MARION COUNTY WATER DISTRICT 1835 … cases/2006-00037/MCWD_Response...MARION COUNTY WATER DISTRICT 1835 CAMPBELLSVILLE ROAD P 0 BOX 528 LEBANON, KY 40033 Telephone: 270-692-2004 Fax:

MARION COUNTY WATER DISTRICT 1835 CAMPBELLSVILLE ROAD

P 0 BOX 528 LEBANON, KY 40033

Telephone: 270-692-2004 Fax: 270-692-1010

TTY 1-800-648-6956 or 7 11

March 20, 2006

Mr. Mike Burford Director of Division Filings Commonwealth of Kentucky Public Service Commission 21 1 Sower Blvd. PO Box 615 Frankfort, Kentucky 40602-06 15

Re: Marion County Water District Case No. 2006-00037 Filing Deficiencies

Dear Mr. Burford:

In response to the filing deficiencies dated February 3,2006, we offer the following for the above case for the Marion County Water District:

1. In accordance with 807 KAR 5:Oll: Section 10(l)(b), please consider this the Intent to File for a Rate Application. In addition, please consider this a request to use an abbreviated form of the Notice to the Public of Change in Tariff which results in Increased Rates. Copies of the public notice (Attachment A) are enclosed. In addition, a copy of this notice is being filed with the Attorney General's Consumer Protection Division.

2. In accordance with 807 KAR 5:011: Section 10(l)(c), please be advised that the non-recurring charges at the tirne of our last rate increase were adequate, but since that tirne the District has risen to a level as shown on enclosed revised tariff. The District is not considering an increase to the current customer rates at this time, but the District must address the increase in the non-recurring charges.

31arion County Water District is an Equal Opportunity Provider and Employer Complaints of discrimination should be sent to:

USDA, Director, Office of Civil Rights, Washington, D. C. 20240-9410

March 20,2006 Page Two

3. In accordance with 807 KAR 5:011: Section 10(l)(d), please be advised that the non-recurring charges will effect all current customers and any proposed customers served by the District.

4. In accordance with 807 KAR 5:01 1: Section lO(l)(e), please find enclosed an income statement and balance sheet (Attacliment B) from the District for a 12- month period ending December 3 1,2005.

5. In accordance with 807 KAR 5:01 1: Section 10(2), See enclosed Absorption Test (Attachment C).

Should you have any questions or need additional information, please advise.

Sincerely,

Barbara R. May, Chairm

Ericlosures

cc: Office of Attorney General Consumer Protection Division 1024 Capital Center Drive Frankfort, Kentucky 40601

Marion County Water District is an Equal Qpportunity Provider and Employer Complaints of discrimination should be sent to:

USDA, Director, Office of Civil Rights, Washington, D. C. 20230-9410

ATTACHMENT A

CERTIFICATE OF NOTICE TO THE PUBLIC OF CHANGE IN TARIFF WHICH RESULTS IN RbTcgIvm .- - -

INCREASED RATES h l A ~ 2 1 2006

To the Public Service Commission, Frankfort, Kentucky.

Pursuant to the Rules Governing Tariffs, I hereby certify that I am Chairman of the Marion County Water District a utility furnishing water service within the Commonwealth of Kentucky, which on the 20th day of March, 2006, issued its Revision of Original Sheet No. 1 and 14 P.S.C. KY No. 3 to become effective April 1, 2006, and that notice to the public of the issuing of the same is being given in all respects as required by Section 8 of said Regulation, as follows:

On the 2oth day of March, 2006, the same was exhibited for public inspection at the offices and places of business of the Company in the territory affected thereby, to wit, at the following places: Marion County Water District, 1835 Campbellsville Road, L,ebanon, Kentucky and that the same will be kept open to the public inspection at said offices and places of business in conformity with the requirements of Section 8 of said Regulation.

Given under my hand this the 20"' of March, 2006. Marion County Water District 1835 Campbellsville Road Lebanon, Kentucky 40033.

