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Utilities

Steering Committee

April 7, 2001

 

Introduction:

Municipally owned utilities systems have a proud history of efficient operations and dedicated service to their communities. Traditionally, municipal electric utilities operate at a profit which is utilized for maintenance and expansion, returned to community funds, or used to subsidize other utilities such as water and sewage, which usually operate at a loss. Lafayette Parish incorporated towns served by two non municipally owned utilities, Entergy, an investor-owned company, and Slemco, an REA utility, have been serving customers in Lafayette Parish for many years. Other utilities are furnished by Lafayette Utilities System (LUS) and other private utilities, such as natural gas, telephone/communications, garbage and environmental.

Current global economic changes, and rapid transformations in the communication industry, are creating adjustments and concern in the operation of local utilities. Availability, management and cost of utilities are of great concern to all end users and are a major factor in promoting/directing viable land use (smart growth) in Lafayette Parish. Available utilities drive land use. Environmental requirements continually impact on utility operations. Due to the number of utility services reviewed, any recommendations are presented by title. Lafayette Parish utilities included in this report are as follows:

a) Electric
b) Sewer
c) Potable Water
d) Communications 
e) Garbage
f) Natural Gas
g) Storm Water

________________________________________________________________________

ELECTRIC SERVICES/PLANS

Recommendation No. 1

Lafayette Utilities System (LUS) must be prepared for electric utility deregulation.

Commentary:Federal and State government restructuring of electricity will cause many changes in the way retail electric power is marketed. LUS has a choice: 1. It can close the Lafayette Market to competitive electric providers or 2. It can open the community to world electric providers and compete in the new global market. Utilities will negotiate prices with large end-users and let supply and demand determine prices for buyers and sellers. LUS must assure that it has now, and can maintain in the future, sufficient generating capacity and transmission lines to restructure, be competitive, and, at a minimum, keep its present large end-user accounts.

Restructuring of the electric utility must be implemented in a manner that benefits all customers and does not benefit one customer class to the detriment of another. LUS must continue to be sensitive to all customers with availability, service and costs upon restructuring. LUS must be sure that restructuring does not affect other utilities laterally. LUS must also evaluate whether the on-going sale of wholesale power may produce more income in the structured market place.

Recommendation No. 2

Parish incorporated municipalities; Broussard, Carencro, Duson, Scott and Youngsville and the unincorporated areas should review their electrical franchises, contracts, and agreements in preparation for restructuring of electrical services within their communities.

Commentary:Electric utility companies which supply parish municipalities and the unincorporated areas of the parish are all considering electrical restructuring, and local governments should be determining what effect this will have on their citizens and their local utility operations. Some areas of concern are:

Additional revenue
Partnering opportunities
Brown-outs/black-outs
Customer service
Customer costs
Customer billing
Customer education
Emergency preparedness
Preventive maintenance

Recommendation No. 3

LUS should maintain a viable rebate plan to be more competitive for services to new residential, commercial and industrial developments.

Commentary: LUS is surrounded by electric utility competitors with sales personnel who seek potential customers that could be served by LUS. Currently, developers are required to front the cost of infrastructure with some reimbursement. LUS requirements are more demanding with quality equipment capable of handling anticipated future capacity. Other electrical companies do not require front end development electrical installation investment costs, making LUS far more expensive. However, by offering rebates to the developers, LUS can get these customers online and recoup rebate costs over a period of time. Some of these developments may be annexed by the City of Lafayette later with LUS already serving the area. LUS must continue its investment incentive package to new development. The global electrical market will demand competitiveness for the LUS program.

Recommendation No. 4

Electrical providers are strongly urged to lay wire underground where economically feasible.

Commentary: Underground electrical construction is a major factor in rendering uninterrupted service to users. Lafayette Parish has its share of weather fronts, high winds, hurricanes, trees, squirrels, snakes, etc. to which overhead lines are susceptible. Most of this can be eliminated by burying wires. Underground wiring, whether residential or commercial, enhances the appearances of an area. All parish utilities should plan for underground whenever costs can be justified, or whenever a user or group of users are willing to contribute towards costs.

Recommendation No. 5

A Lafayette Parish Electric District should be established with the ability to contract with electrical providers for services throughout the parish or portions thereof. This District should be created with representation divided by City-Parish Council Districts.

Commentary: To serve the best interests of Lafayette Parish citizens the Lafayette Parish Electric District would negotiate with available electrical providers for the best priced electrical services. The fragmentation of electrical services today does not provide for the best negotiating position and price for parish citizens and jurisdictions, particularly in a deregulated environment.

