HomeMy WebLinkAbout2010-6-7692ORDINANCE NO. 2010-6-7692
AN ORDINANCE AMENDING ORDINANCE NO. 2003 — 3 —
6631, 2009-11-7629 and 2009-11-7630
WHEREAS, the Commissioners of Waterworks ("Water Commission") operates the
Paducah Water Works ("PWW"), subject to the rates and charges that are promulgated by the City
Commission; and
WHEREAS, pursuant to Paducah Ordinance No. 2003-3-6631, the Water
Commission has authority to make annual adjustments to those rates and charges in accordance with
the Consumer Price Index (Southeast Urban Region) to fund the payment of inflation increases and
other unfunded costs of operation; and
WHEREAS, the Water Commission has determined that the aforementioned
Consumer Price Index does not adequately measure the actual inflation factors in the costs of
PWW's operation; and
WHEREAS, the Water Commission has recommended that the Consumer Price
Index be replaced by a "Mixed Inflation Index" which utilizes a variety of index standards to
accurately measure the inflation factors in PWW's overall operation; and
WHEREAS, the City Commission recognizes the need to identify all of the actual
inflation factors in PWW's operation to enable the Water Commission to intelligently adjust the
rates and charges to cover those factors.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF PADUCAH,
KENTUCKY, AS FOLLOWS:
Section 1. Approval of Mixed Inflation Index. The City Commission hereby
approves the adoption of the "Mixed Inflation Index" as recommended by the Water Commission.
Section 2. Amendment to Section 7, "Rates and Charles" in Ordinance. Section
7 under Ordinance No. 2003-3-6631 shall be amended to read as follows:
The sehedule of rates and ehar-ges preser-ibed in
this Or-dinanee shall be revised
fteffi time
to time, an
whenever- required shall be iner-eased, so as to
adequate to eemply with sueh eevenants aiid agreements
pr-E)"ee income and r-evei+ues
as may be made by
from
the
said Watef
City in eennee
W
with any Revenue Bends issued by the City and
eper-afiena4 needs. In sueh
regard,
the sehedule
-of
rates and eharges shall be iner-eased on an annual
ealenda-Y year up to the extepA of I . in
basis, effeetive ittly 1, 2005,
the Consumer- Pr-iee Index
and
as refleeted
thereafter-
in
for- e
South
lily_Peru.f:RRlilJSliIES'i5!*!
infrastruettffe,and a determinatioa as to the extent of sueh inerease,
ter -
The Water Commission shall have the right and authority to make annual adjustments to the rates
and charges under this Ordinance to pay for inflation -related price increases and other unfunded
costs of operation. In making those adjustments, the Water Commission shall utilize the "Mixed
Inflation Index Factor" that is defined in the computation schedule set forth under this Section, using
the calendar month of March as the determinative factor, with the month of March, 2009, being the
initial base month. Each annual adjustment shall be made effective on July 1 of the calendar year in
which the adjustment is made, and shall be incorporated in all water bills rendered from and after
that effective date. The "Mixed Inflation Index Factor" shall be calculated in accordance with the
method that is provided in the following computation schedule:
COMPUTATION OF
MIXED INFLATION INDEX FACTOR
CLASSIFICATION % OF PWW
OF PWW COSTS COSTS
• Capital Improvements %
• Wages & Benefits %
• Utilities %
• Chemicals %
INFLATION INDEX STANDARD
x Construction Cost Index =
(Engineering News Record)
x Consumer Price Index =
(for S.E. Urban Region)
x Utility Index =
(Bureau of Labor Statistics)
x Chemical Manufacturing Index =
(Bureau of Labor Statistics)
WEIGHT FACTOR
Total of Percentages: % Total Weight Factor:
Total Weight Factor — Total of Percentages = Mixed Inflation Index
Factor
The terms used in this computation schedule shall be defined and used in accordance with the following provisions:
"PWW Costs" shall mean the overall costs and expenses of PWW's operation, including costs of improvements.
"Classification of Costs": The Classification of Costs identifies the four (4) specific cost items that will be utilized in
determining the Mixed Inflation Index Factor.
"% of PWW Costs": The Percentage of PWW Costs is the percentage of PWW Costs that is attributable to each cost
item that is identified in the classification. The percentage amount for a cost item shall be determined by dividing the
sum total costs under that cost item by the total amount of the PWW Costs.
W
"Inflation Index Standard": The Inflation Index Standard identifies the index standard that will be used to determine the
inflation factor for each cost item. The inflation factor of a cost item shall be measured by the Index Standard that is
designated for that item, and shall be based on the reporting source that is ascribed to that standard.
