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Discussion and action on CoLinx Water Tank and Pump Station
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SUMMARY: As stated in previous meetings, the fire system tank and pump located beside Cox Avenue is the property of the City of Crossville.
CoLinx has paid monthly bills for the gas and electricity since the system was installed.
The City approved to reimburse CoLinx $190,000 for modifications to their fire system so that the tank and pump system could be demolished.
CoLinx has now determined that the final cost for the fire pump generator is going to exceed the $190,000 and have asked the City to start paying for the gas and electric that serves the tank and pump system so that CoLinx can utilized their budgeted dollars for this expense toward the overage for the fire pump generator.
The past yearly utility cost for both gas and electric for the system is approximately $8,000 and it is believed that the City would pay less than $6,000 for the remainder of the 2020 year. This number is not half of the annual because some months are almost double the other months and we are not sure how the last half of the year would be utilized.
These utility cost would be paid out of the water fund because the tank system would be considered an asset of the water system.
BUDGET ACCOUNT:
Recommended Action
NECESSARY COUNCIL ACTION: Discuss the City transferring the two utilities into the City’s name for the last half of 2020.