Jasper Utility Service Board: Power Plant for sale

What would you do with the Jasper Power Plant?

The Jasper Utility Service Board approved sending out requests for proposals to purchase the property or salvage it (with the caveat that the salvage included asbestos remediation).

Evansville-based Cardno completed the request for proposal that includes the request for bids to demolition the building and abate any asbestos or to purchase the site as is.

Interested parties are required to attend a site walk through on January 20 at 10 a.m. with bids due by February 23 at 4 p.m.

According to Electric Commissioner Wayne Schuetter, the city will retain the right to not accept bids.

The bids cannot be for specific pieces of equipment in the power plant but interested parties can work together to piecemeal the power plant out.

Schuetter added that the bidders will not be required to purchase the entire property which includes a home the city purchased in 2011. “If we get a bid that says they would like to purchase the plant and the immediate surrounding property, that is something we could possibly accept,” he said.

According to Schuetter, they have an idea of what the power plant and equipment is worth.

The utility service board also completed the following actions:

Heard and approved the following capital expenditure plans for 2016. The costs are estimates and fund the capital expenditures line items; many times the departments pay less than the budgeted amount.

-Electric Department requested a replacement three-quarter-ton pickup truck with extended cab estimated cost of $48,800; a half-ton 4-wheel drive for the electric foreman for $27,500. The total capital expenditures is $76,300 for 2016.

-Gas department requested a two new trucks to be shared by the gas and water departments for $30,000; phase I of infrastructure improvements for $40,000; phase II of infrastructure improvements for $42,000; replace a trencher with a mini-excavator for $60,000. Total capital expenditure plan for 2016 is for $172,000.

-Water department requested to share the cost of two new trucks with the gas department for $30,000; a truck solely for the department for $30,000; replace caps on four filters for $112,000 plus $3,000 for disposal; a backhoe replacement for $14,000 with trade-in; total is $189,300 for 2016.

-Wastewater department will budget $400,000 to replace two clarifier mechanisms; will purchase a replacement vehicle for $30,000; complete manhole relining for $100,000; will replace a John Deere service vehicle for about $10,000; replace an excavator for about $40,000; and $14,000 for work on the sludge handling facility for a total of $709,000 in capital expenditures.

Then took the following actions:

-Approved changing the carbon purchase for the water treatment plant to a more expensive brand that is considered a better product for its purpose in the plant. The USB had originally approved the low quotes on supply bids including this one. The revised quote is for $123 a bag compared to the originally approved $111 a bag.

-Approved replacing the traveling water screen for $7,630. Gas and Water Manager Ernie Hinkle told the utility service board he had estimated the cost could be up to $15,000. Evoqua Water Technologies, who recently completed the inspection on the screens, will complete the work.

-Heard from Hinkle that the Beaver Lake spillway modification project is substantially completed. Krempp Construction has to clean up the site and vegetation is expected to grow back this spring. The company had to add insurance to complete the project and is waiting for the utility service board to relinquish them of the extra insurance requirement. The board decided to wait until the cleanup was completed before allowing the company to drop the extra insurance. Krempp raised the spillway weir barrier 11 inches and raised the earthen dam 6 inches in order to raise the lake water’s level by 11 inches.

-Heard the electric department will upgrade electric service to the Grassland Hills area in 2016. The current infrastructure is about 40 years old. The electric department will complete most of the work in house but supplies are estimated to cost about $41,470. The department will also be updating overhead lines to underground service in the Baden Strasse area with inhouse labor but supplies are estimated to cost $50,660.

-Approved the change in purchase of the Break Safe and Load Pickup Jumpers that were approved at the November meeting. Electric superintendent Schitter stated they had requested the incorrect load jumpers. The requote on the changed order lowered the cost to $6,360. They will purchase the parts from Anixter, who purchased HD Supplies Utility of Mattoon, Ill, the original low bidder.

-Approved hiring Donahue for an amount not to exceed $18,9000 to complete a phosphorous study at the wastewater plant as dictated by the Indiana Department of Environmental Management. According to IDEM, waste water plants account for 90% of the phosphorus in Indiana waterways. The study will be completed in 2016. Wastewater superintendent Ed Hollinden stated the utility would likely spend about $600,000 to come into compliance by 2019. A wastewater rate study is planned for 2016 and this phosphorous project will likely play a part in any rate increases.

-Approved a contractual agreement for Smithville Telecom LLC to use a city-owned duct that runs under the Patoka River near South Newton Street to run fiber lines. The agreement allows the company access to the duct for the next 10 years but they do not have exclusivity to use the duct.

-Approved the annual bad debt write-off in the amount of $7,949.31 out of an estimated $42.2 million in sales or .019 percent of sales. In 2014, the office wrote of about $7,900.

-Heard the business office had collected $26,500 in unpaid utility fees and court costs.

-Heard that American Water Resources was soliciting homeowners to purchase water and sewer line insurance. The business office reminded citizens the City of Jasper does not endorse the company’s services.