01/16/2001 Meeting Minutes - Laserfiche WebLink

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Council Minutes of 1/1b/O1 Ordinance No. 2001-03 was introduced and placed on first reading by Mayor Musial. An ' ordinance establishing the compensation, benefits and working conditions for salaried ~~ employees employed by the North Olmsted Municipal Bus Line, who are not members of the A.F.S.C.M.E., Local 3517, collective bargaining unit, and declaring an emergency. Resolution No. 2001-04 was introduced and placed on first reading by Mayor Musial on behalf of himself and the entire Council. A resolution urging the Public Utilities Commission of Ohio (PUCO) to deny the proposed rate increase for natural gas utility Dominion East Ohio, and declaring an emergency. Councilman McKay asked the Mayor whether he had researched this because he believed that after deregulation the PUCO had no control over the utility companies. Mayor Musial said that the PUCO has an opportunity to exert tremendous influence in this particular area, and we are sending a message to the PUCO that we are concerned about the increase in the cost of natural gas to the residents of North Olmsted and to consumers in general. We should do everything possible to reduce the impact on our residents with regard to increased natural gas prices. Councilman McKay said he agreed, but he did not understand sending a letter to the PUCO when they do not approve the increased gas prices. Councilman Gareau said, since there was disagreement as to the procedure, perhaps it was best to put the matter into committee. Mayor Musial said he believed the rate increase would be acted upon by the end of the month. Councilman O'Grady said in light of the fact that this is something needed by the residents and in light of the fact that there is a sense of urgency, he would move to suspend the rules requiring three readings and committee review. The motion was seconded by Councilman McKay. Roll call: O'Grady, yes; McKay, yes; Nashar, yes; Miller, yes; Kasler, yes; Gareau, no; Limpert, yes. The motion passed with six yeas and one nay. President Saringer invited audience participation since the legislation was being passed under suspension of the rules: Joe Stacey, 9255 Root Road, North Ridgeville, a representative of Dominion East Ohio, noted that natural gas suppliers can purchase gas on the futures market. Once that is done, the price is locked in which means people have to pay that rate whether or not the price goes up or down. The real problem, however, is that there are not enough drillers so that there is an influx of natural gas on the market to bring the price down. That is the problem in California right now because they have not produced power in 10 years. The government will not let the suppliers drill for the gas, so Dominion East Ohio should not be blamed. Their profit is not from the gas; their profit is passing the gas through their pipelines. They do not "make a dime" on an increase in the rate. Mayor Musial said he understood what Mr. Stacey was saying but feels the PUCO should hold the suppliers "feet to the fire" to do a better job in terms of contracting for gas for delivery to the residents and not just merely acting as a conduit. Mr. Stacey said that Dominion cannot participate in the futures market, and it can only buy gas three months in advance. Mayor Musial said he felt Dominion could pass along the gas at a lower rate than what they paid for it. Mr. Stacey said the national average for natural gas is $10 a thousand cubic feet and Dominion will be going to $8.70, so they are below the national average. They are doing everything they can to keep the costs down. It is not a matter of paying more and charging less-no one can do business that way. 10