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HomeMy WebLinkAboutOrdinance 22891-09-2017 ORDINANCE NO. 22891-09-2017 AN ORDINANCE AMENDING SECTION 35-56 (b), (c) and (d) OF CHAPTER 35, "WATER AND SEWERS", OF THE CODE OF THE CITY OF FORT WORTH (2015), AS AMENDED, BY REVISING AND ADDING CERTAIN VOLUME RATES AND CHARGES; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES AND PROVISIONS OF THE FORT WORTH CITY CODE IN CONFLICT HEREWITH; PROVIDING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That Section 35-56(b) of Chapter 35 of the Code of the City of Fort Worth (2015), as amended, is hereby amended to read as follows: (b) The following schedule of rates per month, or fraction thereof, shall be the charges to all residential and nonresidential customers for furnishing water to such customers located within the city. The residential monthly volume charge for water service shall be the charges to the residential class, as defined in this chapter, for furnishing water to residential water customers located within the city. The nonresidential monthly volume charge for water service shall be the charges to the nonresidential customer classes, as defined in this chapter, for furnishing water to nonresidential water customers located within the city. RETAIL WATER RATES Monthly Service Charge for Water Meter Size (inches) Monthly charge 5/8 X 3/4 $12.10 3/4 X 3/4 $12.35 1 $25.55 1-1/2 $48.00 2 $75.00 3 $198.40 4 $339.80 6 $721.45 8 $1,260.20 10 $1,888.75 The monthly volume charge for water service is as follows: Residential Customer Class Cubic Feet Rate First 600 or less cubic feet of water used $2.12 per month, per 100 cubic feet For the next 1,200 cubic feet of water used $2.97 per month, per 100 cubic feet For the next 1,200 cubic feet of water used $3.79 per month, per 100 cubic feet For all in excess of 3,000 cubic feet of $4.56 water used per month, per 100 cubic feet Commercial Customer Class Cubic Feet Rate All usage of water used per month, per 100 cubic feet $2.54 Industrial Customer Class Cubic Feet Rate All usage of water used per month, per 100 cubic feet $2.50 Super User Customer Class Cubic Feet Rate All usage of water used per month, per 100 cubic feet $2.48 Irrigation Meters Cubic Feet Rate First 5,000 or less cubic feet of water used $2.99 per month, per 100 cubic feet Next 5,000 cubic feet of water used $3.40 Ordinance 22891-09-2017 per month, per 100 cubic feet For all in excess of 10,000 cubic feet of $4.25 water used per month, per 100 cubic feet Gas Well Drillers Cubic Feet Rate All usage of water used per month, per 100 cubic feet $5.85 per month The service charges set out in the foregoing schedules are based upon the amount of water used as measured by meters. SECTION 2. That the monthly wastewater rates as described in Section 35-56(c)(1) and (c)(2) of Chapter 35 of the Code of the City of Fort Worth (1986), as amended, is hereby amended to read as follows: (1) Monthly Service Charge for Sewerage Service Only Meter Size (inches) Monthly charge 5/8 X 3/4 $6.50 3/4 X 3/4 $6.80 1 $10.80 1-1/2 $18.75 2 $28.30 3 $72.15 4 $122.35 6 $257.80 8 $449.00 10 $672.15 12 $840.19 (2) A monthly volume charge shall also be charged to residential customers in the amount of three dollars and ninety-four cents ($3.94) per one hundred (100) cubic feet of water used,and to nonresidential/non-monitored customers in the amount of four dollars and fourteen cents ($4.14)per one hundred(100) cubic feet of water used, or wastewater produced, as more specifically set forth hereinafter. The monthly volume charges for residential class customers will be based on the individual customer's average monthly water use during the preceding Ordinance 22891-09-2017 winter quarter months of December, January and February. The volumes used to compute these charges are based on the amount of water used by the residential class customer as measured by a meter. Where no preceding winter quarter average is available from records, the director shall estimate a volume to be used for this monthly volume charge. The monthly charges to the nonresidential/non-monitored customers will be based on total water use as measured by appropriate meters, with the provision that if