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<br />M Martinsville <br /> <br />City Council <br />Agenda Summary <br /> <br />Meeting Date: <br />Item No: <br />Department: <br />Issue: <br /> <br />February 14, 2006 <br />9. <br /> <br />Water Resources <br /> <br />Discussion of public hearing to be held on February 28, <br />2006 and consideration of adoption, on first reading, of <br />Ordinance No. 2006-1 amending Appendix D-2- <br />Schedule of Connection Charges of the City's Terms and <br />Conditions for Water and Sewer Service. <br /> <br />Summary: The City's water and sewer connection charges, which were last <br />adjusted in 1999, have historically been based on the actual cost of installation. A <br />review of the current actual cost of personnel, equipment and materials associated <br />with new services indicates that increases are now justified for normal residential <br />(3/4" water and 4" sewer) and commercial (I" water and 6" sewer) connections. <br />The attached recommended revised fee schedule reflects a $150 increase for each <br />item, resulting in uniform charges that will be more than the actual cost of a <br />simple connection where the main is outside of pavement and on the same side of <br />the street, but less that the actual cost of a connection on the opposite side of a <br />paved street. <br /> <br />Connections for water services larger than 1" and sewer services larger than 6" are <br />already charged based completely on the cost of installation using current salaries, <br />material cost and equipment rates so will not be affected by this adjustment. <br /> <br />Statewide, connection fees vary over a wide range. According to the 2005 Draper <br />Aden Report, the average residential water connection fee was $1,491 (median was <br />$800), and the average residential sewer connection fee was $1,648 (median was <br />$1000). The current HCPSA water and sewer residential fees are $1,000 each. <br /> <br />This increase will affect only new construction and will have no impact on current <br />customers. If adopted as recommended, water connection fee annual revenues <br />will increase about $2,500 and sewer connection fee annual revenues will increase <br />about $2,000, depending upon new construction activity. <br /> <br />Attachments: <br /> <br />Ordinance No. 2006-1 <br /> <br />Recommendations: <br /> <br />Place on next agenda <br />