Board of Commissioners Meetings

City of Henderson, Kentucky NOTICE OF SPECIAL CALLED MEETING FOR TUESDAY, MAY 8, 2018 May 7, 2018 Commissioner Patti Bugg Commissioner Robert N. Pruitt Sr. Commissioner Bradley S. Staton Commissioner Austin P. Vowels Dear Board Members: Please take notice that as Mayor of the City of Henderson, Kentucky, I hereby call a special called meeting of the Board of Commissioners to be held on Tuesday, May 8, 2018, at 3:00 p.m., in the third floor assembly room, 222 First Street, Henderson, Kentucky. The purpose of this called meeting is for the following: 1. Roll Call 2. Proclamation "World Neurofibromatosis Awareness Day" 3. Ordinances Ordinance Accepting Public Improvements - Canoe Creek 2nd Readings: II Subdivision, Arrow Way Extension Ordinance Adopting Charges for Water, Wastewater, and Stormwater Services Ordinance Amending Natural Gas Service Rates and Charges 4. Presentations: Chris Heimgartner - Henderson Municipal Power and Light 5. Executive Session: Executive Session pursuant to KRS 61.810 (1) (c) for the purpose of discussion of pending litigation against the City 6. Adjournment Respectfully, Steve Austin, Mayor  SPECIAL CALLED MEETING NOTICE TUESDAY, MAY 8, 2018 Continued A copy of the foregoing notice received and service thereof waived this gth day of May, 2018. Commissioner Patti Bugg Commissioner Robert N. Pruitt Sr. Commissioner Bradley S. Staton Commissioner Austin P. Vowels  City Commission Memorandum 18-89 May 7, 2018 TO: Mayor Steve Austin and the Board of Commissioners FROM: Russell R. Sights, City Manager ;2,l SUBJECT: Proclamation A proclamation will be presented at the May 8, 2018 meeting recognizing May 17th as "World Neurofibromatosis (NF) Awareness Day" in Henderson. Brandi Hauser will be in attendance to receive the proclamation.  CITY OF HENDERSON r it clamatictt "World Neurofibromatosis Awareness Day" 4.e:r-t,Ul the Children's Tumor Foundation is observing May 17, 2018 as World Neurofibromatosis (NF) Awareness Day to educate the public about this rare genetic disorder, and although over 2 million people around the world are living with NF and l in every 3,000 births is diagnosed with NF, it is still relatively unknown to the public; and NF affects all populations equally, regardless of race, ethnicity or gender; and NF causes tumors to grow on nerves throughout the body and also can affect development of the brain, cardiovascular system, bones and skin; and the disorder can lead to blindness, deafness, bone abnormalities, disfigurement, learning disabilities, disabling pain, and cancer; and the Children's Tumor Foundation leads effo1ts to promote and financially sponsor world-class medical research aimed at finding effective treatments and, ultimately, a cure for NF; and the Children's Tumor Foundation is actively fostering collaborative partnerships in both science and industry to speed the drug research and development process through a number of consortia called Synodos; and the Children's Tumor Foundation works to improve access to quality patient healthcare through its national NF Clinic Network; and the Children's Tumor Foundation provides patient and family support through its information resources, youth programs, and local chapter activities; and the Children's Tumor Foundation proudly celebrates 40 years of driving research, expanding knowledge, and advancing care for the NF community, this year reflecting on the many key advancements in NF research that can be traced to the Foundation; and much remains to be done in raising public awareness of NF to help promote early diagnosis, proper management and treatment, prevention of complications, and support for research HEREFORE, I, Steve Austin by virtue of the authority vested in me as Mayor of the City of Henderson, Kentucky, do hereby proclaim May 17, 2018, as "World Neurofibromatosis Awareness Day" in the City of Henderson, in recognition of this important initiative. IN WITNESS WHEREOF, I have hereunto spread these letters upon this page and caused the seal of the City of Henderson to be affixed this 8'h day of May 2018. -~e~~ Steve Austin, Mayor  City Commission Memorandum 18-86 May 7, 2018 TO: Mayor Steve Austin and the Board of Commissioners FROM: Russell R. Sights, City Manager SUBJECT: Public Improvements Acceptance- Canoe Creek II Subdivision, Arrow Way Extension An item for the agenda of Tuesday, May 8, 2018 is final reading of an ordinance accepting public improvements on Arrow Way in Canoe Creek II Subdivision. Included in this acceptance is approximately 997 lineal feet of 8" sewer main, 24 service laterals, and 3 manholes. The improvements have been made by Hugh Stone, dba HCM, LLC. in accordance with the public improvement specifications and regulations and a resolution accepting these improvements was passed at the April 16, 2018 Henderson Water and Sewer Commission Meeting. Your approval of the attached ordinance is requested. c: Brian Bishop Doug Boom  HWU ~ 270.826.2421 W www.hkywater.org Henderson Water Utility 9 11 l Fifth Street Henderson, KY 42420 WATER • WASTEWATER • STORMWATER Date: 17 April 2018 Memo To: Mayor Steve Austin Henderson City Commissioners Digitally signed by Tom Williams From: Tom Williams, P.E. DN: cn=Tom Williams, o:::Henderson Water Utility, ou=HWU, HWU General Manager 1~ " email=williamst@hkywater.org, c:cUS Date: 2018.04.17 09:26:38 "05'00' Subject: Canoe Creek II Subdivision Wastewater System Improvements At its meeting on 16 April, the Water and Sewer Commission passed a Resolution (copy attached) approving the acceptance into our wastewater system of the improvements constructed on Arrow Way in Canoe Creek II Subdivision, by Mr. Hugh Stone, dba HCM, LLC. This work is now complete, and the sewer installed has been inspected and approved for acceptance. Work like this usually goes through the Planning Commission due to bonding, but Mr. Stone chose to complete these improvements prior to Final Plat approval, so it did not go through the normal HCCPC process; all that is required in this instance is acceptance by HWU and the City. If you have any questions or need further information on this or any other matter, please feel free to call me at 270.869.6621 (Office) or 270.823.2573 (Cell). Re: Wm. (Buzzy) Newman, HWU Director of Field Operations Ken Ferry, P.E., HWU Chief Engineer  ORDINANCE NO. 09-18 ORDINANCE ACCEPTING PUBLIC IMPROVEMENTS SUMMARY: AN ORDINANCE ACCEPTING PUBLIC IMPROVEMENTS IN CANOE CREEK II SUBDIVISION, ARROW WAY EXTENSION WHEREAS, at a meeting of the Board of Commissioners of the Henderson Water and Sewer Commission held on April 16, 2018, it was recommended by Resolution 2018-09 (attached) that certain public improvements for Arrow Way in Canoe Creek II Subdivision in the City of Henderson be accepted; and WHEREAS, said improvements have been made by Hugh Stone in accordance with public improvements specifications and regulations. NOW, THEREFORE, BE IT ORDAINED by the City of Henderson, Kentucky, that the City hereby accepts certain public improvements for Arrow Way of Canoe Creek II Subdivision, and consists of the following: Canoe Creek II Subdivision Wastewater - Arrow Way Extension 8-inch Sewer Main 997 Lineal Feet Manhole 3 Each Service Lateral 24 Each All ordinances or parts of ordinances in conflict herewith are hereby repealed and superseded to the extent of such conflict. This ordinance shall become effective upon its legal adoption. On first reading of the foregoing ordinance, it was moved by Commissioner Staton , seconded by Commissioner Bugg , thatthe ordinance be adopted on its first reading. On roll call the vote stood: Commissioner Pruitt: AYE Commissioner Staton: AYE Commissioner Bugg: AYE Mayor Austin: AYE Commissioner Vowels: AYE PUBLICATION DATE: FIRST READ: 04/24/2018 SECOND READ: ORDINANCE NO. 09-18  ORDINANCE NO. 09-18 (CONT.) WHEREUPON, Mayor Austin declared the ordinance adopted on first reading and ordered that it be presented for a second reading at a meeting of the Board of Commissioners. On second reading of the ordinance, it was moved by Commissioner - - - - - - - - - - -, seconded by Commissioner , that the ordinance be adopted. WHEREUPON, the vote was called. On roll call the vote stood: Commissioner Pruitt: Commissioner Staton: Commissioner Bugg: Mayor Austin: Commissioner Vowels: WHEREUPON, Mayor Austin declared the ordinance adopted, affixed his signature and the date and ordered that it be recorded. Steve Austin, Mayor Date: - - - - - - - - - - - - ATTEST: Maree Collins, City Clerk APPROVED AS TO FORM AND 1 ,_.,,_ LEGALITY THIS / ':7DAY OF 1 APRIL, 2018. l' By: City Attorney -2- 2 ORDINANCE NO. 09-18  ORDINANCE NO. 09-18 (CONT.) Attachment HENDERSON WATER AND SEWER COMMISSION RESOLUTION OF THE BOARD OF COMMISSIONERS Resolution No. 2018 - 09 Acceptance of Wastewater Improvements Canoe Creek II Subdivision - Arrow Way Extension The following Resolution was duly adopted by the Board of Commissioners of the Henderson Water & Sewer Commission at a regular meeting held on Monday, 16 April 2018, at which meeting a quorum was present. BE IT RESOLVED, that the Henderson Water and Sewer Commission by and through its Board of Commissioners under the authority granted to the Board of Commissioners under Chapter 23 Article II Division 3 Sections 23-36 through 23-45.2 of the City Code of Ordinances hereby recommends to the Board of Commissioners of the City of Henderson, Kentucky, that the City of Henderson accept certain public improvements as constructed by Mr. Hugh Stone, recommended by the staff of the Water and Sewer Commission, and herewith transmitted to the City, to wit: Canoe Creek II Subdivision Wastewater - Arrow Way Extension Sewer: 8-inch Sewer Main 997 LF Manhole 3 Each Service Lateral 24 Each These improvements are now complete and ready for operation. The General Manager is hereby authorized to deliver this Resolution to the City of Henderson. 