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HomeMy WebLinkAbout2001-10-6420148 ORDINANCE NO. 2001-10-6420 AN ORDINANCE ESTABLISHING NEW WATER RATES AND CHARGES FOR WATER PROVIDED BY THE PADUCAH WATER WORKS TO ITS CUSTOMERS WHEREAS, the Paducah Water Works has engaged Black and Veatch Corporation, a professional consulting firm, for the purpose of evaluating the financial planning and rate development for the Paducah Water Works taking into consideration the specific goals of Paducah Water Works, and thereafter, to make a recommendation as to a fair and equitable schedule of rates for its customers for a five_(5) year period; and WHEREAS, one stated goal of the Paducah Water Works is to develop a sound financial plan for the next five-year period which accommodates the costs of future operations and planned capital improvements; and WHEREAS, a second stated goal of the Paducah Water Works is to promote the recommendation of the City and County to establish uniform rates for City and County residents; and WHEREAS, in performing its evaluation, Black and Veatch has concluded that to accomplish these stated goals, it is necessary for Paducah Water Works to effectuate rate adjustments for the purpose of increasing revenues to offset perceived increase of costs and expenses of operations; and WHEREAS, Black and Veatch has made a recommendation as to the structure of rates which accommodates the necessary rate adjustments; and WHEREAS, Paducah Water Works has reviewed the valuation conducted by Black and Veatch and the recommendation of proposed rate structure, and has concluded from its review that the proposed rate structure is necessary and fair and equitable to its customers; and WHEREAS, the Paducah Water Works has now requested that the City implement the proposed rate structure by ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: Section 1. Acceptance of Rate Structure for Five (5) Year Period. The City accepts the recommendation of the Commissioners of Waterworks for the proposed rate structure. This rate structure shall be in effect for a period of five (5) years, unless otherwise modified by the City Commission. 149 Section 2. Water Rates. Subject to the minimum monthly rates as set forth in Section 3, the monthly rates for water service for residential and commercial customers of the Paducah Water Works shall be as follows: a. City residential and commercial customers: Consumption by Rate Per 1,000 Gallons Gallons Minimum Minimum to 10,000 10,001 to 100,000 100,101 to 500,000 500,001 to 1,000,000 Over 1,000,000 Sprinklers 2001 2002 2003 2004 2005 2.83 2.93 3.00 3.07 3.13 2.34 2.48 2.52 2.56 2.59 1.95 2.06 2.09 2.12 2.14 1.40 1.47 1.49 1.52 1.54 1.25 1.25 1.27 1.29 1.31 0.92 0.92 0.96 1.00 1.03 1.95 2.00 2.05 2.10 2.15 b. County residential and commercial customers, excepting Reidland customers Consumption by Rate Per 1,000 Gallons Gallons Minimum Minimum to 10,000 10,0001 to 100,000 100,101 to 500,000 500,001 to 1,000,000 Over 1,000,000 Sprinklers 2001 2002 2003 2004 2005 3.23 3.47 3.35 3.24 3.13 2.64 2.62 2.61 2.60 2.59 2.20 2.18 2.17 2.15 2.14 1.58 1.57 1.56 1.55 1.54 1.35 1.34 1.33 1.32 1.31 1.10 1.05 1.04 1.04 1.03 1.95 2.00 2.05 2.10 2.15 C. Reidland residential and commercial customers Consumption by Rate Per 1,000 Gallons Gallons 2001 2002 2003 2004 2005 First 3,000 2.08 2.15 2.15 2.15 2.15 3,001 to 10,000 1.88 1.94 1.94 1.94 1.94 10,001 to 20,000 1.43 1.47 1.47 1.47 1.47 20,001 t0 70,000 1.30 1.34 1.34 1.34 1.34 Over 70,000 1.08 1.11 1.11 1.11 1.11 Sprinklers 2.00 2.00 2.00 2.00 Section 3. Minimum Monthly Charges. The minimum monthly rates for water service for residential and commercial customers of the Paducah Water Works shall be as follows: 150 a. City residential and commercial customers: Min. Meter Size Consump. 2001 2002 2003 2004 2005 Gallons 5/8" 1,500 4.25 4.40 4.50 4.61 4.70 3/4" 1,500 4.25 4.40 4.50 4.61 4.70 1" 7,500 18.29 19.28 19.62 19.97 20.24 1 %2" 20,000 43.64 46.08 46.82 47.57 48.11 2" 40,000 82.64 87.28 88.62 89.97 90.91 3" 80,000 160.64 169.68 172.22 174.77 176.51 4" 150,000 269.64 284.38 288.52 293.17 296.31 6" 300,000 479.64 504.88 512.02 521.17 527.31 b. County residential and commercial customers, excepting Reidland Customers Min. Meter Size Consump. 