The town of Hanover is searching for the source of a utility line leak that has resulted in a 20 percent water loss over the past few months.

Street Superintendent Scott Williams said at Tuesday's Hanover Town Council meeting that the issue has been ongoing for about three months, adding that the town also has had a number of separate surface water line leaks.

Normal water loss is at about 14 percent, and last summer, Williams said the town had an average as small as 7 percent. Kent Water Co. provides the town with its water supply.

Williams said the leak could be one or a series of smaller leaks. He added that he hasn't seen any signs of the leak in typical problem areas, but asked residents to stay vigilant. Residents can reach town hall by calling (812) 866-2131.

"I don't know of any major leaks; anything running down a ditch, but if anyone sees something, let me know," he said.

In other business:

• The council approved a bid of $6,650 from Sedam Contracting in Hanover to demolish a house on Ohio Street. The company will level the house and fill the lot. The contract does not include tree removal. The town received three bids.

• Town attorney Josh Stigdon reported that Nextel, a phone provider that is terminating its contract with the town this year, has not paid its total monthly rent bill of $2,000 since the first of the year. The provider uses the town cell phone tower.

Town records show that Nextel has been under contract since 2007 at a rate of $2,000 a month, but this year, it began paying only $1,254. In addition, Stigdon said the signed agreement calls for the company to pay up to six times the monthly rate if it terminates the contract early.

• The town will revisit its ordinance on unpaid water bills and the collection process on current bills. The town water bill is due on the 15th of each month and customers are disconnected on the 28th or 29th of the same month if a payment is not received. There is a $25 connection fee.