ORDINANCE NO. 16-97 (Amended)

AN ORDINANCE TO SET WASTEWATER

TREATMENT UTILITY RATES

(Prepared by the City Attorney)

WHEREAS, the City of West Lafayette has previously constructed and has in operation wastewater collection and treatment works for the purpose of collecting and disposing in an environmentally sound manner, the wastewater of the City; and

WHEREAS, on July 8, 1996, the West Lafayette Common Council adopted wastewater treatment rates including an increase to become effective July 1, 1997.

WHEREAS, the West Lafayette Common Council has statutory authority to set rates for the wastewater treatment utility;

WHEREAS, Indiana Code section 36-9-23-7 provides that the West Lafayette Board of Works shall operate, manage and control the wastewater treatment utility; and

WHEREAS, the Board of Public Works has determined that in order to meet current and future environmental regulations and goals it is necessary to proceed with the replacement of the North River Road Lift Station and a portion of the North River Road Sewer Interceptor; and

WHEREAS, the Board of Public Works has contracted with Greeley and Hansen, engineers, to prepare an amendment to the Facility Plan to provide for such a project; and

WHEREAS, the wastewater treatment utility can qualify for 2.9 percent funding for a 20 year principal repayment period under the State Revolving Loan Fund (SRF) program, which would be the most advantageous method of funding the needed improvements set forth in the amendment to the Facility Plan; and

WHEREAS, the Board of Public Works plans to finance such project with a loan from the SRF at an advantageous interest rate which would save city rate payers over $3,000,000; and

WHEREAS, the project, as an amendment to the Facility Plan, has been approved by the West Lafayette Common Council on May 7, 1996; and

WHEREAS, the project would involve costs of $9,500,000, well in excess of the amount which could be financed from current rates and charges; and

WHEREAS, the Board of Public Works has retained a financial advisor, Umbaugh and Associates, to prepare a financial report for the wastewater treatment utility; and

WHEREAS, the financial advisor has determined that a 5 percent rate increase on July 1, 1998 and a similar increase on July 1, 1999 would be sufficient to meet the current and projected financial requirements of the utility, including debt service on the SRF program, until the year 2000 and not including any increase which will be required by the wet weather treatment of combined sewer overflows, which will be determined in 1998; and

WHEREAS, the West Lafayette Wastewater Treatment Utility cannot participate in the SRF program without a rate structure sufficient to meet those current and future needs, as determined by its financial advisor, until such time as certain wet weather treatment facilities are needed, the approximate cost of which is $3,500,000; and

NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF WEST LAFAYETTE that:

Section 1. West Lafayette City Code section 30.09.3.1 is amended to read as follows:

30.09.3.1. Rates - General. The water usage schedule on which the amount of rates and charges shall be determined is as follows:

Two dollars and forty-two cents per one thousand gallons ($2.42/1,000 gallons). This includes $1.26/1,000 gallons for operations, maintenance and replacement and $1.16/1,000 gallons for debt service. For service rendered after July 1, 1998, two dollars and sixty-nine fifty-four cents per one thousand gallons ($2.6954/1,000 gallons). This includes $1.4033/1,000 gallons for operations, maintenance and replacement and $1.2921/1,000 gallons for debt service. For service rendered after July 1, 1999, two dollars and sixty-seven cents per one thousand gallons ($2.67/1,000 gallons). This includes $1.40/1,000 gallons for operations, maintenance and replacement and $1.27/1,000 gallons for debt service.

The minimum charge for any service where the user is not a metered water consumer shall be based on the size of the service connection, but no such charge shall be less than the charge for the minimum gallonage for such meter size.

The water usage schedule on which the amount of rates and charges shall be determined for Purdue University as follows:

A billing charge of $1.89 per month plus a usage charge of two dollars and twenty-nine cents per one thousand gallons ($2.29/1,000 gallons). This includes $1.13/1,000 gallons for operations, maintenance and replacement and $1.16/1,000 gallons for debt service. For service rendered after July 1, 1998, a billing charge of $2.10 24 per month plus a usage charge of two dollars and fifty-five forty-one cents per one thousand gallons ($2.5541/1,000 gallons). This includes $1.2620/1,000 gallons for operations, maintenance and replacement and $1.2921/1,000 gallons for debt service. For service rendered after July 1, 1999, a billing charge of $2.35 per month plus a usage charge of two dollars and fifty-three cents per one thousand gallons ($2.53/1,000 gallons). This includes $1.26/1,000 gallons for operations, maintenance and replacement and $1.27/1,000 gallons for debt service.

On or before June 1, 1998, the Common Council will review the wastewater utility revenues, expenses and rates and take any necessary action to provide financing for the wet weather treatment for combined sewage overflow.

This ordinance shall be in full force and effect from and after its passage and signing by the Mayor.

Office of the Clerk-TreasurerJudy Rhodes