3 ORDINANCE NO. 09-18 Attachment  ORDINANCE NO. 09-18 {CONT.) Attachment IN WITNESS WHEREOF, having come before the Board of Commissioners on Monday, 16 and seconded by Commissioner, Paul Bird, Jr. Commissioner, George Jones, Ill Commissioner, John Henderson Commissioner, Gary Jennings Commissioner, Julie Wischer ' . Tom Williams, P.E. General Manager Henderson Water Utility 4 ORDINANCE NO. 09-18 Attachment  City Commission Memorandum 18-87 May 7, 2018 TO: Mayor Steve Austin and the Board of Commissioners FROM: Russell R. Sights, City Manager ;JI RE: Ordinance Adopting Charges for Water, Wastewater, and Stormwater Services An item for the agenda of Tuesday, May 8, 2018, is final reading of an ordinance repealing and replacing Ordinance 07-17, and adopting new charges for water, wastewater, and stormwater charges to be effective on July 1, 2018 and implementation of a rate increase to be effective on July 1, 2019. The content of this ordinance reflects results of discussions on March 27, 2018 between the Board of Commissioners and the Water and Sewer Commissioners. The Water and Sewer Commission passed a resolution at their April 16, 2018 meeting to adopt this schedule for all rate charges, phased in on July 1, 2018 and July 1, 2019. The ordinance presented to you is based on their request. c: Robert Gunter, Finance Director Tom Williams, HWU General Manager  HWU \!' 270.826.2421 ~ www.hkywater.org Henderson Water Utility 9 111 Fifth Street Henderson, KY 42420 WATER • WASTEWATER • STORMWATER Date: 17 April 2018 Memo To: Mayor Steve Austin Henderson City Commissioners Digitally signed by Tom Williams From: Tom Williams, P.E. ~:~~~~:;s:nw!~:;sutility, ~ ou=:cHWU, HWU General Manager 1- , '-"'-x.. -···~- ,mailaw,11,,msi@hkywat".o,9 , c:::aUS Date: 2018.04.17 09:20:49 -05'00' Subject: Changes to HWU Rates - Fixed Charges At its regular meeting on 16 April, the Water and Sewer Commission passed a Resolution requesting changes to our rate structure for several classes of our customers, inside the City Limits, as well as out. These reflect the consensus that appeared to flow from the City Commission work session on 27 March and include a fixed charge of$ 15.00 for water and wastewater service being added in two phases. The resolution is attached, including a proposed set of schedules for all our rate charges, phased in on 1 July 2018 and 1 July 2019. In addition to charges for water, wastewater and stormwater, there are also adjustments to flat charges for fire suppression services, and to the lesser populated flat charges for sewer-only services. Staff will be present at the City Commission meeting on 24 April to go over this in detail and answer any questions that may arise. In the meantime, if you have any questions or need further information on this or any other matter, please feel free to call me at 270.869.6621 (Office) or 270.823.2573 (Cell). Cc: Russell Sights, City Manager Dawn Kelsey, City Attorney Todd Bowley, HWU Chief Financial Officer  HENDERSON WATER AND SEWER COMMISSION RESOLUTION OF THE BOARD OF COMMISSIONERS Resolution No. 2018 - 08 Adoption of Fixed Charges for Water and Wastewater Service The following Resolution was adopted by the Board of Commissioners of the Henderson Water & Sewer Commission at a regular meeting on Monday, 16 April 2018, at which a quorum was present. WHEREAS, implementation of a Long-Term Control Plan to mitigate the environmental impacts of the City's combined sewer system has required outlays by the Henderson Water Utility (HWU) for projects totaling $ 41 million, which were funded through the assumption of debt, and repaid to bondholders and/or the City through rate increases; and WHEREAS, the City adopted a series of annual rate increases in Ordinance 03-11 on 22 February 2011, which were designed to allow for repayment of the debt incurred for these HWU projects; and WHEREAS, actual revenue from this series of increases has not kept pace with projections due to reductions in consumption, leading to a gap in funds available for normal HWU operations, debt service, needed capital expenditures, and adequate reserves; and WHEREAS, the current HWU rate structure for customers inside the City Limits does not include a fixed component or a minimum bill, as rate structures commonly do; now, BE IT RESOLVED, that the Henderson Water and Sewer Commission by and through its Board of Commissioners under the authority granted to the Board of Commissioners under Chapter 23 Article II Division 3 Sections 23-36 through 23-45.1 of the City Code of Ordinances, hereby recommends and requests that the City proceed with preparation and adoption of an Ordinance authorizing changes to the rate structure for Henderson water customers, adding a minimum charge for water and wastewater service, based on meter size, for all customers residing within the City limits, and implementing this fixed water and wastewater charge in two steps, on 1 July 2018 and 1 July 2019, as shown in the attached Rate Table A, effective 1 July 2018 and 1 July 2019. Fixed Charges will apply to irrigation services, as noted. The fixed water and wastewater fees shall be assessed in addition to the volumetric rates currently existing, as contained in the previously adopted Ordinance 03-11, dated 22 February 2011. The final 5.85% volumetric rate increase