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Council hears plans for 190-foot smokestack inspection, BESS testing and utility billing changes
Summary
City staff recommended a drone inspection to assess whether a 190-foot smokestack should be demolished or repurposed, reported that a 10-megawatt battery energy storage system is moving from soft to hard testing, and proposed higher security deposits and application fees to reduce rising delinquent utility accounts.
Council members received a utilities and streets committee briefing on June 16 that covered several infrastructure and utility-finance items: options for the future of a 190-foot smokestack, the testing timetable for a nearby 10-megawatt battery energy storage system (BESS), and a list of proposed changes intended to reduce outstanding utility accounts.
Councilman Bauchner said the smokestack has two near-term options: proceed with demolition or repurpose the structure as a decorative landmark. He summarized prior demolition estimates of about $310,000 in 2021 and roughly $500,000 in 2023 and described two inspection quotes: one firm estimated a full interior-and-exterior inspection at about $30,000; another proposed a drone-based inspection at about $10,000. "The rev recommendation for the next step is to contract with ... the company to inspect the structure using the drone inspection method, which is cheaper, to give us an idea of the integrity of the structure," Bauchner said.
Bauchner also updated council on the BESS adjacent to the city's solar field. "It's a 10 megawatt battery energy storage system. The installation is complete at this time. The soft testing started last week with minimal power being discharged and charged. The hard testing will be starting next week with full power being discharged and charged," he said, noting Tesla and on-site engineers are coordinating tests and that commercial operation will follow pending delivery of voltage regulators expected in August.
On finances for city-run utilities, staff reported recurring delinquencies in inactive or transient accounts and recommended policy changes: increasing security deposit amounts (current deposits set in 2017 at $150 for water, $150 for sewer, $200 for electric; combined deposits vary by service up to $300), raising reconnection charges (last updated about 20 years ago), and raising the municipal water application fee from $5 to $10. Councilman Bauchner said raising deposits and fees was one option to reduce tens of thousands of dollars in yearly outstanding balances and to better reflect modern reconnection costs.
The report also noted ongoing work at the water treatment plant to replace the line-softening system with caustic soda and that solar-panel tracking issues at the adjacent solar field are under subcontractor review. No formal council action on the smokestack inspection or fee proposals was taken; staff recommended returning with a contract for a drone inspection and with formal ordinance language if council pursues fee changes.
