DAPHNE, Ala.—Flushing fire hydrants is a year-round public service performed by Daphne Utilities that maintains fire flow in case of emergency.

While testing pressure, the utility annually flows 13 million gallons of water—or $32,000 in product—onto the ground for testing.

It’s also a service that costs the city around $60,000 per year.

Council President John Lake drafted a letter in June—under the guidance of Mayor Fred Small, that requested the suspension of the utility conducting fire flow maintenance. Small in a previous meeting said, according to Lake, that the fire department could perform the service.

But Daphne Utilities General Manager Rob McElroy, addressing the City Council at its work session Monday, questioned why the city would consider suspending this service.

“This has serious public-safety implications,” he said. “It’s a service that needs to continue but we cannot provide a free service.

“It’s a service that we do in the spring but we stretch the payments over 12 months,” he said, adding that the city owes the utility for services rendered from October 2008 through July 2009.

Councilman Greg Burnam said that surrounding cities perform fire hydrant maintenance for free.

McElroy disagreed, citing the utility’s bond covenant, which stipulates—as per the attorney general—“no service of any kind can be given to any municipality or organization for free.”

Lake suggested that both the council and the utility approach the bond counsel to adjust the bond’s ratings.

“This is something we need to address,” he said. “Like anything, it’s a dynamic document and can be changed.”

Councilman Ron Scott remarked that a great synergy exists between the city of Daphne and the utility.

“We don’t need some back-and-forth contest,” he said.

Scott cited how the utility currently collects and maintains the city’s garbage and suggested that McElroy address the Public Safety Committee.

McElroy stressed how conducting fire flow maintenance presents a financial burden on the utility.

“It’s a dramatic hardship on us,” he said. “It impacts everything we do.” He added that the utility has been conducting hydrant maintenance since the 1950s.

“We will always maintain our hydrants, including flushing,” he said. “This is a program we always do for the city.”

“We just need to negotiate this thing and get everybody on a happy level,” Scott said.

After McElroy claimed that Park City Water Authority and Belforest Water System don’t provide adequate fire flow, nor do they flush their hydrants, he said, Scott suggested the council look at the two utilities’ records.

“This could affect our city’s overall rating,” he said.

In other business:

The council heard from human resources representative Sherree Hilburn, who has researched alternative health insurance plans for city employees.

The city has Blue Cross as its insurance carrier but the policy will renew in October.

Hilburn said she found, after studying several plans, that United Health Care offered a satisfactory policy although she found fault with its prescription drug coverage.

“The employee would have to pay for the full prescription and then submit the bill,” she said. “We have employees who take meds that cost $600. They can’t pay that.”

Hilburn added that after calling around to local physicians, she found most doctors accepted United but that some aren’t accepting new clients that have United as their insurance carrier.

She also said that if the city goes with United, then some employees may have to pay the bill up front and then get reimbursed once the doctor accepts United.

Hilburn—who plans to research more carriers—said the reserve for city employees’ insurance is more than $500,000.

Lake asked if the city would lose that money if it went with another carrier.

Hilburn said she did not ask that when she spoke with United.

“There’s going to have to be a lot more thought put into this,” she said. “I’ve seen the increase in prices. An individual plan now costs what a family plan was when I started 12 years ago.”

The council discussed forming a committee to handle choosing an employee health insurance carrier.

“I would like one or two council members on that committee,” Lake said.

Scott expressed a need to educate city employees about insurance options, especially if the city switches carriers.

“You change insurance carriers at a certain risk,” he said. “If we get to that point, you’ve got to educate the workers.”