Council eyes natural gas line takeover

By BECKY BROOKS

Enterprise Editor

clydenews@bizwoh.rr.com

Utility Pipeline Ltd. official Jack Blau asked the Clyde City Council to consider acquiring the natural gas pipeline system in the city limits through eminent domain.

At a Tuesday night council work session, Blau explained that with Columbia Gas Transmission seeking a 40 percent price increase over the next four or five years. He added the city could take advantage of Utility Pipeline's offer to help secure natural gas prices for its residents. UPL is located in North Canton.

"We feel it's thinking outside the box," Blau commented.

Besides securing a set rate lower than what Columbia Gas Transmission can offer, a local system would be an "economic development incentive", he pointed out.

"We have about 65 systems in a three-state area," he said.

Blau also pledged that the city would receive a specified revenue from the operation, which would be overseen by a natural gas co-operative. The Utility Pipeline official reported that the cooperative, either a new city co-op or an existing group in Ohio, would lease the transmission system from the city once it took eminent domain possession of the system for 2,000 homes and 300 businesses. UPL would bill for services and maintain the system for the co-op.

"We thought this is a natural for the city," Blau said. His company would establish a lower the transmission cost for customers, while the co-op would purchase gas in bulk for local customers.

"Utility Pipeline would fund the acquisition and the legal parts," he added about an eminent domain acquisition. The company would make a grant to cover the cost of the pipeline system, he said.

City Manager Dan Weaver said that Columbia Gas would not be so easy to surrender its transmission system through eminent domain. He pointed to the battle Clyde had with Toledo Edison, which resulted in the city creating its own electrical system from scratch at millions less than the TE eminent domain case purchase price.

Blau pointed out that the Columbia system in Clyde was 40 to 50 years old and had depreciated in value. Blau did admit this would be the first eminent domain acquisition for his company.

"So Clyde would be the first," commented the city manager.

After nearly an hour discussion, Weaver said he wanted in writing how the proposal would work, how rates would be set and projected costs to local customers who already benefit from the city's gas aggregation purchase system.

Before the meeting, Weaver said he would be meeting with an Columbia Gas official on Wednesday (today) to discuss plans that utility has to upgrade the local transmission system.

EMS building for a buck?

City council gave a straw poll that members would renew a 10-year contract with Sandusky County EMS to rent the city-owned EMS building on McPherson Highway to the county. The price would remain $500 a month.

City Manager Dan Weaver told council members County Commissioner Dan Liskai called and asked if the city would rent the building to the EMS for $1 a year.

Councilwoman Carolyn Farrar later pointed out that the city received a letter seeking to renew the contract council approved in 1998 at $500 a month. "I don't begrudge anyone for asking," she pointed out about the commissioner's request for a $1 annual lease.

But the $1 request from the county commissioner did not sit well initially with Weaver nor other council members.

Police chief Bruce Gower pointed out the $500 rent covers all the utilities of the Clyde EMS building, maintenance and snow removal. He said heating alone in the winter is $500 to $700 per month.

Weaver also pointed out that the city spent nearly $250,000 to renovate the former armory building so it was fit for the EMS squad with living quarters and to keep the service locally based.

The building also houses the Backdoor Food Pantry and city storage.

"It's just as nice today as it was 10 years ago," Councilman Steve Keegan commented about the local EMS station.

Councilman Gary Beamer pointed out that, thus far, the city had recouped only $60,000 of its investment in the building.

Weaver commented that the commissioners were willing to spend millions on a new county office building. He then added it would be cheaper for Clyde to rent the local EMS building to the county for $1 a year and then charge them the utility costs for its operation.

Background checks

Gower also asked the council to update its fee schedule for state and national web criminal background checks.

The police chief said the last ordinance required a $15 fee for an Ohio fingerprint check and as of July 1 the price to the city will be $22.

The new city legislation will set the cost per check at $5 over the actual cost to Clyde for either a state or national background check. That would be the rate for local residents and employees of the Clyde-Green Springs School District.

There would be an additional $45 fee for non-residents.