Plans continue for plant sites

Construction is moving ahead on Austin Utilities’ $18.6 million administrative facility at 1908 14th St. NE in Energy Park, but questions remain on the future of two current sites.

Utilities General Manager Mark Nibaur updated the Austin City Council during a work session Monday about the progress of the new administrative facility and the future of Austin Utilities’ two power plants, which both will be decommissioned by next summer.

Construction is progressing well on the administrative facility, and Nibaur praised Joseph Company, the contractor, and TKD Architects out of St. Paul for the work on the site thus far.

“We have had minimal, minimal change orders, and we’re pretty much on schedule,” Nibaur said.

“Fantastic job by the team to keep it within budget at this point,” he added.

Nibaur said they aim to have the building fully closed in by mid-December, which is a bit later than originally planned, as the roof work is taking a bit longer than anticipated. The roof should be done in about a week.

Windows and doors are on in most places, while plastic is covering the opening and they’re already heating the building for winter indoor work.

Nibaur said they hope to start moving in some inventory by April or May 2016, followed by administrative functions in June, and doors could be open to the public by July 2016.

But questions remain about the future of the two power plants.

The downtown plant, which saw its Capacity Purchase Agreement end in 2009, continues to be a possible landing spot for the new community recreation center being planned by Vision 2020, and Nibaur told the council they could set a purchase price soon so negotiations can continue.

Plans are also being discussed for the future of the northeast power plant, which will be retired and decommissioned June 1, 2016. The plant has a capacity contract with the Southeast Minnesota Municipal Power Agency (SMMPA) through May 2016, but Nibaur said it hasn’t been used in almost three years.

Austin Utilities is discussing future options for that plant, including selling it, but Nibaur said it’s unlikely another company would want to buy the plant for energy production.

“Not sure what we’ll do,” he said

Even without the plants, Nibaur said Austin’s energy, which it gets through SMMPA, is stable and comes through three transformers which pull power from separate directions, one from the Pleasant Valley Wind Farm area near Sargeant, one from the Adams area and a third pulls power from the Hayward direction. Nibaur told the council that Austin’s energy needs can continue to be served by two of the transformers, noting one is down this week for minot upkeep.

Nibaur also teased potential future solar projects, but he said more will be coming early next year.

Austin Utilities administrative facility timeline

1889 — A small power plant is put up on Water Street, which becomes the future Austin Utilities Downtown Power Plant.

1899 — Austin Village Council purchases the plant and creates a municipal electric company.

1961 — Austin Municipal Building, located at 400 Fourth St. NE, is built.

1971 — The Northeast Power Plant, located at 2901 11th St. NE, is built.

2009 — Austin Utilities purchases 29 acres at 1908 14th St. NE to create Energy Park.

2011 — Utilities begins decommissioning downtown plant in spring. Wraps up decommission in 2014.

2013 — Utilities prepares to get feedback on a potential central administrative facility at the end of the year.

2014 — Utilities board decides to move forward on Energy Park facility in March, finalizes plans in October. Utilities also approves a plan to decommission its northeast plant.

2015 — Austin City Council approves bond requests for Energy Park facility.

2016 — Plans call for the northeast plant to be decommissioned by July, while the new administrative facility could be open to the public by July.