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HomeMy WebLinkAbout2019-12-16-J03 Gas Rates, Debt Service Charge_INTRO, 1ST-3RD READAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: December 16, 2019 AGENDA ITEM:Consideration of approval of an ordinance to amend Chapter 200, Waukee Municipal Code, Section 202.1, by repealing and replacing subsections A, B and C, Rate Schedules, to amend terminology related to Debt Service Charges per cubic foot [introduction; first, second, third (final) readings] FORMAT:Ordinance SYNOPSIS INCLUDING PRO & CON: This Ordinance amendment is to add language to the current ordinance that will allow for capital projects to be an eligible use of the current debt service charge being collected from all gas utility customers. As debt payments expire, this capital/debt service charge will continue to be collected, allowing for capital projects to be constructed and financed without bond sales and additional debt financing. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: RECOMMENDATION: Introduce the ordinance, approve the first reading in title only, waive the second and third readings and place the ordinance on final passage. ATTACHMENTS: I. Proposed Ordinance PREPARED BY: Beth Richardson REVIEWED BY: Rudy Koester PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: DATE OF PUBLICATION: J3 ORDINANCE NO. AN ORDINANCE TO AMEND CHAPTER 200, WAUKEE MUNICIPAL CODE, SECTION 202.1, BY REPEALING AND REPLACING SUBSECTIONS A, B AND C, RATE SCHEDULES, TO AMEND TERMINOLOGY RELATED TO DEBT SERVICE CHARGES PER CUBIC FOOT BE IT ORDAINED BY THE COUNCIL OF THE CITY OF WAUKEE AS FOLLOWS: Section 1. Chapter §202.1 Waukee Municipal Code, is hereby repealed and replaced so that §202.1 reads as follows: A. Rate Schedule No. 1 - Small Volume (Firm). This rate is applicable to all firm natural gas service normally supplied through one meter as a single point of delivery for all residential, commercial and industrial customers that consume 1000 ccf (100 cubic feet) or less per month: Service Charge per Meter $9.50 Non-gas Commodity Charge per ccf $0.19 Capital/Debt Service Charge per ccf $0.15 Purchased Gas Calculation (PGC) - shall be calculated each month by dividing the total quantity of ccf (100 cubic feet) delivered to the city into the total dollars spent for to have natural gas delivered to the City Town Border Stations (TBS) The above rate and debt service charge shall be subject to the monthly Sales Volume Adjustment (SVA). Minimum fees for installation of gas meters on new construction shall be set by resolution of the council. B.Rate Schedule No.2 – Large Volume (Firm). This rate is applicable to all firm natural gas service normally supplied through one meter as a single point of delivery for all residential, commercial and industrial customers that consume 1000 ccf (100 cubic feet) or more per month: Service Charge per Meter $19.00 Non-gas Commodity Charge per ccf $0.145 Capital/Debt Service Charger per ccf $0.15 Purchased Gas Calculation (PGC) – shall be calculated each month by dividing the total quantity of ccf (100 cubic feet) delivered to the City into the total dollars spent to have natural gas delivered to the City Town Border Stations (TBS). The above rate and debt service charge shall be subject to the monthly Sales Volume Adjustment (SVA). Minimum fees for the installation of meters on new construction shall be the cost of materials plus 15% and labor cost. C.Rate Schedule No. 3 – Interruptible Commercial and Industrial. This rate is applicable to any customer for non- domestic purposes where all service is taken through a single meter at one location, and where the average daily consumption is equal to or greater than 1000 ccf (100 cubic feet) per day. The customer must have the ability to curtail the use of natural gas within 4 hours of notification. Service Charge per Meter $50.00 Non-gas Commodity Charge per ccf $0.075 Capital/Debt Service Charge per ccf $0.015 Failure to Curtail Penalty - The City shall assess the following penalty charges, in addition to the priced, for failure to curtail natural gas consumption within 4 hours of notifications: Non-Critical Day* - $2.20 per ccf (100 cubic feet) consumed after the notification period. Critical Day* - $11.30 per ccf (100 cubic feet) consumed after the notification period. *As called by Northern Natural Gas. Late Payment Charge - A late payment charge of 1.5% shall be added to the past due amount if the bill is not paid by the due date. Minimum Charge - The minimum charge is the service charge plus the commodity charge for all the ccf (100 cubic feet) used. Minimum fees for the installation of meters on new construction shall be the cost of materials plus 15% and labor cost. Section 2. Repealer. All ordinances or parts of ordinances in conflict with the provisions of this ordinance are hereby repealed. Section 3. Severability Clause. If any section, provision or part of this ordinance shall be adjudged invalid or unconstitutional, such adjudication shall not affect the validity of the ordinance as a whole or any section, provision, or part thereof not adjudged invalid or unconstitutional. Section 4. Effective Date. This ordinance shall be in effect upon its final passage, approval and publication as provided by law. Passed by the Council this ___ day of _________, 2019, and approved this ___ day of _________, 2019. _________________________ William F. Peard, Mayor Attest: __________________________________ Rebecca D. Schuett, City Clerk