1983-05-16 - Laserfiche WebLink

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C~ty~ collects on the gas used by is a 60 - 90 day period before the ~ customers. Mrs. Gleason asked if the budget plan could be enhanced or modified to help customers who have trouble paying' their bills and Mr. Sheets replied that he felt the budget plan would be an alternative to fuel assistance in the future. He said the increase in gas rates would add $6 $7 a month onto the average customer's winter bill. Mrs. Gleason proposed that the summer air Conditioning rates be changed to begin in May instead of April, and continue until October. Mr. Buck indicated he felt this compromise would be acceptable to t.he large air conditioning users. In response to comments by Mr. DeRitter, Mr. Conover stressed that he did not encourage excessive gas use but did encourage conserva- tion. He said he felt the Council and City staff should continue fighting high gas prices both through the courts and through public re- presentatives. He said he did not favor earmarking a portion of the utility tax for one particular project. Mr. Conover further commented that he had not been persuaded to remove the 10% surcharge in the county and questioned the amount of gas that would need to be sold to make up for the $150,000 the surcharge brought into the City. Mr. Conover stated he felt the City should maximize gas revenues with the best structure.. He added that with the capital expansion program, gas sales were becoming big business, and as sales grew, the qUality of the analysis must grow. He felt more quantitative analysis was needed to compare gas prices with other fuels. He again stated that he.doubted dropping the surcharge was the best way, feeling a marketing surcharge was needed. He felt the rate structure should be an incentive for joining the gas program and perhaps other incentives could be devised. He thought the dropping of the surcharge was too Crude a method. Dr. Gunter said she understood why the ~ates must increase but was concerned that customers would have difficulty paying their bills next winter if the weather is severe. Mr. Buck stressed that as a municipality running a gas business, the City must bring in enough money to break even. He said he felt the rate structure was not the place to deal with that problem and that the system must remain financially sound in order to serve al/ customers. On a question by Dr. Hall concerning alternate me%hods for helping customers on fixed incomes, Mr. Sheets replied that the state fuel assistance program was available as well as the proPoSed Charlottesville Gas Assistance Program. He said that to his knowledge no one had ever had their heat cut off in cold weather and it was to the City's advan- tage to not terminate customers. In response to Mr. Conover's request for more information, Mr. Sheets replied that an in-depth long-range marketing analysis was not possible to be done by staff within two weeks. Mr. Conover stated he Would not be opposed to bringing in outside help for advice on the matter. Mr. Conover moved, and Mrs. Gleason seconded, to adopt the ordinance. Mr. Conover moved, and Dr. Hall seconded, to amend the ordinance by omitting the deletion of the I0% surcharge.