included in Ordinance 03-11, scheduled to be implemented on 1 July 2018, is hereby eliminated. Additionally, adjustments are being made to the fixed and variable charges for Out-of-City customers, as contained in the attached Rate Table B, effective 1 July 2019. An adjustment is being made to the fixed charges for Fire Suppression Services, as contained in the attached Rate Table C, effective 1 July 2018. And finally, that the Flat Rate Monthly Charge for Sewer Only Customers be increased in steps, on 1 July 2018 and 1 July 2019, as contained in the attached Rate Table D. The General Manager is hereby authorized to deliver this Resolution to the City of Henderson, for action by the City Commission. IN WITNESS WHEREOF, having come before the Board of Commissioners on Monday, 16 April 2018, and upon Motion made by Commissioner and seconded by Commissioner NAY Commissioner, R. Paul Bird, Jr. Commissioner, George Jones, Ill Commissioner, John Henderson Commissioner, Gary Jennings Commissioner, Julie Wischer \- Tom Williams, P.E. HWU General Manager  ORDINANCE NO. 10-18 ORDINANCE ADOPTING CHARGES FOR WATER, WASTEWATER AND STORMWATER SERVICES SUMMARY: AN ORDINANCE REPEALING AND REPLACING ORDINANCE 07-17, AND ADOPTING NEW WATER, WASTEWATER, AND STORMWATER CHARGES TO BE EFFECTIVE ON JULY 1, 2018, AND IMPLEMENTATION OF RATE INCREASE ON JULYl, 2019 WHEREAS, Chapter 23, Article V, Section 23-97 of the Henderson City Code of Ordinances provides that all utility rates and charges be determined from time to time by the City Board of Commissioners and kept on file in the City Clerk's Office; and WHEREAS, implementation of a Long Term Control Plan to mitigate the environmental impacts of the City's combined sewer system has required outlays by the Henderson Water Utility (HWU) for projects totaling $ 41 million, which were funded through the assumption of debt, and repaid to bondholders and/or the City through rate increases; and WHEREAS, the City adopted a series ofrate increases in Ordinance 07-17, which were designed to allow for repayment of the debt incurred for these HWU projects; and WHEREAS, actual revenue from these series of increases has not kept pace with projections due to reductions in consumption, leading to a gap in funds available for normal HWU operations and needed capital expenditures; and WHEREAS, the current HWU rate structure does not include a dedicated funding source for the maintenance, repair and extension of stormwater facilities; and, WHEREAS, the current HWU rate structure for customers inside the City Limits does not include fixed component or a minimum bill, as rate structures commonly do; now; and WHEREAS, on April 16, 2018, the Water and Sewer Commission recommended to the Board of Commissioners that the rates and charges to customers of Henderson Water Utility be revised as presented herein. NOW, THEREFORE, BE IT ORDAINED by the City of Henderson, Kentucky, as follows: PUBLICATION DATE: FIRST READ: 04/24/2018 SECOND READ: ORDINANCE NO. 10-18  ORDINANCE NO. 10-18 (CONT.) 1. That the rates and charges as set forth in Tables A through D, which are attached to and made a part of the aforesaid Ordinance No.07-17 are hereby repealed as of July 1, 2018 (attached). 2. The new water, sewer and stormwater rates and charges are established as set forth in new Tables A, B, C and D, which are attached hereto as Exhibit "A", and made a part hereof by reference, which rates and charges shall be effective for billings on and after July 1, 2018. All ordinances or parts of ordinances in conflict herewith are hereby repealed and superseded to the extent of such conflict. This ordinance shall become effective upon its legal adoption. On first reading of the foregoing ordinance, it was moved by Commissioner Pruitt , seconded by Commissioner _ _~S~t~a~t=o=n_ _ _ _ __ that the ordinance be adopted on its first reading. On roll call the vote stood: Commissioner Pruitt: AYE Commissioner Staton: AYE Commissioner Bugg: AYE Mayor Austin: Commissioner Vowels: AYE WHEREUPON, Mayor Austin declared the ordinance adopted on first reading and ordered that it be presented for a second reading at a meeting of the Board of Commissioners. On second reading of the ordinance, it was moved by Commissioner ____________ , seconded by Commissioner _ _ _ _ _ _ _ _ _ __ that the ordinance be adopted. WHEREUPON, the vote was called. On roll call the vote stood: Commissioner Pruitt: Commissioner Staton: - - - Commissioner Bugg: Mayor Austin: Commissioner Vowels: WHEREUPON, Mayor Austin declared the ordinance adopted, affixed his signature and the date and ordered that it be recorded. -2- ORDINANCE NO. 10-18  ORDINANCE NO. 10-18 (CONT.) Steve Austin, Mayor Date: - - - - - - - - - - ATTEST: Maree Collins, City Clerk APPROVED AS TO FORM AND LEGALITY THIS ;26 DAY OF APRIL, 2018. By: Dawn S. Kelsey City Attorney -3- ORDINANCE NO. 10-18  ORDINANCE NO. 10-18 (CONT.) Henderson Water Utility Henderson, Kentucky [RATE TABLE A ] [Effective 07/01/2017] [\A/ater and Se\•:er Rates Inside City Limits] ,if EMeteFed \&/ateF GhaFges) ~JateF/.GGF) ESe,.,(eF/.GG F) ~ EFiFSt 5,000 GF) ($2.