Minutes 04/11/1961 - Laserfiche WebLink

Home Browse Search

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