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Glens Falls officials say switchgear replacement cost came in below worst-case estimate; insurance claim pending
Summary
Staff reported the emergency replacement of aging switchgear at the wastewater treatment plant will likely total about $790,000; the city has applied to insurance and used a mix of operating and ARPA funds so far and may recommend using the reconstruction fund to cover the remainder.
City staff told the Glens Falls City Water and Sewer Commission on March 3 that replacement of the plant’s failed switchgear was completed rapidly and that preliminary bills put the repair cost below the earlier $1 million estimate.
Staff described the emergency intervention as a coordinated effort among in-house crews and multiple contractors to restore high-voltage equipment; the work relied on temporary generator power for roughly a week while crews replaced the switchgear. Preliminary consolidated figures discussed by staff put total costs in the neighborhood of $790,000, though staff said final invoices were still pending.
Commissioners reviewed the funding sources already tapped: about $300,000 came from the 2024 operating budget, and roughly $240,000 was reallocated from ARPA funds set aside earlier. That leaves a funding gap staff estimated in the “ballpark” of $250,000, depending on final costs and any insurance reimbursement.
City staff said an insurance claim is under review; insurance adjusters have questioned coverage because the old equipment was aged and depreciation will factor into any payment. Staff told commissioners they could not rely on insurance and therefore recommended, pending final bills and council review, that the commission consider recommending use of the city’s reconstruction fund to cover remaining costs if the insurance payout is small or denied.
Separately, staff updated the commission that electrical upgrade design work is nearly complete (about 90%); the commission plans workshops to review priorities and to prepare any financing recommendations to the Common Council, including whether to pursue bonds for larger multi-year upgrades.
Commissioners discussed longer-term priorities for the plant’s electrical and motor-control systems, noting the replacement of one failed component does not remove the need for broader upgrades and parts obsolescence remains a concern.
