W.A.P.A. Board Expresses Gratitude To Governor And Senate For $8.1 Million Payment; Approves Contract For Waterline Rehab In Christiansted

ST. CROIX — At the onset of the Virgin Islands Water and Power Authority’s governing board meeting on Tuesday, board chairman, Atty. Gerald Groner, expressed the board’s appreciation to Governor Kenneth Mapp for his recent initiative to address the past due utility bills for the territory’s two hospitals by giving the Authority $8.1 million from a government settlement.

Mr. Groner also thanked the 31st Legislature for their prompt action in bringing the Governor’s initiative before the body and passing the legislation which allows for the funds to be given to WAPA. Both Mr. Groner and the Authority’s Interim Executive Director Julio Rhymer, Sr., noted that while this measure is laudable, it doesn’t solve the hospitals’ problems going forward. They noted that both entities need to develop a financial plan that would address regular payment of their utility bills.

The board went on to approve, among other items, a contract with V.I. Paving for the installation of a six-inch waterline on Company Street in Christiansted. The project is estimated at just under $3 million.

“The Authority has been awarded an EPA grant to complete the rehabilitation of water lines in Christiansted. The completion of Company Street will be the first phase of this rehabilitation project and actually while improving the water quality in Christiansted town we can avoid the cost of asphalt repair for this street,” said Mr. Rhymer, explaining that with the Department of Public Works preparing to pave Company Street, the timing is perfect for the Authority to upgrade its waterline infrastructure.

The action by the board follows on the heels of public comments made by Mr. Rhymer in recent weeks vowing to capitalize on all available local and federal grant monies to facilitate the much needed upgrading of waterlines across the territory.

In other action by the board, members approved:

• A change order to an existing contract to redesign network services and management training as well as expand the scope of the wireless backhaul installation to include St. John and St. Croix. The communication backhaul will facilitate completion of automated metering infrastructure (AMI) deployment. The change order in the amount of $893,374.00 increases the overall contract total to $1.2 million and extends the contract to December 31, 2016.
• The purchase of additional equipment to enhance the efficiency of operations resulting in the implementation of AMI.
• Ratification of a contract between WAPA and Dowdy Recruiting, LLC to commence the search for a new executive director. The cost of the contract is 25% of the annual agreed upon salary of the new executive director plus expenses.
• Security contracts for WAPA facilities in both island districts. Both contracts cover the Fiscal Year 2017. On St. Thomas, the contract is with Comprehensive Security Concepts at a cost of $673,298 and on St. Croix the contract for security services is with Intelligent Security at a cost of $550,862.50. The board also authorized the executive director to exercise a one year renewal option based on satisfactory performance.
• Postponement of the Alva C. McFarlane Scholarship Program for the Calendar Year 2016 and expanding the scholarship program to include a bachelor’s degree in economics and a bachelor or associate degree in transmission and distributions and power plant technology. The program currently has 13 students actively participating, all at the bachelor’s degree level.
• A change order to an existing OSI contract, expanding the scope of work to include completion of St. Thomas’ Automatic Generation Control (AGC) implementation. An AGC system allows power adjustments in response to load changes. It can determine the activity schedule of WAPA’s energy resources, and provide efficient service while minimizing cost. This change order increases the amount of the contract by $5,472. The board’s action also extended the contract completion date to January 2017.

Mr. Rhymer, in his Executive Director’s report, spoke about the Authority’s recent review by Moody’s, and apprised the members of the utility’s current position – seeking additional funding – while the rating agency has placed the Authority on a 90-day watch. Rhymer and several of the Authority’s directors were recently in Washington, D.C. on an assignment to learn of possible funding sources for projects needed to continue upgrading the facility’s infrastructure and to solidify the financial position.

The team was successful in meeting with officials from the Department of Agriculture’s RUS program, as well as the Bureau of Ocean Energy Management. Both organizations are open to working with WAPA on critically needed funding. The Authority’s relationship with RUS has a positive outlook with the rating agencies.

Board members present at Tuesday’s meeting included: Chairman Gerald Groner, Esq., Vice Chair Juanita Young, Secretary Noel Loftus, Director Marvin Pickering, Elizabeth Armstrong and Cheryl Boynes-Jackson. Commissioners Gustav James and Devin Carrington were both excused.