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To amend City Code § 28-589, concerning the construction or extension of mains or services and incentive programs, to establish an annual review process to determine the City’s contributions to gas utility main or service lines.
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THE CITY OF RICHMOND HEREBY ORDAINS:
§ 1. That section 28-589 of the Code of the City of Richmond (2026), be and is hereby amended as follows:
Sec. 28-589. Construction or extension of mains or services; incentive programs.
(a) The Director shall determine when gas mains or services are to be constructed or extended within or without the corporate City limits. The Director shall ensure that incentive programs are cost neutral and balance availability of service with long-term climate goals. Upon application of an owner or occupant for such an extension, the estimated net revenue reasonably expected to accrue to the City from such construction in each specific instance and the estimated cost of making the extension shall be calculated by the Director using the construction schedule developed by the Director. The Director annually shall determine construction costs and annually shall develop and publish a schedule of fees that will become effective on July 1 of the subsequent calendar year. The Director shall review [market conditions] at least annually [and establish a period of time for the calculation of estimated revenue] costs and revenue generated from gas main extensions over the preceding ten years to determine the minimum cost share for the owner or occupant of premises to be served thereby and shall have an independent third party conduct a review and provide a report to City Council by October 1 of each year. The Director shall also establish a period of time for the calculation of estimated net revenue. If the estimated net revenue for such period is equal to or exceeds the estimated cost of the extension, a portion of the extension may be made at the expense of the City. If the estimated net revenue is less than t...
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