Special Bd. of Aldermen — 06/24/2019 Page 2
facility and that one does not have a license exemption. So the license, we also knew about as part of this
process, is going to expire in and I'll talk about that on the next slide | think, in 2023. So that is driving a lot of
this. When the City acquired both dams, we put an RFP out and we have hired an operator who has been
operating them daily for us, Essex Power Services.
So | am just going to go through what the revenue has looked like since we brought both of these one. The
green line is the total revenue; you can see the revenue numbers on the side and the years. Jackson, we
started halfway through the year of FY16 so the total revenue produced versus the operation and maintenance
is the red line and repairs. And then the net revenue is the balance of the two. You'll see on the Jackson, the
very drastic red and purple lines in the opposite directions. Since we have had Jackson again 35, you buy a
35 year old entity that needs some repair, or we didn’t buy it we were given it and it needed repairs. The
turbine has been down twice; once for 3 months this Fall and 6 months last year. So those repairs have been
very costly and they’ve also lost a lot of time where we are not operating, therefore we are not making money.
So that is some of the big problem here; but overall it has been a net positive experience.
In 2016 total net income was about $46,000.00 for the 5 months. FY17 $105,000.00; FY18 was negative
$178,000.00 as we put so much into repairs. And FY19 so far, even though we have been down for 3 months,
we have had so much water we are at a positive of almost $300,000.00 at the moment. So that’s kind of
where we’ve been with revenue there, net revenue.
So Mine Falls, again we bought in the Spring on ’17 we do have one turbine down now, it went off-line in
March maybe. But we have two turbines at Mine Falls and they don’t both run at the same time all the time.
They both run only at very high water; usually we run one and bring the other one in. So one has been down,
the other is still running. The revenue at Mine Falls is significantly higher and repairs, while they peaked a little
bit first buying it, we knew we had some initial capital, we have a longer term plan to do those investments over
time. This is very much a revenue generator so as general in 17 for the short year a total net revenue was
about $140,000.00. Last year we are $700,000.00 in the positive and so far this year we are at $600,000.00
and there is quite a bit more | think to come in because of the delay and how that works.
So | am here before you to ask for a bond for the improvements that we know are coming. We are trying to be
proactive at Jackson and not have emergency shut downs and expenditures that are unbudgeted for. With the
spending cap as you all know it’s very hard to just say well |’ll just need an extra $400,000.00 this year or |
need an extra bit this year. So we are working with Essex Power and HL Turner, who is the hydro experts, we
have put out an RFP for a new turbine at Jackson. Jackson is a very, very unique situation; there is no other
hydro-facility anywhere in the whole world that is exactly like that. It is a custom-made turbine that’s there right
now. So it’s not like we can say we just want to buy that kind off the shelf and let’s pop it in. And going out to
bid for this turbine this spring we have had four responses from some companies, you know, from all over the
world. It is unique; the costs are ... it’s just an expensive proposition. So about $4 million dollars of the bond
before you is for the new turbine at Jackson and not just the purchase, but all the engineering and the actual
fabrication and installation. It is, again, built into the side of a functioning restaurant and building; it is not the
easiest place to do major work on. We do have that beautiful crest gate which gives us a lot more control but it
is a major, major proposition and it is expensive and unique.
At the same time, the fish ladder which is probably the biggest part of the dam that you see; it is the big
wooden piece that goes back and forth. That is literally how the fish climb the ladder to get up. It is also 35
years old so there are some other things that as we upgrade the turbine it might change some flows so those
things, we’ve tried to pull all that together. We are talking about the improvements that have to be made there.
So this is a process that will take about 18 months from once we pick something to design, fabrication and
installation. So it is a big process and that’s why we’d like to get started before it breaks again so that we are
further along so we are not off-line for say 18 months or two years. So we keep running until we have it all
fabricated, we hope, that’s the goal.
