City may raise gas service fees
The city is proposing an increase in service fees for natural gas, more than doubling some fees new customers pay for service.
The city’s new gas supervisor, Ronald Cook, recommended the fee increases to Mayor Pat Bell and Bell presented them to the council.
“That gets our money back on materials,” Bell said in an interview following the council meeting.
The proposed rates are equal to other local towns, he added.
While Bell said the gas department is generating more revenue than costs, “we want to make more,” he said.
PROPOSED RATES
Residential homeowners would pay an additional $50 for meter deposits, with a new rate of $150. The rate for residential renters doubles, jumping from $100 to $200.
Commercial deposits are based on annual usage, but the minimum fee doubles, jumping from $100 to $200.
Gas tap fees also increase. Residential property would face a $150 hike, increasing from $100 to $250. Commercial fees increase by $250, going from $100 to $350.
The tap fee covers running the line from the gas main to the property line. A service line from the property line to the residence is an additional cost.
Gas tap fees outside of the city limits would double, increasing from $200 to $400 for up to 100 ft. The owner of the property would be charged an additional fee past 100 ft.
Service calls, reconnection fees and returned check fees would also increase under the current proposal by $5 to $30.
NEW GAS MANAGER
Cook, of Russell Springs was hired by Bell in June at $20.05 an hour as supervisor of the gas department.
Cook, who has been on the job for five weeks, is already working on fixing numerous leaks in city gas lines. One of Cook’s plans is to fix the leaks “in house” instead of contracting the jobs out.
“He’s got an eye for the future,” Bell said.
Cook said fixing leaks “in house” could save the city money.
Cook said that a small gas leak could cost the city around $775 for contracting the job. The gas department could fix the leaks itself for around $300. A larger leak could cost the city $1,700 for contracting or $1,153 for doing it themselves, he said.
“They’re so many bad lines in the city,” Cook said. “We can eliminate at least a quarter of the cost by doing it ourselves.”
A survey that was done in December of 2009 of the gas lines in the city showed around 40 gas leaks. Cook started to work on those lines as soon as he was hired in June. He and his staff have fixed 10 of those leaks in the past five weeks.
“We’ve got a whole lot of lines in this town that are leaking,” Cook said. “If we can get rid of the leaks in house instead of charging them out it would help the gas system a bunch.”
Council member June Parson asked Cook several questions about his credentials. Cook worked for a company that contracted with the city in the past to repair lines.
Parson also made a motion that survey results from the last two leak detections and a report on all leaks found in the last year be made available to the council. The motion passed.
The gas department has two other employees, Phillip Scott and newly hired Gary York, who are certified to fix the leaks. Cook is also certified to work on the leaks himself.
“I want to be out in the field with my men working,” Cook said. “We want to try to get it back to where it is a good system and we don’t have any leaks.”
Council member Charles Grimsley asked about the probability of being able to afford to fix the leaks in house because grants that have been available for utility improvements in the past aren’t abundant any more.
“As long as we do 90 percent in house, we’re in good shape,” Cook said. “We’ve got the manpower to do it.”
Cook doesn’t plan to sit behind a desk, he said.
“I plan on doing a lot of hands on,” he said.
Cook said he plans to have all the leaks repaired by the end of the year.
“It’s a slow progress,” Cook said. “We do so much at a time.”
When asked if any of the lines needed to be replaced Cook said they wouldn’t know until they examined them.
The gas department is also adding customers in the city, which generates more revenue.
A new Dollar General store on Campbellsville Road, the new Lindsey Wilson football field, wellness center and new dormitory, a new Goodwill and Duo County Telecom are all new gas customers, Mayor Bell said.
The council was not asked to vote on the proposal during Tuesday night’s meeting.
By Allison Hollon
allison@accvonline.com
