HomeMy WebLinkAbout2009-11-7630ORDINANCE NO. 2009-11-7630
AN ORDINANCE AMENDING ORDINANCE NO. 2003-3-6631.
WHEREAS, pursuant to Section 114.289 of the Paducah Code of Ordinances, the
Commissioners of Waterworks ("Water Commission") has full authority and control over the
operation of the Paducah Water Works ("PWW"), and the water treatment facility and
distribution system related thereto ("Facilities"), subject to the City Commission's right to
establish the rates, charges and fees for water services provided through the Facilities; and
WHEREAS, by reason such authority, the Water Commission is charged with the
responsibility of maintaining the Facilities in a sound and operable condition that is compliant
with all federal and state water quality laws, and with the responsibility of making any repairs,
replacements, or improvements that are necessary to preserve and protect the reliability and legal
compliance of those Facilities; and
WHEREAS, ancillary thereto, the Water Commission is also charged with the
responsibility of ensuring that the Facilities have the capacity to satisfy the water demands of its
customers, and with the responsibility of constructing additional facilities that are required to
comply with the water requirements of each customer; and
WHEREAS, to carry out these responsibilities, the Water Commission has
evaluated the physical condition and capability of the Water Facilities, and based on that
evaluation, has adopted a long range plan that envisions the construction of numerous
replacement and expansion projects over the next 25 years at an estimated total cost of fifty
seven million dollars ($57,000,000.00); and
WHEREAS, to initiate the implementation of this long range plan, the Water
Commission has adopted an initial capital improvement plan that calls for the construction of 32
projects over the next 10 years at an annual cost of approximately two million eight hundred and
ninety thousand dollars ($2,890,000.00); and
WHEREAS, to determine the funding requirements of this plan, the Water
Commission has conducted an analysis of its present and future resources, including an analysis
of its cash flow requirements based on the projected revenues and expenses of its future
operations, and from that analysis, has ascertained a funding deficit of approximately one million
six hundred ten thousand dollars ($1,610,000.00) per year•, and
WHEREAS, to cover this annual deficit, the Water Commission has
recommended that the City Commission approve and adopt a graduated "Capital Replacement
and Expansion Fee" to be charged to PWW customers that is based on a proportionate use
standard measured by meter size, the specifics of which are contained in the schedule that is
provided under this ordinance; and
WHEREAS, the City Commission acknowledges the necessity of constructing
the projects that are defined under the Water Commission's capital plan, and accepts .the Water
Commission's recommendation that the plan be funded through a graduated "Capital
Replacement and Expansion Fee".
NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF PADUCAH,
KENTUCKY, AS FOLLOWS:
SECTION 1. Approval of Capital Replacement and Expansion Fee. The
City Commission hereby approves the implementation and collection of a graduated "Capital
Replacement and Expansion Fee" to be charged to all PWW customers based upon meter size in
accordance with the parameters that have been recommended by the Water Commission.
SECTION 2. Amendment to Minimum Monthly Charges. Section 3,
Minimum Monthly Charges, shall be amended to include a new subsection which is 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 paygraduated 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 uaduated monthlv fees defined under this schedule shall become effective on the desienated
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 for increases in the
Consumer Price Index as provided under that Section.
SECTION 3. 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, November 10, 2009
Adopted by the Board of Commissioners, November 24, 2009
Recorded by Tammara S. Brock, City Clerk, November 24, 2009
Published by The Paducah Sun, November 30, 2009
ord\pww-Capital Replacement Expansion Fee 11-09
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