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Home My WebLink AboutIR 7581 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7581 a w _ �a�40Rr�� To the Mayor and Members of the City Council 0 .. February 18.1992 �TEXP` Subject; REQUEST BY THE SOUTH SEWNARYADDITION WATER e*3 UTILITY FOR AN INCREASE IN WATER RATES Pursuant to §13.042 of the Texas Water Cade, the City of Fort Worth has original ,jurisdiction over all water and sewer utility rates, operations, and services provided by a water and sewer utility within the corporate limits of the City. The South Seminary Addition Water Utility ("Seminary") is such a water and sewer utility. The South Seminary Addition was annexed by the City of Fort Worth on December 18, 1972. At the time of annexation, Seminary was, and continues to be, an existing water utility providing potable water service to approximately 30 residences. The South Seminary Addition is located south of Sycamore School Road and east of Crowley Road and is in City Council District No. 6. On February 21, 1991, the Texas Water Commission ("Commission") entered an order requiring Seminary to file an application for a Certificate of Convenience and Necessity ("CCN"). Approval of a CCN and a tariff by the Commission are necessary prerequisites to the operation of a water utility. The owner of Seminary failed to comply with the Commission order. In addition to its failure to comply with the Connnission order, the Texas Department of Health ("Department") determined that Seminary was in violation of eighteen (18) regulations that control the safety of public drinking water systems. After having been notified of the health regulation violations, Seminary failed to correct same. As a result of the failure to comply with the Commission order and the further failure to come into compliance with the Department regulations, on July 1, 1991, the Commission filed suit (Cause No. 17-136086-91) against Seminary, seeking the appointment of a receiver to collect the assets and carry on the business of the utility. On the same date, the 17th District Court entered an Agreed Final Judgment declaring that a receiver be appointed, and appointed William Lee Boomer, a Fort Worth engineer. The receiver was instructed by the Court, among other things, to do the following: (a) restore and maintain continuous and adequate water service to the customers of the utility; (b) accept, receive and spend funds, as necessary for the continuation ofwater service. (The receiver is not expected to expend any personal jI funds on the utility); ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7581 Page 2 of 4 M'P'(q' ` fsoer0 To the Mayor and Members of the City Council °0 February 18, 1992 317�Y Ji EX, Subject: REgUEST BY THE SOUTH SEMINARY ADDITION WATER UTILITY FOR AN INCREASE IN WATER RATES (c) conduct normal business operations for the utility, including billing, accounting, customer service, and payment of bills and taxes. The receiver shall follow the Texas Water Commission rules governing utility operations; (d) make an inventory of all assets taken over and submit this inventory to the Court within thirty(30) days after the date this order is signed by the Court; (e) within ninety (90) days after the date this order is signed by the Court, apply for all necessary permits, licenses or certificates as required by law, including but not limited to, certificates as required law, including but not limited to certificates of convenience and necessity under Chapter 13 of the Texas Water Code; (fl file an application for a tariff for the approval of rates charged and services provided to the customers of the utility, pursuant to Chapter 13 of the Texas Water Code; (g) notify all customers by letter (which may be included with the next billing)that he has been appointed receiver. This notice shall include a telephone number and address where the receiver can be contacted; (h) submit a monthly report to the Court and to the Texas Water Commission, including the following information; (1) a statement of all accounts receivable and accounts payable, showing the amounts received and paid; (2) a summary of all repairs and improvements made; and (3) a summary of all utility activities such as customers added or disconnected, amounts of water sold, etc.; and (1) prioritize expenditures to comply with the regulations of the Texas o. Department of Health. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 75$1 r".s9fs • �,,PT(YF ` c coax' To the Mayor and Members of the City Council �o Februezy 18, 1992 Y� raxAy Subject: REQUEST BY THE SOUTH SEMINARY ADDITION WATER UTILITY FOR AN INCREASE IN WATER RATES The receiver has complied with the order of the Court. An application for CCN has been Sled, however, it is still pending before the 'TWC. It is staffs understanding that the CCN, when issued will be restricted to the 30 existing customers of the utility. Also, the rate/tariff has been $led with the Commission. On August 21, 1991, Seminary, through the receiver, filed an Application for a Rate/Tariff Change for Utilities with 200 or Less Customers with the City Manager. The City Council is required to hold a public hearing to consider the merits of the Application and make a determination of the rates to be charged by Seminary. The Office of Public Utilities has reviewed the Application, has investigated same, and makes the following report to the City Council: 1. Seminary provides potable water service to 30 residences, all of which are located within the corporate limits of the City of Fort Worth. Sewer service is provided by on-site septic systems. 2. The City of Fort Worth has jurisdiction to consider this Rate Application pursuant to §13.042 of the Texas Water Code. 3. Presently, each customer of Seminary is unmetered and is charged a flat rate of$25 per month. 4. Repairs estimated in the amount of$30,000 are required based upon Texas Department of Health regulations. 5. The receiver is entitled to a fee of$500 per month, to be paid from revenues generated by the utility. 6. The monthly expenses of Seminary are approximately $1,331. 7. The monthly revenue generated by Seminary at the existing rate is $750. ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7581 Page 4 of 4 P !P _'Vo � To the Mayor and Members of the City Council Ap A.0 February 18, 1992 TEXPy Subject: REgUEST BY THE SOUTH SEMINARY ADDITION WATER ,e' UTILITY FOR AN INCREASE IN WATER RATES 8. Seminary requests that the unmetered monthly rate be increased to $41 per month. For those accounts which have meters, Seminary requests that the rate be set at $30 per month including the usage of 2,000 gallons per month and $2.50 for each additional 1,000 gallons consumed during the month. 9. Seminary requests an additional surcharge of $28 per month per customer to fund the required improvement to the system. 10. If the requested increase and the surcharge were to be approved by the City Council, the new rate and surcharge will result in a monthly bill of$69. vt v City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS