Utilities seeks feedback on potential new building
Published 7:01 am Sunday, January 26, 2014
Austin Utilities officials are trying to get the community energized about giving feedback on a potential new $15 to $20 million central administrative building, a project that would increase monthly utility rates if it goes forward.
Utilities officials are looking to consolidate its office operations, including customer service, staff operations and administrative duties, from the seven buildings utilities workers currently use.
“Basically, it’s looking at assessing the needs of our operations,” said Utilities general manager Mark Nibaur. “Not just five years, 10 years, but 30 years out.”
Several of the facilities utilities workers use were built in the 1920s and ‘30s. Some of them are in need of repair or renovation to meet the utilities company’s needs.
There’s no guarantee Austin Utilities will move forward with a new building project. Nibaur has spoken to several service groups and organizations over the past few months soliciting feedback on whether to move forward with a new building or simply renovate existing facilities. A new building is estimated to cost about $15 to $20 million, but a large-scale renovation project to accommodate utility needs would cost about $13 to $16 million.
“There’s not a huge difference in moving to a new facility when you’re looking at total construction costs,” Nibaur said.
Either way, utilities officials would likely need to raise utility rates to help offset costs. Officials estimate the average residential utility bill would rise by $5 to $6 per month regardless of the project, while a small- to medium-sized business bill would increase an average of $44 to $70 per month and a large business utility bill would increase an average $66 to $142 per month. Nibaur said the company will also look at federal and private grants to offset construction costs.
What Austin Utilities does will depend on how residents feel about the projects. Nibaur said utilities officials are looking for feedback from customers to figure out how best to serve them. Thus far, reaction to a new building has been surprisingly positive, but Nibaur said Austin Utilities could decide to renovate or go in another direction based on resident feedback.
“We are taking this very seriously,” he said. “We know it will affect our customers’ rates and we want to make the right decisions to help Austin citizens now and into the future.”
People can email their reaction to the new building at NewBuilding@AustinUtilities.com, call Nibaur at 507-433-8886 or stop by the Austin Utilities office at Fourth Street and Fourth Avenue Northeast.
Nibaur said utilities officials will gather feedback until the Austin Utilities Board of Commissioners meeting in March, where board members will likely decide what to do next. If the board decides to move forward on a new building, Austin Utilities would hire an architect to make solid plans for a new building, and Nibaur said the company could open the bidding process on the project by 2015.
Utilities officials have pondered a switch to a central facility since 2009, when the company purchased 23 acres south of Todd Park in Austin’s industrial park. Yet Austin Utilities didn’t decide to explore its options until last summer.
Utilities officials hired architectural firm TKBA out of St. Paul to put together concept drawings and help figure out how much a new building where administration, customer service, equipment and other services could work out of.
Utilities officials found they could save $2.5 million over 10 years through a new central building, which would include eliminating staff time driving between sites. A new building could also house a central dispatch and control center in one place, which could improve response time, as well as a backup generator in case of emergency. The new building would also give customers one place to visit as all departments would be represented there.
None of Austin Utilities’ energy infrastructure would change — substations and other offices would still operate.
Potential Austin Utilities rate increases
•$5 to $6: Residential rate increase per month if Austin Utilities opts to build a new administrative facility or renovate existing buildings
•$44 to $70: Potential monthly rate increase for small- to medium-sized businesses per month
•$66 to $142: Potential monthly rate increase for large businesses