ATTACHMENT B

MRRlON COUNTY MRTER DISTRICT INCOME STflTEMENT

FOR TWELVE PERIODS ENDED DECWER 31, 2@5

+------ PERIOD TO DBTE ----+ +------------ RCTURL CURR BUDGET OMURL

KRCH, JOBBING R MnJTRC#TT UDRK 1,&4.54 I661 63 COST-HERCH1 JOB., CONTWT 1'81912.t?81 INTEREST ItYCWQE 5, K7.69 ?@, 37 HISC. NUN-OERI NOIJ-UTILl I Y 2, Q36.98 2,0%0.00 6AIN FROM PRDPERTY DISPUSRt METERED MS-RESIDEMTIIV lP6,770.73 l21g750. W METERED SIKES-COMNERCIRL ffiS659. 17 15,416.55 METER ERLES-SCHOOLG 1,332.46 1, b66.63 METER WS-MULTI FMILY DWELL 1, 189.418 1,416.63 FORFEITED DI SCOUNTS-PWRLTIES 2,441.89 2,2!31.63 HI% 6ERVICE EVEME 2,964. /a i, 666.63 RENTS FRI#rl WRTER PROPERTY irSL.00 --- --------

TOT% FEVENUE 151,16S.@d 147,333.15 ----- ----- 151,165, eB 147,333.15

URSES-TWS 8 DIST, ISPERRTIDNS WWS-TURNS I UIST-tilRINI FWR MES - mmER m N T S WRIES-OFFICERS & DIREClURS EWLOYEE HWff ITS-HEAL7W INSUR CMTY RETIfWT-EMPLOYER MINTRIB WRCHASIl) MTER PUUCHUSEI) PWR-T 8 D - llPER WRtWISkl) P W R - RUM & GEM - MTERIRLS & SUPPLIES-T&I) ! P E R MRTERIRLS & SUPPLIES-T&D WINT IRTERICILS 8 SUPNIffirCUGT ANT BTERIALS & WPLlES+MYI 8 6EN WNTRACTWL SERVIRS - EN6c C [ l N T ~ T ~ SERVICES - RCCT CUNTROCTURL SERVICES - LEGRL CDNTRACTWlL SERVICE-METER RERD DEPRECIATIUN EXPENSE UTILITY RE6 RS6ES FEE - FSC mYROLL TftlES INTEREST OW LONG-TERM DEBT NTEREST 01\1 CUSTNlER MPOSITS INTEREST EXWJSE - OTHER TRREPURTRTIDN - T & D - OPE1 TRRNSPORTRTIM - T B D - MBIU TRRNSPDflTRTIDN - fQhlIN & GEN XNS1IRMCE - VEHICLE tN%Jf@IYCE - FElYERRL LIRBILIN INSllRCiNCE - EIDRKMPbUS COHF I N S U R W - BLDG, BOND

----- YEqR TD D(ITE -------- 4

CURR BLUGET RflURL BUDGT

Sil 00 45,3EI. I 03, mQr. %El 209 BOO. P10 21, m 17,@0iIBB

9383 9188. Pl0 291 000.50 3, W. 00 B73P10. 0@

25, Q0P1.00 2 q ss01 are 1C, m. 00 3,Brn. PIQ 5,SQlb. @I

M a r 08 06 U l : u ~ p , , a , A - . . ..-. - - -

AMDRTIZOTION WISE CRSE - PSC REGULOTORY WMMISSION - DTPER BCMf DEBT E X W E tillSC, EXPENE - T 8 D - OPER MIX. EXPENSE - T 8 D - MINT IdlSC. EXPEE£ - CUSTOMER RCCT MIX. EXPENSE - GEN 4 RM

TDTClL OPERIITIWG EXPENSES

ECIRNINGS BEFORE INCW TOX

NET INCDK {LOSS)

MBRIOW COUNTY WATER DISTRICT r fmE STATEMENT

FOR THE TWELVE PERIODS ENDEn DECEVER 31, 2eQIS

+-.----...-- ,@FRTnD TO DOTE ------- I I------------------ Y U H JU URTE -------------- + QCTURL CURR WIGET KTURL CURR BUDGET CINNURL BUDGT

Run at> ; a?/ 13./8E, MMGM MQHI ON COUN'T'Y WnTER D I STAT C-f G/I, Date: 12/ .Tl i12V3 r Di-ll#NCE 81-iEE 7

