HomeMy WebLinkAbout1998-OR-62ORDINANCE NO. _~_~__~a~_
AN ORDINANCE CHANGING THE
METHOD OF RECOVERING THE COSTS
OF PROVIDING WATER FOR
PUBLIC FIRE PROTECTION
WHF~.EAS, Indiana-American Water Company, Inc. ("Indiana-American"), a public
utility regulated by the Indiana Utility Regulatory Commission (the "IURC') provides water utility
service to and within the City of Jeffersonville, Indiana (the "City); and
WHEREAS, Indiana-American provides water for public fire protection, the costs of
which are currently recovered by directly billing the City pursuant to rate schedules approved by
the IURC; and
WHEREAS, Ind. Code § 8-1-2-103(d) authorizes a change h~ the way such costs are to be
recovered upon passage of an ordinauce by the City; and
WHEREAS, it would be reasonable and equitable to recover such costs from all of the
customers of Indiana-American in the City instead of directly billing such costs to the City; and
WHEREAS, Ind. Code § 8-1-2-103(d) and (e) provide that such a change shall also be
reflected in the rates of certain customers located outside tlm mmficipal limits of the City and
within 1,000 feet of a fire hydrant; and
WHEREAS, the Common Council of the City elects to adopt thc procedures specified in
Ind. Code § 8-1-2-103(d);
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF
CITY OFJEFFERSONVILLE, THAT:
Pursuant to Ind. Code § 8-1-2-103(d) and (e), the costs for the production, storage,
transmission, sale, delivery, and thrnishing of water for public fire protection
("public fire costs") shall be included in the basic rates and charges of all customers
of Indiana-American in and adjacem to the City in the manner, to the extent
permitted by such statute.
Effective upon the date of this change, Indiana-American shall cease directly billing
the City for public fire costs (other than charges for the construction cost for new
hydrants installed on and after the date of the change).
Public fire costs shall also be reflected in the rates of customers located in areas
adjacent to the City and within 1,000 feet of a fire hydrant.
Notwithstanding this change in the recovery of public fire costs, the construction
cost of any fire hydrants installed at the request of the City' (or other governmental
unit) shall continue to be paid for by or on behalf of the City (or the requesting
governmental uni0.
The change in method of recovering public fire costs described in Ind. Code § 8-1-
2-103(d) and (e) shall be effective upon the first day of the first month following
approval by the IURC of a new schedule of rates implementing the change.
Indiana-American is requested to file such revised rate schedules with the IURC
within a reasonable time after being notified of the final passage of this ordinance.
The Clerk-Treasurer shall prod& a copy of this ordinance to Indiana-American
within 5 days after its approval by the Mayor.
This Ordinance shall be in full force and effect from and after its passage and approval.
Passed this -~'~J- day °f ~-~'3~-~-~---' 1~ ~ _-'~
Presiding Officer
ATTEST:
C. Richard Spencer, Jrff
Clerk and Treasurer
Presented by me. as Clerk and Treasurer to the Mayor of said City of Jeffersondlle tlfis
daY of_'~__~_~---~___~-_ , 1998.
C. Richard Spe ce , J . ~ (_.,,/ '
Clerk and Treasurer ~
This Ordinance approved and signed by me this 2-[ day o~~_, 1998.
Thomas R. Galligar~, ~viayor (///
In4~ana Communities Using a Fire Protection Surcharge
Culver
Elizabeth
Ellettsville
Indianapolis
· Mishawaka
+ Mooresville
Noblesville
* Peru
· Princes Lakes
· Richmond
· Rising Sun
· P, ockport
· Tipton
· Valparaiso
· Wabash
· Warsaw
D,~es not exclude water customers located outside City limits and > 1,000 ft. from a hydrant
Hydrants and Customer Count as of 6/30/98
Indiana-American Water Company, Inc. 13-Aug-98
Fire Protection Analysis 07:09 AM
Jeffersonville
Meter Annualized Equivalent Meter
Size Count Count Ratio Equivalents
5/8" 14,619 175,428 1.0 175,428
3~4" 0 0 1.5 0
1" 543 6,516 2.5 16,290
1 1/2" 1 12 5.0 60
2" 199 2,388 8.0 19,104
3" 15 180 15.0 2,700
4" 12 144 25.0 3,600
6" 6 72 50.0 3,600
8" 0 80.0 0
10" 0 130.0 0
12" 0 215.0 0
Total 15,395 184,740 220,782
Public Hydrant Rental
Public Fire Customers
Current Current
Count Rate Revenues
'~/~ ~/1~,~ 1,114 357.84 398,634
12 22.44 269
Total Public Fire Revenues
Monthly Public Fire Charge per Equivalent Meter
398,903
1.806773197
Individual Division
Meter
Size Total
Current Current
Rate Revenues
5/8" 175,428 1.81 317,525
3/4" 0 2.71 0
1" 6,516 4.52 29,452
1 1/2" 12 9.03 108
2" 2,388 14.45 34,507
3" 180 27.10 4,878
4" 1 44 45.17 6,504
6" 72 90.34 6,504
8" 0 144.54 0
10" 0 234.88 0
12" 0 388.46 0
Total 399,47--8
Excess/Deficit 575
Indiana-American Water Company, Inc.
1001 Penn Street · Jeffersonville, Indiana 47130-3847 · (812) 282-8203 · (812) 284-3541 FAX
August 13, 1998
Subject: Hydrant Surcharge Information
In our service territory, the cities of Richmond, Noblesville and Wabash have made this change.
The cities and towns of Indianapolis, Mooresville, Warsaw, Tipton, Culver, Ellettsville, Rising
Sun, Rockport, Peru, Mishawaka, Valparaiso, Elizabeth and Prince's Lakes, among others, utilize
this approach. ,
The argument is that it allows all who benefit from Public Fire Protection to bear its cost, not just
the property tax payers. Our practice has been to file a 30-day notice to the Indiana Utility
Regulatory Commission upon receipt of an enacted ordinance directing the change. Because
there is no change in total revenues to the Company, it is typically approved immediately.
INDIANA-AMERiCAN WATER COMPANY, INC.
Mike Stewart
Manager, Southern Operations