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City purchases new high-tech electric meters, renews bonds
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By Charlie Warner
Argus News Editor
When you come across a good deal, sometimes you have to jump at it. That’s what the Caledonia City Council did Oct. 26 when they decided to purchase 1,440 automatic reading ready (ARR) electric meters.
The city was able to purchase the high-tech meters for $25 each, which is $65 to $75 less than the usual price, according to City Electrician Matt Blocker.
Blocker told the council of a company called Austin International, Inc., based in York, S.C. The company deals in large volumns of electronic components. Blocker said the city has been spending between $35 and $40 for the old-fashioned electric meters that have to be manually read. The ARR meters can be read manually, but once the city purchases a ARR reader, they can be read from the curbside, which would be a considerable savings in larbor.
Blocker’s original request was to purchase one pallet (96 meters) from Austin International. But after weighing the pros and cons, the council decided to purchase enough meters to change over the entire city.
“This company buys up large stocks of equipment,” Blocker said. “When I first heard about this and contacted them, they had 50,000 meters on hand. That was a week ago. When I contacted them today, they only had 20,000 left. I know the price sounds too good to be true. So I did some checking and the company said they would provide testing documentation on the meters. I feel it’s legit.”
Mayor Bob Burns said if the council feels the automatic meter reading format is the route the city wishes to proceed with, now would be the time to purchase enough meters to do the entire city.
“We’d still be saving about $11 a meter for the high tech ones over what we’re spending for the manual-reading ones,” Burns said.
A motion made by Burns and seconded by Councilman Bob Lemke to purchase 15 pallets of meters was unanimously approved.
Once the city gets the new meters all new meters, defective ones that need replacing, and the meters in the Foltz and Sunnyside subdivisions that will undergo electrical upgrade programs, will be replaced with the new meters.
In other council action:
City to renew bonds
With interest rates much lower than they were when the 2002 general obligation sewer revenue bonds were purchased seven years ago, the city will be able to save at least $15,000 in interest payments if the bonds are refinanced.
That’s what Shannon Sweeney of David Drown Associates, Inc. told the council. Sweeney stated that even with all of the charges figured in to obtain a new bond rating from Standard and Poor’s, the solicitation of the bonds and all the paperwork involved, the city would still realize a minimum savings of $15,000 in interest payments.
“If we can’t save you at least $15,000, we won’t move forward with this,” Sweeney said.
“If we can save the city $15,000 in interest payments, I feel we should move forward with this,” Councilman Tom Murphy said. He made a motion to move forward. The motion was seconded by Councilwoman Randi Vick and unanimously approved.
Budgeting process underway
The annual process of putting a budget together for the upcoming year is in full swing. City Accountant Stephanie Mann reviewed the cash and investments reports with the council and then discussed the budget worksheets.
Mann said the city will be looking at an $84,000 surplus this year, due to the massive cuts made in the budget a year ago in anticipation of major LGA cuts. Because the city has been running quite efficiently, and the LGA cuts were not as severe as first thought, the city will be bringing a surplus into 2010.
“I feel this money should be set aside for emergency repairs on our streets and sewer line repairs,” Murphy suggested. Councilmembers agreed with Murphy.
Burns cautioned that LGA cuts might possibly be more severe than anticipated this year. If they are, some of the surplus would be used to handle that issue. If not, he agreed at least a portion of the surplus should be dedicated to street and sewer line repairs.
Driveway width issues
The council discussed the width of driveways within the city. Earlier this year the council reviewed a variance request by a property owner to have a wider driveway entrance than the city ordinance allowed. It was pointed out that there are many driveways in the city wider than the 32 feet that the city code allows.
While driveway widths may not have been enforced in the past, the current city council feels they should be.
“We need to follow the ordinance as it is written and any driveways that are not in accordance with city zoning that have been constructed since this council took office (in January) should be brought into compliance,” Murphy said. The rest of the council agreed and instructed interim Clerk/Administrator Mike Gerardy to look into the matter and report back to the council.
EDA director contract
The council approved a contract for 2010 with Southeast Consultants, Inc. for a part-time EDA director of $34,592, which is the same amount the city has paid in 2009.
City Hall closed Nov. 27
Caledonia city offices will be closed the Friday following Thanksgiving (Nov. 27). All city employees wishing to have the day off will be taking a day of vacation.
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