Board sends $34,853 hydroelectric repair change order back to committee for more review

Staff told the board that additional severe corrosion was discovered in the S‑shaped inlet pipe at the Purdue Water Treatment Plant while repairing a prior coupling failure. The contractor, HPS Mechanical, estimated an extra $34,853 to reconfigure the pipe into flanged sections, prepare interior surfaces and apply a durable coating; the change would bring the contract line item to about $124,578. Staff said prior authorized repair costs plus reimbursements could raise the total project accounting to about $167,442, subject to insurance reimbursement and a $25,000 deductible.

Several directors pressed staff for details. Director Martinez questioned whether the need reflected defective original work and whether inspectors or prior contractors could be held responsible. She also asked whether the station’s generation benefits justify further spending and whether insurance would cover corrosion repairs. Justin (staff) said the corrosion was discovered only after disassembly, that insurance reimbursement is uncertain and that staff is pursuing coverage with the authority’s carrier (JPIA). Other board members and staff highlighted the preventive value of completing repairs now and the risk that delaying work could increase mobilization costs or jeopardize insurance claims.

Rather than approve the change order at that meeting, Director Martinez moved to send the item to the engineering subcommittee so members could review documentation, ask more technical questions and return the item to the board quickly. The motion and second carried unanimously; the board directed staff to coordinate committee timing (committee meeting noted as April 15 with a possible return April 22). General counsel reported no closed‑session reportable actions later in the meeting.

The board took no immediate spending action; staff will bring a committee recommendation back to the board.