SEWER SERVICES/PLANS

Recommendation No. 6

The Lafayette Sewage Utility Development Committee be formed under the direction of the Lafayette Council of Governments (COG).

Commentary: This committee, should be a major entity organizing, coordinating, developing and completing most of the sewage recommendations presented in this LINC Element. The Lafayette Sewage Utility Development Committee should seek input, keep informed, coordinate and recommend to the Council of Governments on their sewer plans to accomplish stated goals in the Comprehensive Plan.

Recommendation No. 7

The Lafayette Sewage Utility Development Committee should designate sewer districts to encompass all of Lafayette Parish.

Commentary:Formation of sewer districts should be accomplished early in the plan to expand sewer services to rural areas. Districts must be sized to meet qualifications for grants and loans. Location of districts should include consideration of existing facilities, priority needs, and future growth areas. Formation of sewage districts should be the job of the Lafayette Utility Sewage Committee with guidance from the appropriate municipal utility managers. This committee should coordinate with parish municipalities and consider partnerships and intergovernmental agreements through the Lafayette Council of Governments.

Recommendation No. 8

The Lafayette Sewage Utility Development Committee should prepare a sewage (wastewater) treatment and disposal program and plan for approval by the electorate. These programs and plans must provide guidance and requirements which relate to the disposal of sewage and incorporate, at a minimum, any Local, State and Federal requirements (i.e., La. Dept. of Environmental Quality, La. Dept. of Health and Hospitals, La. Public Service Commission and U.S. Environmental Protection Agency). Critical to these programs and plans for sewage treatment and disposal are minimum design, construction, and maintenance standards for the following three types of installations:

1) Individual Treatment Systems
2) Subdivision/Community Systems
3) Municipal Systems
A. Sewer Districts shall be assigned as responsible agency for the planning, approval, operation and supervision of all independent waste water systems.
B. Requirements for installation, inspection and maintenance of individual sewage systems are to include fees, monthly charges and/or professional certification.
C. Municipal sewer services throughout the parish by the end of the year 2016.
D. Prohibition of new individual septic tank systems discharge of sewage effluent in Lafayette Parish after December 31, 2006.
E. All new community sewage infrastructure should be planned and designed for inter-connectivity with municipal systems at some point in the future.
F. Municipal and Sewage District systems should be planned and designed for inter- connectivity and economic efficiency.

Commentary:Untreated sewage effluent from any individual or community sewage disposal system should not be allowed to discharge directly into the drainage network, particularly the open ditches along roadways and streets in the unincorporated areas of the parish. We have learned from previous experiences in a number of parish subdivisions that some independent operators of waste water systems have not maintained their operations properly. Municipal sewage utilities have a long history of experience and dependability in operating waste water systems. Our future sewage infrastructure should be focused around the municipal and proposed district networks.

The recommendations will be difficult to attain because sewage disposal is a costly effort; however, we will never meet our objectives unless goals are in place and we can focus on them. The Parish of Lafayette is rapidly developing urban area. We cannot wait for patchwork solutions when greater economy and efficiency is achievable with intergovernmental cooperation and coordination among the parish municipalities. The Lafayette Council of Governments appears to be the vehicle to help coordinate this necessary objective.

The Environmental Protection Agency is progressively tightening effluent discharge requirements which will affect everyone now and in the future. We should not and cannot wait for federal mandates. The expense to address the sewage needs of tomorrow are building up today and we cannot afford to delay in planning and preparing for the future. New development must be coordinated with available infrastructure in a compatible system. Recommended target dates are aggressive and are made as a challenge to the Parish and to the Council of Governments to get the ball rolling on this important element.

STORMWATER PLANS/PROGRAMS

Recommendation No. 9

Floodwater/Stormwater Plans, programs and management should be declared a public utility and administered as such.

Commentary:All impervious surfaces contribute to the need for universal stormwater management and planning. Residential, commercial, and industrial structures as well as hard surfaced roadways and parking areas continuously deliver stormwater to both natural and man made drainage systems throughout the parish. Notwithstanding the current drought experienced over the last three years, the needs and responsibility for flood and stormwater control is on-going and must be shared by all. Many local governments around the country have declared flood control and stormwater management a public service utility and operate it as such.

Efficient management of stormwater has been a major problem second only to land use. The high cost involved to address this problem and the competition for funds with other public works projects hamper drainage capacity in both existing and future infrastructure. This utility, when provided with dependable financing shifted from a limited property tax base to user fees could better address stormwater with all its environmental problems.

Recommendation No. 10

Stormwater is a parishwide responsibility involving all local governments and must be coordinated on a multi-jurisdictional level.

