Month: December 2020

BPU board approves lower budget for 2021

BPU budget summary on uses of funds, presented at Dec. 16 BPU meeting
BPU uses of funds, from report presented at Dec. 16 BPU meeting

The Kansas City, Kansas, Board of Public Utilities approved a $348.4 million budget for 2021 at a Wednesday night Zoom meeting.

Lori Austin, chief financial officer, said the budget is almost 7 percent below 2020 levels. The 2020 adopted budget was $373.2 million.

According to Austin, the BPU would continue to improve efficiencies, reduce costs, assist and support community partners and meet and prepare for future customer growth while maintaining customer service and improving the quality of life in the community.

A BPU spokesman stated the 6.6 percent reduction is mostly the result of reduced fuel efficiencies.

Bill Johnson, BPU general manager, said at the 6 p.m. meeting that they have been working through the second half of the year to prepare the budget for next year. He said they will have to get through the current situation, gradually make progress, get through projects and improve reliability and service to the community.

The budget is $24.8 million less than the 2020 adopted budget. The biggest difference was in the operating budget, down $14.5 million from 2020.

The board voted unanimously to approve the budget.

According to Austin, the major goals and priorities for BPU in 2021 will be:

• Provide cost effective, safe and reliable utility services, including efficient operation of electric and water production facilities.

• Remain focused on updating policies and operating procedures as needed to meet the requirements of our broad customer base. Put in place initiatives to make information and services more readily accessible. Ensure the use of industry best practices in achieving these standards.

• Ensure continued fiscal sustainability by effectively managing debt service coverage, cash-on-hand, and credit ratings through open and transparent fiscal and budget policies.

• Encourage strategic alliances and supporting expansion opportunities that benefit the utility and the community. Supporting economic development and retention and growth in the service area with other community partners.

• Ensure electric and water production and delivery systems are adaptable to support changes in future supply sources. Operate and maintain all utility assets in a safe, reliable, and cost-efficient manner, while working to prioritize future replacement projects

• Continue to support and champion renewable energy (such as wind, community solar) while evaluating future generation mix opportunities to ensure sustainable energy usage opportunities for our community. This includes continuing to monitor, evaluate, and address changes in all environmental regulations.

• Promote ongoing energy and water efficiency initiatives through customer education, community outreach services, and targeted programs.

• Identify and encourage usage of innovative technologies, implementation of utility wide reliability standards, and development of a safety-conscious workplace that ensures continued high-quality utility services.

• Continue to focus on corporate reporting programs including data analytics and operational performance metrics. Ensure utility compares favorably with other peer municipal utilities within the region.

• Continue to focus on employee training and development. Improve utility recruiting efforts to improve employee qualifications and performance

BPU member Tom Groneman thanked the staff for submitting a budget that reflects these trying times and holds the line. The 7 percent reduction was quite a remarkable accomplishment and was really needed, he said.

BPU member Mary Gonzales thanked the staff for presenting and preparing the pared-down budget, and said she was looking forward to 2021 as a better time for all.

BPU member Rose Mulvany Henry thanked the staff for working as hard as they did to deal with some very difficult circumstances and still help meet the financial and fiduciary goals they have.

Moratorium on utility disconnects

Johnson said he announced earlier Wednesday that the BPU would cease to disconnect utility services until March 30, 2021.

He said he understands that the public is having to suffer through the pandemic, and the BPU is trying to do what it can and assist the public.

Mulvany Henry commended BPU’s leadership for coming to that decision.

“I know it’s not an easy one to make,” she said. “It’s important for BPU to meet its customers where they are.”

Johnson said the BPU staff is part of the community and tries to assist where it can.

“There are people needing assistance and we’re glad we can offer this kind of support,” he said.

Dustin Hare of Rent Zero Kansas, an activist group working on ending utility disconnects, thanked the BPU for suspending disconnects and said it would help so many people in Wyandotte County.

Also, Hare questioned the BPU’s statement that United Way still has funds available for utility assistance. He said he has been working with people who called United Way and were getting turned away.

Johnson said he visited with the agency over the past few days and was told there was still utility assistance available, and he would visit with them again and have another conversation.

State Sen. David Haley, D-4th Dist., who also spoke as a visitor, applauded the BPU’s decision on the moratorium on disconnections. He also said there are some Wyandotte County residents who need to be reconnected. He asked the board to be compassionate to fellow Wyandotte Countians. A lot of people have been hurting with policies that do not allow for reconnections at this time, he said.

Zack Pistora, lobbyist for the Kansas Sierra Club, said he appreciated that the BPU now has a moratorium on disconnects. He said the Sierra Club has been working on the issue since July to make sure residents have a level of protection on utilities.

He said work needs to be done to get those who were disconnected previously to be reconnected right away, especially in the winter.

Report on Argentine water reservoir

In other action, the board heard a report on a new Argentine water storage reservoir. The new 7 million gallon reservoir will allow the BPU to have more water storage capacity, according to Chris Stewart, BPU civil engineer.

An Argentine reservoir was removed from service in 2011 because of structural deficiencies, according to Stewart. A Burns and McDonnell study recommended a new 7 million gallon reservoir, he said.

The estimated cost of the reservoir is $10 million, he said, and it would be projected to go online in May 2023.

Water operations director retiring

In other discussion, Johnson honored James Epp, BPU executive director of water operations, who is retiring in January. He has 31 years of service with BPU, and received several awards from the American Water Works Association.

