Wastewater Improvement Financing Changes Revealed

Financing improvements at the wastewater plant will now be split into two payments, but the city of Trenton will be able to keep the low interest rate promised last week for the project.
During a meeting on Monday night, members of the Trenton City Council were told that restrictions on bonds issued in 2007 requires the city to separate the 2018 certificates of participation for the effluent disinfection portion of the project and the headworks project the city is planning to do. The city, which plans to also use $1 million in wastewater reserves to help pay for the headworks, had been looking to borrow just over $6 million to pay for both projects, getting an interest rate of 3.56 percent. However, the 2007 bonds, which came from proceeds of a state revolving fund, will not allow the city to combine the latest projects.
Toni Stegeman of the Gilmore and Bell law firm, who is working with the city on the financing, said splitting the two projects will still allow Trenton to receive the 3.56 percent interest rate on both loans. The city is currently paying 4.95 percent on the 2018 certificates of participation. The city will still be responsible for $10,000 in closing costs, with Charlie Zitnik of DA Davidson responsible for any closing costs over that amount. Ms. Stegeman anticipates having the documents available for the council’s approval in two weeks.
The city council approved an updated net metering policy, however, it took a vote by Mayor Linda Crooks to do so. Council members voted 4-4 on the policy, which regulates the use of solar electricity generated by a residential customer and how that usage is credited on a customer’s bill. A change recommended to the policy, and recommended by the utility committee, capped the credit at three cents per kilowatt. Voting in favor of the change were David Mlika, Larry Crawford, John Dolan and Cathie Smith. Opposed were Glen Briggs, Lou Fisher, Danny Brewer and Brad Chumbley, who stated he felt the cap was unfair to those customers using solar power to supplement their electric usage. The policy would not affect current users, only those who come on board after passage. With the tie, Ms. Crooks cast a vote in favor, resulting in the policy change being approved.
The council heard a presentation from Craig Woycheese of Toth and Associates regarding an electric rate study. Woycheese outlined what would be included in the study, which he said would take between 90 to 120 days to complete and would cost between $15,000 to $18,000. The council had originally considered having a study done, requesting proposals last year and choosing Toth and Associates to do the work. The council then postponed moving forward, but asked that a representative visit with members to find out more information. No vote was taken at the meeting.
The council voted 8-0 to approve several ordinances, including:
• an agreement with RS Electric Corp. to provide upgrades at the water treatment facility at a cost of $34,750.
• an agreement with Irvinbilt Constructors for water line replacement at the water plant at a cost of $16,391.
• an agreement with Perkins Dozing for abatement and demolition of buildings associated with the 17th Street Bridge replacement project at a cost of $75,000 (a portion to be reimbursed by the Missouri Department of Transportation).
• a contract with SAK Construction for sewer work at the intersection of 24th Street and Pleasant Plain at a cost of $41,400.
The council voted 7-1 to table an ordinance authorizing an agreement with David Tolen to lease the PSF hangar at the airport and instead will advertise for leasing bids. Tolen had been subleasing the hangar from Gary Jordan, who informed the city he would no longer be leasing the facility as of July 1. Briggs was the lone no vote.
On an 8-0 vote, the council approved a bid of $10,701 from McFarland to purchase wooden power poles and a bid of $37,808 from Border States to purchase motorized gang-operated air break switches.
Briggs, who serves as the county’s emergency management director, reported that Trenton and Grundy County will be among entities included in Gov. Mike Parson’s request for federal assistance for flood relief in Missouri. He said that representatives from FEMA are to be in Trenton/Grundy County on Wednesday to look at areas damaged by the flood.
An executive session for personnel was also held, with the council unanimously voting to hire Wes Barone as the assistant code enforcement officer/airport manager. Barone will train with current code enforcement officer/airport manager Donnie Vandevender until the end of the year, when Vandevender plans to retire. Barone will then assume Vandevender’s position.