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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