(A) Minimum bills for gas service. The customer charge shown below will be charged to each property owner or tenant who has a gas meter located on the property. This minimum charge will be assessed on each account even if no gas was used during the billing period. There are costs associated with having gas available for use, such as meter reading, salaries, debt, maintenance of lines, depreciation, materials and supplies and insurance that the city must recover.
(B) Calculation of rates.
(1) The monthly rates are determined based on two separate components, the cost of purchased gas and the operation and maintenance expenses. The price of purchased gas changes each month and the city must be able to pass the gas costs on to its customers in a timely manner. Therefore, each time the cost of gas is increased or decreased to the city from its supplier, the schedule of gas rates as heretofore set out shall be adjusted by the Utility Department. The city will not adopt a new ordinance at the time of said adjustment.
(2) The operation and maintenance portion of the rates are only changed after a review of all expenses, less purchased gas, and approved by city ordinance. Based on the latest rate analysis (August 2015), the operation and maintenance portion of the rate is:
Inside City
| |
Customer charge | $10.05 |
All usage* | $4.75 per 1,000 cubic feet |
*In addition to the above rates, a charge per 1,000 cubic feet will be assessed based on the current cost of gas in order for the city to pay its supplier. | |
Outside City | |
Customer charge | $13.05 |
All usage* | $4.75 per 1,000 cubic feet |
The customer charge is charged to all customers and does not include any usage allowance. | |
*In addition to the above rates, a charge per 1,000 cubic feet will be assessed based on the current cost of gas in order for the city to pay its supplier. | |
(C) Deposits for gas service.
(1) Every person or business applying for utility service from the City of Olive Hill shall place with the Utility Clerk a customer deposit to secure the payment of his or her utility bill. Utility deposits may not be transferred from one location to another and utility service will not be connected until deposits are paid.
(2) Deposit rates:
Residential Deposits | |
Landowner | $175 |
Renter/Tenant | $200 |
Small Commercial Deposits | |
Deposit | $300 |
Large Commercial/Industrial Deposits | |
Deposit | $1,000 |
(3) A customer deposit refund will be made when the customer requests a discontinuation of the service and all claims due to the city have been paid. Any residential customer who owns and resides in the residence may request a refund of their customer deposit following two years of continuous residency and that possess a good payment record with the city. Any customer who owns real estate and has been a resident for two years with a good payment record with the city will not be required to make customer deposits on additional residences in their name. All businesses must place deposits with the city regardless of prior deposits made. Customer deposits held for businesses and non-property owners will not be refunded until all claims due to the city are paid in full.
(4) Customer deposits shall be refunded plus the amount of interest accrued, less 1% administrative costs.
(D) Tap fees and connections to gas system. Only property owners can apply for and obtain a gas tap.
Inside City | |
Residential tap fee | $300 |
Commercial - small or large | $400 |
Industrial | $500 |
Outside City | |
Residential tap fee | $400 |
Commercial - small or large | $500 |
Industrial | $600 |
(E) Disconnection of services.
(1) If the bill for service is not paid in full on dates due, (fifteenth of each month) a 10% penalty will be added after 10:00 a.m. the following work day and the account or accounts deemed delinquent. A cutoff list will be provided for the meter readers or other city workers for disconnection of utility service and delinquent utility accounts shall be disconnected beginning the twenty-sixth day of the month during which they become delinquent.
(2) If all past utilities and reconnects are not paid in full by the month following disconnection, the account will be deemed final and all deposits held on the account will be applied. In order to initiate new services the occupant will be required to apply new deposits with the city utilities and pay all back bills that the previous deposits did not cover.
(F) Reconnection fees. There will be a $25 reconnect fee per utility if disconnection of services occurs.
(G) Meter testing. In the event of a customer complaint that metering equipment is not valid the customer shall place with the city a $50 deposit and the City of Olive Hill Utilities will have meter tested at the expense of the city. If said meter is found to be functioning properly, there will be no refund of the deposit and all amounts and penalties will be due by the due dates. If said meter is found to be incorrect in reading, the city shall replace said meter and refund the customers deposit of $50. The customer is responsible for the payment of current bill during the time of testing and all penalties will occur on scheduled dates.
(H) Returned checks and fees. Returned checks will be assessed a $25 returned check fee. After receiving two returned checks the customer will be notified either in writing or per phone that the utility company will not accept their personal check as payment for utility payments for a period of one year. Returned checks that are not paid for in full within two weeks of the date of issue will be disconnected for nonpayment of services.
(I) Theft of services. Any person or persons found attempting to bypass or tamper with any utility recording instrument will be prosecuted to the fullest extent of the law and shall have all services disconnected until Utility Clerk approves reinstatement.
(J) Additional services.
(1) The city will commence at a point on an existing gas main, make a tap, furnish and install gas line to the property boundary or 100 feet, whichever is less. If it is necessary to cross roads or go through rock, the extra expense will be borne by the customer. The customer is responsible for the gas line from the gas meter to the building. The city will furnish the gas meter and regulator.
(2) All utilities must be installed in accordance with previously adopted codes and state regulations and will be subject to inspection at any time.
(3) Under no circumstances shall the City Council, City Clerk or Office of the Mayor interfere in the payment of these bills when due. Also, there shall be no guarantee of payment from Council Members, City Clerk or Mayor unless full payment is made at the time by check, cash or money order to the Utility Office. The Utility Department Office shall enforce the section and shall not deviate from this section under any circumstances.
(Ord. 2000-5, passed 4-25-2000; Ord. 2015-05, passed 9-23-2015)