Electric rates for Trenton Municipal Utilities customers should remain stable for the time being following discussion by the Board of Public Works at its regular monthly meeting Tuesday evening.
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The electric department showed a profit of over $127,000 for the month of September and is projected to show a profit for the month of October. The department still shows a loss of over $72,000 for the current year, which began in May.
Utility Director Chad Davis said although the electric department is budgeted for a loss of approximately $100,000 for the year, he feels the utility can get by without raising rates. He noted the utility will have paid off the purchase of electric generators by June of next year,which will be an annual savings of nearly $250,000 to the budget. New power plants are scheduled to come on line in the next few years, including one in Nebraska next year, which should help stabilize the cost of purchased power for TMU, he added. He said staff will continue to monitor the situation.
The board approved the purchase of two pickup trucks from Barnes Baker Automotive in Trenton, a 3/4 ton for the wastewater department and a 1/2 ton for the electric department. The Barnes Baker bid for the 3/4 ton was for $19,840 while the bid through the state fleet purchasing program was for $19,100. The board felt the $740 difference in price was justified since the local dealer is a TMU customer and money would be saved by not having to travel to pick up the state truck and better response to warranty work.
The Barnes Baker bid for the 1/2 ton, regular cab truck was $18,856.95 while the state bid was $19,623 for an extended cab truck.
Also approved was the purchase of an eight and one-half foot snow plow and related equipment from Knapheide Truck Equipment in Kansas City in the amount of $5,157. The plow will be used on the 3/4 ton truck to remove snow from TMU parking lots and property.
Councilman Jim Bush questioned whether it would be more economical to hire snow removal done instead of purchasing equipment and having a TMU employee do the work. After much discussion, the board determined it would be cheaper to have the equipment and do the work itself. The work was previously being done by TMU with a backhoe.
The board also approved contracts for engineering services with two different companies.
Burns and McDonnell will be paid nearly $29,000 for work to assist the utility with preparation and evaluation of bids in conjunction with the improvements to the wastewater treatment plant. Davis said he expects a pre-bid conference to be held in November with bids due in early December. Following approval by the board and the city council, construction could begin in February. Davis said the interest rate has not been finalized yet, but he expected to know the numbers next week.
In a related note, Davis said the utility has applied for a $350,000 grant from the Missouri Department of Natural Resources to help pay part of the projected $8 million upgrade project.
The other engineering bid went to Larkin Group for assistance with water distribution system work in the areas of Ninth and Haliburton streets and Second and Ridgeway streets. It is not to exceed $6,500.
Davis said utility work in the area of North Central Missouri College’s proposed allied health building is mostly complete with some electrical work to be done in the spring. He also told board members the utilities electric generation units performed well during a recent test requested by the Missouri Public Energy Pool.
TMU Comptroller Rosetta Marsh updated board members on the installation of new accounting software by the office staff. The financial packages will be phased in over several months as the transfer is made from the old system. The billing software will be the last to be installed and it projected to be complete by March of next year.
The board also approved allowing the payment of bills using credit and debit cards. Mrs. Marsh said the new software package the utility has allows cards to be swiped without the purchase of any additional equipment. She said 10 to 15 persons had expressed an interest in paying by credit card in the last month.
It was noted the ability to pay by credit card will not be available until all the software is installed, probably late in February or early March.
The board also discussed repairs which need to be made to the water fountain located at Eighth and Haliburton streets. It is hoped a committee of interested persons will be formed to decide how to make and fund improvements to the fountain.
The board met in executive session following the meeting, with no announcement being made.
The next meeting of the board is scheduled for Nov. 27.