HomeMy WebLinkAboutIR 7223 (NI:ORMAL REPORT TO CITY COUNCIL MEMBERS No. 7223 p.l
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., To the Mayor and Members of the City Council October 6, 1987
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;rExry. Subject; BACKGROUND ON WATER AND SEWER ISSUES
With the onset of fiscal year 1988, a number of issues will be confronted by the water and
sewer utilities. In this report, three such issues will be reviewed briefly.
Adjustment of Water and Sewer Tap Fees
On September 22nd, City Council was presented with M&C G-7242, "Water and Sewer Tap
Fee Adjustments for Fiscal Year 1987-88." The M&C was postponed for two weeks in order
to investigate the reasons why the proposed water tap fee adjustments reduced the existing
fees by such a large amount. The same MSC is on today's agenda.
Both the 1985 and 1987 DMG studies were analyzed. The 1985 cost study by David M. Griffith
had examined tap fees in the context of only two activities: water tap installations and tap
adjustments. The 1987 DMG study, covering FY 1986, looked at water tap fees from the
perspective of an additional activity regularly performed by tap crews since 1986: the renewal
and replacement of existing water taps. In its water tap cost analysis, DMG allocated $450,000
to water tap renewal activities, reflecting the Water Department's stepped-up program to
replace thousands of lead water services in the Fort Worth system. This resulted in a lower
total cost allocated to water taps in 1986 than in 1984, and, thereby, lower fees. Water
Department staff concurs with DMG's recommended tap fees.
Car Wash High Strength Sewage
Beginning October 1, 1986, after a review by the City Council, the Water Department began
billing restaurants for higher than normal strength sewage. This was done as part of an overall
plan to pinpoint as many contributors of high-strength sewage as possible in order to assign
to such customers the proper, and higher, costs of treating this effluent.
Another group of business establishments contributing higher-than-normal strength sewage,
car washes, has been similarily identified, and had its sewage strength measured by the Water
Department's Industrial Waste Section. Car washes were found to contribute suspended solids
in significant excess of normal strength sewage (1598 mg/1 versus 240 mg/1). Beginning
November 1st, the Water Department will begin billing more than 60 car washes for high
strength wastewater contributed to the Fort Worth system. Under this new billing policy,
average sewer bills for car washes can be expected to increase by 50%, from approximately
$133/month to just over $200/month for an average car wash using 20,000 cubic feet of water
per month. The car wash billing program is expected to generate $50,000 to $60,000 annually
in additional sewer revenue.
Wholesale Water Contract Amendments
On September lst, Touche Ross and Company completed its review of wholesale water contract
rates, as required every five years by the existing water contracts. This study was conducted
under the guidance of a wholesale water advisory committee appointed by the Mayors' Council
of Tarrant County.
Following several meetings that were held with Fort Worth staff, elected officials, and the
advisory committee, the study recommended that the water contracts be amended to permit
annual rate adjustments, rather than an adjustment only every five years. Fort Worth staff
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS-----
INFORMAL REPORT TO CITY COUNCIL MEMBERS N0.7223 P.2
f JON To the Mayor and Members of the City Council October 6, 1987
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Subject: BACKGROUND ON WATER AND SEWER ISSUES
and City Council rate committee members in attendance at the meetings (Mr. Gilley, Ms.
Webber) concurred with the Touche Ross recommendations. Adopting the recommendation
would result in only a slight change in existing Fiscal Year 1987 wholesale rates. A contract
amendment that would permit an annual adjustment in 1988 only was forwarded by the Mayors'
Council to each of the wholesale customers for ratification. After receipt of these executed
amendments back from the customer cities, the City Council will be asked to authorize Fort
Worth's execution of the amendments, and to approve the revised annual commodity and peak
rate of use charges developed by Touche Ross for use in fiscal year 1988. Following execution
of that proposed amendment, the City Council rate committee and Fort Worth staff will
continue to meet with the Mayors' Council advisory committee to complete the renegotiation
of existing wholesale water contracts.
Lo—Douglas Harman
F City Manager
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L ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS