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Home My WebLink AboutOrdinance 8977" ~ ATTACHMENT B. ~, s _ - ~> ORDINANCE NO. J~..L~ AN ORDINANCE DENYING THE RATE INCREASE PROPOSED IN THE STATEMENT OF INTENT AND PETITION TO INCREASE RATES FILED BY WESTERN WATERWORKS, INC. ON SEPTEMBER 28, 1983; PROVIDING THAT THE PRESENT RATES SHALL REMAIN IN EFFECT; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on September 28, 1983 Western Waterworks, Inc. (suc- cessor to Tarrant Utilities Company) filed a Statement of Intent and Petition to Increase Rates with the City of Fort Worth, and with the Public Utilities Commission of Texas, those rates to go into effect thirty-five days later, on November 2, 1983; and WHEREAS, on October 24, 1983 in a pre-hearing conference, the Public Utilities Commission General Counsel consistent with terms of Article 1446c, V.A.C.S., the Public Utility Regulatory Act suspended implementation of the proposed rate increase at least 120 days (i.e., until February 28, 1984), in order that the affected City Councils might hold hearings and investigate the proposed rate increase; and WHEREAS, the City Council of the City of Fort Worth has deter- mined that Western Waterworks, Inc. has had insufficient experience with the present rates to yet determine the adequacy thereof to yield sufficient revenues and an effective rate of return; and WHEREAS, the City Council of the City of Fort Worth has deter- mined that no change of rates is justified at this time and that the Statement of Intent and Petition to Increase Rates should be denied; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION I. That the proposed rate increase of Western Waterworks as found in the Statement of Intent and Petition to Increase Rates filed on September 28, 1983, with the City Secretary of the City of Fort Worth and suspended on October 24, 1983, by the Public Utilities Commission and General Counsel for 120 days beyond November 2, 1983, (i.e., until February 28, 1984) is predicated upon insufficient factual data; is, therefore, unreasonable; and the same should be and is, hereby DENIED. "" T _ ,.. ~ .n ~. ~ 1 ~ "3 '7 ',` SECTION II. That the rates granted to Tarrant Utilities Company, (now Western Waterworks, Inc.) in 1979, by Final Order of the Texas Public Utilities Commission in Docket No. PUC-2914 should and do hereby remain in effect until the same may lawfully be changed under and in accordance with Article 1446c, V.A.C.S., the Public Utility Regulatory Act. SECTION III. Should any part, portion, section or part of a section of this Ordinance be declared invalid or inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way affect the remaining portions, parts, sections or parts of sections of this Ordinance, which provisions shall be, remain and continue to be in full force and effect. SECTION IV. That 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: ~-~~~ ~l~ EFFECTIVE DATE: ~l'aa-~.3 In _ ~, ~~ -~v~"~ ,..... _ 14~61~1 C~C~D - M.~.C ~ PZ'" b'2~ ' I_I - Z ED BY SCALE. 1 "~ 4000' SEPTEMBER, 1977 CITY PLANNING DEPARTMENT .~- CORPORATE BOUNDARY CHANGE •-- CITY 0~ ~O~RT WORTH PROJECT ANNEXHTIOPJ_WINI)MILL ESTATES AFIEA FILE NO. Q_77~4 aR~a oF~~' ~'REVIOUS TOTAL CITY LIMIT AREA ANNEX TOTAL T41IS ORDINANCE DEA~JNEX NE11 TOTAL CITY LIIAIT AREA PUBLIC HEARING DATE 24i.s38 sQ. raI• ~ ORO. N0. 0.600 SQ MI . ~ ~ ST READING DA 242.438 SQ. F1I ~ FINAL READING oFF~cia~ ~~coRO I ~. waRrN, r~x. EXHz9ZT A ~'MAS7E•R f14Z.~ T. Clrr MaMnGEi? l~ np... ACCpuNtlNA.x TRANS~ORTAt10Nl-t7~Q~ ly/ ®~ ~l.W~~ ~®LLN/~tL/ ((i~ ~®~~ (l/IV~~IL/~l.W ~ (L® U 1{i lAWrl PUB(1C wA7Ea h~ ~TS ~~ DATE REFERENCE SUBJECT Request of Western Waterworks, ~ PAGE ILiT1ES.j, NUMBER InC. t0 Increase Water Rates to its 66 2 11/22/83 **G-5831 Customers in South Part of Fort Worth. 