"Weight Factor": The Weight Factor, is the weight that is assigned to each cost item to compute the overall Mixed
Inflation Index Factor. The Weight Factor for a cost item shall be determined by multiplying the "% of PWW Costs" of
that item by the "Inflation Index Standard" that is designated for that item.
"Total of Percentages" shall mean the sum total of the "% of PWW Costs" that is allocated to the cost items.
"Total Weight Factor" shall mean the sum total of the "Weight Factors" that are assigned to the cost items.
"Mixed Inflation Index Factor" is determined by dividing the "Total Weight Factors" by the "Total of Percentages".
Section 3. Amendment to Section 3, "Amendment to Minimum Monthly
Charles" in Ordinance. Section 3 under Ordinance No. 2009-11-7629 shall be amended to read as
follows:
C. Reidland residential and commercial customers
Min.
Meter Size Consump. 2001 2002 7/1/03 7/1/04 7/1/05 7/1/09*
Gallons
5/8"
3,000
6.25
6.44
6.70
6.97
6.97
8.31
3/4"
3,000
6.25
6.44
6.70
6.97
6.97
8.31
1"
3,000
6.25
6.44
6.70
6.97
6.97
8.31
1 %2"
3,000
6.25
6.44
6.70
6.97
6.97
8.31
2"
3,000
6.25
6.44
6.70
6.97
6.97
8.31
3"
3,000
6.25
6.44
6.70
6.97
6.97
8.31
4"
3,000
6.25
6.44
6.70
6.97
6.97
8.31
6"
3,000
6.25
6.44
6.70
6.97
6.97
8.31
* Note: In effect since July 1, 2009.
Effective Date for Rates: 1/1/2010
Effective Date for Rates: 1/1/2011
Minimum Bills
Minimum Bills
5/8" meter (2000 gallons)
$ 7.16
5/8" meter
(1,500 gallons)
$ 6.02
1" meter (5,500 gallons)
17.35
1" meter
(7,500 gallons)
25.94
1.5" meter (12,000 gallons)
34.84
1.5" meter
(20,000 gallons)
61.84
2" meter (24,500 gallons)
62.34
2" meter
(40,000 gallons)
117.04
3" meter (50,000 gallons)
118.44
3" meter
(80,000 gallons)
227.44
4" meter (85,000 gallons)
195.44
4" meter
(150,000 gallons)
382.14
6" meter (168,000 gallons)
344.04
6" meter
(300,000 gallons)
680.64
Each amended minimum monthly charge schedule shall become effective on the effective date that is
designated for that schedule, and shall apply to water bills rendered on or after that effective date.
The Water Commission shall have the authority to revise these minimum charges under Section 7 of
this ordinance, including the authority to adjust the minimum charges based upon the Mixed
Inflation Index Factor the Gonsth�aer-D.iee Index as provided under that Section.
Section 4. Amendment to Section 2 (c) under "Minimum Monthly Charges" in
Ordinance. Section 3 (c) in Ordinance No. 2009-11-7630 shall be amended to read as follows:
(e) Capital Replacement and Expansion Fee. In addition to the minimum monthly rates
provided under this Section, every residential and commercial customer under this Section shall also
pay a graduated monthly Capital Replacement and Expansion Fee that is based on the size of the
customer's water meter.
A schedule of these graduated monthly fees is as follows:
Meter
Effective
Effective
Effective
Size
1/1/2010
7/1/2011
7/1/2012
5/8"
$ 2.00
$ 3.00
$ 4.00
1
10.00
15.00
20.00
1.5
26.00
39.00
52.00
2"
54.00
81.00
108.00
3"
106.00
159.00
212.00
4"
200.00
300.00
400.00
6"
400.00
600.00
800.00
8
540.00
810.00
1080.00
The graduated monthly fees defined under this schedule shall become effective on the designated
effective date, and shall be added to the water charges that are contained in water bills rendered on or
after that effective date. These fees shall be in addition to regular charges for water services, and the
minimum monthly charges relating thereto. These fees shall remain in effect for subsequent years
until amended or rescinded by subsequent ordinance. The Water Commission shall have the
authority to revise these fees in the same manner as rates and charges under Section 7 of this
ordinance, including the authority to adjust the fees based upon the Mixed Inflation Index Factor €er
in the Consumer- Prieo Index as provided under that Section.
Section 5. Effective Date. This Ordinance shall be read on two separate days and
will become effective upon summary publication pursuant to KRS Chapter 424.
ATTEST:
Tammara S. Brock, City Clerk
Introduced by the Board of Commissioners, June 8, 2010
Adopted by the Board of Commissioners, June 22, 2010
Recorded by Tammara S. Brock, City Clerk, June 22, 2010
Published by The Paducah Sun, June 28, 2010
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