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Minutes 04/11/1961
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Minutes 04/11/1961
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City Council
City Council - Type
Adopted Minutes
City Council - Date
4/11/1961
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April llth, 1961 <br /> <br />Seventy-five and One Hundred Dollars each on an average with many running approximately twice this amount. This <br />could run into a figure farbeyomd ourfiriancial'ability as well as 'b~ingunfair to tko consumers Who originallyI <br />installed a much more permanent~service line. There are thousands of galvanized lines in the system which are <br />twenty to fifty years old and must be renewed in the near future. <br /> We install one thousand to twelve ~hundred new meters per year and estimate eight <br />hundred to one thousand leaks in services are reporte~ to us and repaired by the owners. We do not have any <br />idea how many more are replaced due to an inadequate water supply as nhese are handled directly through the <br />Plumbing Contractors. <br /> Approximately twenty per cent of the water supply systems require the owner to install <br />and maintai~ the service line. The other eighty per cent charge the owner a flat fee based on the size of the <br />service. Some of course use a per foot basis and a few usually privately owned, install and maintain the services <br />wi~h heavy rate structures which cover the cost, plus"a fair return on the investment. <br /> Some cities also charge for~the meter plus installation. Richmond is one of these. <br />Where services are installed at cost on a flat fee and maintained by the Water System, the rates are adequate <br />to cover this extra cost. <br /> There are some advantages to services being installed and maintained by the Water <br />System, but the first cost, either renewal on exi~timg so,vide or the installation of a new service must be <br />paid by the consumer or owner, also any increase in size of existing service must be handled in a like manner. <br /> According to the available information from the American Waterworks Association, <br />approximately twenty per cent of the water services are .handled as we~are- now doing, that is, installed by a <br />plumber and paid for by the owner. The eighty .per cent installed by the .utility whether privately or Munici- <br />pally owned are paid for by the owner, installed and maintained by the utility, some requiring additional <br />payment of one,half to three-fourths of the cost of replacement of a line pceviously installed by the utility <br />for the owner. <br /> The City of Norfolk Las a flat fee based on the size of the service (up to two <br />inches) over two inches at. a cost plus twelve per cent. The fees do not cover the cost of installation and <br />maintenance; however, their rates are higher than ours on the smaller consumer: also their ready to ~serve <br />charge is sixty cents per month for 5/8 inch meter, ours is twenty-five cents. This amounts to $4.20 per annum <br />and is more than sufficient to cover the cost. They do not maintain cost accounting in~ sufficient detail to <br />arrive at the actual co~t of maintenance of service lines. <br /> Newport News records are too indefinite no reach even a fair comparison or to obtain <br />any worthwhile information upon which to base their estimates. Their minimum is much higher than ours and also <br />the lower bracket rate snructure. <br /> The fees throughout the State vary from nothing to Two Hundred Dollars, The average <br />cost b~sed on records of seventeen ci~ies is Sixty Dollars. Several also charge for the meters and mayo much <br />higher cost outside the City limits. We believe after careful study, it is advisable for the Water Department ~ <br />to take over the service lines (both new construction and maintenance) and it should be done on s flat fee as <br />follows: <br /> <br />Fora 3/4 inch-line <br />1 inch line <br />1~ inch line <br />2 inch line <br /> <br />$75.00 <br /> 85.00 <br />125.00 <br />150.00 <br /> <br /> These prices are realistig~but it is not ~o be concluded.that the cost of replacing <br />~y existing services would not greatlyexceed those fees. To renew a 3/4 inch line on High Street~ Court <br />Street, Washington Street .and many other wide rQadways wou~d cost ~about Two ~undred Dollars each. It must be <br />understood any consumer reqqiring ~i~her a new service or repair o~ replacement of an old line, would pay the <br />~cost of the new line a~d we would provide maintenance in the future. To do otherwise would penalize the <br />consumer who :did nqt require such service because he provided a more expensive and permanent type of servzce. <br />It should be understood that .this would result in an ~crease in the operating Cost of the Water Department <br />~ith the net result being a rate adjustment upward. <br /> The estimated cost of setting up manpower and equipment to take over these service <br /> lines would be as follows: <br /> <br />Initial Cost <br />Three completely equipped trucks including compressor, <br />jacks, tapping machines~ small toot~, etc. <br /> <br />22,000.00 <br /> <br />Building for storage <br /> <br />8,000.00 <br /> <br />Materials 10,000.00 <br /> <br />Annual Cost <br />Three additional two-man crews <br /> <br />20,000.00 <br /> <br />Equipment and materials <br /> <br />22,000.00 <br /> <br /> This mean~ that the cost .of taking th~s operation over.would amount to about <br />860,000.00 the first year. <br /> Attached here~o is a breakdo~za of comparisons of t~e.water rates and service line <br />charges that _are currently in effect in Norfolk, Newport News, Richmond, Roanoke and Petersburg. <br /> Also attached is a reco~meBde~ratg s'tr~ctufe f~r ~ City of Portsmouth including <br />the Water Department Water charges and the sewer charges. If it is the desire of the Council that the-Water <br />Department should take over ~e maintenance of t~e ~service lines, this policy should be made effective July 1st, <br />1961 with ~he new water rates applying at ghat time also." <br /> <br />vote. <br /> <br />Motion of-I'ir. Walker to refer to a conference of the Council%ms adopted, without dissenting <br /> <br />UNFINISHED BUSINESS <br /> <br /> 61-80 -The following ordimanQe, approved on first .r~ading at last meeting was taken up and <br />read: <br /> <br /> <br />
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