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June 18, 2014

Duncan council sets special meeting

DUNCAN — The Duncan City Council will hold a special meeting at 6 p.m. Thursday to discuss the impending increase in city water rates and to consider approving repairs to a power transformer that could be headed for a “catastrophic failure” if it is ignored.

  The council has informally agreed a water rate increase is needed to raise more funds to pay off the city’s share of water rights to Waurika Lake.

  A water rate increase approved in 2011 has not generated enough money to cover the city’s note payments on the $9 million cost, forcing the cash-strapped city to dip into its operating budget to pay the bill.

  City Manager Jim Frieda is expected to spell out the council’s water rate options at the meeting before the council convenes again on June 24 to take a vote.

   Meanwhile, Frieda will ask the council to approve $38,550 to repair the power transformer at the Plato substation, where a bushing is leaking insulating oil.

   “If we do nothing, all indications are that we will have a catastrophic failure which could result in damage to other components,” Frieda said in a memo. “The power transformer would cost around $900,000 to replace.”

 

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