Epp said he appreciated all the mentors he had in his career and the support he received from board members. He expressed regret at not being able to see people now because of the pandemic, and expressed the desire to get together at some time in the future, when it is over.

KCK officer released from hospital

A Kansas City, Kansas, officer who was shot in the arm in an incident on Tuesday afternoon has been released from the hospital, according to an update from the Olathe Police Department.

The Olathe Police Department is the host agency for an investigation being conducted by the Johnson County Multi-Jurisdictional Officer Involved Shooting Investigation Team.

According to a news release Wednesday from the OISIT, the officer was following up a case about 3:30 p.m. Tuesday at West 47th and Conser St., Overland Park. On Tuesday, a KCK police spokesman stated that the officer had been in pursuit of a suspect in a hit-and-run case.

The officer contacted the suspect and an exchange of gunfire ensued, according to the news release. During the incident, the officer was struck by gunfire in the arm and ballistic vest, according to the report.

The suspect was described as a male with brown hair who fled the scene in a tan passenger car, the report stated. The officer was taken to a hospital with non-life-threatening injuries and later released.

This OISIT team is involved because the incident took place on the Overland Park side of the Wyandotte – Johnson County border. The same street is County Line Road in Wyandotte County and West 47th Street in Johnson County.

In Wyandotte County the location was South 39th and County Line Road, and the same intersection on the Johnson County side is Conser and West 47th.

Anyone with information about the incident was encouraged to call Olathe police at 913-971-6950 or the TIPS hotline at 816-474-8477.

BPU: Utility assistance plans, payment options can help customers

The Kansas City, Kansas, Board of Public Utilities since the start of the pandemic has been working closely with customers experiencing financial hardship and are having difficulty in making payments, according to a spokesman.

The BPU has been offering flexible payment plans, access to a number of utility and financial assistance programs, and other options.

There are also a number of federal and state programs to help related to income loss, as well as utility and other expenses, according to a spokesman.

These options and programs include:

• The Unified Government’s federal CARES Act allocation provided $9 million in direct aid to local organizations in the community assisting with COVID-19 response, including utility, rental, and food assistance. Administered through the United Way, more than 300 BPU customers have used this resource totaling more than $165,000. Additional funding remains in this program for utility assistance, but based on CARES Act funding requirements, these monies must be allocated and disbursed to recipients no later than the Dec. 30, 2020, deadline or they will be lost – so customers are urged to act now. Call 2-1-1 and inquire about CARES Act assistance for BPU utility customers.

• BPU’s Customer Hardship Payment Service Program – A financial assistance program providing eligible participants assistance to offset utility expenses related to health emergencies, change in employment or income status, unforeseen expenses. The program has helped more than 1,500 families and provided more than $500,000 since its inception, according to a spokesman. In 2020, nearly 300 families received almost $96,000 in utility assistance support, a spokesman stated. Administered by the United Way for BPU, interested applicants can call the special Hardship Hotline at 913-371-6772 or the United Way directly at 2-1-1 for more information. (See https://www.bpu.com/ForHome/Billing/UtilityAssistance.aspx)

• BPU’s Utility Assistance Program – BPU supports utility assistance programs at various human services agencies throughout Wyandotte County. Funds are disbursed thru the United Way to eight partner agencies including Avenue of Life, Cross-Lines Community Church, El Centro, Catholic Charities, Economic Opportunity Foundation, Salvation Army-KCK, Citadel, Harbor Lights Village and others. Last year, nearly 500 families took advantage of this program, receiving nearly $100,000 in assistance, according to a spokesman. In 2020, 355 families have received nearly $90,000 in assistance to date. In concert with BPU’s Hardship Assistance program above, this provides another layer of assistance to help keep households in the community stable. For more information or to enroll in this program, call the United Way at 2-1-1.

• Utility Payment Arrangement Options – BPU is willing to work with customers to assist them with a variety of payment arrangement options. As with any financial obligation, the sooner customers reach out when they are experiencing financial issues, the more BPU and other organizations can assist. Avoid getting too far behind. BPU understands the unique circumstances some customers are experiencing, and will work to assist as much as it can. Residential customers financially impacted by COVID-19 can set up payment arrangements by calling 913-573-9145. All other BPU billing or customer service questions can be answered by calling 913-573-9190.

• Community Assistance Programs – In addition, there are a number of nonprofits, human services organizations, and programs available that also provide a variety of assistance efforts, including for utilities. This includes the Metropolitan Lutheran Ministries, the Salvation Army, the federal LIHEAP program, and more. A list of these organizations is available on BPU’s website at https://www.bpu.com/Portals/0/pdf/Emergency-Utility-Assistance-Information.pdf.

• FlexPay – allows customers to monitor their electricity and water on an “as-needed” basis, with services purchased on a pre-paid basis. There are no deposits and no late fees. Call 913-573-9190 to enroll in this program.

A BPU spokesman stated that as a critical community partner, BPU will continue working to help the community and assist its customers during these extraordinary times – just as it has for the last 100 years.

As a not-for-profit municipal utility, BPU utilizes incoming revenues to offset its operational and capital costs, according to the spokesman. Unlike larger investor-owned utilities, BPU does not operate with profit margins like larger private sector utilities, which can pass these margins along to shareholders as dividends. Regardless, BPU will continue to provide community assistance and find workable solutions, as residents, the community, our region, and the nation continue to grapple with the health and financial fallout and impact of COVID-19, according to the spokesman.