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Item 8BAGENDA ITEM # 8B NOVEMBER 13, 2007 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Rate Study for Water and Sewer Impact Fees SUBMITTED BY: Donna Kaluzniak, Utility Directo DATE: October 29, 2007 BACKGROUND: Water and sewer impact and capital improvement fees are charged to property owners when building new homes or businesses. These fees cover the cost of providing facilities for new connections and capacity increases, such as upgraded treatment plants and distribution/collection lines. The City has not changed the amount of these fees since 1992. New regulatory requirements will call for large capital projects-and construction costs have risen dramatically in the last several years. Staff would like to have a rate study conducted to determine if our existing fees need to be increased. BUDGET: A rough estimate for the cost of the study is $15,000. Funds for the study are available in the Water and Sewer Fund under the professional services accounts. RECOMMENDATION: Authorize staff to begin the process for hiring a consultant for the water and sewer impact fee rate study. ATTACHMENTS: REVIEWED BY CITY MANAGER: