Sept. 27, 2007 — After two hours in executive session, V.I. Water and Power Authority governing board members took care of some general housekeeping Thursday at WAPA offices in Sub Base, approving contracts and fund authorizations along with a nearly 22 percent increase in health insurance premiums for utility employees.
Under the new health insurance plan, which goes into effect on Nov.1, employees would be paying higher deductibles for single and family coverage. Like many other employers who are feeling the burden of increasing health care costs, WAPA had to "strike a compromise" when coming up with an acceptable policy for its employees, explained Nellon Bowry, the authority's acting executive director. Had benefits remained at the same level, he added, premiums would have jumped by 30.4 percent.
Though WAPA pays 100 percent of the cost for its employees' coverage, only $2.7 million was budgeted for insurance expenses during FY 2008 — leaving the authority to find an extra $760,000 to cover the cost of the entire health care package. It is unclear at this point where the additional funds will be coming from, board members said.
In keeping with discussion about WAPA's continuous cash flow problem, board member Alphonso Franklin said he and other authority representatives recently met with Sen. Carlton "Ital" Dowe, to discuss the possibility of a new bond issue that may soon be authorized by the Legislature and channeled through the Public Finance Authority. Some of the bond proceeds, Franklin said, would go toward paying off the government's outstanding utility bills, which now stand close to $18 million.
The total dollar value of the bond issue is not yet known, nor is it known whether the proposed financing package will stay within the government's remaining bonding capacity — which PFA officials have estimated is between $45 million-$50 million.
Bowry added that he would soon be meeting with the Gov. John deJongh Jr. and members of his fiscal team to discuss paying off the government's debt, along with addressing street lighting costs, reducing WAPA's payment to the government in lieu of taxes and conducting a land swap that would ultimately free up some space for a new administrative building.
Moving quickly through other portions of Thursday's agenda, board members also approved:
— a $7.4 million addition to a contract with Dresser-Rand — a Texas-based manufacturer and parts supplier — to cover the cost of transporting a new turbine rotor from Baton Rouge, Louisiana to the company's warehouse in Houston, and storing it there until the rotor is ready to be shipped and installed at St. Croix's Richmond Power Plant;
— the use of $1.1 million to purchase a replacement nozzle, one set of stage buckets, one set of shroud blocks and one set of transition pieces from ETS Power Group for the Unit No. 23 gas turbine (shipping and contingency costs are also included);
— a $113,685 addition to a contract with Besco Inc. for additional costs associated with installing the Unit No. 17 steam-turbine generator at the Richmond Power Plant; and a
— $75,906 change order request to pay Island Roads for the completion of a waterline installation project in Smith Bay on St. Thomas.
The board also approved a $150,000 addition to a contract with Best Construction Inc. to complete the installation of an outfall — a trench that filters out effluent that runs through the authority's property. The company was hired to undertake the project about two years ago, WAPA officials said, but had to cut the work short due to "financial difficulties."
Reluctant to approve the additional funds, board members attached some stipulations to the contract. In addition to coming up with a performance bond before proceeding with the project, Best Construction also has to provide monthly performance reports to the board. WAPA will pay for the construction materials, board members said, and will also shoulder the cost of any additional piping needed to complete the project.
Board members also approved a $333,300 contract with R.W. Beck, Inc. to conduct the long-awaited condition assessment study, which would pinpoint exactly how the authority could drive down energy costs and reduce its dependence on fossil fuel.
Board members present during Thursday's meeting were Brenda Benjamin, Franklin, Kenneth Hermon, Noel Loftus, St. Claire N. Williams and Juanita Young.
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