IJ~L'EIVIEEER 3 1, ? Q I C ? I ~

LlGEILITIES RND D"I').-IE:fI CREDIT'S HND CRPTTOL

CURKEN I. LPRRILITLES

OCCOUNT'S PFtYRELE CUSTBMER DEF'CJSI'Tb RCC HUED UNE:MF'LCIYME1~17 FEDERRL rnx F I C:Il

MY W I I'IiHULU IN6 MFIRlaN CO DCCUF1aT'IDNc7L. T R X KY SRL-ES ?'QX V I R R Z ON cn sobiczscrt I-nx NELSON CCI SCI-lOUI, TRX SEWER TRX --. NF4QUFORDSV ILLE SEWFR T R X .- LUI?E"PTC) GQRBRGF TBY - PRRUFC3RUSV I LLX CFIRPREE TFIX - IrlQRIUIV ODIJNTV COUNTY RET I REMENT

LONG-TERM LIRPILITIES

CDRI-r R IN nxu OF CONS-r - KY CUNTRX IN RID OF GCJNST-f-EDERflL C a N r R r IN ~ I U UF CUNST - CUST EUNlJ ISSUE (Sic lC3G9 BOND ISSUE DF 1989 BOND ISSlJE UI' 1'392 U BOND ISSUE OF 1993 EOND fSSUE OF 1996 BOND ISSUE CiF i s G t 3 BUND ISSUE QF ZBQ@

TOT63L LQNG-TERM LIGRILITIES

I'UTGL LIRDZLITIES RND CITWER CREDITS

FIFiF'ROPRIA'TEIl RE"I'G I NED ERRNTNGS UNFIPF'RDPRIRTED RET EQRNINGS RETI?, YNET) EFSRt4 1; NGS-CtJRKtN"I' YERR

TUTFtL- I I . I I u I L L T S E S AND O T I i E R CREDITS f INU GFIFITQl,

Run Dal; e : -."i%lSil 3/p~; ' MGM W H I O N CDUNTY WRTEf? DISTRIC"T +-7-r7k*. G / L €Jake$ d 3 " 5 BTjLRNCE SFJEET

C?GSETS RND CI'TfiEti UERITS

CURRENT RSSEl3

O'TI-IE:R 1 NVESTMEN'rS -. C:Uq S SINKING FUND RESERVE FUhlD RIG-TDF E88S CICC'I' FbET7 Y CRSH R E U E N I JI': RUCUUNl- C)PE;RG'I I O N R M 8 I NTEI\IRNC:E CUGTOMCR i.11CGCSlJIVT'S HECEI vF)nLE OTHER !ACCOUNTS RECE:I VAMLE RETURNED CHECKS UCU: F'ROV-I INCCILLECT I BLE RCCTS PLRNT MATERIRLS S SUPPLIES FiREF'FIYMENTS RCCRUED INTEREST RECEIVABLE

TQTQL CURRENT RSSETS

FIXED RSSETS

LRND K LRNU Rf GHtS I-RND GEWERDL rllr7N1' AUIL.DIF.IG (MCWD L7FF'ICE & SIJOP) FIUMI=+ING EQUIPMENT WR'TER TREUT'MENT EGUJ PMEI\IT DTST. RESERVOIRS b STRNUPLPES 7RHNSMLSSION h BIST. MAINS SERV I E:ES METERS & ME'rER TNS7'RL LRT X URI I-1YDHFiNTS OFC: FURNI'FUHEIE~lJIF'lrlENT/F3XT'UR T R H N S P O R I R T I OW. ERU J FJPIENNI- 'l"C3#L.S, SHOP & GARROE EOUIP, t .GBOHA"VRRY EQU T Pi*lEN'S

PCW.X? OFIERQTED Elal l T FlMkPlt' COMMUNICRTION EQUIPMENT GCC;UMULQTEU DEPRECT RTIUN

TOTI;IL RSSI5'.l-S LWD II'I'HER DER T "1"s

Page : i Times l i : L b 1 QM

ATTACHEMNT C

MARION COIJNTY WATER DISTRICT 1835 CAMPRELIiSVILIiE ROAD

PO BOX 528 LEBANON, KENTUCKY 40033

ABSORPTION TEST for PROPOSED TARIFF REVISIONS

Total revenues generated by all miscellaneous and non-recurring charges for 12- month period ending December 3 1,2005 (See District Income and Balance Statement - Attachment B) = $22,216.20 (Note: 5% increase would add $1,110.81 for a total $23,327.01).

Average cost per non-reculring event based on current non-recurring charges. = $25.00/event

Average number of non-recurring events for 12-month period ($22,216.20 1 $25.00 = 889). = 889

Average cost per non-recurring event based on proposed non-recurring tariff revisions. = $55.00/event

Net income generated based on average non-recurring events and proposed tariff revisions ($55.00 * 889 = $48,895). = $48,895.00

The increase in net income: $48,895.00 - $22,216.20 = $26,678.80

Therefore, $26,678.80 is greater than a 5% increase of $1,110.81.

The increase in net income distributed over 4,000 existing customers for the Marion County Water District would result in a $0.56 rate increase to each customer per month ($26,678.80/4,000/12 = $0.56).

Marion County Water District

For Marion County and Southern Portion of Nelson County

P.S.C. K.Y. NO.-

SHEET NO.

CANCELLTNG P.S.C. KY. NO.

SHEET NO. 1

- RATES AND CHARGES

CONSUMER RATES:

First 1,000 gallons used per month Next 9,000 gallons used per month Next 90,000 gallons used per inonth A11 over 100,000 gallons used per month

MINIMUM MONTHLY CHARGE:

518 x % Inch Meter 1 Inch Meter 2 Inch Meter

METER CONNECTIONS:

518 x % Inch Meter All L,arger Meters

Fire Hydrants (Non-Metered 6 Inch Connect)

$10.1 1 minimum bill $ 3.53 per 1,000 gallons $ 2.99 per 1,000 gallons $ 2.88 per 1,000 gallons

CHARGE -

$500.00 Actual Cost

$7.50 per month

DATE OF ISSUE

DATE EFFECTIVE

ISSlJED BY

T1TL.E MADAM CEIAIR V

BY AUTHORITY OF ORDER OF T H E PUBL.IC SERVICE COMMISSION

IN CASE NO. DATED


P.S.C. KY. NO.

-- SHEET NO.

Marion County Water District CANCELIJNG P.S.C. KY. NO.

SHEET NO. 1

RATES AND CHARGES

NON-RECURRING CHARGES:

ConnectiodTurn On Charge ConnectiodTurn On Charge After Hours Reconnection Fee Reconnection Fee After Hours Field Collection Charge Meter Reading Recheck Fee Meter Test Request Returned Check Fee After Due Date Penalty Charge Broken Meter Lock Fee Meter Valve Replacement Meter Relocation Charge Service Call/Investigation Service CallIInvestigation (After Hours)

$35.00 $80.00* $35.00 $85.00" $35.00 $35.00 $80.00 $25.00 Ten Percent ( I 0%) $60.00 $70.00 Actual Cost $35.00 $80.00"

*NOTE - Regular working hours for the utility's maintenance staff is 8:00 a.m. to 430 p.m., Monday through Friday, excluding holidays and weekends. Upon customer request, and subject to availability of maintenance staff, services may be performed outside regular working hours at the after hours rate.

DATE OF ISSUE

DATE EFFECTIVE

1SSIJE.D BY

T1TL.E MADAM CHAIR

BY AIJTHORITY OF ORDER OF THE PUBL.IC SERVICE COMblISSION

IN CASE NO. DATED



P.S.C. KY. NO. -

SHEET NO.-

CANCELLING P.S.C. KY. NO.

SHEET NO. 14

- RULES AND REGULATIONS

NON-RECURRING CHARGES:

1. The utility will collect for non-recurring charges to recover customer specific costs incurred, which would otherwise result in monetary loss to the utility or increased rates to other customers to whom no benefits accrue from the service provided or action taken. The utility may establish or change any non-recurring charge by applying for Public Service Commission approval of such charge in accordance with the provisions of 807 KAR 5:011, Section 10.

2. Nan-recurring charges will be applied uniformly throughout the area served by the utility. Such charges will relate directly to the service performed or action taken and only yield enough revenue to pay the expenses incurred in rendering the service.