Commentary:Recognizing the Parish of Lafayette involves five municipal governments in addition to the Lafayette City-Parish Consolidated Government, each with separate jurisdictional boundaries and authority, it is incumbent on these local governments to work together to solve, plan and manage stormwater to and including the Bayou Vermilion. These governmental boundaries do not conform to watersheds or the drainage flow of the parish and options must be determined at the earliest date on who will coordinate this priority need, then proceed to implement the drainage recommendations already submitted for the Drainage Element

Recommendation No. 11

Review the St. Petersburg, Florida Stormwater Ordinance which has been in effect for the past ten years and utilize as a practical reference guide for experienced local floodwater/stormwater applications. The St. Petersburg Ordinance is referenced whole in this recommendation.

Commentary: Ten years of practical experience with the St. Petersburg, Florida Stormwater Ordinance appears to the committee members as a solid reference base on which to draft a Lafayette Parish Stormwater Ordinance that will best serve the needs of Lafayette Parish. There are some disagreements with certain aspects of the St. Petersburg Ordinance among committee members, but overall the document should serve as a beginning point for Lafayette Parish. The St. Petersburg Ordinance has undergone numerous real life situations and changes and is today a proven, in place utility that is getting the job done with the cooperation of local developers, businesses and residents. A viable plan, properly implemented and maintained will satisfy the Quality of Life mandates our citizens are demanding.

POTABLE WATER

Recommendation No. 12

Potable water service should be available throughout the parish by the year 2010 and must be planned and developed on a network of systems for water pressure maintenance.

Commentary: Safe, high quality water for all citizens of Lafayette Parish must be planned and available as soon as possible. Lafayette Parish is a rapidly urbanizing parish that cannot allow continued development where such a basic need as potable water infrastructure does not exist.

Recommendation No. 13

Fire Hydrants should be parishwide by the year 2015.

Commentary:Although recent improvements in developing an interconnecting fire fighting water system have been achieved, efforts must be continued and aggressively followed through to protect new developing areas of the parish. Development activity is not waiting for the needed infrastructure. Fire hydrants save life and property and reduce insurance costs for all. The current annual average savings from a Class 4 to a Class 2 in Lafayette Parish is $75.00 for a wood frame $50,000 home and $105.00 for a brick $100,000 home. Land development should be encouraged where water and other utilities are available first, to reduce demand for expansion of utilities where they do not yet exist.

Recommendation No. 14

Water system testing must be available on demand.

Commentary:There have been numerous complaints over the last few years on the quality of the potable water available in a number of areas of the parish. Safe potable water is a necessity for the citizens of Lafayette Parish. The Lafayette Utility System (LUS) has, in our opinion, the best and safest potable water available and should be used as a measure against privately operated and public systems in the parish. Testing of water systems should be readily available to citizens with any concerns on their water systems' safety or quality. The committee members note the positive actions being taken by several local governments to interconnect their water systems with LUS for improved pressure, quality, safety, and cost.

Recommendation No. 15

The Chicot Aquifer is vital to the future of Lafayette Parish and should be monitored locally as well as through state and federal agencies.

Commentary:A number of factors are combining to raise concern the Chicot Aquifer may not be an unlimited water resource. This aquifer is too important to be neglected or abused. Current citizens as well as future citizens will be dependent on both the quantity and the quality of the water obtained from the aquifer. Lafayette Consolidated Government and specifically the Lafayette Utilities System should take steps for periodic reporting to the public on the condition of the Chicot Aquifer at a minimum of every six months.

Recommendation No. 16

A parishwide water conservation policy regarding lawn watering should be established by all local governments through intergovernmental agreements.

Commentary:Conflicting regulations on lawn watering can affect the water pressure in a parishwide water system network. General public use of restricted water resources must be coordinated and enforced throughout the parish equitably. Recent reports on rainfall in Lafayette Parish indicated that the current year may be the worst or lowest measured since 1902. Three years of low rainfall is a historic event for the area and it is not known how much longer the current drought will continue. Intergovernmental coordination is encouraged on this effort to limit the watering of lawns.

COMMUNICATIONS

Recommendation No. 17

Parishwide support for the LUS Fiber Optic Internet Connection should be continued.

Commentary:One of the great benefits of a public utility is the capacity to reinvest in the community. The Lafayette Utility System (LUS) has demonstrated a history of this type of initiative over the last 100 years. The system has once again boldly stepped ahead and invested in a fiber optic network to facilitate both business and residential customers and the community with new available technology. This subcommittee conducted numerous work sessions devoted to this new utility early on. Numerous recommendations were made, including the urgency to establish this service as quickly as possible. We now find that the utility is established and on line in some areas. Upon review those recommendations which we had planned to submit have already been considered and most of them implemented. We know Lafayette Parish and surrounding areas will benefit as the utility expands it services. There is no guarantee that this fiber optic system will be profitable immediately. But, it will facilitate business and personal communication in the area and become profitable within a reasonable time. It is worth the risk and urge LUS to continue these type of initiatives.

