Steam heat cutoff

date evaporates

Sleepy Eye PUC does not take a vote on issue

By FRITZ BUSCH

Journal Staff Writer

SLEEPY EYE -- Just as the Sleepy Eye Public Utilities Commission was about to vote on a resolution to discontinue steam heat on May 31, 2003, property owner Marlin Huiras provided a 45-minute rebuttal on the proposal.

After Huiras' presentation, the commission did not vote on the fate of the downtown steam heat system Tuesday night.

The commission distributed information detailing the conclusions of its steam heat committee. The handout cited the following reasons for discontinuing steam heat:

* Declining sales. Retail sales decreased from 7,345,600 pounds in 1996 to 3,510,667 pounds in 2000, an overall decrease of 52 percent.

* The loss of 12 customers in five years.

* The steam heat system is early 20th century technology with inherent inefficiencies.

* The Sleepy Eye Economic Development Authority requested a definite shutdown date for planning purposes.

* Steam heat pipes were "daisy chained" from building to building in most areas, creating problems if buildings were torn down.

* The total financial loss to the utility due to steam heat was $135,701 over five years.

Huiras, who owns a downtown building heated by city steam, told the commission that it was "unjust" in acting without input from affected citizens after it was promised otherwise.

"Months ago, you told us we could have input, now you are going to make a decision and shove it down our throats," Huiras said. "This is one way to run a railroad. This is a Public Utilities Commission and should be a democratic form of government. We never got the opportunity to get involved in this at all, and we regret that. It shows a lack of respect. We found out about this meeting through hearsay."

Commission Chairman Bob Weiss apologized for not getting more public input on the issue.

Huiras said he appreciated the apology, but said he also wanted steam heat users to be part of the process of solving the issue in a workable way for everybody.

He questioned the validity of the $135,701 five-year loss figure which included depreciation of the steam heat system. He said city steam heat revenues were only $3,000 shy of steam heat delivery expenses last year.

Huiras said the other expenses were fixed costs that would not be reduced by eliminating steam heat.

"The figure is a paper loss but not an actual loss since depreciation is money you spend in hopes of replacing something, which is not what you plan to do with steam heat," Huiras said. "You can crunch numbers to prove just about anything you want to. If steam heat is shut off without viable alternatives, more Main Street buildings will stand empty. You'd be biting off your nose to spite your face."

Phil Heymans said the commission's accounting was flawed. He suggested a cost-analysis be done to more accurately assess the steam heat issue.

Heymans said some city buildings used steam heat. Weiss said his telephone office also used steam heat.

Huiras asked the commission to look at alternative ways of providing heat for affected downtown property owners. He cited the commission's conversion assistance to former residential steam heat users several years ago.

Sleepy Eye City Manager Mark Kober agreed with Huiras that the steam heat issue should be studied further. He urged the commission to work with steam heat users and see if a furnace manufacturers like Lennox, Trane, or others would be willing to come to downtown Sleepy Eye and determine if electric and/or gas heat would be cost effective.

Kober said electric heat pumps proved to be very efficient in Plainview, Neb., where he formerly worked as a city manager.

No steam shutdown vote was taken. The commission talked about backing up the shutoff date a year but took no further action.

Weiss said the commission would meet with several affected steam heat users and make recommendations before the next monthly commission meeting.

The commission also:

* Approved a request to reduce the old Stadick Drug utility prepayment to $279.03 instead of $708, which was the highest previous monthly utility payment.

* Raised administrative salaries 2.5 percent for clerks and office helpers and 5 percent for Utility Superintendent Dave Logue.

* Forgave a Sleepy Eye Chamber of Commerce invoice of $1,935.28 for Christmas decorations.