Transformer replaced for $795,000

 During their first meeting of the month, the Sparta Board Mayor and Aldermen voted to approve purchasing a new transformer for the city’s substation.

According to the city’s electric manager, Belva Bess, the transformer that is in need of replacing is the spare that the city shares with Caney Fork Electric Cooperative, and, therefore, the cost of the replacement and installation will be split between the two entities.

“Instead of a 50/50 split, its actually 55/45,” Bess told the board.

She said that she and the Caney Fork manager review the regional contract that had been written in the 1980s and agreed that the percentage that each company used was relatively the same as it was at the time the contract was written. “

We are only responsible for 45 percent of the cost, and they will cover 55 percent,” Bess said.

Bess told the board they put it out for bids, and the winning bid resulted in a replacement cost of $795,000.

“Our part will be $357,750, but I have been in communication with our insurance company,” she told the board.  “Luckily, we do have full replacement value, not depreciated value.”

The full-replacement value insurance stemmed from an agreement signed between the city and the insurance approximately eight years ago, along with the continued monthly testing of the transformer along with routine maintenance.

“Doing that meant that they would pay full replacement value,” she explained. “We were lucky because the depreciation value isn’t very much.”

Bess reported that after talking with the insurance company, it was determined that the city’s deductible, which is based on the kilowatts of the transformer, will be $35,000. In addition to the cost of the transformer, there will also be engineering costs to consider, but those will also be split with Caney Fork Electric. Bess said she is in negotiations with the insurance company to determine what, of those, they will also cover.

After being told that it will be September before the new transformer will arrive should they authorize the purchase now, alderman Jerry Lowery made a motion that was seconded by alderman Bobby Officer to authorize the purchase.

“I just want to thank whoever did that with the insurance,” Lowery added. “It’s huge to know that a transformer costs close to a million dollars, and we are only going to be responsible for 35,000. That’s a good deal.”

Brad Hennessee, the city’s administrator, said the credit for that goes to Bess and city recorder Tonya Tindle.

“They have kept up with that over the years, and it has been a lifesaver,” he said.

Along with the purchase of the transformer, the board authorized the purchase of new relay panels for the substation that will allow the electric department to move into the second phase of a project that began in 2019. The department has been replacing switches, and now relay panels, in an effort to reduce the amount of customers that are affected by a power outage and increase the speed of locating where the problem has occurred and returning service to customers when an outage does occur.

In other business, the board approved the solicitation of internal applicants for the position of meter reader and approved the solicitation for “laid in place 1 ½” paving for identified city streets.

Additionally, Mayor Jeff Young told the board  the street superintendent is looking into the need for additional lighting at the Turntable Road and Spring Street intersection.

“I’ve noticed that intersection is kind of dark, and the street superintendent was up there last night and agreed,” Young said, adding that he hoped to have more information for the board by the next meeting, on March 18.

“I talked to the county executive yesterday about the trees on the bank on the side of the hill by the library,” Young said.

He pointed out that one of the trees has broken off and is threatening power lines owned by the city.

“We are looking at a partnership with the county, because they are threatening our lines but are on county property, to remove those trees on the hill,” Young said. “I think it will be beneficial to us over time.”

In one final comment, the mayor told the board the city had successfully purchased the property that is on the corner of Bockman Way and South Carter Street for the price of $153,100 for the purpose of expanding the South Carter Street Park system.

“We hope this will provide additional parking and, depending on the condition of the building, will provide us the opportunity to restore the building making the community to look better and provide another facility for people to have family reunions, birthday parties, and that type of event,” the mayor stated.

He added that a crosswalk would hopefully be added to help with pedestrian access, but, since that involves a state route (Bockman Way), there will be some technicalities to clear first