2013-23 AMENDING CITY CODE - CHAPTER 65 - WATER MAIN CONNECTION CHARGES

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it $5,250, and a two inch meter would result in a$7,000 connection charge and iso on. The proposed revision to Chapter 65 of the City Code includes a 50% discount to properties within the City Corporate Limits at the time of application for water service. Alternative Price Comparison: City staff found that the cost to construct a drinking water well for a typical residential use varies between$5,000 and $6,000 in Macon County. The cost of a well to produce larger amounts of water(if an underlying aquifer is present with adequate capacity) would be higher. There are few locations with an adequate underlying aquifer that will produce high volumes of water that could be obtain with a 2"to 3"water main connection. The proposed water main connection fee would keep the rate below the cost to build a private well. Connection Fees based on Meter Size: The revisions to City Code Chapter 5 also include a provision to increase the water connection fee based on the Construction Cos Index every year during budget preparation. This provision will allow the City to continue to r cover the costs of water main extensions. Existing Wells: Unused wells which have not been properly abandoned in accordance with the requirements of the State of Illinois and the Macon County Health Department are of serious concern to public health and welfare. The revisions to City Code Chapter 65 include provisions, as a condition of City water service, that require the property owner to either#bandon the existing well or inspect the existing well and bring it in compliance with State,of Illinois and Macon County Health Department requirements. Any well left in service on property will only be allowed to be used for irrigation purposes. Redevelopment: In most cases of redevelopment within the City, the property has previously paid a fee to connect to a City water main. In these situations, no additional water main connection fees are charged to that property. This past practice will remain tho same. New Development: If development occurs on a property that is adjacent to aipublic water main and has not previously paid a water main connection charge, the amended chajrges will apply. However, many times new development is such that a City of Decatur water rain must be extended from an existing main to serve the development. The cost to extend the water main is at the Developer's expense. If the cost to extend the water main exceeds the total amount of the water main connection charge, no addition connection charge is required. If the cost to extend the water main is less than the total amount of the water main connection charge, the Developer must only pay the difference. In addition, the City Manager presently has the authority to negotiate Development Agreements and water main connection charges can be included in those negotiations. SCHEDULE: The increased water main connection fee would take effect on May 1, 2013. BUDGET/TIME IMPLICATIONS: i Budget Impact: Increasing the water main connection fees may reduce the C�ity's non- reimbursed cost for water main extensions. Page 3 I