City of Henderson gas markup to increase by $1

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By Kendall Patterson
Editor

The first order of business for the Henderson Mayor and Board of Aldermen meeting last Thursday was to appoint a new Vice-Mayor for the City of Henderson.
Alderman Michael Phelps motioned for Alderman Mark Barber to take the position and Alderman Keith Smith seconded it. However, Aldermen Buel Maness motioned for it to be Alderman Donna Butler and she seconded it.
When it came to the roll call vote, Barber won the position with a 3-2 vote with Phelps, Smith and himself while Maness and Butler voted for Butler.
Alderman Jason Rhodes was not present that evening.
Later in the meeting, the board discussed increasing the natural gas rate for the city.
City Recorder Jim Garland explained the situation to the aldermen.
”Due to the difference in our cost of gas and the floor, we’ve been able to make enough money that we made money each and every year until this year that we just finished in June. Based on Preliminary numbers before the audit adjustment… this year the gas department lost $36,000… We cannot continue with the $2 markup and make money. This is happening at the worse possible time because of the cost of gas to customers,” he said. “All of our expenses are going up. Our cost of materials is going up. Employee cost is going up. Everything’s going up but our markup hasn’t increased in 12 years. We don’t see us coming back to the floor maybe ever again. Definitely not for the next couple of years we’re thinking. The only way the gas department is not going to lose a large amount of money in the coming couple of years, we’re going to have to increase the markup.”
Garland said the rates have remained the same since 2010 with the markup for customers “inside” the city being $2 per Mcf. and customers “outside” the city being $2.50 per Mcf. Therefore, the customers now in the city will being paying $3 per Mcf. and customers outside the city will be paying $3.50 per Mcf.
When asked if the dollar will be enough to, Garland was not sure and said that it depends on the market.
We still don’t know if that’s going to be enough be totally honest with y’all,” he told the aldermen. “We’re not supposed to make a lot of money, we’re just supposed to have enough in reserve to make improvements and move forward with the next year. That’s our purpose. This is going to cut it close even with the increase.”
He continued saying that the dollar will barely break the city even and that a dollar and a quarter is what actually is needed.
“But I know right now, especially with the way gas is so much more expensive its going to be to us and to the customers I thought that we can try to get through this winter and see where we’re at in the middle of the winter and we’ll have a better idea… It all depends a lot on what the market does.”
After a roll call vote, all were in favor of the markup with Alderman Rhodes being absent. The City will now be increasing the markup of the natural gas by a dollar.
Regarding the renovation of city hall, the mayor and board of aldermen approved to accept the low bid of $702,000 from MSB Construction. The project will be covered using ARP funds.
Henderson acting Fire Chief Kevin Roeder approached the board requesting permission to hire another fireman while the city is in the process of finding a new fire chief. In the agreement of finding a new fire chief, the new chief, once hired, would hire a another fireman.
Roeder expressed to the board that he and his team of fire fighters are getting tired from working the extra shifts to cover for the chief and the need of a new fireman. He mentioned he is worried that one day they will be too tired and make a mistake. Additionally, Roeder said that he is doing the duties of chief and Assistant chief both and he does not know if his department can hold out 60 days which is the time frame estimate until a new chief will be in place.
“The only thing I’m hesitant about as a professional courtesy, we’re fixing to hire a new chief and to let him have input as to his staff,” Alderman Butler said. “I understand the fatigue factor, but then I think about the courtesy.”
Alderman Maness did not see the harm in hiring a new fireman.
“If that’s what they need, and that’s what they’ve gotta have, why don’t we go ahead and let them hire one,” Maness said.
Alderman Barber said that it would be a very different story if they were not in the situation of hiring a new chief in the near future.
“I think with that coming up, I don’t think we should move forward with this.”
At the end of discussion the board took no action to Roeder’s request.
That evening, the board also approved the final reading of amending the Title 5, Chapter 5 of the Municipal Code pertaining to “purchasing.”
The board also approved the purchase of a brush cutter out of the utility department’s budget.
The board discussed and adopted a resolution approving the application and local matching of 10% for the TDEC ARP Utility Projects. 
The city approved to use the remaining of the ARP funds to cover the purchase of two public works vehicles.

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