June 19, 2009 — The V.I. Water and Power Authority board adopted a pared down fiscal year 2010 budget submitted by utility officials Friday, scheduled to go into effect July 1.
Officials have spent the past few months trying to cut expenses and were able to trim about $6 million for the final draft, according to a WAPA press release.
On the electric side, total operating revenues are about $201.1 million, while expenses are projected to come in at around $206 million, giving the authority a net loss of approximately $4.7 million. The water system's operating budget is $38.3, million, while expenses are projected at $36.6 million, which puts the authority up $2.7 million.
Also approved were a $35.9 million capital budget for the electric system and a $15.7 million capital budget for the water system. The capital budgets fund infrastructure projects and initiatives aimed at reducing line loss.
The board also:
— Authorized WAPA Executive Director Hugo Hodge Jr. to approve a one-year contract with Hovensa, effective from July 2009 through June 2010, for the supply of No.2 and No. 6 fuel oils under the same terms and conditions contained in the authority's Feb. 23, 2009, contract;
— Authorized Hodge to negotiate and enter into a one-year retainer agreement with BBC Electrical Services, Sumter Utilities, Bison Electric, and Dillard Smith Construction Corporation to help WAPA with emergency restoration services after a hurricane or other natural disaster;
— Approved a $780,945 one-year contract extension with Asplundh Tree Expert Company for tree trimming services. WAPA and Innovative Communications Corp. will both work with the company on tree trimming and work schedules, according to the release;
— Approved a three-year supply contract with IDE Technologies, from July 2009 through June 2012, at a total cost of $1,636,700 for scale inhibitor chemical for the water production plants on all three islands;
— Approved an addendum to WAPA’s contract with GEC for the 24-inch Waterline Rehabilitation Project on St. Thomas to accommodate Public Works' remodeling of the waterfront apron. The change order will bring the project cost to $327,707;
— Authorized Hodge to increase the funding for the authority's current security contract with Elite Security on St. Croix by $51,000 for a total of $405,292;
— Approved payment of assessments to the Public Services Commission in the amount of $364,472;
— Authorized Hodge to negotiate a $3.5 million contract with General Electric to refurbish and overhaul St. Thomas gas turbine Unit #13; and
— Authorized Hodge to negotiate the best price possible for one acre of land in Coral Bay, St. John for a reverse osmosis water station.
Board members present during Friday's meeting were: Brenda Benjamin, Cheryl Boynes-Jackson, Donald Francois, Gerald Groner, Kenneth Hermon, Noel Loftus, St. Claire N. Williams and Juanita Young.
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