2001 2002 2003 2004 2005 Gallons 5/8" 1,500 4.85 5.21 5.03 4.86 4.70 3/4" 1,500 4.85 5.20 5.03 4.86 4.70 1" 7,500 20.69 20.93 20.69 20.46 20.24 1 %2" 20,000 49.29 49.28 48.91 48.56 48.11 2" 40,000 93.29 92.88 92.31 91.76 90.91 3" 80,000 181.29 180.08 179.11 178.16 176.51 4" 150,000 304.29 302.18 300.51 297.96 296.31 6" 300,000 541.29 537.68 534.51 530.46 527.31 c. Reidland residential and commercial customers Section 4. Water Rate for Hendron Water District. The wholesale charge to the Hendron Water District for each month of service shall be determined by the following rates: Rate Per 1,000 Gallons 2001 2002 2003 2004 2005 1.24 1.24 1.30 1.34 1.39 These rates are established in conformance with Paducah Water Works' written agreement with Hendron Water District dated the 27th day of January, 1964. Min. Meter Size Consump. 2001 2002 2003 2004 2005 Gallons 5/8" 3,000 6.25 6.44 6.44 6.44 6.44 3/4" 3,000 6.25 6.44 6.44 6.44 6.44 1" 3,000 6.25 6.44 6.44 6.44 6.44 1 V2" 3,000 6.25 6.44 6.44 6.44 6.44 2" 3,000 6.25 6.44 6.44 6.44 6.44 3" 3,000 6.25 6.44 6.44 6.44 6.44 4" 3,000 6.25 6.44 6.44 6.44 6.44 6" 3,000 6.25 6.44 6.44 6.44 6.44 Section 4. Water Rate for Hendron Water District. The wholesale charge to the Hendron Water District for each month of service shall be determined by the following rates: Rate Per 1,000 Gallons 2001 2002 2003 2004 2005 1.24 1.24 1.30 1.34 1.39 These rates are established in conformance with Paducah Water Works' written agreement with Hendron Water District dated the 27th day of January, 1964. 151 Section 5. Water Rate for West McCracken Water District. The wholesale charge to the West McCracken Water District for each month of service shall be determined by the following rates: Rate Per 1,000 Gallons 2001 2002 2003 2004 2005 1.24 1.24 1.30 1.34 1.39 ` These rates are established in conformance with Paducah Water Works' written agreement with West McCracken County Water District dated the 7th day of February, 1967. Section 6. Fire Protection Fees. The fire protection fees for residential and commercial customers of the Paducah Water Works shall be as follows: a. City residential and commercial customers: Unmetered Fire Connections Line Size 2001 2002 2003 2004 2005 2" 14.60 15.30 15.40 15.50 15.70 4" 19.50 20.40 20.60 20.70 20.90 6" 24.40 25.60 25.70 25.80 26.10 8" 36.50 38.30 38.60 38.70 39.20 10" 73.10 76.70 77.20 77.50 78.40 12" 97.40 102.20 102.90 103.30 104.50 b. County and Reidland residential and commercial customers: Unmetered Connections Line Size 2001 2002 2003 2004 2005 2" 14.60 15.30 15.40 15.50 15.70 4" 19.50 20.40 20.60 20.70 20.90 6" 24.40 25.60 25.70 25.80 26.10 8" 36.50 38.30 38.60 38.70 39.20 10" 73.10 76.70 77.20 77.50 78.40 12" 97.40 102.20 102.90 103.30 104.50 Section 7. Revision of Rates and Charges. The schedule of rates and charges prescribed in this Ordinance shall be revised from time to time, and whenever required shall be increased, so as to produce income and revenues from said Water Works adequate to comply with such covenants and agreements as may be made by the City in connection with any Revenue Bonds issued by the City. Section 8. Implementation of Rates and Charges. The foregoing water rates and charges shall be effective with bills rendered on or after November 1, 2001, excepting those rates as prescribed in Sections 4 and 5, which rates shall be effective for the regular billing cycle following the approval of such rates by the Public Service Commission of Kentucky. As to the rates and charges for the subsequent years in the 152 five-year period, the applicable rates and charges for each year shall be implemented with bills rendered on or after July 1 of each year. Section 9. Sales Tax. The foregoing rates and charges do not include any applicable sales tax. Any applicable sales tax shall be added to each bill as