101__ Background Western Waterworks, Inc, is a proposed successor to the Tarrant Utilities Company, a water distribution system formerly owned by the Leonard family of Fort Worth. Western Waterworks, Inc. (hereinafter "Western"), proposes to purchase the assets of Tarrant Utilities, contingent on approval of the Public Utilities Commission. It provides water service to 960 customers in portions of Tarrant, Parker, and Hood counties. "Western" serves in Willow Park, Rendon and 66 customers living within the southern corporate limits of the City of Fort Worth. The customers live in Smallwood Subdivision, an unplatted and unrecorded subdivision located east of Garden Acres. Smallwood, and Windmill Estates, a larger adjacent enclave, were annexed by the City of Fort Worth (M&C PZ-827, November 11, 1977). The attached Map A shows the location of Smallwood (A) and Windmill Estates (B). Tract (A) is partially developed with about 75 dwellings, and a number of vacant lots, while Tract (B) is undeveloped land, never plat- ted. The "Western" water system in Smallwood was in existence and served a number of customers prior to annexation by the City. Some of the Smallwood residences had individual water wells, and a few were served by the Bethesda Water Cooperative. On September 28, 1983, "Western"filed its "Application and Intent to Increase Rates" in Tarrant and Parker counties, with the Public Utilities Commission in Austin and with the City of Fort Worth. The Public Utilities Commission (PUC) has docketed this case as docket No. PUC-5405, and the matter of the water company purchase has been consolidated into this rate docket. The increase requests an additional $99,636 in revenues (25 percent) affecting all 960 customers in the two counties, including the 66 living in the City of Fort Worth. In recent years scattered complaints have been made by Smallwood area resi- dents, against the predecessor company, Tarrant Utilities water service. Numerous meetings have been held in the past 5 years between Water Department staff and some of the Smallwood representatives regarding extension of City water to that area. So far, not enough interest has ever been expressed by the few persons desiring service and willing to pay the necessary main extension charges. The PUC held a pre-hearing conference in this case on October 24, 1983, and suspended the effective date of the rate increase for 120 days (until Febru- ary 28, 1984):1 The,~iC~~~yF{Council of Willow Park in its meeting on November 2, 1983 also denied the rwater rate request, and"Western"intends to appeal that denial to the PUC. The Office of Public Counsellor (James Boyll) has intervened on behalf of the public and requests denial of the rate application. PUC hearings will begin,~on the two consolidated dockets on November 28, 1983. t.. !t 1 ' I ~. DATE REFERENCE SUF.sJE_l:T Request of Western Waterworks, PAGE NUMBER InC. t0 Increase Water Rates t0 itS 66 2 2 11/22/83 *~G-5831 Customers in South Part of Fort Worth. -- or_..___-. It is recommended that the City of Fort Worth deny "Western's" water rate increase request which affects the 66 Fort Worth customers. The burden of proof of the necessity of an increase is on the serving utility and "Western" has not adequately provided such proof. The company will no doubt appeal the Fort Worth rate denial action to the PUC. Recommendation It is recommended that the City Council reject and deny the rate increase application of Western Waterworks, Inc. by approval of the attached Ordinance. (Attachment B) DAI:la P~OYED BY AP cif; cauc~ci~. NOV 22 1983 Qity Seccota:Y of sae Texxaa wo>~ , ci~r ~ Fwa x SUBMITTED FOR THE ~ / ~ J DISPOSITION BY COUNCIL. PROCESSED BY CITY MANAGER'S ~f11~ OFFICE BY -'- n APPROVED `__ L, OTHER (DESCRIBE) ORIGINATING DEPARTMENT HEAD Wade Adkins CITY 5ECRET'ARY FOR ADDITIONAL INFORMATION d ~ . ~~~ ~~~ ~~ ~ DATE Aughinbaug CONTACT Richar Cl Xt 70 ~~