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ORDINANCE NO. 1552
AN ORDINANCE TO AMEND AND ADD TO CHAPTER 21
UTILITIES AND SERVICES, ARTICLE II, ELECTRIC,
FAIRHOPE CODE OF ORDINANCES
BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF FAIRHOPE, ALABAMA, as
follows:
Section 1. The Code of Ordinances, City of Fairhope, Alabama, Chapter 21, Utilities and Services,
Article II - Electric is hereby amended to reflect the following changes and additions:
Article II. — ELECTRIC
(c) Labor Cost Adjustment (LCA) Factor. The base rates set forth above may be adjusted
periodically to account for permanent changes in labor -related revenue requirements (e.g.,
salaries and wages, pensions and benefits, etc.) that come about as a result of budget actions
taken by the City Council for a fiscal year. Such adjustment, when approved by the City
Council, shall be calculated as follows:
LCA = 1 + ((TLCB - TLCBR) / BRRR)
Where:
TLCB = The total annual labor cost, in dollars, that is reflected in the electric utility budget for
the coming fiscal year, as approved by the Board.
TLCBR = The total annual labor cost, in dollars, that is reflected in the current base electric
rates.
BRRR = The total revenue requirement, in dollars, that is reflected in current base electric
rates.
The LCA factor so calculated shall be applied to each retail rate set forth above, excluding
Schedule FCA, such that it will result in new base electric rates. Thus, when applied, a new
TLCBR and BRRR will be established for future LCA calculations. The following accounts
shall be used in the determination of total labor costs as reflected in TLCB and TLCBR:
Collection Costs / Revenue Department
Administrative Costs
Salaries
Payroll Taxes
Retirement Expense
Employee Retirement / Medical Insurance
Casualty / Workers Compensation Insurance
Section 2. All ordinances in conflict herewith be and the same are hereby repealed.
Section 3. The sections, paragraphs, sentences, clauses and phrases of this ordinance are severable,
and if any phrase, clause, sentence, paragraph or section of this ordinance shall be
declared unconstitutional by a court of competent jurisdiction, then such ruling shall not
affect any other paragraphs and sections, since the same would have been enacted by the
municipality council without the incorporation of any such unconstitutional phrase,
clause, sentence, paragraph or section.
Section 4. This ordinance shall take effect immediately upon its due adoption and publication as
required by law.
Attest:
a A. nks, M C
City Clerk
ADOPTED THIS THE 12TH DAY OF NOVEMBER, 2015