(A) That for the purpose of stimulating the creation of new jobs and commercial development within the community, the City of Lawrenceburg is authorized to establish an Economic Development Rate (EDR) which may be granted to qualifying new and existing customers of the City owned and operated water system, pursuant to the criteria and conditions set forth in this section.
(B) That the Mayor of the City of Lawrenceburg, and any designee of the Mayor, is authorized to negotiate the terms of any proposed agreement establishing an EDR with any new or existing customer of the City owned water system pursuant to the criteria and conditions set forth in this section.
(C) All proposed agreements negotiated pursuant to division (B) of this section shall be reviewed and ratified by action of the Board of Council for the City of Lawrenceburg and shall not be binding on the City until such ratification has occurred.
(D) The general criteria for the establishment of an EDR agreement, is as follows:
(1) The city water system shall demonstrate that is has adequate capacity to meet the anticipated usage growth for each year in which an EDR agreement is in effect.
(2) The city shall demonstrate that all variable costs associated with the transaction during each year of the agreement will be recovered and that the transaction will make some contribution to fixed costs. Customer-specific fixed costs associated with adding the EDR customer shall be recovered either "up front" or as a part of the minimum bill paid by the EDR customer over the life of the agreement.
(3) Prior to the granting of an EDR each potential EDR customer shall file an initial report with the City Council detailing anticipated increased employment upon the establishment of the EDR and if the EDR is established, such customer shall thereafter annually document and report to the city, any and all increase or decrease in employment and any capital investment during the period of the EDR agreement, which occurs within the city water system service areas.
(4) Any EDR agreement negotiated or entered into by the city, shall contain the following:
(a) The specified amount of a minimum bill;
(b) The estimated customer usage during the period of the agreement; and
(c) The length of the agreement which may not exceed an initial period of five (5) years, and which may have no more than one (1) extension of not more than five (5) years. Such extension may only be granted upon review of the agreement by the city and the Council and upon a showing that the criteria which supported the initial agreement remain in effect.
(5) Any EDR agreement negotiated or entered into by the city, shall contain language which allows the city to unilaterally rescind the EDR agreement at such time as the city water system does not have adequate reserve capacity to meet anticipated growth.
(6) The city shall demonstrate that rate classes which are not a party to the EDR agreement will be no worse off than if the transaction had not occurred.
(Ord. 2012-12, passed 12-28-12)