Voter problem could derail Sale of Rapids’ Municipal Gas company
By Bobbi Mlynar
Friday, March 20, 2009
A utility company with customers in four states wants to buy Neosho Rapid’s city-owned natural gas company for $64,664. But without intervention from the Kansas Legislature, a quirk in state law could prevent the sale from happening.
Neosho Rapids residents are scheduled to vote on the sale proposal at a special election from 7 a.m. to 7 p.m. April 21 at the Community Center.
City gas administrator Jesse Howard said that a majority of qualified voters will be needed for approval.
“But here’s the kicker for us,” Howard said. “Right now, we have 155 qualified voters on the books, so that means we need (approximately) 80 votes favorably out of 155.”
The problem is, he said, about 30 of the 155 “qualified” voters have either died or moved from the area and are no longer available to vote. Residents have taken on the project to get voters to the polls, in case the Legislature does not pass a bill before April 12 that would require a simple majority for passage.
“We’re going to have to really campaign hard,” Howard said. “The community projects committee has taken on the task of going door to door.”
The bill has passed out of committee in both the Senate and the House of Representatives and was to have been considered by the full House this week.
The Neosho Rapids City Council, after several discussions, passed an ordinance to sell the gas company on March 11.
Howard said that increasing regulations imposed by government since the 1980s has made gas-company operations a challenge for small cities.
“If you remember in the ’80s, they had the houses blow up in Kansas City and other parts of the country,” Howard said.
The resulting safety regulations eventually forced Neosho Rapids and other cities to contract with large natural gas companies for several services that were not cost-effective for small cities.
Annual gas line tests, for example, require flame ionization equipment that costs about $10,000. Because the equipment has an open flame, it cannot be used to check for gas leaks in confined spaces. That equipment costs between $4,000 and $5,000.
“We couldn’t afford these types of deals because you only use it once a year,” Howard said. “...(Government regulation) is just getting so big that it’s hard for us to stay in compliance.”
Regulations also require written procedures, certifications and training that is more efficient to gain through a larger company.
The city has contracted for some of its services for several years with Black Hills Energy, which has about 900,000 customers spread over four states, according to information from the company. Approximately 107,000 of the customers are in Kanasas, Howard said.
“We have a long history with Black Hills. They know our system, they know what’s in the ground,” he said. “It’s a very good mix for us and Black Hills.”
Howard said the change in ownership should bring more cost-effective services to the 120 customers.
“When I croak, somebody’s gonna have to take this sucker over,” he said. “You won’t find anybody that works for $50 a month to do what I’m doing, so it would become economically unfeasible.”
PULL QUOTE
“When I croak, somebody’s gonna have to take this sucker over. You won’t find anybody that works for $50 a month to do what I’m doing, so it would become economically unfeasible.”
Jesse Howard
city gas administrator