribution line is completed.
The next step is to cross the road in front of Firestone and connect at Canterbury Road to an existing line. This gives the city a total redundant loop, back feed, served by two substations.
“The Sarah Lee Road project been planned, engineered, and right-of-way obtained by in-house staff. The city will not put additional funds toward this until that particular project becomes more solidified,” Hendricks concluded, “Once we move forward with this project, we will be placing an existing wastewater pump facility that is connected to Duke Energy and connect it to City electric infrastructure.”