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71 <br /> <br />PUBLIC HEARING: UTILITY RATES <br /> <br /> Mr. Roger Sherman, a member of the Gas Advisory <br />Committee, reviewed the recent work of the Committee. <br /> <br /> Ms. Rita Scott, Director of Finance, stated that the Gas <br />Advisory Committee had recommended that the base price for <br />gas be increased to $3 and endorsed a 5% increase in <br />transportation charges and an increase in the charge for <br />seasonal gas cut-ons to $25. <br /> <br /> Responding to a question from Ms. Slaughter, Ms. Scott <br />stated that the following working capital balances are <br />projected by the end of the year: water - ~750,000; sewer - <br />$450,000~ and gas - $2.5 million. <br /> <br /> Responding to a question from Ms. Daugherty, Ms. Scott, <br />explained that a $100 rebate was being offered for customers <br />who add a water heater or convert to gas when gas line <br />replacement is taking place in the neighborhood. <br /> <br />The public hearing was opened. <br /> <br /> Mr. Tom Hill, 1204 Rugby Road, questioned whether the <br />Gas Advisory Committee has issued a report which showed <br />whether money was made or lost on gas extensions. <br /> <br /> Ms. Hazel Marshall, 823 Monticello Avenue, stated that <br />when she lived in Green County customers and not the town <br />paid for the gas line extensions. Ms. Marshall opposed the <br />increase for seasonal cut-on service. <br /> <br /> Mr. Hill questioned whether the University of Virginia <br />had been asked why they no longer purchase gas from the City. <br /> <br /> Ms. Alma Mills questioned when the utility taxes were <br />placed on the City's utility bills and whether they will ever <br />be removed and stated that extending gas lines without adding <br />staff has caused an increase in estimated gas bills. <br /> <br /> Ms. Scott responded to some of the questioned raised: <br />the cost to the City for seasonal gas cut-off service is the <br />same as that of a new gas customer; the University of <br />Virginia has coal as an alternate source of heat and does not <br />have to depend on a steady supply of gas; and bills are <br />estimated during wet weather. Ms. Scott stated that no new <br />staff have been added even though gas lines have been <br />extended and this is currently under review. <br /> <br /> Mr. Hendrix stressed that the City must be able to <br />guarantee gas to customers at all times which increases the <br />cost. Mr. Hendrix noted that with the new federal regulations <br />the City may be able to buy gas cheaper. <br /> <br /> Mr. Toscano stated that he felt it was important to <br />convey to the public that extending gas lines is a business <br />decision. Mr. Toscano requested that the Gas Advisory <br />Committee make a recommendation regarding what is a prudent <br />level of working capital and study how the base rate compares <br />with other communities. Mr. Toscano noted that the City's <br />average gas bill is in the middle when compared to other <br />localities. <br /> <br /> It was agreed that staff would provide differential <br />rates if a portion of the working capital is used to reduce <br />rates prior to the second reading of the ordinance. <br /> <br /> Mr. Toscano stated that the City may want to provide <br />assistance to people who want to install water conservation <br />measures. <br /> <br />ORDINANCE: UTILITY RATES <br /> <br /> <br />