3. The utility will assess a charge for the following non-recurring services:

a. ConnectionlTurn-on Charge: Will be assessed for new service turn-ons, seasonal turn-ons, temporary service, or transfer of service. The charge will not be made for initial installation of service where a meter connection/tap-on charge is applicable.

b. Reconnection Fee: Will be assessed to reconnect service that has been terminated for non-payment of service or for violation of utility or Public Service Commission rules and regulations.

c. Field Collection Charge: Will be assessed when a utility representative visits the premises of the service connection to terminate service, and the customer is onsite and pays the bill to avoid termination of service. This fee may only be charged once per billing period.

DATE O F ISSUE.

DATE EFFECTIVE,

I

TITLE MADAM CHAIR

BY AUTHORITY O F O R D E R O F T H E PUBLIC SERVICE COhfMlSSION

IN CASE NO. DATED



P.S.C. KY. NO.

SHEET NO.

CANCELLING P.S.C. K.Y. NO.

- SHEET NO. 14

RULES AND REGULATIONS

NON-RECURRING CHARGES <CONTINUED>_

d. Meter Reading Recheck Fee: Will be assessed when a customer requests the utility to re-read the customer's meter and the re-read proves that the original meter reading was correct.

e. Meter Test Request: Will be assessed when a customer requests the utility perform a test on the customer's meter to check for accuracy, and the test shows the customer's meter is not more than two percent (2%) fast.

f. Returned Check Fee: Will be assessed when a customer's checkbank draft is returned, either due to insufficient hnds or other reason due to customer fault.

g. After Due Date Penalty Charge: Will be assessed on the delinquent amount of the bill, less taxes.

h. Broken Meter Lock Fee: Will be assessed when a utility customer tampers with lock or locking device.

i. -Meter Valve Replacement Charge: Will be assessed when a utility customer damages or breaks due to misuse or vandalism.

j. Meter Relocation Charge: Will be assessed when a customer or other authorized person requests that a meter be relocated, changed, or modified. Those requesting a change must reimburse the utility for the actual costs incurred, including but riot liinited to appropriate legal, administrative, engineering, overhead, or other related costs.

DATE OF ISSUE

DATE EFFECTIVE

ISSUED BY A A R h T1TL.E MADAM CHAIR

BY AUTHORITY OF ORDER OF THE PUBL.IC SERVICE COMMISSION

IN CASE NO. DATED



P.S.C. KY. NO.

SHEET NO.

CANCELLING P.S.C. KY. NO.

SHEET NO. 14

RULES AND REGULATIONS - --

NON-RECURRING CHARGES <CONTINUED>

k. Service Call Investigation Chars : Will be assessed when a customer requests the onsite presence of utility personnel to investigate a service problem, and the problem is a result of the customer's own plumbing facilities, beyond the utility's delivery point, or not caused by failure of utility facilities. Any maintenance and repair of facilities beyond the utility's delivery point is the responsibility of the customer.

DATE OF ISSUE

DATE EFFECTIVE

ISSUED BY

TITLE MADAM CHAIR

BY AUTHORITY OF ORDER OF THE PUBL.IC SERVICE COMMISSION

IN CASE NO. DATED

NONRECURRING CHARGE COST JUSTIFICATION

Type of Charge: CONNECTION/TURN-ON CHARGE

I. Field Expense:

A. Materials (Itemize)

B. Labor (Time and Wage)

1 HR. @ $22.00 --

Total Field Expense

2. Clerical and Office Expense

A. Supplies

B. Labor

Total Clerical and Office Expense

3. Miscellaneous Expense

A. Transportation

6 . Other (Itemize)

Total Miscellaneous Expense

Total Nonrecurring Charge Expense


Type of Charge: CONNECTION/TURN-ON CHARGE A F W H O W

I. Field Expense:


Labor (Time and Wage)

2 HRS. O.T. @ $33.00 -.-

Total Field Expense


A. Supplies

B. Labor



A. Transportation

B. Other (Itemize)




Type of Charge: RECONN'ECTION FEE - .-

I. Field Expense:



Total Field Expense $ 22.00


A. Si~pplies

B. Labor



A. Transportation

6. Other (Itemize)

Total Miscellaneous Expense $ 6.50

Total Nonrecurring Charge Expense $ 35.00


Type of Charge: RECONNECTION FEE AFTER HOURS ---

I. Field Expense:



2 HRS. O.T. @ $33.00

Total Field Expense


A. Supplies

B. Labor



A. Transportation $ 6 . 5 0

B. Other (Itemize)

Total Miscellaneous Expense $ 6 . 5 0 .



