96 South Main Street, PO Box 77, Nephi, Utah 84648 - Voice: 435 623-0525 - FAX: 435 623-4735
On our front page this week
March 22, 2023
By Myrna Trauntvein
In spite of former mayor Bill Mills entering his protest against Mona’s purchase of the Burraston Hill Gas System, the council decided to vote to approve the purchase from Nephi City for $100,000.
“When we discussed the purchase in work session,” said Randy Christensen, mayor, “we decided on Option 2 of the two options proposed.”
He said that the public hearing was being conducted prior to the council making a final decision so that residents could offer public comment.
The gas system offered to Mona by Nephi begins at the hill where the Burraston Ponds turnoff from Highway Old 91 begins. The homes in the subdivision there are all fed natural gas from that system.
“The takeover would be from there into town,” said R. Christensen. “There will be no bond and no interest.”
It was expected that it would take two years and 11 months to pay for the system and then the system would belong to Mona.
“My concern,” said Mills, “is what are we buying for $100,000?”
Nephi City was even having trouble hiring gas operators and Mona would need to hire a gas operator. They would have to pay that operator and, in his opinion, they would not be able to pay the debt of $100,000 in two years and 11 months.
“We will have to put in a regulator station but that can be done at any time,” said R. Christensen.
“Were you given an itemized list?” asked Mills.
R. Christensen said that Mona has been collecting $35,000 annually from that area and, in reality, the revenue will be paying for the cost of purchase. In three years, that would bring in $105,000.
There was also the possibility of adding more homes in the area and that would bring in more revenue.
“Maybe Nephi needs to come down in price,” said Mills. “What are we getting?”
Chad Phillips, gas and water operator, said that it would take 800 feet of line to connect and that would come to $3,000. In addition, Nephi City will help with the line.
Mills said he still thought that Mona should get an itemized list and ask just what they were getting for the $100,000.
He thought that Nephi was getting rid of a problem and passing it on to Mona and suggested the council take a further look at the proposal before making a decision.
There were no further public comments.
Ron Warren, council member, made the motion to close the public hearing. Jay Mecham, council member, made the second and all voted in favor.
R. Christensen asked if there was anyone willing to make a motion either for or against authorizing the purchase.
“We have discussed this for quite a while,” said Amy Stanley, council member. “A lot of bargaining has gone on.”
She thought that the purchase would eventually create an opportunity for Mona and would bring needed money into the city.
The gas service was near Mona City and would allow that service to come to the city.
Warren made the motion to approve the purchase for the price of $100,000. TJ Pace, council member, made the second and all voted in favor.