The Board of Public Works of Trenton Municipal Utilities held its regular meeting on Tuesday evening at Trenton City Hall and approved entering into a contract for a rate study for the electric and wastewater departments.
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On a unanimous vote, with all members present, the board voted to have the engineering firm of Burns and McDonnell provide services that will result in financial planning for all three utility departments – electric, water and wastewater – as well as the cost of service studies and rate design for the electric and wastewater systems only. Director Chad Davis said the goal is to come up with good, fair and equitable rates. Chairman Robert Day noted that before the 2 percent increase in electric rates approved at last month’s meeting, it had been seven or eight years since electric rates had last been increased.
Board member Larry Crawford said he feels having a third party do the rate study provides a better structure for the future and helps the public understand better. The work will include not only current costs, but cost projections and planning for the impact of future government regulations in all three departments. Ted Kelly, representing the company, was on hand to answer questions. It was noted Burns and McDonnell has helped two other Missouri Public Energy Pool cities with similar studies and is currently working with a third city.
In response to a question, it was explained that one of the cities is approximately the size of Trenton, one is larger and the third is smaller in population. The cost of the work is not to exceed $68,700 and is less than the amount budgeted by the utility for completing the work during the year. Davis said the work is bid on an hourly basis and if TMU staff can provide the needed data in a form which saves the company time, the cost will be lower. Mayor Dr. Nick McHargue said he would not oppose the hiring of the company to do the work as he had previously when he requested that TMU staff do the rate study for increases in the water department.
Approval of the contract is based upon satisfactory review of the documents by City Attorney Tara Walker and approval by the Trenton City Council. The work is expected to be completed by Sept. 30.
Comptroller Rosetta Marsh provided year-end figures for all three departments effective at the end of the fiscal year on April 30. The figures showed a loss of $312,152 in the electric department, a loss of $59,721 in the water department and a profit of $281,518 in the wastewater department. She said the auditor will be in the office during the first week of June and she expects a few minor revisions to the numbers. The 2 percent electric rate increase approved at last month’s meeting will be effective with meter readings on June 1 and reflected on customer bills in July.
The board looked at and discussed a proposed draft ordinance involving the discharge of oil and grease from food service establishments into the wastewater system. According to City Attorney Walker, it is currently against the law to discharge oil and grease into the wastewater system, but there has not been an effective way to enforce the ordinance. The proposed ordinance would require an inspection by the building inspector and the TMU water/sewer distribution supervisor to make sure the establishment has a grease trap/interceptor installed in order to obtain a city occupation license each year.
Distribution Supervisor Kenny Ricketts said a survey of 17 food service businesses within the community showed that about half of them already have devices installed. Reducing the amount of oil or grease into the wastewater system will help address problems in sewer lines the most as well as help the amount of treatment needed at the treatment plan. Larger industrial users within the city already have limits imposed on their discharge as a part of their current operating permits and would not be affected by the proposed ordinance.
Board members asked several questions about how much it would cost for businesses to comply with the ordinance and it was difficult to come up with a uniform answer. Ricketts said every configuration at a business would be different and vary from under-the-sink devices to possibly outside in ground tanks. Costs could run more than a $1,000. Board member John Kennebeck asked if anything could be done to help businesses with the installation of the devices, much like the program the utility has in place for sewer backflow devices, since the work will benefit the utility.
After further discussion, Chairman Day asked that the issue be tabled to allow businesses the opportunity to provide feedback to the utility on how the proposed ordinance might affect them. Davis said businesses are encouraged to contact himself, Ricketts, Building Inspector Donnie Vandevender or Attorney Walker.
Also discussed was the electric power outage on May 3 and ways to allow the utility to use its own electric generators in times of emergency. Davis said the north substation generators did not run properly when they were started that day and were shut down.
A vendor was called to help the utility figure out what went wrong and that vendor is expected to be in Trenton today or Thursday. Davis said it was discovered that the south substation generators were not designed to work with a completely dead system, which was the case on May 3 when TMU’s power supplier lost their feeder line. He said the vendor will be asked to help figure this issue out also.
Davis said there are also issues operating the city’s own power, running on an electric island by itself and then trying to synchronize going back on the electric grid. He said in order to do so would cause a second outage and that a planned outage may have to be scheduled at some point in order find a solution to the problem.
Davis said the utility will be making a request for qualifications in June looking for companies to assist the utility with complying with the RICE rules involving emissions from the diesel-powered electric generators and will make the functionality issue part of the request. He added that it has to be figured out how to make the electric generation process work.
In other business, Davis said the city and TMU have received two bids for property and casualty insurance and will study whether or not to remain with the current provider or go with the other company submitting a bid. The insurance will become effective on July 1.
Day said the term of member Mark Cole is expiring and he has agreed to continue serving on the board since he will continue to be a Trenton resident. Day said following an appointment by Mayor Dr. Nick McHargue, an election of officers of the board would be held.
Following the regular meeting the board went into executive session for legal and personnel matters with no announcement made following the session.
Following the executive session, the board went back into open session and discussed topics for strategic planning. According to Comptroller Marsh, the board asked TMU staff to seek information for the availability of planning facilitators from the Missouri Public Utility Alliance and the American Public Power Association. Mrs. Marsh said board members want to begin with the current organization of the board and utility and then see where the discussion leads.
The next regular meeting of the board is scheduled for June 25.