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143 <br /> <br />PUBLIC HEARING: <br /> <br />CEMETERY FEES <br /> <br />The public hearing was opened. <br /> <br /> Mr. Gene German, Director of Parks and Recreation, read <br />a letter from Mr. Joe Teague, representing local funeral <br />directors, requesting that the City continue to provide grave <br />opening and closing services. <br /> <br />As there were no speakers the public hearing was closed. <br /> <br />ORDINANCE: CEMETERY FEES <br /> <br /> Ms. Waters suggested that the ordinance be amended to <br />provide for the City to continue to provide grave opening and <br />closing services but at the actual cost of the service, with <br />the cost passed on to the funeral homes. <br /> <br /> Mr. Hendrix recommended that the City contract with <br />someone to provide the service rather than having a City <br />employee provide the service. Mr. Hendrix recommended that <br />the amount of the service not be designated in the ordinance. <br /> <br /> Mr. Clyde Gouldman, City Attorney, stated that the <br />ordinance would need to be reworked to reflect the amendment <br />and recommended that the matter be deferred to the next <br />meeting. <br /> <br /> Ms. Slaughter stated that she favored having the funeral <br />directors continue to make the arrangements for the services <br />even if the City provides the service. <br /> <br />PUBLIC HEARING: UTILITY RATES <br /> <br /> Ms. Rita Scott, Director of Finance, reviewed the <br />ordinance establishing the utility rates, noting that the <br />water rates will increase by an average of 1.3% and the <br />wastewater rate will increase by less than 1%. Ms. Scott <br />presented three options for the gas rates: maintain the <br />current formula for setting rates; begin a bond financing <br />program to accelerate reconstruction of old gas lines to <br />address the safety needs and level out the funding and <br />include an incentive program to add new gas customers; and <br />build a 2% profit into the rates. Ms. Scott noted that <br />option two would result in the lowest gas rate for consumers. <br /> <br />The public hearing was opened. <br /> <br /> Mr. Tom Hill, 1204 Rugby Road, expressed concern about <br />the return on the capital investment made to extend lines <br />into Albemarle County, the loss of $800,000 during a period <br />when gas prices have dropped, the loss of interruptible <br />customers, and the price the City has paid for gas. <br /> <br /> As there were no further speakers the public hearing was <br />closed. <br /> <br /> Responding to a question from Ms. Slaughter, Mr. Hendrix <br />stated that five to ten years has been considered a <br />reasonable time period for a return on expansion costs. <br /> <br /> Ms. Slaughter stated that she felt the cost of expanding <br />lines into the County raises the issue of having a <br />differential rate between City and County customers, but set <br />at a point ~to remain competitive with other energy sources. <br /> <br /> Mr. Toscano questioned what the private sector targets <br />for a payback on investments and added that if the costs <br />inherent in expanding are so large the advisability of <br />expansion may need to be rethought. <br /> <br /> Mr. Hendrix stated that he felt a consultant was needed <br />to look at the rates for interruptible customers, to look at <br /> <br /> <br />