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HomeMy WebLinkAboutCAPITAL IMPROVEMENTS - 06/13/2005 - Capital Improvements Committee June 13, 2005 9 am Chernick Conference Room Present: Trustee Petri, Chairman q 1=CE J yU Trustee Czarnik,Member Trustee Feichter, Member JUN 2 3 2005 Staff: Assistant Village Manger � 0fflCf Director of Finance Director of Public Works Superintendent of Utilities Water/Sewer Rate Studv Baxter and Woodman was retained to provide a professional water/sewer rate study due to a number of issues impacting water/sewer rates. Those issues include Chicago charging JAWA more for water; JAWA having additional costs; and the Village's need to rehabilitate aging sewer lines,replace water meters, and otherwise perform capital system maintenance. The study shows that Elk Grove has the lowest water rates of all JAWA communities. Elk Grove water rates have not been increased in 8 years and sewer rates not increased in 7 years. All communities on the JAWA system will be facing increased costs and will need to increase their rates. The study presents several scenarios to provide sufficient funds to cover operation and maintenance costs into the future and achieve;a fund balance of 25% of annual expenses. The Director of Public Works reviewed the sewer cured-in-place lining program with the areas planned for sewer rehabilitation work over the next 5 years. In addition, the Director reviewed the need for the meter replacement program. Automatic"radio read"technology is planned for the business park with meter replacement budgeted in the amount of$600,000 for this year. Residential meter replacement will take place;in subsequent years. Overall, $2.4 million is budgeted for meter replacement. The Committee reviewed the water/sewer connection fee recommendations for new construction. In addition, the Committee reviewed the fee to disconnect and reconnect water customers who fail to pay their water/sewer bill. The current reconnection fee is $25. The actual cost to disconnect and reconnect to the water/sewer utility is about $75. Following further review, the consensus of the Committee was as follows: Water/Sewer Rates: The Committee recommends implementing consultant scenario 3 beginning January 1, 2006 (for water consumed in November and December 2005). This scenario includes a combined water/sewer rate increases as follows: January 1, 2006-$0.68; January 1, 2007 -$0.31; and January 1, 2008 - $0.33. The Committee recommends reviewing water/sewer rates again in 2008. Water/Sewer Connection Rates The report notes that Elk Grove's Water Cormection Fees and Sewer Connection Fees are far lower than surrounding communities. These fees were last amended in 1976. The report recommends increasing these fees to adequately fund the tail end of the Village's growth and place the Village in line with surrounding communities. The consensus of the Committee was to increase the Water/Sewer Connection Fees as recommended by the consultant. The fee increase would be discussed at the July 19 Village Board meeting for implementation on August 1. The fees vary by meter type as follows: New Water Fees Sewer Fees Construction Current :Proposed Current Proposed Meter Size Connection Fee Connection Fee Connection Fee Connection Fee 5/8"' — Residential $ 585 $ 1,200 $ 25 $ 500 3/4a' $ 975 $ 1,500 $ 25 $ 600 1 inch $ 1,435 $ 1,800 $ 25 $ 800 1.5 inch $ 4,150 $ 4,150 $ 25 $ 1,200 2 inch $ 11,700 $ 11,70 $ 25 $ 1,600 3 inch $ 11,700 $ 18,275 $ 25 $ 2,400 4 inch $ 24,850 $ 24,850 $ 25 $ 3,600 6 inch $ 24,850 $ 31,000 $ 25 $ 4,800 Water/Sewer Non-Payment(Disconnection/Reconnection) Fee The Director of Finance noted that utility customers who are disconnected due to non-payment are charged $25. The$25 fee covers the time for an employee to turn-off the water and then travel back out and reconnect the service. The actual cost of the personnel time for the two trips is over$75. The fee has been $25 since 1980. The consensus of the Committee is to increase the disconnect/reconnect from $25 to $75 effective August 1. Miscellaneous Chairman Petri asked that the Village Board receive copies of the Village' brochure regarding residential water meter verification. The meeting adjourned at 10 am. c: Mayor& ard of Tr�stees,Village anager, Assist t V illage Ma ger,Assistant to the Village M ger,Dircc r of Public Weks,Director of inane,Villa Clerk.