a customer can prove,to the satisfaction of the director,that a significant portion of the metered water usage does not enter the sanitary sewers, the customer will be charged for only that volume entering the sewers, as determined by a method approved by the director. SECTION 3. That the monthly volume rates for the monitored class as described in Section 35-56(d) of Chapter 35 of the Code of the City of Fort Worth (1986), as amended, is hereby amended to read as follows: Volume charge, per 100 cubic feet $2.57 BOD strength charge, per pound of BOD $0.2750 Suspended solids strength charge per pound of suspended solids $0.1816 Dissolved solids strength charge, per pound of dissolved solids (applicable to gas well drillers) $0.0420 Monitoring and pretreatment charge= Total actual cost The monitoring charge shall consist of all cost for personnel, material and equipment used to collect and analyze samples from the customer's wastewater to determine the strength of the wastewater produced and, when appropriate, to inspect pretreatment facilities, to administer pretreatment permit systems and to enforce ordinance requirements. Pretreatment requirements primarily affect industries that are subject to 40 CFR, Part 403, General Pretreatment Regulations. This schedule shall replace all other charges previously made for industrial waste strength. SECTION 4. This ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas (2015), as amended, except where the provisions of this Ordinance 22891-09-2017 ordinance are in direct conflict with the provisions of such ordinances and such Code, in which event conflicting provisions of such ordinances and such Code are hereby repealed. SECTION 5. It is hereby declared to be the intention of the City Council that 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 the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 6. This ordinance shall take effect on January 1, 2018. APPROVED AS TO FORM AND LEGALITY: ATTEST NAI tiU ChrisFa R. Lopez-Re nolds ary J. K e Sr. Assistant City Attorney City Secretary ADOPTED: September 12, 2017 Ordinance 22891-09-2017 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 9/12/2017 - Ordinance No..22891-09-2817 DATE: Tuesday, September 12, 2017 REFERENCE NO.: C-28378 LOG NAME: 60RETAILRATES2018 SUBJECT: Adopt Ordinance Revising Retail Water and Wastewater Rates and Charges and Amending Sections 35- 56(b), (c) and (d), Article III - Charges, of Chapter 35 -Water and Sewers of the City Code, Effective January 1, 2018 (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council adopt the attached ordinance revising retail water and wastewater rates and charges and amending Sections 35-56(b), (c) and (d), Article III - Charges, of Chapter 35 - Water and Sewers of the City Code, effective January 1, 2018. DISCUSSION: Each year the Water Department Staff conducts cost of service studies to establish annual operating revenue requirements for retail water and wastewater services. As part of the cost of service studies, Staff prepares the budget for the ensuing fiscal year and determines the cost responsibility and revenue requirements to recover the costs of providing service to each of the six water and three wastewater customer classes. Staff also reviews volume usage by class and makes adjustments based on both recent and long-term trends. This process provides cost of service rates. The resulting revenue requirements and recommended rates are shared with the Water and Wastewater Retail Rate Structure Stakeholder Group which provides input concerning the City's fair and equitable cost allocation among the retail classes. The Stakeholder Group is made up of representatives of the Residential, Commercial, Industrial, Super User and Irrigation classes. Staff conducted four meetings with the Stakeholder Group to receive input and feedback on topics including fixed versus variable revenue recovery for the water and wastewater systems and full cost of service revenue recovery for all retail classes. The 2018 cost of service studies identified a need for an increase in retail revenue requirements of 3.46 percent for the water system and 3.04 percent for the wastewater system. The recommended water and sewer