A group of contractors working on a Logan Public Service District project has continued to create problems for the city of Logan and its water department.

Three contracting crews have been working for months on a PSD project which would take sewage to the PSD's treatment facility in Peach Creek. One company, Groundbreakers has lived up to its' name according to city council members in that they have been tearing up streets and damaging city water lines along with them.

In recent months, Mayor Serafino Nolletti discussed a damaged truck caused by the PSD project. Shortly thereafter, a city employee confirmed that well over a dozen water lines had been damaged by the contractors at that time. At Tuesday's Logan City council meeting, Carole Conley of the Water Department had more bad news.

Conley said the PSD's contractors had caused even more water line leaks recently.

"Most of the problems have been caused by the group Groundbreakers," Conley said. "To date they owe the city $11,000 in repairs."

Mayor Nolletti said he spoke with several state officials about the annoying problem and told them that so far neither groundbreakers nor the PSD had paid for repairs on the damages they caused. (At a recent council meeting in another municipality - West Logan - that town's council complained that the same contractor had not paid their B&O taxes to operate in that municipality and there were several complaints about rough roads the contractors caused.)

Conley had some good news regarding the City of Logan's water project on the east end of town.

"It should be finished by the first of November," Conley said. "They still have to drop two large pumps in and turn on the power. Work is being completed now and a fence will have to be installed. Once it is finished, we will be in full compliance."

Lucian Adkins said the Combined Sewer Overflow project on Dingess Street is going rapidly and should be wrapped up by May.

"When it has been finished up, they will pave over it," Adkins said. "We apologize for the inconveniences but it is going to get better. We are putting in new pump stations and it should relieve some of the problems we have had for many years."

The council got more bad news regarding the long term Middleburg paving project. Mayor Nolletti explained that when the city got a $50,000 grant last year, it was believed the project could go forward and be bided out.

"When we had our fist bid opening in May, nobody made an offer," Nolletti said. "We bid it out again last month and one contractor placed a bid for $135,000."

Nolletti said when the grant was approved it was believed $59,000 would be enough to get the job done. However, over the next few months as skyrocketing gas prices increased so did the prices for things like asphalt and paving.

"What should we do?" the Mayor asked.

"Spread it thin," quipped Councilman David Steele.

Some councilmembers recommended looking into paving over rough areas only while others recommended waiting and trying to get more funding to do the project as was originally promised.

"We can maybe wait till next spring and try it again," Mayor Nolletti said.

"I agree. Let's wait till spring and bid it out again," said Councilman Don Browning who added that with dropping oil prices it could be possible that prices for the paving would go back down in time.

The city has until July of 2009 on the grant, which could be extended if need be.

In other City Council News:

* A resolution was passed for a $25,000 line of credit from Logan Bank and Trust for 2008-2009.

* Council approved the purchase of a new truck for the Sanitary Board at $22,000 over four years at five percent interest.

* Street Commissioner Kevin Marcum said his department has been working on damaged drains and other problems and that the city's Street Sweeper is down again with brake problems.

* City Accountant Jeff Valet said the city's deficit shrunk by about $9,000 and in September the city got a $50,000 check from the county which helped. Another $25,000 check is expected this month, Valet said and recent changes made by the council could start paying off by the early part of next year. Valet admitted the Insurance Debit Card program had been a culture shock for some employees, but overall city finances are better than they were.

Mayor Nolletti said the city has been tightening it's belt and that he felt "It should be getting better."

"We have been very aggressive at going after B&O taxes," the Mayor said. "There are brighter days ahead."