ROBERTSDALE, Alabama — The city of Robertsdale is looking to get a better deal on electrical rates, while at the same time upgrading its electrical system.

At its meeting on Monday, the council authorized Mayor Charles Murphy to negotiate the city’s power purchase contract, which is set to run out on Dec. 31, 2017.

The city currently contracts with Alabama Power for its power generation costs which is roughly 83 percent of the cost to supply power to the city, said Lance Junkin with Stewart Engineering electrical consultants, based in Anniston. About 10 percent of the cost is in transmission fees, while another 7 percent is paid to the Southeastern Power Association.

“We would be dealing only with the cost of power generation,” he said, “and not power transmission or SEPA fees.”

Over the last five years, Junkin said, Alabama Power’s power generation fees have increased about 31 percent. As a result, at a previous meeting, the council authorized the solicitation of bids for its power supply agreement.

The city received bids from Alabama Power, plus five other companies, Junkins said. Because the city signed a non-disclosure agreement, the prices from the bidders were sealed until the negotiation is complete.

Murphy has been authorized to negotiate for either a five-year contract which would extend from Jan. 1, 2018 to Dec. 31, 2022, or an eight-year contract, which would extend to Dec. 31, 2025.

In other business Monday, the council approved changes to the plans to upgrade the city’s electrical system.

The council voted last July to contract for consultation and design services and to move forward with the project, which would cost the city nearly $4.5 million over the next two years.

Under the original terms of the contract, the project would:

• ·       Retain the 115 KV service point at the County Road 48 Substation, located just west of College Avenue and take a second 115 KV service point at the East Substation, located on Chicago Street, just north of Pennsylvania.
• ·       The East Substation, which is currently built to step down from 46 KV to 12 KV, would be rebuilt at an estimated cost of $2 million, converting it to receive at 115 KV, stepping down to 12 KV.
• ·       All remaining downtown 4 KV distribution lines would be converted to 12 KV distribution lines at an estimated cost of $600,000.
• ·       The city’s two 4 KV substations, the North Substation, located at St. Paul Street, just south of Michigan Street; and the South Substation, located on St. Paul Street, just south of Nebraska Street, would be dismantled using in-house labor.
• ·       Several of the existing distribution lines would be upgraded at an estimated cost of $800,000.

But at Monday’s meeting, Junkin said they were informed that Alabama Power backed away from upgrading the East Substation, stating that it would be too cost prohibitive.

The council voted Monday to implement an alternate plan, which would leave the County Road 48 Substation as the only delivery point, dismantling the East Substation in addition to the other two substations.

While the estimate for this option would be a little more (an increase from $3.655 million  to $3.99 million), the city would save about $160,000 per year on transmission fees, or $1.6 million over a 10-year period, officials said.

The council also voted Monday to reject a bid for a ditch stabilization project on Wilters Street. The city will also suspend a grand application which would have paid part of the cost for the project.

City engineer Greg Smith said Monday the grand would only pay $114,000 for the project with the rest paid for by the city. Only one bid, for $212,000, was received for the project.

“We can do the work ourselves for about $125,000,” Smith said.

The council also authorized the purchase of drainage easements for properties alone Wilters Street for an improvement project. Smith said one property owner wanted to sell her property rather than provide an easement, at a slightly higher cost, but for more property.

“As long as we are treating all the property owners the same, I see no reason not to proceed,” said Council member Paul Hollingsworth.

In other business Monday, the council:

• ·       Voted to donate $500 for the Central Baldwin Middle School Technology Student Association to attend the State Convention in Birmingham.
• ·       Approved Ruthie Campbell as a voting delegate to the Annual League Convention with Brent Kendrick as first alternate and Murphy as second alternate.
• ·       Approved an increase on the purchase of a new garbage truck for the city from $130,000 to $140,000. City CFO Anne Simpson said with monthly payments, the increase in cost to the city would be minimal.
• ·       Approved the purchase of Christmas decorations for the city at a cost of $4,700.
• ·       Approved utility write-offs in the amount of over $49,000 for the city. Simpson said the write-offs represent 0.4 percent of what the city billed out last year.
• ·       Approved a Hazard Mitigation Plan. Smith said the county is required to update its Hazard Mitigation Plan which includes the county and 14 municipalities, including Robertsdale.
• ·       Approved a resolution for the George P. Thames Senior Center’s transit services. Federal law requires that the city adopt a non-discrimination policy in order to receive financial assistance.