BOOK 20_1945-05-21 to 1946-09-03

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IL 1 paying for the line beyond that distance. Refunds of an agreed amount are made as additional connections are made to the line. A study of the systems followed by other cities on the Peninsula had been made and also a report which had been published in a water works magazine. Some of the cities are following the refund plan and others require the user to pay the full cost. There is no definite trend but it is generally toward small refunds or no refunds at all. In Palo Alto, the city installs'150 feet of main. The applicant pays in advance the estimated cost of footage required. The main is depreciated at' 3% a year during the period of agreement and the balance remaining is re- funded without interest at any time that the revenue from the water sales from that section of the water main in twelve consecutive months is equal to 200 of the total capital invested by the applicant who put in the main. Agreements run for a maximum of fifteen years. No refund is allowed unless there is the 20% revenue within a one year period. In Burlingame, the subdivider pays the cost of the water system designed by the city. No refunds are granted of any kind. Burlingame requires a 61f i! main. The user pays $20 for meter setting and also the cost of the service pipe running from the main into the street. In Hillsborough, the subdivider pays the full cost of the system. Refunds 1 are made when the revenue from the sale of water in twelve consecutive months equals 20% of the actual cost of installation. No refunds are made after eight years. San Mateo does not own its water system but operates under a privately owned system. The company will install'100 feet of main free of charge for each service connection. Additional footage is paid for by applicant. Cost is estimated on a maximum of 411 pipe. Refunds are made on the cost of 100 feet of line for each new connection with a ten year limit on the agreement. This does not apply to subdivisions but only to individual users. In subdivisions, the subdivider advances the total cost, the size and type of pipe determined by the water company. Applicant may choose revenue method of refund for a period not exceeding ten years. Company will refund annually 356 of the gross receipts from the consumer on the connection, not to exceed total cost of the installation. The other option is a proportionate cost agreement for a period not exceeding ten years; the Company will refind to depositor the cost of installation of'100 feet of main for each bona fide consumer. In extensions to supply housing projects, the applicant is required to elect the revenue method. Our present policy provides that we charge $10 for a meter deposit. The actual cost of connecting consumers to the wain in the street runs to $45 or $50, which is a great burden for the water department to absorb. He asked that the Council establish a firm policy as to how these extensio ns and services are to be financed. W Mr. John McCarthy and Mr. Ludwig Werder appeared before the Council in regard ® to changing the system now in practice. Mr. McCarthy asked how it would af- fect those subdivisions already in effect. It was the general consensus of 265