+5) ($5.50) ((h(eF 5,000 GF) ($2.11) ($4.00) (Inside Gity bimits FiKed StaFm,.•iateF GhaFge) EG" and baFgeF) ($150.00) (3" and 4") ($100.00) ~ ($25.00) E1 1t2"J ($10.00) E1" and less) ($5.00) 1 ORDINANCE NO. 10-18  ORDINANCE NO. 10-18 (CONT.) Henderson Water Utility Henderson, Kentucky [RATE TABLE B] [Effective 07/01/2017] (\6.,ater and Se,.\.(er Rates Outside City bimitsJ EFi*ed GhaFges) (\.&JateF) ESeweF) (4" and baFgeF) ($125.00) ($125.00) £3.!!J ($100.00) ($100.00) £2!!} ($50.00) ($50.00) ~ ($25.00) ($25.00) E1" and less) ($5.00) ($5.00) EMeteFed \.&JateF) (\3'ater..JGG F) (Se,.veFtGGF) EFiFSt 300 GF) ($6.88) ($8.55) ENe*t +00 GF) ($6.88) ($13.86) ENe*t 4,000 GF) ($6.88) ($5.50) (O\teF 5,000 GF) ($2.11) ($4.00) 2 ORDINANCE NO. 10-18  ORDINANCE NO. 10-18 (CONT.) Henderson Water Utility Henderson, Kentucky [Rate Table C] [Effective 07/01/2017] (Rates feF Fire SuppFessien Systems) (Sii!e of GonneGtion) (Monthly GhaFge) E4" & SmalleF) ($68.91) {i!!J ($103.46) £8.!!J ($112.43) ~ ($258.66) f1-2!!l ($344.86) [Rate Table D] [Effective 07/01/2017] ESe,...(eF Only GustemeFS) (GustemeF) (Flat Rate Menthly GhaFge) (Inside the Gi~( bimits) ($31.05) (Outside the Gi~' bimits) ($60.00) 3 ORDINANCE NO. 10-18  ORDINANCE NO.· 10-18 (CONT.) Exhibit "A" RATE TABLE A (Effective 07/01/2018) Water and Wastewater Rates Inside Cit~ Limits Fixed Charges Water & Wastewater Stormwater 6" and Larger $150.00 $150.00 3" and 4" $100.00 $100.00 · 2" $40.00 $25.00 1-1/2" $15.00 $10.00 1-1/4" and less $7.50 $5.00 Metered Water Charges Water/CCF Wastewater /CCF First 5 1000 CF $2.75 $5.50 Over 5 1000 CF $2.11 $4.00 Note: The fixed charge for Water & Wastewater will be assessed to Irrigation Meter Services EXHIBIT "A" ORDINANCE NO. 10-18 Exhibit "A"  ORDINANCE NO. 10-18 (CONT.) Exhibit "A" RATE TABLE B (Effective 07/01/2018) Water and Wastewater Rates Outside Cit~ Limits Fixed Charges Water Wastewater 6" and Larger 1150.00 1150.00 3" and 4" 1112.50 1112.50 2" 150.00 150.00 1-1/2" 125.00 125.00 1-1/4" and less 17.50 17.50 Metered Water Water/CCF Wastewater/CCF First 5 1000 300---CF 16.88 18.55 Next 700 CF ~ f13.86 Next 4 1000 CF ~ H:!2 Over 5 1000 CF 12.11 14.00 Note: The fixed charge for Water will be assessed to Irrigation Meter Services ORDINANCE NO. 10-18 Exhibit "A"  ORDINANCE NO.· I0-18 (CONT.) Exhibit "A" Rate Table C (Effective 07/01/2018) Rates for Fire Suin~ression S~stems Size of Connection Monthl~ Charge 4" & Smaller 150.00 6" 175.00 8" 1100.00 10" 1150.00 12" 1200.00 Rate Table D (Effective 07/01/2018) Wastewater Onl~ Customers Customer Location Flat Rate Monthl~ Charge Inside the Citv Limits 135.00 Outside the Cit~ Limits 160.00 ORDINANCE NO. 10-18 Exhibit "A"  ORDINANCE NO. 10-18 (CONT.) Exhibit "A" RATE TABLE A (Effective 07/01/2019) Water and Wastewater Rates Inside Cit~ Limits Fixed Charges Water & Wastewater Stormwater 6" and Larger 1300.00 1150.00 3" and 4" 1200.00 1100.00 2" iso.oo i25.00 1-1/2" i30.00 110.00 1-1/4" and less i15.00 is.oo Metered Water Water/CCF Wastewater/CCF Charges First 5 1000 CF i2.75 is.so Over 5 1000 CF 12.11 14.00 Note: One-Half of the fixed charge for Water & Wastewater will be assessed to Irrigation Meter Services ORDINANCE NO. 10-18 Exhibit "A"  ORDINANCE NO. 10-18 (CONT.) Exhibit "A" RATE TABLE B (Effective 07/01/2019) Water and Wastewater Rates Outside Cit)£ Limits Fixed Charges Water Wastewater 6" and Larger 1175.00 1175.00 3" and 4" 1125.00 1125.00 2" 150.00 150.00 1-1/2" 125.00 125.00 1-1/4" and less 110.00 110.00 Metered Water Water/CCF Wastewater/CCF First 5 1000 CF 16.88 18.55 Over 5 1000 CF 12.11 14.00 Note: The fixed charge for Water will be assessed to Irrigation Meter Services ORDINANCE NO. 10-18 Exhibit "A"  ORDINANCE NO. 10-18 (CONT.) Exhibit "A" Rate Table C (Effective 07/01/2019) Rates for Fire Su1212ression S~stems Size of Connection Monthl~ Charge 4" & Smaller l5o.oo 6" 175.00 8" 1100.00 10" 1150.00 12" 1200.00 Rate Table D (Effective 07/01/2019) Wastewater Onl~ Customers Customer Location Flat Rate Monthl~ Charge Inside the Citv Limits 140.00 Outside the Citv Limits 165.00 ORDINANCE NO. 10-18 Exhibit "A"  City Commission Memorandum 18-88 May 7, 2018 TO: Mayor Steve Austin and the Board of Commissioners FROM: Russell R. Sights, City Manager RE: Amending Ordinance 65-17 by Establishing New Natural Gas Service Rates and Charges An item for the agenda of Tuesday, May 8, is final reading of an ordinance amending Ordinance 65-17 by establishing new natural gas service rates and charges. Owen Reeves, Gas System Director, will present a recommendation at the meeting to allow a change in natural gas rates to reflect the quality of gas being delivered to all customers. This change equates the current British Thermal Unit (BTU) value to the rates being paid by our customers. The rate shall be based on a heat content of 1,006 Btu's per cubic feet and adjusted monthly as established by Texas Gas Transmission for the consumption month at the city delivery points. Mr. Reeves will be available if you have any questions. I would encourage you