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LCUB awards construction contract


Lenoir City Utilities Board awarded a bid for construction of its newest Turkey Creek substation, planned for a site off Outlet Drive at its meeting, Monday, July 20.

Contract was awarded to Service Electric Company for $160,700. Service Electric also built the Watt Road and Westland Drive substations.

“I call this the Cotton Eyed Joe substation,” LCUB general manager Fred Nelson said of the popular club’s proximity to the new substation.

The Board also approved Phase III of its wastewater treatment plant construction, as well as authorized the wastewater department to request SRF [State Revolving Fund] funding for the phase.

“This needs to be done in order for us to leverage any of the stimulus funds,” Lenoir City Mayor Matt Brookshire said.

LCUB is under a state mandate to complete the new wastewater treatment plant, which was nearly six weeks ahead of construction until an accident at the site July 6, Nelson said.


Construction at the site stopped when one LCUB subcontractor employee was killed and another injured at the site when a concrete wall form collapsed on the two, burying them in cement.

Tennessee’s Occupational Safety and Health Administration is investigating the accident, and construction has halted during that investigation.

The SRF funds for Phase III of the project would come in the form of a $4.5 million loan, which Councilman Eddie Simpson said would stabilize rates.

Without stimulus funds, “We would not be able to do Phase III without going back and raising rates,” Brookshire said.

“This allows us to go ahead and do Phase III without going back and raising rates,” he added.

In other business, the Board:

• Approved the updated edition of the LCUB employee handbook.

• Approved the 2010 budget for the electric, water, gas and sewer departments.

• Approved a resolution to permit LCUB to participate in the latest Tennessee Municipal League risk management pool’s “safety partners” loss control matching grant.

• Awarded a bid to Mayse Construction for the downtown water system project for $1,859,266.75.

 

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