Procurement News Notice |
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| PNN | 2233 |
| Work Detail | The El Dorado Water and Sewer Commission is considering a change in tapping fees for the city’s water utility to make the rates more comparable to those of other utilities. The three commissioners who represented a quorum during a regular meeting on Wednesday were in favor a flat fee to connect new customers to the city’s water and wastewater systems. They agreed to wait until the full, five-member body was present — commissioners Bret Garrett and Robert Rushing were unable to attend Wednesday — before taking any action on the matter. Mark Smith, general manager of the El Dorado Water Utilities, said there had been some discussion about a change in the tapping fee, and commission chairman Pete Parks said he previously broached the topic due to complaints he has heard from residents of the Mystic Creek Golf Course community on Arkansas 335, just south of U.S. 82. Parks, general partner and developer of Mystic Creek, which includes a world-class golf course and a residential development, said new residents in the community have reached out to him with concerns about the cost of establishing water and wastewater services with the city utility. Parks said the residents often cite and compare costs of setting up service with other utilities. “Those costs are minimal, and we average about $2,000 a customer,” Parks said. He said the requirements include a line for potable water and a separate water line for the use of water from the Ouachita River to feed outdoor sprinkler systems. Smith said tapping fees typically apply to new-home construction to establish water service, and he acknowledged that the city utility on occasion sets up separate taps for sprinkler systems. In 2014, Smith said tapping-fee revenue came in at $16,613. He said the numbers did not include the entire year, noting that the amount represented 22 taps at an average of $755. He said the numbers applied to residential taps only. Commercial services were not included. Smith presented numbers for all 12 months of 2015. Tapping fees totaled $29,535 for 30 taps at an average of $984.51 then. Parks said the water and sewer commission addressed the issue a decade ago by setting a flat rate that ranged between $500 and $550. Then, Parks said, customers who lived on opposite sides of the street were charged a different rate for taps. “So the commission established a flat, $500 fee for that, but it morphed into (costs for) time and materials, so I wanted to initiate a conversation,” Parks said. Smith said different rates depended the customer’s proximity to the water main. “If they’re not on the same side of the street as the water main, then we have to bore into the street. There’s a difference between ‘house x’ versus ‘house y’ that might be on the opposite side of the water main,” he explained. Commissioner Bill Luther said rates for tapping fees should not be based on costs for EWU time and materials. Luther said he instead favored setting an average rate for connection and a single cost for potable water and sprinkler systems so that customers will be aware of their costs upfront and not “get any surprises in the mail later.” Commissioner Michael Donnella also voiced support of a set rate, saying, “I’m on the side of being sensitive and equitable to what’s fair from a customer’s perspective.” Smith, who does not have a vote in the matter, shared his preference as an utilities customer with a sprinkler system and potable water line. “It makes sense to have one meter because I don’t have to pay for wastewater for a sprinkler … so if you set a flat fee, I would be all for it,” Smith said. Parks said the city utility takes in an average of $16,000 in revenue from tapping fees each year. “That amount should be relation to a customer service perspective. Customers deserve to know what it’s going to cost and that the fee is fair in relation to other utilities,” Park said. In other business, Smith said the annual water rate increase for customers went into effect during the second week of August, telling commissioners that the increase is based solely on Consumer Price Index information that is released by the federal Bureau of Labor statistics. He said most customers may not notice the O.12 percent increase, which amounts to about 5 cents a month. The increase was 1.6 percent in 2015. Smith said the annual increases were more hefty in preceding years because the CPI was coupled with a more than 4 percent increase that was previously approved by the El Dorado City Council to help pay off a bond issue. The bond issue was used to help build the Ouachita River multi-user wastewater pipeline and other wastewater improvements, including three new lift stations. The river line went online in 2012. It is owned and operated by the EWU and is used in partnership with El Dorado Chemical, Lion Oil, and Great Lakes. |
| Country | United States , Northern America |
| Industry | Water & Sanitation |
| Entry Date | 03 Sep 2016 |
| Source | http://www.eldoradonews.com/news/2016/aug/25/water-and-sewer-commission-considers-change-tappin/ |