GARBAGE

Recommendation No. 18

There should be a common contract schedule among local governments for the collection of garbage.

Commentary:The subcommittee noted the recent experience of the Lafayette Consolidated Government in negotiating a garbage contract for the unincorporated areas of the parish and for the City of Lafayette. There should be logic to the potential inclusion of the five municipalities of Broussard, Carencro, Duson, and Youngsville in this service. The LCG contract is for five years. The timing for future garbage contracts should be coordinated.

Recommendation No. 19

The Lafayette Council of Governments should be responsible for the coordination of garbage contracts throughout the parish among the local governments.

Commentary:The subcommittee again notes the coordinating role of COG among the local government elected officials, particularly the five municipalities of Broussard, Carencro, Duson, and Youngsville.

NATURAL GAS SERVICES

Recommendation No. 20

Natural gas services should be enhanced and promoted for residential and commercial use with local government as the primary public investment option.

Commentary:Only one local government, the City of Carencro, owns and operates its own natural gas distribution system. The remaining governments franchise gas service within their respective jurisdictions. The subcommittee notes that natural gas is a local resource, is clean burning, is there for hurricane and other power outages and cooks a great gumbo. The cost of natural gas escalated recently and has generally been by-passed as an essential service for the last ten to twenty years. Carencro continues to profit from its gas system, but has not expanded its network. The committee believes natural gas is a practical local alternative because it is a local resource. Placing existing natural gas systems in the public service sector of local government can make the viable difference between profit and loss. Natural gas provides the parish with options. Natural gas service should continue to be an essential utility for the foreseeable future, if supported publicly. It is understood the existing gas system infrastructure may be in need of costly replacement. This information should certainly be evaluated on any buyouts. The subcommittee opinions that significant portions of the general public, given the option at a reasonable cost, would elect to utilize combined electric and natural gas services.

GENERAL

Recommendation No. 21

Local government franchise agreements should be coordinated among Lafayette City-Parish Consolidated Government and the municipalities of Broussard, Carencro, Duson, Scott and Youngsville for timing, cost, and services.

Commentary:Currently, each local government is negotiating and contracting for franchise services independently of each other on garbage collection, gas, and electricity. The committee is confident that savings could be realized if the parish operated as a whole in the negotiations with the various providers of these services.

Conclusion

Utilities are critical needs for urban areas. Lafayette Parish is fortunate in having both public and private utilities to choose from. But times are changing and the need for local governments to work together for greater efficiency and expanded services should be a rational conclusion. Recognizing the important role the free enterprise system plays in our continued development and growth, it is also demonstrated that utilities must be at least adequate to support this growth or future citizens will be burdened by costly public improvements to compensate for poor planning and management. The increasing density of residential and commercial development throughout the parish is now centered on what are adequate utilities. This is an essential question.

The subcommittee's recommendations have identified what the members consider these future utility adequacies to be. The adequacies are not visionary, but indispensable to urban development now taking place and certainly in the future. The price will have to be paid for the decisions being made today and it will be paid up front or down the road, but it will have to be paid. The "smart growth" strategies being discussed across the country today and noted in these recommendations prompts debate on the business as usual development of Lafayette Parish. There are pros and cons to smart growth which are dependent on the mechanisms to be used. Utilities are one of the key instruments in that process.

The recent experience of the poorly operated ATS private utility systems in many Lafayette Parish subdivisions is a classic example of what should not be allowed to happen any longer. This is obviously a public responsibility. If the public is approving the development, it is a public liability. If the public can not afford the liability because of a limited tax base, then the development should not be approved until the revenue base is established to support the utility infrastructure that is needed.

Utilities Subcommittee Members:

Mr. Mabry Langlinais, Chair
Mr. Wayne Harper
Mr. Jim Richard 
Ms. Charlotte Clavier
Mr. Bob Austin

 
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Quick Reference

Recomendation No. 1
Recomendation No. 2
Recomendation No. 3
Recomendation No. 4
Recomendation No. 5
Recomendation No. 6
Recomendation No. 7
Recomendation No. 8
Recomendation No. 9
Recomendation No. 10
Recomendation No. 11
Recomendation No. 12
Recomendation No. 13
Recomendation No. 14
Recomendation No. 15
Recomendation No. 16
Recomendation No. 17
Recomendation No. 18
Recomendation No. 19
Recomendation No. 20
Recomendation No. 21
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