rates include continuation of the phased implementation of increased cost recovery from fixed service charges to improve revenue recovery stability for both the water and wastewater systems. The primary drivers of the system revenue requirement increases are additional pay-go cash financing and debt service to support the City Council-adopted Capital Improvement Plan and improve debt service coverage ratios; increased vehicle and equipment purchases to address the department's aging fleet, personnel costs; and increased transfers to the General Fund for street rental, PILOT and administrative services received from General Fund departments. To generate revenue to meet the revenue requirements of water customer classes, Staff recommends increasing the monthly service charges to cost of service for all customer classes as part of the revenue recovery stability plan. Based on the recommendations of the Stakeholder Group, Staff recommends leaving the Residential tier 1 volume rate unchanged from the 2017 level to minimize the rate impact to Logname: 60RETAILRATES2018 Page I of 4 low income customers, and slightly increasing Residential tiers 2, 3 and 4 volume rates to bring the class closer to its cost of service. For the Commercial and Industrial classes, the cost of service for 2018 resulted in a reduction in the unit rate. Staff proposes an increase for the Super User class to phase it into the Industrial class by 2019. Finally, Staff recommends an increase in the tier 1 volume rate for the Irrigation class, with decreases in the tier 2 and tier 3 rates. For sewer service, staff again recommends increases in the monthly service charges to cost of service as part of the multi-year revenue recovery stability plan for all but the smallest two meter sizes, which are primarily for residential use and would remain unchanged. Staff recommends increasing the volume rate charges for the Residential class and the TSS strength charge for the Monitored class. Finally, Staff proposes lowering volume rates for the Non-Monitored and Monitored classes, as well as the BOD strength charge, to cost of service. RETAIL WATER RATES Monthly Service Charge Meter Size Current Proposed 5/8" x 3/4" $10.75 $12.10 r 3/4" x 3/4" $11.001 $12.35 1 $21.101 $25.55 1 1/2"F- $39.15 $48.00 �- 2"F- " $60.80 $75.00 3" $160.10F $198.40 4" $273.85 $339.80 6" $580.80 $721.45 8" $1,014.15 $1,260.20 10" $1,519.75 $1,888.75 Volume Rates Customer Per 100 Cubic Feet Current Proposed Residential First 600 CF $2.12 $2.12 600 to 1,800 CF F $2.93 F $2.97 1,800 to 3,000 CF $3.69 F $3.79 Over 3,000 CF F $4.44 F $4.56 Commercial All Usage $2.67 $2.54 Industrial JAII Usage $2.55 F $2.50 Super User All Usage F $2.38 1 $2.48 Irrigation 0 to 5,000 CF F $2.96 F $2.99 5,000 to 10,000 CF $3.56 $3.40 Over 10,000 CF $4.44 $4.25 Gas Wells All Usage $5.85 $5.85 Logname: 60RETAILRATES2018 Page 2 of 4 RETAIL WASTEWATER RATES Monthly Service Charge Meter Size Current Proposed 5/8" x 3/4" $6.50 F $6.50 3/4" x 3/4" $6.80 F $6.80 1" $9.40 F $10.80 11/2" $16.20 F $18.75 2" $24.30 F $28.30 13" $61.50 F $72.15 4" $104.10 $122.35 6" $219.05 $257.80 8" $381.35 $449.00 10" $570.70 $672.15 12" $715.10 $840.19 Volume Rates [Current Proposed Residential Fvolume Charge (Per 100 Cubic Feet) Fs3.62 $3.94 Non-Monitored Group [Volume Charge(Per 100 Cubic Feet) $4.23 $4.14 Monitored Group Volume Charge (Per 100 Cubic Feet) F$2.7 $2.57 BOD Charge (Per Pound) $0.2929 F$0.2750 TSS Charge (Per Pound) $0.1558 $0.1816 ITDS Charge (Per Pound) for Gas Well Drillers $0.0420Fso.0420 This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION I CERTIFICATION: The Director of Finance certifies that the Water Department is responsible for the collection and deposit of funds due to the City. FUND IDENTIFIERS (FIDs): Logname: 60RETAILRATES2018 Page 3 of 4 TO Fund Department ccoun Project Program ctivity Budget Reference # moun ID ID Year Chartfield 2 FROM Fund Department ccoun Project Program ctivity Budget Reference # moun ID ID Year Chartfield 2 CERTIFICATIONS: Submitted for City Manager's Office by: Jay Chapa (5804) Originating Department Head: Kara Shuror (8819) Additional Information Contact: Skipper Shook (8402) Logname: 60RETAILRATES2018 Page 4 of 4