to discuss them with him at your convenience. Your approval of the attached ordinance is requested. c: Owen Reeves Robert Gunter  Gas Department Memorandum 18-11 April 18, 2018 TO: Russell Sights, City Manager FROM: Owen R. Reeves, Gas System Director SUBJECT: Heat Content Correlation for Margins In our most recent Ordinance 65-17 for natural gas rates and fees an updated static unit rate was established for our heat (energy) content to compensate for the sharp increase in energy content of our delivered natural gas. The goal was to correlate the higher energy content to sales volume and bring them in line with prior heat content volumes. At that time the Board of Commissioners directed we bring back to review the status of heat content changes. Since that time, heat content has steadily fallen nearing the prior historical value (1,006 Btu) and at the Board of Commissioner meeting on March 13, 2018 direction was given to adjust the monthly margin to be in tandem with the heat content of each month. Presently the margin for all of our tiers was established on a heat content of 1,067 Btu per cubic feet of natural gas. Going forward each month the volumetric rate will be adjusted accordingly. As an example, using the tier 1 margin of $2.60 per Mcf (1,000 cubic feet) and a heat content of 1,006 Btu per cubic feet, the volumetric charge for that month would be $2.45 per Mcf. This same adjustment would be made likewise to all tier margins. I would suggest we round up to the half cent for each month's value. Attached please find Memorandum 17-29 for referen9e. I plan to be in attendance of the next commission meeting to answer any questions. Sincerely, &~R-~ Owen R. Reeves, PE (PA) Gas System Director cc: Dawn Kelsey  Gas Department Memorandum 17-29 November 20, 2017 TO: Russell Sights, City Manager FROM: Owen R. Reeves, Gas System Director SUBJECT: Rate Change to Allow for Heat Content Adjustment for Margins Over the past several months our gas system has experienced a significant increase in our Btu content. A Btu being a British thermal unit defined as the amount of energy needed to raise the temperature of 1 pound (0.45 kg) of water by 1° Fahrenheit. A margin rate change is needed to address the increase in the energy content of the natural gas now being received at our city gate. The change in energy content is a result of "shale gas" with a higher Btu content flowing north to south on the system that serves Henderson. Over the past twenty four plus months we have witnessed an increase of Btu content move steadily south on the system until it has reached Henderson and now proceeding even further south nearing the Tennessee border. This is important because this change affects the revenues from our margin sales. When our margin rates were last updated by Ordinance 32-13, the Btu content was 1,006 Btu's per cubic foot. As our margins and measurement are based on a volume (1,000 cubic feet or Met) a correlation needs to be established between the two to insure a proper recovery. This can be demonstrated in several ways so I use below as an example: Assume you are a customer that over a period of time had been using roughly 65 Mcf when the Btu content averaged 1,006 Btu's per cubic feet. Recently the Btu content was at 1,067 per cubic feet. Thus with the same energy demand the sales would reduce from 65 Mcf to 61.25 Mcf. In this case our margin revenue would have been reduced by 3. 7 5 Mcf times $2.45, or $9.19 from this customer. An analogy might be gasoline for automobile use. If a gasoline station sold all grades (octane content) at the same price per gallon, most persons would be inclined to buy the higher octane content gasoline at the same price per gallon. In essence that is what is happening without associated heat content with our volumetric unit sales. Because we are selling natural gas at higher energy content, and though customers are using the same energy quantity per household, we are seHing fewer units. To adjust for this change we need only establish our unit margin rates at a known Btu standard. In our example above with a "standardized margin rate" of $2.45 at 1,006 Btu per cubic feet and a current energy content of approximately 1,067 Btu per cubic feet the applicable unit rate for Mcf sales would be 1,067 divided by 1,006 times $2.45 yielding a unit rate of$2.60 per Mcfwith sales of 61.25 Mcffor a margin recovery of $159.25. This change would provide the same energy to the customer at the appropriate rate and hold our recovery at par. I am recommending that our current margin rate for all tiers be "normalized" at a heat content using 1,006 Btu's per cubic feet as the prior heat content and bring current to 1,067 Btu' s per cubic feet. I plan to be in attendance of the next commission meeting to answer any questions. Sincerely, r:) ~ @~'K . . Owen R. Reeves Gas System Director cc: Dawn Kelsey  ORDINANCE NO. 11-18 ORDINANCE AMENDING NATURAL GAS SERVICE RATES AND CHARGES SUMMARY: ORDINANCE AMENDING ORDINANCE NO. 65-17 BY ESTABLISHING NEW NATURAL GAS SERVICE RATES AND CHARGES WHEREAS, Section 