Rate Ordinance

March 2, 2017

Whereas, the Regional Water Resource Agency (RWRA) published, pusuant to Chapters 76 and 424 of the Kentucky Revised Statutes, the Schedule of Wastewater Rates, Rentals, Charges and Policies set out below; and

Whereas, the Schedule was open for inspection at the Administrative Offices of the Regional Water Resource Agency, 1722 Pleasant Valley Road, Owensboro, Kentucky, for thirty (30) days; and

Whereas, on the 20th day of February, 2017, by Resolution of it Board, the Regional Water Resource Agency gave final approval for the Schedule of Wastewater Rates, Rentals, Charges and Policies for its services set forth herein, to be recommended and forwarded to the Owensboro-Daviess County Rate Review Board for approval; and

Whereas, on the 2nd day of March, 2017, the Owensboro-Daviess County Rate Review Board adopted the Schedule of Wastewater Rates, Rentals, Charges and Policies set forth herein,

Whereas, the Board of RWRA has examined and heard all complaints, and has established this final Schedule of Wastewater Rates, Rentals, Charges and Policies,

Now, therefore, be it resolved by the Board of Regional Water Resource Agency:

That RWRA submits approval or disapproval to the Owensboro-Daviess Rate Review Board the Schedule of Wastewater Rates, Rentals, Charges and Policies set forth below for bills issued on or after the dates identified below:

Customer Service Charge

The current monthly Customer Service Charge of $12.95, providing zero (0) gallons of wastewater treatment service, shall be revised to be dependent on the size of the meter providing service, with the 1″ meter being considered as the base effective July 1, 2017. The monthly rate shall be based on the comparison of the square of the meter size to a typical 1″ meter as follows:

The base Customer Service Charge for a 1″ meter shall increase by $1.10 annually effective July 1, 2017 through July 1, 2021. Refer to the attached Schedule of Values titled Exhibit 1.

Wastewater Usage

The current monthly Wastewater User Charge of $4.39 per 1,000 gallons of usage shall remain constant beginning July 1, 2017 through June 30, 2022. Refer to the attached Schedule of Values titled Exhibit 1.

Environmental Improvement Fee

The current monthly Environmental Improvement Fee of $3.95 shall increase by $1.20 annually effective July 1, 2017 through July 1, 2021. Refer to the attached Schedule of Values titled Exhibit 1.

For non-residential customers whose monthly billable volume exceeds 15,000 gallons, the current monthly volume charge of $0.28 per 1,000 gallons of usage (for every gallon of usage above 15,000 gallons) shall increase by $0.07 annually effective July 1, 2017 through July 1, 2021. Refer to the attached Schedule of Values titled Exhibit 1.

Quality Surcharge

The current high-strength waste quality surcharge of $0.220 for Biochemical Oxygen Demand (B.O.D.) and $0.212 for Total Suspended Solids (T.S.S.) for customers exceeding 265 mg/l on either of these parameters shall remain unchanged. The current quality surcharge for customers exceeding 100 mg/l of Fats, Oils and Grease (F.O.G.) shall remain unchanged at $0.221 per pound.

Capacity Fee

Capacity Fees shall be revised to be charged to every customer of RWRA that is connected to the system. The Capacity Fee shall be dependent on the size of the meter providing service, with the 1″ meter being considered as the base effective July 1, 2017. The monthly rate shall be based on the comparison of the square of the meter size to a typical 1″ meter as follows:

The base Capacity Fee for a 1″ meter shall remain constant beginning July 1, 2017 through June 30, 2022. Refer to the attached Schedule of Values titled Exhibit 1.

The Capacity Fee for all permits, other than single family residential permits, issued during the transition to the revised charge above should include the following schedule:

System Development Fee

The current System Development (SD) Fee of $2,178.00 per ERU shall remain constant beginning July 1, 2017 through June 30, 2022. Refer to the attached Schedule of Values titled Exhibit 1. Qualified existing users are allowed to finance the System Development Fee at 4.5% over twenty (20) years. All customers requiring a permit for new construction shall pay the System Development Fee as a part of the permit application process with the exception of the financing option set out below.

Nonresidential System Development Fee

New or expanding nonresidential customers with calculated flow of more than 100,000 gallons per day have the option to pay a Nonresidential System Development Fee as follows:

1. Calculate the System Development Fee that would be applicable.
2. 
   Option a:

   Establish a cost estimate for the provision of sewer service to the proposed site, adequate to provide required service as determined be RWRA. This estimate is based on the assumption that the System Development lines, lift station(s), etc., do not exist, and the service would have had to be extended to the RWRA system, at a location (in RWRA’s system) that existed prior to July 1, 1997, that is adequate to accept the proposed flow.

   OR

   Option b:

   Establish a cost estimate for the provision of service to the proposed site, based on a percentage of the costs of the system development project, or portion thereof, that provides service to the site or is used to transport the flow. This estimate could be based on percentage of line or lift station used, projected flow during peak and off-peak hours, or any other reasonable engineering estimate for the projected use of RWRA facilities.

3. Compare the calculated System Development Fee in Step 1 to the applicable cost established in Step 2(a) or (b), and charge the lower of the two fees to the potential customer.

New Construction System Development Fee Financing

Customers that have daily flow of 100,000 gallons or less are required to pay the established System Development Fee outline herein, at the time of permit issuance by RWRA.

Customers that have a daily flow above 100,000 gallons have the option to finance System Development fees on their monthly billing at an interest rate of 4.5% over twenty (20) years.

Assessment Fee

The costs associated with the capital construction (i.e., construction, engineering, easement acquisition, etc.) shall remain pro-rata to all properties within a defined assessment zone when RWRA constructs necessary wastewater facilities in unsewered areas. Property owners may elect to pay the related costs in a lump sum or allowed to finance the Assessment Fee at a rate of 6.00% (set by KRS 76.172) over twenty years. Owners choosing to finance their assessment shall have an apportionment warrant (lien) filed on the benefited property.

Miscellaneous Rates, Rentals, and Charges

RWRA establishes, administers and enforces Wastewater System User Regulations, as required by the Kentucky Division of Water, the Environmental Protection Agency, and the Clean Water Act. Enforcement of these regulations can result in charges including, but not limited to, fines, penalties, cleanup costs, repair reimbursements, and termination of service charges. RWRA may establish fees for these and other services and adjust such fees without approval of the Owensboro-Daviess County Rate Review Board. The Customer Service Charge, Wastewater User Charge, Environmental Improvement Fee, Quality Surcharges, Capacity Fee, System Development Fee, and Assessment Fee format require approval of the Owensboro-Daviess County Rate Review Board.