C-ville Gas Company cont'd.

In a previous post, I talked about an upcoming election in Collinsville where we will be voting on buying the gas franchise back from Oklahoma Natural Gas. As I stated then, I really didn't know how to vote on this.

Thursday night, there were 2 meetings, a Pro meeting and another meeting listed as a Town hall meeting. I decided to go to the pro meeting first so I could hear their side, then next week, go to the other meeting (there were 3 scheduled). Because of a VERY low turn out, we were asked if we could go to the other meeting and get both Pro and Con sides to this. Sounded good to me as it will free up next weeks Thursday. Off we went.
In total, there were close to 40 people there including Mayor Stan Sallee, at least 2 city commissioners, and an ONG representative.


Here are some of the points brought up:

PRO

• To buy the franchise, the City will only have to pay the depreciated value of the pipe, meters, and infrastructure.
• If we purchase it, the system will be based in Collinsville instead of in Bartlesville.
• 3 new employees will be hired.
• Gas bills should not be higher. Gas prices will fluctuate, but that all the associated fees that are paid to the gas company will be lower if the city runs the system. So even if gas prices go up, which I'm sure they will, the overall gas bill will not be as high as if we stay with ONG. (When gas prices go up for the winter, they would also go up for ONG, so that should be taken into consideration when people compare their bills if this passes)
  
• The system will operate safely. Local Fire, EMS and Police have always been first responders to local emergencies. We would now have trained employees here to handle this type of emergency. Other municipalities are also willing to help if a larger emergencies rise like they currently do other type of large scale emergencies.
  
• 50 other Oklahoma municipalities own and operate their own gas systems. They have saved their citizens money, improved gas services, and used gas revenue to keep taxes low. The city has consulted with many of these municipalities.
  
• We can afford the purchase. The city has consulted financial advisors and there are numerous options. The funds from the Gas system will be used to pay on the loan to buy the system.
• Much of the equipment needed to run the gas utility, the city already owns. (Some will still need to be purchased, see below.)
  
• The city continually states that they are committed to providing the citizens the same service we currently receive from ONG. They believe that the fees they will have to charge us are lower than the fees currently charged to us by ONG.
• This is endorsed by:

• Collinsville Chamber of Commerce
• Downtown Main Street, Inc.
• Collinsville Public School Board
  

CON

• We are being asked to vote on purchasing the gas company, but we do not know how much we will be paying for it.
• We do not know how much they expect to make on the gas company. (ONG makes net approximately $61/meter/year.)
• Not only will the city have to buy the gas franchise back, but will also have to purchase approximately $75,000 worth of equipment.
• The city will have to run the gas lines to the new housing editions being built west of town. (This is an added expense.)
  
• The gas bills might be higher. The city does not have facts to show they can operate the system more efficiently than ONG. Will the city have to buy gas at market prices during the peak consumption months of the winter?
• ONG reports to the Oklahoma Corporation Commission. The city will not report to any such commission. (except it will report to the citizens. We do elect the officials after all.)
• There is concern if the city can operate it safely. With 1800+ accounts and 40+ miles of pipeline, how many people will be necessary to safely maintain it.
• Since we do not know how much the system will cost, and how much is projected to be earned, how can we vote for this purchase.
• Vote NO endorsed by:

• Citizens for Reliable Gas Service
  

Other information

• Currently, the citizens of Collinsville pay ONG approximately $1.4 - 1.5 million annually
• It is estimated that the purchase price will be $2.3-2.5 million

The above information comes from the handouts I received from both sides of this issue, as well as the discussion held at the meeting.

How will I vote August 9th? I'm still not sure.

I want to vote yes. I want to see the town grow, and if I could see some numbers that would state that we could take in money to help the city grow without raising taxes, and provide us with the same service we currently have, I will definitely vote yes.

Problem is, I have not seen those numbers. I am a bit leary, like many other citizens, about the bottom dollar for me. I don't want to pay more for gas. I was to continue to have a reliable and safe gas system.

What I do know about the gas bills, Pro says it will not be more, Con says it might be more. What I do know is that if I use the same about of gas as I did last winter, my gas bill WILL be higher, no matter who runs it. Gas prices will be higher. What I'm concerned about is how much higher?

Questions we need to ask ourselves before voting are:

• Will the fees we will be charge be low enough to offset the difference of the cost of the gas since the City cannot buy in as much bulk as ONG?
• Will the fees we will be charge be able to pay the loan payment on the purchase as well as the salaries on the 3 new people that they are looking to hire and the new equipment?
• Will enough money from these fees go back into the system for upkeep?

There are probably others, but you get the point.

If I get more information, I'll let you know.