23-97 of the Code of Ordinances provides that all rates and charges for municipal utilities shall be determined from time to time by the Board of Commissioners and kept on file in the Office of the City Clerk; and WHEREAS, Ordinance No. 65-17 established rates and charges for natural gas service, which shall be amended herewith; and WHEREAS, the City Manager recommends amendment of the rates and charges for natural gas service as proposed herein. NOW, THEREFORE, BE IT ORDAINED by the City of Henderson, Kentucky that Ordinance No.65-17, Establishing Natural Gas Service Rates and Charges, is hereby amended as follows: CITY OF HENDERSON, KENTUCKY NATURAL GAS RA TES AND CHARGES Section I. Residential Sales Service Applicable for service to any Residential customer located within the city limits of or adjacent to certain areas directly served by the City of Henderson: I. Monthly Customer Charge: A Monthly Customer Charge of $12.50 shall be assessed each month. Beginning On: 2. Rate: per 1,000 cubic feet, plus the delivered cost of gas: $2.60 Jan 1st 2018 The Rate shall be based on a heat content of 1,067 Btu's per cubic feet and adjusted monthly as established by Texas Gas Transmission (Boardwalk Pipeline Partners, LP) for the consumption month at the city delivery points. Section II. Commercial Sales Service Applicable for service to any Commercial customer located within the city limits of or adjacent to areas served directly by the City of Henderson: I. Monthly Customer Charge: A Monthly Customer Charge shall be assessed each month as follows: A. Up to 500,000 cubic feet per year and a connected load less than 500,000 Btu per hour: $16.00 per month B. Above 500,000 cubic feet per year or a connected load greater than 500,000 Btu per hour $36.75 per month. 2. Rate: per 1,000 cubic feet, plus the delivered cost of gas: Effective Date: 1/1/18 Up to 500,000 cubic feet per month: $2.60 Next 4,500,000 cubic feet per month: $0.955 Above 5,000,000 cubic feet per month: $0.30 The Rate shall be based on a heat content of 1,067 Btu's per cubic feet and adjusted monthly as established by Texas Gas Transmission (Boardwalk Pipeline Partners, LP) for the consumption month at the city delivery points. PUBLICATION DA TE: FIRST READ: 04/24/2018 SECOND READ: ORDINANCE NO. 11-18  ORDINANCE NO .. 11-18 (CONT.) Section III. Industrial Sales Service Applicable for service to any Industrial customer located within the city limits of or adjacent to areas directly served by the City of Henderson. For purposes of this Section, an Industrial customer shall be defined as a customer having a "Manufacturing" category designation in the North American Industry Classification System (NAICS)_manual as published by the US Government, Office of Management and Budget. 1. Monthly Customer Charge: A Monthly Customer Charge shall be assessed each month as follows: A. Up to 50,000,000 cubic feet per year: $80.00 per month B. Above 50,000,000 cubic feet per year: $210.00 per month 2. Rate: per 1,000 cubic feet, plus the delivered cost of gas: A. Service for Customer with executed Service Agreement Effective Date: 1/1/2018 Up to 500,000 cubic feet per month: $2.60 Next 4,500,000 cubic feet per month: $0.955 Next 10,000,000 cubic feet per month: $0.30 Next 20,000,000 cubic feet per month: $0.14 Above 35,000,000 cubic feet per month: $0.085 B. Service for Customer without executed Service Agreement Up to 500,000 cubic feet per month: $2.60 Above 500,000 cubic feet per month: $0.955 The Rate shall be based on a heat content of 1,067 Btu's per cubic feet and adjusted monthly as established by Texas Gas Transmission (Boardwalk Pipeline Partners, LP) for the consumption month at the city delivery points. 3. Service Agreement: A Natural Gas Sales Agreement acceptable to the City Manager shall be executed by any Industrial Sales Service customer requiring volumes in excess of 50,000,000 cubic feet per year. Section IV. Alternative Fuel Responsive Flex Provision Notwithstanding any other provision of this ordinance, the City may periodically flex the otherwise applicable rates in Subsection III.2.A. on a customer specific basis if a customer presents sufficient, reliable and persuasive information to satisfactorily prove to the City that alternative fuel, usable by the customer's facility, is readily available, in both advantageous price and adequate quantity, to completely or materially displace the gas service that would otherwise be provided by the City. The customer must submit the appropriate information by affidavit to the City for this optional monthly rate provision to be applicable. Additional information may be required by the City Manager or Gas System Director to evaluate the merit of the flex request. Section V. Local Transportation Service Applicable for service to any customer owning its own natural gas supplies which, for a minimum period of twelve (12) months commencing each November 1st, may have the City provide local transportation service across the City's gas distribution system provided a Natural Gas Transportation Agreement acceptable to the City Manager is executed by the customer. The local transportation rates shall be the same rates as contained in Section III, Subsections 1 and 2A of this ordinance, less the delivered cost of gas component, plus being subject to a balancing policy, shrinkage adjustment, and the general terms and conditions as may be contained in the Natural Gas Transportation Agreement. In addition, the City will require the customer to reimburse the City for the actual cost of telemetering equipment that will allow the City to monitor the customer's gas usage on a real-time basis. The City will assess an additional monthly fee of $600 for administering this service. 