Jasper Utilities: Plenty of factors push water rate increase

A slew of projects and the shut down of the Jasper Power Plant are pushing the need for the City of Jasper to increase their water rates.

A rate study by Umbaugh and Associates indicated the city needed to increase water rates but according to Utilities Manager Bud Hauersperger, the amount recommended was a large jump.

Pushed by the unfunded, state-mandated addition of ultraviolet treatment equipment to the water treatment plant, the water main replacement project on Third Avenue, and the mandated Beaver Lake Dam project, the utilities have taken on a substantial amount of costly projects.

Those projects combined with the shut down of the power plant, the city’s largest water customer, are driving the need to increase water rates.

Hauersperger said that the water committee and Umbaugh are working on ways to decrease the rate jump.

They are expected to come back to the utility service board with their recommendation next month.

The Utility Service Board also took the following actions.

–Approved the purchase of a John Deere backhoe from low bidder Erb Equipment Company of Evansville for $6,250. The price of the backhoe was quoted at $83,750 but a backhoe being traded in reduced the price by $77,500. The equipment is for the Electrical Distribution Department and the approval was made contingent on the equipment meeting specs.

–Approved the low bid for a locator for the Electrical Distribution Department from Subsurface Solutions of Nebraska for $7,375.

–Took the bids for an SUV for the Electrical Distribution Department under consideration. The Utility Service Board opened bids from: Bob Luegers for a GMC Terrain for $24,757 with a trade-in of $4,800 for a net total of $19,957; Uebelhor & Sons for a Chevrolet Equinox for $24,695 with a trade-in of $4,500 for a net total of $20,195; Ruxer Ford for a Ford Explorer XLT for $32,251.69 with a trade-in of $3,750 for a net total of $28,501.69; Sternberg Chrysler provided four bids, a Jeep Compass Sport for $20,391 with a trade-in of $4,500 for a net total of $15,891; Jeep Cherokee Latitude $24,550 with a trade-in of $4,500 for a net total of $20,050; Jeep Cherokee Sport for $22,677 with a trade-in of $4,500 for a net total of $18,177; Jeep Compass Latitude for $23,464 with a trade-in of $4,500 for a net total of $18,964.

–Approved a request to vacate a sewer line easement under the IGA on Second Avenue from Indiana Investment of Jasper. The line was abandoned when the building was built.

–Approved a request to extend an 8-inch water line to a residence at 2004 Gun Club Road beloning to Annetta Houchin. The existing water main stops about 100 to 150 feet from the property. When it is extended, Houchin will tap into the waterline for her residence. To complete the project, Houchin will have to agree to an annexation waiver and pay for the cost of the city to extend the line.

–Heard that the environmental studies of the power plant are still being completed and are expected to take a few more weeks.

–Heard from Derick Wigand with Midwestern Engineers that the Ultraviolet Filtration project at the water plant was delayed due to the recent spat of bad weather. Currently, the scheduled completion is set for mid-July. The addition to the plant was scheduled to be completed by June 30.

–Approved the hiring process for a new water department employee.

–Approved the hiring process for a lift-station technician.

–Heard from Utilities Manager Bud Hauersperger that sales people with a company providing service contracts for the portion of the water lines property owners are responsible for are allegedly selling the services under the auspices the city is working with them. Hauersperger reminded citizens that this service is not through the city but from a company that sells these contracts across the country.

–Heard that bids for the Beaver Dam Spillway project were in and were being reviewed.

–Fiber Optic connectivity for the city and utility offices is continuing. Currently, five of the nine buildings are hooked up and the electric department is the only utility hooked up right now.

–Approved a quarterly payment to Umbaugh and Associates for $700 to assist in changing the way the electrical rate tracker is implemented. Umbaugh and Associates will review the formula used by the city to create the tracker amount quarterly for that amount. Hauersperger stated he didn’t think it would take more than three quarters of the assistance with the new tracker implementation.

–Approved a resolution presented by City Attorney Renee Kabrick asking for an amendment to Senate Bill 309 which the city says does not create a level playing field for between municipalities and investor owned electrical companies or rural electric cooperatives as it purports to do. The amendment recommended by the resolution would give residents of a potential annexed area the right to petition the IURC to choose the electric services provided by a municipality over a rural electric cooperative. The bill has already passed through the Indiana Senate and the city hopes the amendment can be added as the bill is considered by the House.