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Grant denied, Uniontown's Gas system future uncertain
The City of Uniontown is grappling with what to do with its aging natural gas distribution system.
In January, the council had a setback when the city didn't receive a Community Development Block Grant it applied for in 2015 to improve the gas system.
During the monthly council meeting Tuesday night, council members discussed their next step.
"We have only two chances to apply for the (CDBG Community Facilities) grant," Mayor Larry Jurgensen said.
One option is to reapply for the CDBG in the fall, he said. To do this, several pieces of information will need to be gathered by the city clerk and mayor, and additionally the match money amount for the grant will likely be further discussed.
The council also discussed the possible sale of the natural gas utility.
Development grants
The CDBG Program allows the Kansas Department of Commerce to distribute federal funds to Kansas cities and counties to improve their community, according to the KDOC website.
The City of Uniontown is in the same boat as other entities during this round of grants. The KDOC had three utility improvement grant applications this year and none received funding, according to an email from Carey Spoon with Southeast Kansas Regional Planning Commission, administrator of the grant for the Uniontown.
Sell the gas distribution system?
In the email, Spoon asked the council members to consider several options for the future of the city-owned gas utility.
The KDOC wants the city council or engineer to consider selling the natural gas distribution system to an outside operator, according to Spoon.
"An option is to sell the system," City Clerk Sally Johnson said.
"If you sell it to another entity that would help the citizens, because it's going to make the gas cheaper," Jurgensen said. "But the gas has been the bread and butter of the city. It's what's kept the city afloat...So there are lots of things to be calculated out. It's like having a second income, you sell it and use that money for something else and it's not there anymore."
More information on grant
If the city decides to try again for funding through the CDBG, more detailed information will need to be received on the next grant application, Spoon said.
KDOC is concerned Uniontown is too small of an entity to properly operate and maintain the gas system with one employee, Spoon said in the email.
Spoon suggested explaining the qualifications and training the city maintenance employee has.
"KDOC had an issue with maintenance causing problems with the system," Spoon said in the email. "How will maintenance practices be addressed to assure the systems integrity? More details of when the maintenance was done and how/whether it met requirements at the time would be helpful (on the next grant application)."
Increase of reported gas leaks
There has been an increase in reported gas leaks to the city office in the last year, due to correct amount of odorant now being added to the natural gas, which helps detect gas leaks.