Sometimes being bull-headed about being right proves an act of folly. Gas council members may be on the verge of such a mistake.
In 2001, Gas negotiated a contract with Iola to purchase water. A part of the deal that has come to haunt Iola says Gas will be subject to just six raises in its wholesale rate during the life of the document, which runs until 2031.
Iola has forwarded six raises in the past 15 years. Recently its council approved a seventh — for all who purchase — because reserves continue to dwindle from transfers to the general fund, as well as increased costs.
When Gas officials received word their bill would jump 3 percent, they dismissed it out of hand, although they did engage counselor Ross Albertini, who also is Parsons city attorney. They remain adamant the contract’s wording is clear —Iola’s legal advice is the same — and have given no inclination to abide by the raise.
Meanwhile, Iola council members, well aware of Gas officials’ attitudes, voted last month to notify Gas it would terminate the contract in 2031. A two-year notice is required of either party.
Rather than being smug about the matter, Gas Mayor Darrel Catron and the five council members should rethink their opinions.
At least two things don’t bode well if they persist.
— If the contract is terminated and not renewed in 15 years, Gas will have to purchase water elsewhere. To do so Gas would have to construct a pipeline to another source. A cost of $1 million was mentioned once, and with it only being a guesstimate, no one with a shred of foresight would think it won’t be higher in a decade and a half.
— When it comes time to negotiate a new contract, Iola officials will be cognizant of rate increases that went wanting, and almost certainly will seek to recover revenue lost. How much that will be no one knows today.
In fact, it’s easier on a small town’s budget to pay as it goes rather than be hit by a huge bill all at once. On average Gas pays Iola $8,000 a month for water; a 3-percent increase would add $240.
Being a good neighbor also should enter the equation.
Iola’s water plant is relatively new and produces water as pure as the driven snow. Tests done weekly make certain nothing occurs to compromise reliability of product. Distribution lines are monitored to keep them operating in an efficient manner.
Gas certainly has its identity, and residents are proud of their community. Even so, Gas is more dependent on Iola for many day-to-day needs than the reverse — including water.
— Bob Johnson
