Thursday, March 22, 2007

Water leak at Old Jeff Town costly

by Kenneth Lassiter

A large water leak in Oskaloosa presented one local non-profit organization with a hefty water bill for February but the Oskaloosa city council has moved to ease the $3,000 burden.

A leak underneath the John Steuart Curry house at Old Jefferson Town in Oskaloosa sent 480,000 gallons of water gushing onto the ground for a period of time estimated by Bill Heard, city maintenance superintendent, to be 20 to 22 days. Instead of the usual bill of less than $50, city clerk Patty Hamm said at the council’s meeting March 15 the bill to the Jefferson County Historical Society ended up being $3,226.36.

Heard said the cause of the leak hadn’t been pinpointed although the society usually turns off the water in the unused portions of Old Jefferson Town in the winter off-season. He said a closed valve had been blown off the water pipe below the Curry house that had allowed the water to leak. Heard said it was a possibility that work farther north along the highway near the car wash could have created a “water hammer” that would have the force to blow a closed valve off a pipe and start a leak.

Since the water didn’t go into the city’s sewer system, Hamm said $888 of the bill amount could be discounted to make the total bill roughly $2,348.

Jan Hayes, city attorney, said the historical society is a not-for-profit organization and gets its annual funding from the county. She pointed out a $3,000 water bill most assuredly wasn’t part of the society’s budget.

Council members discussed how to address the situation, including the idea of charging the society for the water at the city’s cost. Council member Allen Wise moved that the city could let the billed amount stay on its books and just bill the society for its usual average usage at this time of year. He said the city could have been at fault in causing the leak and suggested that if the society had excess funds at some point, the society could pay more on its bill to help count toward the leak cost. Council member Mike Boyd seconded Wise’s motion and it passed unanimously.

Wise did suggest that, from now on, the society shut off the meter for the unused portion of Old Jefferson Town during the winter season instead of just shutting the valves at the individual buildings. Heard said he had also come to that conclusion and would suggest that to the society.

Council members also made a decision on the city’s liability insurance coverage, although the decision wasn’t made without a little controversy.

Ron Bolz of Bolz Insurance Agency, which is the city’s current liability insurance provider, and Bob Abel of Jefferson County Insurance had made proposals to the city for the coverage at the March 1 meeting. No decision was made then as council members said they would make the call March 15. Bolz had stated a bid of $12,331 annually while JCI’s bid through Abel had been $10,258.

Bolz and Abel returned to discuss the insurance at last week’s meeting. Bolz warned the council to compare the offerings by himself and Abel carefully to make sure the city is getting the best deal. He also said if the city would switch providers, “tail” coverage would be needed from the new company to cover the last couple years under the new provider. Bolz also told council members that EMC, the insurance company through which he offers the liability insurance, had “sharpened its pencil” to offer a better price on the package. The “sharpened” bid was $10,199.

Abel told council members the tail coverage necessary with the switch to JCI was built into the company’s bid for the city’s insurance and would cover the city as needed. He said he wasn’t aware the two bidders were able to lower their prices from the previous bid and asked how much Bolz had lowered his bid. City officials responded with Bolz’s updated bid.

Boyd asked Bolz why EMC “sharpened its pencils” after seeing JCI’s price. Bolz said he hadn’t lowered the price, but his superiors had and he felt he had the duty to give the updated bid to the council. Boyd said he just felt the move was unfair to JCI and that the city should have gotten EMC’s best price when the bids were opened. Wise asked Abel if JCI could also lower its bid. Abel said he would have to take the numbers back and see.

After a little more discussion on the topic, Boyd moved to accept EMC’s bid to continue the coverage and Wise seconded the motion. It passed unanimously. Council member Lisa Cross wasn’t present for the meeting.

In other business Monday, the council:

• Heard an update on the community center from Brad Hammel of the center’s board. Hammel said the center would be built at the present location of his accounting office at the corner of Liberty and Washington streets and he was looking for a place to move his office in town. He said a tent may be placed at the site during this year’s Old Settlers Reunion to help drum up awareness on the center and the board is still considering its options on procuring funding for the project.

• Appointed Trish King to the library board.

• Approved the March vouchers.

• Approved a contract with Mayer Specialty Services for the TV inspection of the city’s sewer lines.

• Approved the hire of Maleah Hattemer as the pool manager. Hattemer was the only applicant for the job. Council member Kelly Hattemer abstained from the vote as she is related to Maleah.

• Approved a reslution to authorize Mayor Judy Miller to submit an application for a state loan for the sewer project. A public meeting on the topic will be held at 6:30 p.m. May 3 at the fire station just west of town along K-92 Highway, with a public hearing to follow during the council’s regular meeting.