Lower Introduces New Mandatory Connection Ordinance

VILLAS — Lower Township Council introduced an ordinance Jan. 21 requiring all residents to connect to the municipal water when pipes are available in their street.
The proposed residential connection fee is $1,600 payable over a five-year period at a cost of $350 per year. The fee includes a water meter. Residents would need to hire a plumber to run a water line from the curb to their house.
Mike DeMarcantonio, executive director of Lower Township Municipal Utilities Authority (MUA), told council a mandatory connection ordinance was necessary because it was a requirement to get funding from U.S.D.A and Environmental Protection Agency Water and Wastewater Trust Funds for new projects. He said the agencies approved funding for projects that will supply the most water to residents.
DeMarcantonio said President Barack Obama has proposed to assist municipalities with infrastructure installations, repairs and replacements.
“Lower Township should qualify for most of this funding that is going to be coming available for infrastructure,” he said. “We need to be in line with what every other town and community has done in the past.”
Mandatory connections were mandated for past water projects funded by state and federal agencies. Over the past decade, neither the township nor MUA enforced mandatory connections resulting in 479 properties not connecting to the system where water is available, said DeMarcantonio.
U.S.D.A has promised MUA new funding for water mains to complete Villas and Town Bank. He said 25 percent of the funding was a grant with the remainder in the form of a low interest loan.
“The more customers we have, the more revenue we can generate, the more we are financially fluid and can pay these back as well as past debt we currently have,” said DeMarcantonio.
A new water tower next to the Millman Center must be completed by August 2010 and a lack of a mandatory connection ordinance is holding up the start of the project, which is receiving a U.S.D.A. grant of $625,000 with a $1.2 million low interest loan.
DeMarcantonio said U.S.D.A. would come to Township Hall and speak with any resident who believes they may be eligible for the 502 and 504 programs.
Under 504, a resident could receive a $7,500 grant with a maximum loan of $20,000. It requires income for one person no more than $22,950 or two persons earning $26,200.
One owner must be 62 years old and live in the house.
Under the 502 program, a $20,000 loan is available with no grant. It requires income for one person of no more than $36,700 or two persons earning $41,900. One owner must be at least 62 years of age and live in the home.
Lower Township MUA currently has 6,396 users. Based on $18.4 million of infrastructure, the connection fee should be $2,890 per user, said DeMarcantonio.
He proposed a more affordable fee of $1,600. If the 479 unconnected users all choose the five-year payment plan, MUA would receive an additional $150,000 to offset expenses.
User fees would generate $108,000, said DeMarcantonio.
While other towns are proposing water rate hikes this year, Lower Township MUA is not, he said. The utility has saved $76,000 by insuring through the Joint Insurance Fund and by not replacing an employee that left.
DeMarcantonio said the more people who are connected to the water system, the less each user will pay.
He said Lower MUA has enough water available to add 6,500 new customers to the system. MUA has an annual allocation of 868 million gallons per year. In 2004, MUA produced 469 million gallons, in 2005, 456 million gallons, in 2006, 424 million in 2007, 440 million and in 2008, 396 million.
DeMarcantonio said he attributed the decrease in water use last year to not having a drought and the installation of water saving plumbing fixtures.
He said homeowners who use wells for drinking water may not be aware of contaminants that are odorless, tasteless and colorless. A new well costs $5,000 to $6,000 while MUA’s connection fee is $1,600, noted DeMarcantonio.
MUA cannot go onto to private property to run pipes from the curb to a house or contract with a plumber. He said he would put together a fact sheet and put out a proposal to all local plumbers informing them there are 479 homeowners that need connected.
“The guy with the lowest price may get 479 jobs,” said DeMarcantonio.
A public hearing will be held on the mandatory connection ordinance Feb. 18 at 7 p.m. at Township Hall.