GREEN COVE SPRINGS – City council members approved framework Tuesday night of a plan to substantially increase commercial electric infrastructure on a County Road 315 property.

Two of the city’s electric customers, Precision Airparts Support Services and parts manufacturer AMMCON, need to upgrade C.R. 315’s main electric feed from 13 Kilovolts to 23 Kilovolts.

The city’s usual policy would require the first business requesting increased service to handle the full cost of the feed improvements and its lateral line. Secondary users on the feed would only have to pay for their lateral line. In this case, both businesses and the city would share potential costs for the feed.

City Manager Steve Kennedy recommended the new approach. Council members concurred in a 5-0 vote.

“My request is that we reevaluate that program because part of the cost association of having an electric utility is to have sufficient infrastructure in place to deliver your product,” Kennedy said. “Part of that is, we contribute to the cost because it does improve our system. It’s not just for those specific individuals.”

The estimated cost of improving the C.R. 315 main feed is $200,000, and city staff recommended absorbing half. Both PASS, at an estimated $40,000, and AMMCON, at $56,000, would pay for their lateral lines. With no agreement currently in place, there’s a possibility the costs would be spread out over a company’s utility bill.

Assistant City Manager and Public Works Director Mike Null said the cost-sharing agreement with large customers was positive for growth.

“This is part of what we can do to attract new businesses,” he said.

The city could collect interest on the remaining $100,000, over a three- to-five-year period, Kennedy said.

City documents stated that the city’s estimated $160,000 share, with the added ability to recover $60,000 at 3% interest, would be funded through retained earnings, and it required a budget adjustment.

“This upgrade does add some benefit to the overall electric system,” according to city staff’s recommendation. “We would then propose to recover the remaining $100,000 by charging $20,000 [20%] to each of the first five customers to request a new or expanded service greater than 800 amps. Both PASS and AMMCON fit this description, so we would collect $20,000 from each in the near future.”

Kennedy said he’d return with more details at a future meeting.

Council Member Van Royal called the plan a prudent way to add revenue.

“I think it helps us with the system and flat utilities revenue,” Royal said. “I think this is a way of adding money not only to the capital part, but at the end of the day ... the return on the investment is really good.”

Council Member Connie Butler told staff to protect the city’s investment in the language of the contract if something went wrong. Council Member Mitch Timberlake also asked for guarantees and a carefully thought out agreement when it would be brought before the council.

“That’s the only concern I had,” Butler said.

“They’ve got a track record over there,” Timberlake said. “So, I’m an optimist.”

In other business, city leaders unanimously passed three changes of the city’s code on first reading.

To simplify residential or commercial questions, Planning and Zoning Director Michael Daniels pushed for the addition of a Future Land Use and Zoning compatibility table, a Permitted Use table and a Lots Requirement table to the city code.

“The main purpose of these code changes is to reorganize the development-related zoning information,” Daniels said.