The board of the V.I. Water and Power Authority met Thursday on St. Croix and discussed relocating the St. Thomas business office, approved several contracts, and received an update on the progress of the propane energy conversion project on both islands.
According to Gregory Rhymer, WAPA chief operating officer, the authority was notified by the customer service office’s new property owner – International Capital and Management Company – there are “other plans” for the facility on Beltjen Road. WAPA was given a year to find a new location but should vacate within 60 days to avoid renovations, Rhymer said.
Rhymer said a new site has been located in the Four Winds Plaza with lower rent but the building would require extensive capital improvements. The storefront location would meet most of WAPA’s needs regarding parking, office space and access to public transportation, he said.
The board was asked to approve a two-year lease with Four Winds Plaza Corporation with an option to rent the space one more year, but most members agreed the terms of the lease were too short. Rhymer said the authority may consolidate facilities in the near future and said the shorter lease was more flexible, but the board tabled the lease to allow the executive director to negotiate other options.
The board was also asked to approve “large-scale renovations” for the new office space. Most agreed with board member and executive director of the V.I. Energy Office, Karl Knight, that the estimate was too costly. He said that if the scope of work was defined, they should request two or three more bids to ensure they are getting the lowest price.
Board member Juanita Young asked that the cost of improvements to the property be broken down to reflect non-recoverable costs.
Because the board agreed a timely decision should be made, they will hold a special meeting to approve a construction bid and a lease.
Several high-ticket items were approved by the board, including $2.6 million for scheduled maintenance and repair to the Unit 17 gas turbine on St. Croix. The work will be done in three phases over several months with disassembling and inspection costing $1.4 million and the rest for parts and repairs. Rhymer confirmed that the unit would be propane compatible when the service is completed.
The WAPA board also voted to approve switching excess liability and property insurance carriers from Marsh Saldana to Theodore Tunick and Company. The cost went from $1.35 million to $1.46 for excess liability and from $2.3 million to $2.1 million for property insurance.
Other approved expenses included an additional $24,000 added on to the $339,000 Frenchman Bay Road project to relocate poles and lines, and $102,898 for additional work by Dashiel Corp. at the St. Croix substation.
The board approved annual contracts for security on St. Thomas and St. Croix. Comprehensive Security Concepts Inc. will secure St. Thomas facilities for $706,528 or less, and Intelligent Security will provide services on St. Croix for $657,109 or less.
A one-year contract with Asplundh Tree Expert Co. was approved for trimming and removing trees on all three islands at a cost of $935,875. Knight recommended implementing a program to replant trees that have been removed along the roadways, especially in urban areas.
“I have to get on my soapbox. I’ve noticed we are deforesting our roadways,” Knight said.
The board also approved almost $150,000 for additional parts and services from Rockwell Automation, mandated by the recent consent decree between WAPA and the Environmental Protection Agency. The authority was fined $700,000 in the action, announced by EPA on Wednesday.
WAPA was given authorization to open two new bank accounts mandated by the Public Services Commission and to hire Seslia Securities to help establish and manage a deferred compensation plan similar to a 401K plan for WAPA employees.
To detail the propane conversion progress, Rhymer introduced two young engineers, Elisa Sanchez and Gabriel Dore, who talked about earth removal work on both sites. The team worked through the Easter holiday, Rhymer said, to prepare the ground for the tanks that will hold the territory’s propane gas supply.
“I can’t think of one department in WAPA that is not involved. Everyone is part of this project,” Rhymer said.
Twelve of the 18 285-ton tanks have been built and are ready to ship from Belgium, he said.
At the groundbreaking ceremony last month on St. Croix, Richard Elliott, project manager for Vitol Virgin Islands, the contractor, told the Source his goal is to complete the project “this year.”
Attending the meeting were board members Knight, Young, Licensing and Consumer Affairs Commissioner Wayne Biggs, Donald Francois, Chairman Gerald Groner, Noel Loftus and Elizabeth Armstrong via teleconference. Alicia Barnes, commissioner of Planning and Natural Resources, Cheryl Boynes-Jackson and Hugo Hodge, executive director, were excused.
