(A) There are hereby established for the use of and the service rendered by the Frankfort Water Works the following contract rate which shall be available to customers that have entered into a 20-year agreement for the provision of water service and guarantee revenue of at least $700,000 per year commencing in 2010:
(1) Metered rates per month (2009 and 2010).
Fee Type | 2009 Rate | 2010 Rate |
Metered rate per hundred cubic feet (CCF) | $1.12 | $1.23 |
(2) Rate for water supply from 2011 through 2019. For usage in each calendar year from 2010 through 2019, the metered rate per hundred cubic feet (CCF) shall increase annually at a rate equal to the aggregate consumer price index (CPI) calculated by the U.S. Department of Labor Bureau Statistics or successor agency as applied to the city's variable costs. Variable costs shall be those costs treated as variable in the cost of service study conducted to support the rates and charges placed into effect on June 9, 2008, provided that variable costs shall not include debt service. The city will adopt ordinances prior to the commencement of the change in rates for calendar years 2011 through 2019 identifying the rates resulting from this calculation.
(3) Minimum revenue requirement after 2010. Customer's rates and charges ("rates") for services shall generate a minimum of $700,000 per year for the city after the city issues bonds to construct a new water treatment plant. To determine whether the customer has satisfied the minimum revenue requirement, the city will calculate the total amount of rates generated ("total rates") and the total usage from the customer for the prior year. Such calculation shall be completed on or before January 31 of each calendar year and a copy of the calculation shall be provided to the customer on or before February 15. Based on this calculation, customer will be responsible for any shortfall as a result of its failure to meet the minimum revenue (i.e. $700,000 per year) requirements. The city may demand payment for the shortfall by sending notice to the customer (with the city's calculation of the shortfall) on or before February 15 of the given year. Within 45 calendar days of receiving the notice, the customer shall pay the shortfall absent a good faith dispute over the city's calculation of the same.
(B) Excluded accounts. Customers with separate meters are assigned separate account numbers for each meter. The terms of any agreement executed pursuant to this contract rate may exclude certain account numbers from the metered rates. Such excluded accounts shall be billed under the city's general rate schedule.
(Ord. 09-04, passed 3-23-09)