The Board of Public Works of Trenton Municipal Utilities held its regular monthly meeting on Tuesday evening at Trenton City Hall, discussing several topics and taking action on two items.
The board continued to express concern about continued losses in the electric department. For the fiscal year ending April 30, the department showed a loss of $1,176,203 with depreciation included. Board members were concerned with cash reserves, which have dropped to $1.2 million and are some of the lowest reserves ever in the department. New rates go into effect in June and will be reflected on July bills received by customers. The increase is an 11.5 percent average for all customers.
Chairman Robert Day said the board needs to have a plan to cover the increased power costs since the utility has no control over purchased power costs. He also feels the city council should reconsider the yearly 1 percent administrative fee it charges the utility in light of the electric department’s financial picture. The fee amounted to $110,000 the last two years. The money has been taken from electric department reserve funds.
Larry Crawford said he wants to make sure the utility has the right rate structure in place and is also able to build the department reserves back up. John Kennebeck questioned Director Chad Davis about power cost projections made by the Missouri Public Energy Pool since coal-fired generation plants are under attack by federal regulators. It was noted some utilities and municipalities raise their rates quarterly or even monthly to better recapture increasing electric costs.
Davis said the information provided by MoPEP still projects stable rates for the next year and beyond and he is confident that will be the case. Power cost stability, combined with the recently enacted rate increase, should help stabilize funding in the electric department.
The board approved a pole attachment agreement with Wanrack LLC to allow the company to place fiber optic lines on TMU poles. The company is working with the Trenton R-9 School District to increase Internet capacity between the Trenton Middle School/High School campus and Rissler Elementary School. TMU will be paid $10 per pole on which the lines are placed for a period of 15 years. Approximately 100 poles will be involved.
Also approved was the purchase of a new 42-foot aerial bucket truck. The truck will be purchased for $97,457 from Equipment Technology of Oklahoma and includes the trade-in of the 2009 model the utility currently owns and includes a two-year warranty, which was one year on the whole truck and a second year on the aerial system. Altec Industries also submitted a bid package, which included a one-year warranty on the whole truck. TMU staff recommended the model purchased, which also includes four-wheel drive. Several configurations were offered by both companies. Electric Distribution Supervisor David Henderson said the truck is used every day by the department.
Davis and Electric Generation Supervisor Steve Sims updated the board on work at the north and south substations. RICE equipment has been installed on the generators at the south substation and work is almost complete on the generators at the north substation. Davis said the utility has six months to complete the compliance testing.
Discussion took place on the utility’s ability to start the generators and produce power for the community from a dead start when power is interrupted from the normal provider. Work continues to make that possible and ways to test the ability were also discussed.
Water Treatment Plant Supervisor Steve Reid said work is nearly complete on improvements at the plant and the new treatment process will come on line later this summer.
He also announced a retirement reception would be held this Friday for David Mlika. The reception will be from 11 a.m. to 1 p.m. at the treatment plant on Crowder Road.
Comptroller Rosetta Marsh said work on the utility audit will begin next week and said office employee Jordan Anderson has resigned her position as she is moving from the community. Ms. Marsh said Code Officer Donnie Vandevender has been working on drawings for security upgrades to the front offices of the utility and the city.
The next regularly scheduled meeting of the board is Tuesday, June 24 and the board set Monday, June 30 to hold a strategic planning meeting.
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