2 ORDINANCE NO. 11-18  ORDINANCE NO. 11-18 (CONT.) Section VI. Service On Behalf of the City of Corydon, Kentucky 1. Monthly Customer Charge. A Monthly Customer Charge shall be assessed each month as follows: Residential: $13 .30 per month Commercial: A. Up to 500,000 cubic feet per year and a connected load less than 500,000 Btu per hour: $16.80 per month B. Above 500,000 cubic feet per year or a connected load greater than 500,000 Btu per hour: $37.55 per month 2. Rate: per 1,000 cubic feet, plus the delivered cost of gas to the City of Henderson: Effective Date: 1/1/18 A. Residential: $2.60 B. Commercial: Up to 500,000 cubic feet per month: $2.60 Next 4,500,000 cubic feet per month: $0.955 Above 5,000,000 cubic feet per month: $0.30 The Rate shall be based on a heat content of 1,006 Btu's per cubic feet and adjusted monthly as established by Texas Gas Transmission (Boardwalk Pipeline Partners, LP) for the consumption month at the city delivery points. C. A ten-cent ($0.10) surcharge shall be assessed for each 1,000 cubic feet of gas sold within the city limits of the City of Corydon, Kentucky under this section to be paid to the City of Corydon. Section VII. Cost of Gas Adjustment Any change in the costs or charges billed by the natural gas supplier(s) or provider(s) of interstate transportation service to the City shall automatically be reflected by a like change in the rates charged hereunder on a monthly basis or as allocated for actual costs, as adjusted for the City's average uses, metering and line losses, and previous months' actual costs or charges, without further action of the Board of Commissioners. Section VIII. Public Energy Authority of Kentucky Rebate One hundred percent (100%) of all annual rebates received from the Public Energy Authority of Kentucky (PEAK) shall be directed to the Gas Fund. The final rebate from each PEAK bond series shall be directed to the Gas Fund. Section IX. Developmental Service A prospective natural gas customer seeking to initiate service with the City and having a minimum anticipated natural gas requirement of 500,000 Mcf per year may enter into a mutual agreement with the City to establish, by written contract not to exceed eighteen (18) months, a developmental rate as an inducement for becoming a City Sales Service or Local Transportation Service customer provided a Developmental Service Agreement acceptable to the City Manager is executed by the customer. Section X. Effective Date The rates and charges for natural gas service established in this ordinance shall become effective for all billings printed on and after [ January 1, 2018]. June 1, 2018. All ordinances or parts of ordinances in conflict herewith are hereby repealed and superseded to the extent of such conflict. This ordinance shall become effective upon its legal adoption. 3 ORDLNANCE NO. 11-18  ORDINANCE NO. 11-18 (CONT.) On first reading of the foregoing ordinance, it was moved by Commissioner Staton seconded by Commissioner Pruitt , that the ordinance be adopted on its first reading. On roll call the vote stood: Commissioner Pruitt: AYE Commissioner Staton: AYE Commissioner Bugg: AYE Mayor Austin: AYE Commissioner Vowels: AYE WHEREUPON, Mayor Austin declared the ordinance adopted on first reading and ordered that it be presented for second reading at a meeting of the Board of Commissioners. On second reading of the ordinance, it was moved by Commissioner seconded by Commissioner _ _ _ _ _ _ _ _, that the ordinance be adopted. On roll call the vote stood: Commissioner Pruitt: Commissioner Staton: Commissioner Bugg: Mayor Austin: Commissioner Vowels: WHEREUPON, Mayor Austin declared the ordinance adopted, affixed his signature and the date and ordered that it be recorded. Steve Austin, Mayor Date: ATTEST: Maree Collins, City Clerk APPROVED AS TO FORM AND LEGALITY THIS dlL DAY OF APRIL22~~ By: ~ Dawn S. Kelsey City Attorney 4 ORDINANCE NO. 11-18  City Commission Memorandum 18-90 May 8, 2018 TO: Mayor Steve Austin and the Board of Commissioners FROM: Russell R. Sights, City Manager iflj SUBJECT: Presentations One item is scheduled under the Presentations section of the agenda for Tuesday, May 8, 2018. Mr. Chris Heimgartner, General Manager of Henderson Municipal Power and Light, will give a presentation on the future energy needs of the City of Henderson based on an Integrated Resource Plan Report prepared by GDS Associates, Inc.