a separate charge. Section 10. Connection Charges. As to new customers of the Paducah Water Works within the City and County, including Reidland, the connection charges for each customer shall be based on a fee schedule to be determined by the Commissioners of Waterworks. Connection charges shall be uniformly applicable to all customers. The fee schedule to be determined by the Commissioners of Waterworks shall approximate the actual costs incurred by the Paducah Water Works regarding connections. The management of the Paducah Water Works shall have the authority to reasonably adjust the fee schedule from time to time to insure that such costs are paid. Section 11. Customer Pays Cost of Running Lines on His Premises. Each customer is responsible for constructing and bearing the cost of running his water line from the building located on his premises to the point in his property line or easement where such water service has been brought or to such other point to which such water line has been brought by the City to serve his premises. The construction of said private lines shall be in accordance with the Paducah Water Works regulation for materials and construction. Section 12. Indemnification and Supervision. Each property owner shall indemnify the City of Paducah and Paducah Water Works from any loss or damage that may directly or indirectly be occasioned by the construction of a water line from the respective premises to the point where the Paducah Water Works has brought such line or lines, and all water connections shall be made under the supervision of the Paducah Water Works. Section 13. All Customers Metered: No Free Service. It shall be mandatory for all customers of the Paducah Water Works to be metered. No one shall receive or be entitled to free water service without paying the full rates herein specified. If any person is discovered using water from fire connections for any purpose other than fire purposes, such person shall be charged for such water at the applicable rates prescribed in Section (2) above, and shall further be required, at his own expense, to install a meter on such connection. Section 14. Records and Audits. That the rates and charges for use of and services rendered by the Paducah Water Works shall be billed and collected by the Utility, and the full amount of the proceeds for such service shall be deposited as received 153 and set aside into the water revenue fund designated, in such manner as the Water Works may require, but subject to any different designation which may be in any ordinance relating to the issuance of Revenue Bonds. The records of the Paducah Water Works with respect to charging, billing, collecting and accounting for water service shall be audited at least once each twelve months by an independent Certified Public Accountant, and a report thereof shall be filed with the city clerk, or such report shall be filed in such manner and at such other time or times as may be provided in any ordinance relating to the issuance of Revenue Bonds. The cost of such audit shall be classified and paid as an expense of operation and maintenance of the Water Works. Section 15. Severability. If any clause, provision, paragraph or section of this Ordinance shall be ruled void or unenforceable by any court of competent jurisdiction, the remainder hereof is intended to be enacted and shall be in full force and effect notwithstanding. Section 16. Conflicting Ordinances. All ordinances and parts of ordinances in conflict herewith are to the extent of such conflict, hereby repealed. Specifically, Ordinances 92-7-4808, 92-7-4809, and 92-7-4810 are hereby expressly repealed. Section 17. This Ordinance shall be read on two separate days and will become effective upon publication in full pursuant to KRS Chapter 424. ATTEST: Aenitamith, City Clerk Introduced by the Board of Commissioners September 25, 2001 Adopted by the Board of Commissioners, October 9, 2001 Recorded by Lenita Smith, City Clerk, October 9, 2001 Published by The Paducah Sun, October 17, 2001 23687