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Lodi Energy Center: $452 million in the making

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Posted: Wednesday, November 10, 2010 12:00 am | Updated: 6:01 am, Thu Nov 11, 2010.

About 125 construction workers spent Tuesday morning driving backhoes, welding and cleaning and installing large nuts to secure a 149-foot tall boiler stack at the Lodi Energy Center. The natural gas power plant is located on 4.4 acres at the city of Lodi's White Slough wastewater plant and will generate 280 megawatts of power of which Lodi will receive 30.

The entire project costs $452 million and will be paid for through bond financing. Lodi Electric Utility users will pay down the utility's $41 million share of the bond debt in their electric utility rates.

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Welcome to the discussion.

8 comments:

  • Darrell Baumbach posted at 7:30 am on Thu, Nov 11, 2010.

    Darrell Baumbach Posts: 9405

    JB... the topic I wrote about was The Davis–Bacon Act of 1931, and the effects it has on the cost of doing business. Are you saying that it is ok for the people of Lodi to pay much more in their monthly bills, just because of politics? Personally, when I read stories of elderly people on fixed incomes, having a difficult time paying their utility bills, its stories like this that makes me wonder how people like you can be so cold and uncaring that it is difficult for them. If this project cost 150,000,000(instead of over 420,000,000) if prevailing wage requirements were not implemented, I think the payments by residents would be reduced... that would be a good thing in my opinion. Shouldn’t the people of Lodi have a choice? That is why I position myself against unions and democrats that support them. They do not want to give choice. They want people to pay more to them and suffer the consequences of this high cost of doing business.

     
  • Darrell Baumbach posted at 7:14 am on Thu, Nov 11, 2010.

    Darrell Baumbach Posts: 9405

    Good to see JB back to form… I was missing her venom and superficial commentary. Everyone knows that has met me or reads blogs I write that I am an average person who is below par in using the English language to communicate. I spell words wrong and my grammar is subpar… I have always had to spend twice as long learning subject matter. In addition, because I had no money, I had to work full time going through college and also worked on a grape farm as a youth, leaving me little time like other students to focus on these kinds of things. I unfortunately did not appreciate learning proper English and grammar years ago as I was more concerned about surviving. Didn’t seem important to me.
    In these blogs, the most important thing for me is to share ideas and concepts and learn from others as well…to me, JB is more concerned with how I spell and the grammar I use than in what ideas and thoughts make sense or not… to me, that is superficial as I make no claims to be educated or intelligent…

     
  • Joanne Bobin posted at 10:51 pm on Wed, Nov 10, 2010.

    Joanne Bobin Posts: 4488

    Since Mr. Baumbach does not live within the Lodi city limits and is not being charged for this project, his outrage is nothing more than his usual rant against unions. I think at some point Mr. Baumbach stated that his wife (or other close relative) was a teacher. Does (do) this (these) person (people) renounce their union membership in deference to Mr. Baumbach's extreme allergy?

    In unrelated news, Mr. Baumbach needs to read his submissions unless he desires to be considered illiterate in the English language. Try improving your grammar and spelling. The errors are inexcusable.

     
  • roy bitz posted at 7:42 pm on Wed, Nov 10, 2010.

    roy bitz Posts: 499

    Thank you Larry Hansen---may we have another?
    Seriously, it is impossible to determine the cost/benefit of this project at this point but Larry Hansen (chairman of the board of this project ) said " electric utility rates can be tricky". He actually said this in a response to a question on our extremely high electric rates in an LNS article. Tricky response to a straight forward question!
    Tricky Larry was voted off the city council but he will still be around and heavily involved with this project----unfortunately.
    It would be good to continue asking questions regarding this project and utility rates.

     
  • Darrell Baumbach posted at 3:37 pm on Wed, Nov 10, 2010.

    Darrell Baumbach Posts: 9405

    Josh, My questions were actually rhetorical … Below is the bill that created the system that forces the residents in Lodi two pay double what it could have other wise. Until we get rid of unions and politicians that support them, just be satisfied paying these exorbitant rates for these kind of projects. Or other way to put it is bend over, and enjoy it.
    The Davis–Bacon Act of 1931 is a United States federal law which established the requirement for paying prevailing wages on public works projects. All federal government construction contracts, and most contracts for federally assisted construction over $2,000, must include provisions for paying workers on-site no less than the locally prevailing wages and benefits paid on similar projects.
    The Davis–Bacon Act was amended in 1935 to ensure that contractors bidding on public works projects would not lower wages in order to achieve a lower bid; and to permit government agencies, which were required to accept the lowest bids, to employ contractors who paid a fair wage.The Act was modified again in 1964 to include fringe benefits in the calculation of prevailing wages.

     
  • Josh Morgan posted at 1:42 pm on Wed, Nov 10, 2010.

    Josh Morgan Posts: 532

    Darrell....unless things have changed over the past few years, all government jobs must pay "prevailing wages". If the job is being done by an independent contractor then they must provide documentation that they are paying prevailing wages. There are some areas where you must show you are utilizing a certain percentage of ethnic workers. It's really quite unfortunate for the tax payers.

     
  • Jim Hanson posted at 12:57 pm on Wed, Nov 10, 2010.

    Jim Hanson Posts: 27

    Darrell - you ask some very good questions. However, I will guess that the answer to all of them is no!

     
  • Darrell Baumbach posted at 5:35 am on Wed, Nov 10, 2010.

    Darrell Baumbach Posts: 9405

    The entire project costs $452 million and will be paid for through bond financing. Lodi Electric Utility users will pay down the utility's $41 million share of the bond debt in their electric utility rates.

    Since the utility users (people in Lodi) has to pay the bill, and since this project is so expensive, does anyone know why it is so expensive?... Are all jobs union? if not, does the non union companies have to bid prevailing wage (union requirements) in order to get the jobs? How are the materials selected and at what price? Since Lodi reisients are paying for this, do we have a say so if the cost and selecting who does the work? Im curious of the details which make up the total cost. Are these costs, rules, requirements, and decisions open to the public?

     
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