The Americus City Council will be looking into ways to help finance water-line improvements being done in Rural Water District 1, which serves the city.
Representatives of the water district told the council at a meeting Tuesday night that ground instability would cause a two- to three-year delay in full operation of a lift station and lines that serve the southern part of Americus.
“It will affect your fire protection on Main Street and the south side of town,” said Larry Grimsley of the water district.
The district cannot afford the additional $9,000 cost to run line under the roadway and install another hydrant to serve the area in the interim; it already has spent $3,000 to replace the original hydrant.
Adequate water pressure for household uses will not be a problem, Grimsley and other representatives said.
Council member Joe Zumbrum asked Bruce Boettcher of B and G Consultants if money might possibly be used from the Kansas Department of Health and Environment. Boettcher said he thought that might be possible, and the matter will be investigated.
Two Americus residents talked to the council about the rising cost of natural gas since the utility was purchased by Americus Energy, based in Wichita.
“I’ve spent $1,563 for gas the last five months,” Rocky Slaymaker said. “It’s outrageous.”
Slaymaker said that he had spent $7,700 on a new high-efficiency heating and cooling system, and his bill remained high.
“I love Americus, I live here, this is where I want to be,” Slaymaker said.
He said that one of his gas bills was $614 for a two-week period, and when he called the company headquarters, he was told that the bill had been misdated. He also said he had been told months ago that his gas meter would be replaced, but that has not happened.
“Many of my gripes are with the gas company,” Slaymaker said. “I don’t know where to go. ... It’s pricing me right out of town. It’s ridiculous.”
He told council members that he’d had contentious telephone calls with the company’s office staff, and had received a shut-off notice and late charges that were not deserved.
“I’m frustrated, not at you, but what do I do?” he said.
Council members said they had talked with company representatives who had brought in supporting figures about the cost of operations. The previous gas company had allowed infrastructure to deteriorate and gas main leaks and other problems were now being repaired.
“The old company had drained down the reserve,” council member Dave Huddlestun said.
With no natural gas reserves, the company has had to buy gas at higher spot prices. Huddlestun said the company wants to fill its reserves during summer months, when the cost is less.
“Unless I understand wrong, they are going to pass that savings on to the customer,” Huddlestun said. In the interim, he said, he understood that the company was not going to charge late charges and would not send disconnect notices.
Slaymaker is to provide the city with copies of the letters he has received from the company.
“We’re going to check into that shut-off notice,” Huddlestun said.
Mayor Larry Peres told the audience that the council had been working on the natural-gas situation for about a year.
Dale Grimsley said that he too, was not happy with the gas company service and costs. He said that the spot price for natural gas is about $8 and that the gas company was charging $15.49 per thousand cubic feet.
“You’re right,” said Peres. “That’s not making a profit, that’s stealing from you.”
The franchise fee has jumped from approximately $3.30 to $20 per month since the company took over, in addition to the increase in gas costs per thousand cubic feet, Grimsley said.
Atherton said that the franchise fees compensate the city, and without being a franchise agent, the city would have no right to any regulation of the utility. The gas company returns 3 percent to the city.
“Don’t tell me he’s paying the city 3 percent, because he’s not,” Grimsley said. “The customers are paying it.”
Grimsley said that he had told the company to remove an old gas meter at one of his buildings and that two months after that, he continued to receive bills for a meter that was not there.
“It’s laying down there in the building,” Grimsley said. “... Who read the meter that was down in this shop?”
A representative of the gas company was unable to attend the meeting last night. Council members will continue to gather information about the natural-gas situation and discuss the issue later, perhaps at a special meeting.
“This is of utmost importance that we get this resolved,” council member Zumbrum said.
In other matters:
• Members voted unanimously to appoint Jena Johnson to fill a vacant seat on the council.
• The council also voted to invite representatives of Americus township and the fire district to a special meeting to discuss issues surrounding the fire district budget. Among the issues that council members want to discuss are responsibility for W-2 forms for fire district administration and equipment funds.
• The council approved revisions to the 2007 city pool handbook and hired Belinda Hamlin as pool manager and Layn Muller as lifeguard. Other positions will be filled later.
• Council member Linda Stringer said that money had been donated by a couple from Washington state to begin a rehabilitation fund for the old jail, which had been built by an ancestor of theirs. Stringer said the intent was to work to get the jail on the National Register of Historic Places.
“I did let them know this was a small community and our budget was zero,” Stringer said.
Tools that had been used in building the jail may be displayed when an appropriate site is determined. The library was suggested as a possible site.
blulitespecial (anonymous) says...
I think the new gas company is using the same business plan as Westar was. 2 years ago I spent over 4 thousand dollars on a new central system.My gas and electric bills went to half or less than what they were.Since this company took over the gas bill has more than doubled.I have propane companies that want my business.They say there have been a lot of Americus people running the numbers...meaning: shopping to convert to propane.One of them WILL get my business! And they'll get it before this winter.I am done with the new gas company.How about the city forming a Co-Op to puchase wood pellets and corn by the truckload for home heating? Keep the "franchise" fee for the solid fuels at 2-3%,and the city can keep some money coming in.I think they're going to lose some gas customers.How many and how fast remains to be seen. They have already lost this "customer".
May 10, 2007 at 1:22 a.m. ( permalink | suggest removal )