Type of Charge: F I X L D COLLECTION CHARGE .--

I. Field Expense:



1 HR. @ $22.00

Total Field Expense


A. Supplies

B. Labor



A. Transportation

B. Other (Itemize)




Type of Charge: METER. READING RECHECK FEE ---

I. Field Expense:



1 HR. @ $22.00

Total Field Expense


A. Supplies

B. Labor



A. Transportation

B. Other (Itemize)


Total Nonrecurring Charge Expense $ 35.00


Type of Charge: METER ,- TEST REQUEST

I. Field Expense:



2 HRS. @ $22.00 --------

Total Field Expense


A. Supplies

B. Labor



A. Transportation

B. Other (Itemize)

Total Miscellaneous Expense I



Type of Charge: RETURNED CHECK FEE ----

I. Field Expense:



Total Field Expense


A. Supplies

B. Labor



A. Transportation $JL.-

B. Other (Itemize)

Total Miscellaneous Expense $ 0

Total Nonrecurring Charge Expense $ 2 5 . 0 0


Type of Charge:- BROKEN METER LOCK FEE

1. Field Expense:


-- LOCK JONES LOCKING D K U L - , -


Total Field Expense


A. Supplies

B. Labor



A. Transportation $ --.- 6 .50

B. Other (Itemize)

Total Miscellaneous Expense $ 6 .50 -



Type of Charge:- METER VALVE REPLACEMENT -

1. Field Expense:


518 X 314 METER VALVE


2 HRS. @ $22 .00

Total Field Expense


A. Supplies

B. Labor



A. Transportation

B. Other (Itemize)




Type of Charge:---rnTER RELOCATION CWRGE -

1. Field Expense:



Total Field Expense


A. Supplies

B. Labor



A. Transportation

B. Qther (Itemize)


Total Nonrecurring Charge Expense 3 ACTUAL COST


Type of Charge: SERVICE C A L L / INVESTIGATION

I. Field Expense:



1 HR. @ $22.00

Total Field Expense


A. Supplies

B. Labor



A. Transportation

R. Other (Itemize)




Type of Charge: SERVICE CALLIICNVESTIGATION (AFTER HI]=)

1. Field Expense:


-- -


2 HRS. O.T. @ $33.00

Total Field Expense


A. Supplies

B. Labor



A. Transportation

B. Other (Itemize)



MARION COUNTY WATER DISTRICT

RATE CHARGE FOR LABOR

OPERATION EMPLOYEES

JIMMY MUDD DARREL BALARD GABRIEL KELTY TOTAL

HOURLY WAGE

AVERAGE HOURLY WAGE $1 1.83

TAXESIBENEFITS PERCENTAGE

PAYROLL TAXES RETIREMENT WORKERS COMP TOTAL

AVERAGE HOURLY WAGE X TAXESIBENEFITS % $1 2.00 X 22.5% = $2.70

AVERAGE HOURLY WAGE + TAXESIBENEFITS % TOTAL. $1 2.00 + $2.70 = $1 4.70

AVERAGE HOURLY WAGE + TAXESIBENEFITS % TOTAL.. X 1.5 FACTOR $14.70 X 1.5 = $22.05

RECOMMENDED RATE CHARGE FOR LABOR $22.05 PER HOUR

RATE CHARGE FOR TRANSPORTATION

AVERAGE MILES BASED ON TEN SERVICE TRIPS = 13 4 MILES X $.485 (FEDERAL RATE PIMILE) = $6.50

Documents

MARION COUNTY WATER DISTRICT 1835 … cases/2006-00037/MCWD_Response...MARION COUNTY WATER DISTRICT 1835 CAMPBELLSVILLE ROAD P 0 BOX 528 LEBANON, KY 40033 Telephone: 270-692-2004 Fax: