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Gas department raises concern over 17.5% inspection overrun, proposes customer credits to expand service
Summary
Fairhope's gas department asked the council to remove two agenda items after a contractor invoice showed about $175,832 in inspection overages (a 17.5% increase over the original price). Department staff also proposed a customer-credit program to attract new customers and discussed recent safety and audit updates.
Wes, representing Fairhope's gas department, told the work session that two agenda items (12 and 13) were being removed so the council could consider them later after more investigation. Item 13 involved a $175,832 invoice that Wes said represented approximately a 17.5 percent increase over the original contract price; department staff said the overrun was driven by inspection fees tied to extended project timelines, not construction costs.
Wes asked the council to consider tabling the payment and to let staff investigate. "Everything that happens in the gas department is my fault," he said, adding that the department had reviewed invoices to confirm billed work was completed. An unnamed councilmember pressed the point: "That seems like a lot," referring to the 17.5 percent…
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