HomeMy WebLinkAbout(0040) M&C 21-0693City of Fort Worth,
Mayor and
DATE: 09/14/21
Texas
Council Communication
LOG NAME: 60WHOLESALE RATES 2022
SUBJECT
M&C FILE NUMBER: M&C 21-0693
(ALL) Adopt Ordinance Revising Wholesale Water, Wastewater, Standby and Raw Water Service Rates and Amend Chapter 35 - Water and
Sewers, Article III - Charges, Division 1 — Generally, Sections 35-56(g) (h) and (i) of the City Code with an Effective Date of Billing on or After
November 1, 2021 for Usage and Flows From and After October 1, 2021 for Water and Wastewater Service
RECOMMENDATION:
It is recommended that the City Council adopt the attached ordinance revising wholesale water, wastewater, standby and raw water service rates
and amend Chapter 35 - Water and Sewers, Article III - Charges, Division 1 — Generally, Sections 35-56(g) (h) and (i) of the City Code, with an
effective date of billing on or after November 1, 2021, for usage and flows from and after October 1, 2021 for water and wastewater service.
DISCUSSION:
Each year, wholesale water and wastewater rate studies are prepared in accordance with the terms of the uniform wholesale customer contracts.
For fiscal year (FY) 2022, the wholesale water and wastewater cost of service and rate studies were performed by Carollo Engineers, Inc., per the
uniform contract requirements. The results of these studies indicate the need for an increase of 5.85 percent in wholesale water revenue
requirements and an increase of 14.94 percent in wholesale wastewater revenue requirements.The rates as proposed in the table below will
recover the cost of providing wholesale water and wastewater service.
The rate setting methodology set forth in the uniform contract requires that test year data serve as the basis for establishing costs and the volumes
used in calculating the future rates. The test year for FY 2022 is FY 2020. Costs are adjusted to include known and measurable changes
impacting the rate period. Unlike retail rates, which are based on projected volumes, wholesale rates are calculated using test year actual
volumes. This can cause rates to go up in a year with low volumes or down when the test year has high volumes.
A joint meeting of the Wholesale Water Advisory Committee and the Wholesale Wastewater Advisory Committee was held on June 10, 2021, to
present the studies and the rates.
WHOLESALE WATER RATES
Current
Proposed
Volume ($ per 1,000 gallons)
$0.9709
$0.8226
Maximum Day ($ per MGD excess)
$105,207.00
$200,862.00
Maximum Hour ($ per MGD excess)
$42,119.00
$29,767.00
Monthly Customer Charge per meter
$25.00
$25.00
The city also enters into wholesale water contracts with standby customers who do not use water on a regular basis. These customers are
assessed a minimum charge equal to the three year numerical average of the treatment, pumping and transmission charge per 1,000 gallons. The
charge for FY2022 shall be $0.9688 per 1,000 gallons per month.
RAW WATER RATES
The cost of untreated water supplied by the Tarrant Regional Water District is $1.25503 per 1,000 gallons. Adjusted for street rental and system
loss, the raw water charge to customers is $1.36798 as a direct "pass through" cost to wholesale water customers.
WHOLESALE WASTEWATER RATES
CurrentI
Proposed
Volume ($ per 1000 gallons)
$1.05591
$1.3333
BOD (per pound)
$0.39901
$0.4407
TSS (per pound)
$0.26991
$0.2649
Monthly Customer Change
$75.00
$75.00
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendation and ordinance revision funds will be deposited into the Water
and Sewer Fund. The Water Department (and Financial Management Services) is responsible for the collection and deposit of funds due to the
City.
Submitted for City Manager's Office by. Dana Burghdoff 8018
Originating Business Unit Head: Chris Harder 5020
Additional Information Contact: Andy McCartney 8567
Expedited