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Council hears updates on Shelby solar outage, water fund strain and waterline work
Summary
City staff told council the Shelby solar array is offline after a likely lightning strike with a transformer replacement cost estimated at about $100,000 and a ~12-week lead time; staff also flagged a tight water fund, $269,000+ annual chemical costs, surveillance activation issues, and progress on the Shelby Avenue waterline project.
City staff updated Shelby City Council on multiple infrastructure and utility items, reporting a solar-array outage, tight water-fund balances, troubles bringing surveillance cameras online, and a low bid and pre-construction timeline for a major waterline project.
Staff said the Shelby solar array is down for unscheduled maintenance after a presumed lightning strike that compromised the system transformer. The array owner and operator, identified in the transcript as AEPyonce Partners, is searching for a replacement transformer that staff estimated could cost approximately $100,000 and carry a roughly 12-week lead time; staff projected the array back in service in late September.
On the city's power supply, staff summarized the 2023 mix with coal around 35%, hydro just over 25% and market power near 35%; Shelby's solar output was reported as about 4% of local demand. Staff said cumulative transmission and capacity savings from the array since 2021 total $492,000 and average roughly $123,000 per year.
The water fund was described as running at a "slight uncomfortable level," with operating income just keeping pace with expenses. Staff listed the primary chemical costs used at the treatment plant (lime, carbon, ferric acid, fluoride, chlorine, carbon dioxide, phosphate and potassium/manganate) and cited annual chemical costs last year of $269,000-plus; they warned that if encumbrances push the fund negative, a base rate adjustment may be required.
Staff also said approximately $100,000 of surveillance equipment is awaiting activation and that OmniFiber and Centek are troubleshooting why surveillance data is not passing over the fiber connection. Public-works staff added that Buckeye Excavating was the low bidder on the Shelby Avenue waterline project; a pre-construction meeting was held for the London West Bridge and the contractor is set to start in early July with a projected completion date in November 2022 (staff noted the contractor expects to finish sooner).
What happens next: Staff will continue procurement and troubleshooting (transformer replacement, fiber/connectivity for surveillance) and warned that rate adjustments may be required if water-fund trends worsen. Council recorded these reports and proceeded with the meeting agenda.
