City saves $730,000 in power relocations fees for Duck River

Published 9:01 am Thursday, January 30, 2014

Though the price tag is still quite a bit higher than expected, officials managed to save just under $1 million this week on the Duck River Dam project.

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As part of the site preparation, the city had expected to pay the Tennessee Valley Authority (TVA) just over $2 million to relocate some major transmission lines that were located in the future lake.

But, TVA was able to cut costs on the relocation project by reusing some equipment, which trimmed expenses to approximately $1.3 million. A TVA representative visited Cullman Tuesday to return a $730,000 check to the Cullman Utilities Board, and those savings will be rolled back into the project’s bottom line.

“It’s great news that in this high-cost project, something has come in under budget, and sooner than we expected,” utilities board and city council member Johnny Cook said. “The folks at TVA were very diligent in looking for cost-saving methods.”

Robby Jones, a customer service manager with TVA, was on hand in Cullman this week to personally hand over the check for the savings. Jones said TVA was able to reduce the costs by reusing some existing components and combining the project with some ongoing upgrades.

“We were able to reuse part of a tower, so we didn’t have to rebuild, and we were also doing some transmission upgrades already,” Jones said. “Those things allowed us to have some savings and provide this refund. It worked out great for both sides, and we’re happy to support the city in this project.”

The total cost of the dam project is estimated at approximately $110 million, which is up approximately $40 million from initial estimates due to some unforeseen geological concerns at the site and higher-than-expected flood standards. Along with the increased price tag, local water rates will also be going up to cover the debt service for the project.

Those geological issues led engineers CH2M Hill to conduct a redesign of the project to fit the site as it stands, and the utilities board recently received a formal report from third-party engineers URS Corporation confirming the redesign plan is a sound option.

In an effort to further reduce costs, the Cullman Utilities Board has also commissioned some detailed rainfall studies that could help reduce the spillway size and trim costs.

The Duck River project has been in the works for more than a decade, after being permitted by the U.S. Army Corps. of Engineers than subsequently delayed by environmental challenges that have since been resolved. Once complete, the project will create a 640-acre lake with a 32-million-gallon-per-day capacity in northeast Cullman County, which will work in conjunction with the area’s current sole major water source Lake Catoma. The design will be a hybrid, with roller-compacted concrete in the center and earthen wings.

* Trent Moore can be reached by e-mail at trentm@cullmantimes.com, or by telephone at 734-2131, ext. 134.