City Council Meeting Agendas and Minutes

SPECIAL SESSION OF APRIL 18, 2017 The City of Kings Mountain, North Carolina met in Special Session at 5:30 p.m. on Tuesday, April 18, 2017 in the Conference Room at Public Works with Mayor Scott Neisler presiding. ATTENDANCE The following Councilmembers were present: Howard Shipp, Curtis Pressley, Rodney Gordon, Tommy Hawkins, Keith Miller and Mike Butler. Councilmember Jay Rhodes was unable to attend Also present: Mickey Corry, City Attorney; Marilyn Sellers, City Manager; Nick Hendricks, Assistant City Manager/Energy Services Director; Rickey Putnam, Public Works Director; Ricky Duncan, Water/Sewer Director and Lynda Mattox, City Clerk. INVOCATION The invocation was given by Mayor Neisler. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Mayor Neisler. SPECIAL SESSION Mayor Neisler asked that the agenda be revised to have the Closed Session first because City Attorney, Mickey Corry had another engagement to attend. Mayor Neisler asked everyone to leave the room except Council, City Manager, Assistant City Manager and City Clerk. Upon Motion by Councilmember Howard Shipp, seconded by Councilmember Curtis Pressley, it was unanimously voted to close the Special Session and enter into a Closed Session for legal consultation with the City Attorney. CLOSED SESSION Upon Motion by Councilmember Rodney Gordon, seconded by Councilmember Tommy Hawkins, it was unanimously voted to close the Closed Session and re-enter into the Special Session. No action was taken in Closed Session. Minutes – April 18, 2017 Page 2 Fifth Amended and Restated Power Purchase and REPS Compliance Service Agreement between Duke Energy Carolinas, LLC and the City of Kings Mountain, North Carolina. Assistant City Manager/Energy Services Director, Nick Hendricks stated that staff recommends approving the Fifth Amended and Restated Power Purchase Agreement between the City of Kings Mountain and Duke Energy Carolinas, LLC which will expire with the conclusion of our contract on December 31, 2018. Upon Motion by Councilmember Keith Miller, seconded by Councilmember Curtis Pressley, it was unanimously voted to approve the Fifth Amended and Restated Power Purchase and REPS Compliance Service Agreement between Duke Energy Carolinas, LLC and the City of Kings Mountain subject to the Confidentiality Agreement. Mowing Contract with NCDOT City Manager, Marilyn Sellers, updated Council on a revised mowing contract with NCDOT for specified State roads. She stated that in December, Council approved a mowing contract to allow the City to maintain specified State roads. NCDOT revised the contract as follows:  Each mowing cycle will include trimming and litter removal for all routes.  The agreement shall remain in effect for one year and will automatically renew each year on the date of contract approval, unless notice is given at least 30 days in advance by either party.  The allowable reimbursement for this agreement is $15,200 annually.  The City shall submit a quarterly invoice to NCDOT in the amount of $3,800. Upon Motion by Councilmember Mike Butler, seconded by Councilmember Tommy Hawkins, it was unanimously voted to authorize the Mayor to enter into a revised agreement with NCDOT to allow the City to provide mowing for specified State roads. Budget Amendment City Manager, Marilyn Sellers, updated Council on the request for a Budget Amendment in the amount of $495,000. She stated this was for the appropriation of existing fund balance, adjustment for contributions to be made and stop-loss revenues received for medical self-insurance costs. She stated that this is not an additional transfer from other funds but simply increasing revenues based upon year Minutes – April 18, 2017 Page 3 to date actual results being above originally budgeted revenues, appropriating fund balance that exists in this fund and increasing expenditure line items based upon our increased revenues. Upon Motion by Councilmember Howard Shipp, seconded by Councilmember Rodney Gordon, it was unanimously voted to approve the Budget Amendment in the amount of $495,000 for the appropriation of existing fund balance, adjustment for contributions to be made and stop-loss revenues received. Presentation on request for proposals for Moss Lake Drain Pipe Abandonment Contract Ricky Duncan, Water/Sewer Director updated Council on the request for proposals for the Moss Lake Drain Pipe Abandonment Contract. He stated that two bids for architectural, engineering and construction services were received. The request for proposals included a rating system to provide a method by which proposals may be fairly and equitably evaluated. These proposals are rated on five factors, having a rating system total of 100 points. The bid was advertised in the Shelby Star and the request was sent to 5 vendors, two of which responded. Recommendation is to award the bid to Moretrench due to the rating on the evaluation process. Upon Motion by Councilmember Mike Butler, seconded by Councilmember Curtis Pressley, it was unanimously voted to award the design/build Moss Lake Drain Pipe Abandonment Contract to Moretrench. Presentation on the Hydro Electric (Pump Storage) Generation Project Nick Hendricks, Assistant City Manager/Energy Services Director updated Council on the evaluation results of the Hydro Electric (Pump Storage) Generation Project study. He stated work began with Summit Utility Advisors and Progressive Engineering evaluating the impacts to the existing NTE contract, State and Federal requirements and a Bathometry study was completed on both lakes. An evaluation of installing a 5, 10, 15, 20, 25 MW facility was looked at. Based on the purchase power impact studies to the existing NTE contract, the City could expect to see a reduction of $877,659 per year or $73,139 per month savings. The estimated cost to build a hydro facility is about $1 million per MW (not including environmental studies/costs, pipe installation from lake to lake and dredging). It was determined early on that a maximum of 10 MW could be utilized. Operation of 9 hours per day was needed to capture the peak demand timeframe and the KWH’s needed to produce the savings. On Monday, April 17th it was determined that only 3.5 MW could be utilized based on the demographics and head distance therefore reducing the annual savings to $219,415. In weighing the positives and negatives, a hydro generation (pump Minutes – April 18, 2017 Page 4 storage) can be done, but the cost and risk impacts are too great and it is staff’s recommendation that the City does not move forward. ADJOURNMENT Upon Motion by Councilmember Howard Shipp, seconded by Councilmember Keith Miller, it was unanimously voted to adjourn at 7:30 pm. BY:____________________________________________ G. Scott Neisler, Mayor ATTEST: _____________________________________________ Lynda G. Mattox, City Clerk