HomeMy WebLinkAboutOrdinance 10280--rti - t ,. sw ~ktt.
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AN ORDINANCE APPROPRIATING $95,250 TO THE WATER AND SEWER OPERATING FUND, FUND 45,
WATER ADMINISTRATION, ACCOUNT NO 60-10-00, AND DECREASING THE UNRESTRICTED,
UNDESIGNATED RETAINED EARNINGS BY THE SAME AMOUNT FOR THE PURPOSE OF FUNDING A
CONSULTING STUDY ON THE WHOLESALE COST OF WATER SERVICE, WATER RATE DESIGN, AND TO
RECOMMEND WATER RATE MODIFICATIONS IN CONFORMANCE WITH THE WATER SERVICE CON'T'RACTS,
PROVIDING FOR A SEVERABILITY CLAUSE, MAKING THIS ORDINANCE CUMULATIVE OF PRIOR
ORDINANCES AND REPEALING ALL PRIOR ORDINANCES IN CONFLICT HEREWITH, PROVIDING FOR
ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS.
SECTION 1
That in addition to those amounts allocated to the various City departments for the
Fiscal Year 1988-89 and in the Budget of the City Manager, there shall also be increased
appropriations in the Water and Sewer Operating Fund, Fund 45, Account No 60-10-00, in
the amount of $95,2.50, thereby decreasing the unrestricted, undesignated Retained
Earnings by the same amount, for the purpose of funding a consulting study on the
wholesale cost of water service, water rate design, and to recommend water rate
modifications in conformance with the water service contracts
SECTION 2.
Should any portion, section or part of a section of this ordinance be declared invalid,
inoperative or void for any reason by a court of competent jurisdiction,. such decision,
opinion or judgement shall in no way impair the remaining portions, sections, or parts of
sections of this ordinance, which said remaining provisions shall be and remain in full
force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance No 10151 and all other
ordinances and appropriations amending the same except in those instances where the
provisions of this ordinance are in direct conflict with such other ordinances and
appropriations, in which instance said conflicting provisions of said prior ordinances and
appropriations are hereby expressly repealed
SECTION 4
The City Secretary of the City of Fort Worth is hereby directed to engross and enroll
this ordinance by copying the caption and effective date into the minutes of the City
Council and by filing this ordinance in the ordinance records of the City of Fort Worth.
SECTION 5.
This ordinance shall take effect and be in full force and effect from and after the
date of its passage, and it is so ordained.
APPROVED AS TO FORM AND LEGALITY
-------------------
City Attorney
Date ~ ___~__
Adopted ___ _~~_. (~~_~ __
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/~-TFdi I~pp REFERENCE SUBJECT ~rlr Lv l rlr.ly I Vr h I.UIVJUL I HIY I f VtC PAGE
l _ NUMBER WHOLESALE WATER RATE STUDY 2
- C-11531 > of
RECOMMENDATION
It is recommended that City Council
1. Adopt the attached supplemental appropriation ordinance appropriating
$95,250.00 to the Water and Sewer Operating Fund 45, Water
Administration Account No. h0-10-00 from the Water and Sewer Operating
Fund 45 Undesignated, Unreserved Retained Earnings for the purpose of
funding a consultating study on the wholesale cost of water service,
water rate design and recommend water rate modifications in conformance
with the water service contracts, and
2. Authorize the City Manager to execute a contract to employ Touche Ross &
Company to perform the study outl fined below for a maximum fee not to
exceed $95,250.00.
DISCUSSION
Uniform long-term wholesale water contracts are in the process of being
reviewed and negotiated by Fort Worth and twenty-three wholesale customers.
As a result of the negotiations, the parties have agreed to develop rates on
an annual basis using a test historical year adjusted for known and
_ _m~asu.rable changes. The existing contracts set rates based on a Touche Ross
_ _& Co., study using afive-year ;projection of revenue requirements.
It is proposed that Touche Ross & Co., he employed to conduct a wholesale
cost of service and rate design study and recommend rate modifications in
conformance with the water service contracts. These new rates for wholesale
customers will go into effect October 1, 1989.
Touche Ross .3l Co., performed the last water rate study, September 1, 1987.
The firm has extensive utility and regulatory experience, as well as detailed
knowledge of Fort Worth's rate structure. In particular, the firm is
familiar with wholesale, municipal and water rate issues, which will expedite
the adoption of the water contracts.
The Water .Advisory Subcommittee, consisting of representatives of the
customer cities, will he meeting with the City of Fort Worth and Touche Ross
& Co., during the rate review.
The Water Advisory Committee recommended the employment of Touche Ross & Co.,
and is willing to accept the rates resul ting from this study.
Approach and scope for the proposed study would include
*The cost of service and rate design being based on fiscal year 1988 audited
results adjusted for known and measurable changes.
*In addition, adjustments for normalization, year end levels, trending and
normal even is will b2 considered.
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DATE .NUMBER CE SUBJECT EMPLOYMENT OF A CONSULTANT FOR ,A
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1 19.8fl WHOLESALE WATER RATE STUDY 2 2
- C-115 31 of
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*Development of revenue requirements will include analyzing revenues,
expenses, rate base, rate of return, consumption, max day demands,~~..an~d'°max
hour demands to incorporate adjustments necessary to properly Y'•"r'efl'ect
historical resul is for the period rates are to be in effect.
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*Provision of a revenue requirements model and a cost of service and rate
design model using Lotus 1-2-3.
*Four periodic status meetings with representatives of the wholesale
customers (the advisory subcommittee) to report on progress, discuss issues,
and gain consensus on the conduct of the committee.
*Based on the results of the cost of service study, revision of the wholesale
water rates for volume, max day, max hour and customer related costs will be
determined.
Touche Ross & Co., complies with the City of Fort Worth's MBE/WBE policy.
FINANCING
Upon adoption of the supplemental appropriation ordinance, sufficient funds
will be available in Water and Sewer Operating Fund 45, Account No. 60-10-00,
Water Administration. Expenditures will be made from Index Code 370320.
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SUBMITTED FOR THE
CITY MANAGER'S
OFFICE BY David Ivory DISPOSITION BY COUNCIL: PROCESSED BY
^ APPROVED
ORIGINATING L,
DEPARTMENT HEAD• Ri Chard SdWey ^ OTHER (DESCRIBE)
CITY SECRETARY
FOR ADDITIONAL INFO ATIRN A
CONTACT ~ Uratzke 8"02 ~ tbd prdirtac:oe M4.
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