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City Getting Out Of Gas Business

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Warsaw is wasting little time in ending its use of underground fuel tanks and will quickly have them removed.

The city's board of works approved a recommendation from public works superintendent Kim Leake today to accept a fuel bid that will allow city workers to fuel their vehicles at several approved local gas stations.

The change is being made to avoid the cost of meeting new government standards on underground fuel tank upgrades.

The newest city tank is about 20 years old, and Leake assessed the situation as an "accident underground waiting to happen."

The city has underground tanks at the police station, street department and both fire houses.

The city got a taste of contamination about four years ago when an underground tank began leaking at the street department.

The change will allow the city to avoid paying $5,000 for annual underground tank permits and no longer worry about the tanks.

Lassus Bros. was chosen over North Central Coop for the right to provide fuel to the city. Leake recommended Lassus because the company has multiple locations and works with five independent operators. North Central Coop has only one location.

City councilman Mac Silveus, who serves on the board of works, abstained from voting because of ties with Lassus.

The switch will be made in about two weeks, after the city's supply of fuel is exhausted and identification cards are made and distributed for employees using city vehicles.

The switch in policies will result in little cost increase, officials said.

The city's price will be 2 or 3 percent cheaper than the pump price, depending on the volume of gas purchased during specific periods.

The city has various size tanks, including small ones that hold only about 2,000 gallons. Those tanks require tank wagon delivery, which is a few cents more expensive than retail prices.

The city has been trained in tank removal and will do the work itself. A firm hired by the city will prepare all paperwork needed to comply with Indiana Department of Environmental Management. That service will cost about $8,000.

The first tank to be removed is behind the police station. That tank is already empty.