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City studies budget cuts
Money earmarked for power plant study

Wednesday, November 15, 2006

Martinsville City Council has committed the city to spending up to $141,212 to study whether hydroelectric plants should be built on the Ohio River.

Council members — except for Vice Mayor James Clark, who was absent — unanimously approved a resolution to that effect Tuesday.

It authorizes City Manager Dan Collins to execute a cost-sharing agreement with American Municipal Power-Ohio, through which Martinsville buys wholesale electricity that it distributes to city residents and businesses.

Councilman Ron Ferrill was reluctant about committing to the expense, but he said “if we’re going to get on the train, we must do it pretty quickly.”

AMP-Ohio wants to start the study next month, Collins said.

Through its AMP-Ohio membership, the city could become part-owner of a future power plant built on the river. That could reduce the city’s wholesale electricity costs, officials have said. The city hiked its electric rates each of the past two years mainly due to rising wholesale costs.

“The bottom line,” said Councilwoman Kathy Lawson, is that the city might save money.

The city and other participating AMP-Ohio members will study the technical, permitting and economic aspects of the proposed hydroelectric plants. Study results are to show whether it would be cost-effective for members to build, own and operate one or more plants, a council report indicates.

By taking part in the study, the city reserves 4,300 kilowatts of electricity that a power plant would generate. Collins said that is a nominal amount but with more than 100 other localities interested in the project, basically that amount is all Martinsville could reserve.

If costs to develop one or more power plants turn out to be more than the city wants to spend, Martinsville can opt not to help fund construction. The 4,300 kilowatts reserved would be split among localities that participate in the construction — if any plants actually are built, according to Collins.

In May, the council adopted a resolution committing the city to spending a comparable amount to study whether hydromatrixes should be built on the Ohio River. A hydromatrix is much like Martinsville’s hydrodam on the Smith River, except the matrix has no gates and water runs through it constantly.

Tuesday’s resolution repeals the previous one. Collins said that AMP-Ohio determined that hydromatrixes are not suitable for the Ohio. He said that determination was made due to a permit-related issue and because it was learned that hydromatrixes may not be as reliable as originally thought.

The city had not yet spent any money to study hydromatrixes.

The resolution says that new hydroelectric plants would use “conventional as well as newer technologies” but does not further describe them.

City Finance Director Wade Bartlett said a partly city-owned electric plant might end up supplying 10 or 25 percent of the city’s power.

It would take about eight years to build a power plant, and construction costs likely would be spread over 20 years, Collins said.

In another matter Tuesday, the council postponed considering a resolution that would designate uptown as a revitalization area.

Council members indicated they want the targeted area better defined and maybe expanded.

Collins said he wants to get input from the Community Development Department, Martinsville Planning Commission and Martinsville Uptown Revitalization Association before the council considers the resolution.

The designation would help building owners in the affected area get state financial aid to turn portions of their structures into living quarters.

Having people living uptown could help businesses there prosper, officials have said.

The council also briefly discussed a request by Earl Lawrence, on behalf of the H.M. Talburt Trust, to rezone four parcels at the intersection of Fayette Street and Memorial Boulevard from R-6 Residential to C-3 Commercial.

The parcels are in the 700 block of Fayette and 100 block of Sellers Street. They comprise a total of 56,509 square feet and are near other commercial properties, a council document shows.

Martinsville Community Development Director Wayne Knox has said the owner has no immediate plans for the property but wants it rezoned so it potentially can be sold for its highest and best use.

A public hearing on the rezoning request will be held at the council’s next meeting on Nov. 28.

 
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