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HomeMy WebLinkAboutOrdinance 27920-08-2025ORDINANCE NO. 27920-08-2025 AN ORDINANCE AMENDING THE CODE OF THE CITY OF FORT WORTH, AS AMENDED, CHAPTER 35 "WATER AND SEWERS", ARTICLE III "CHARGES", SECTION 35- 56, "WATER AND SEWER RATES WITHIN THE CITY" BY AMENDING SUBSECTIONS (g) and (h) REVISING WHOLESALE AND RAW WATER RATES FOR WATER AND WASTEWATER; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH: SECTION 1. That Section 35-56(g), Article III "Charges" of Chapter 35 "Water and Sewers" of the Code of the City of Fort Worth, as amended, is hereby further amended to be as follows: (g) The following schedule of rates per month, or fraction thereof, shall be the charges to all wholesale customers for furnishing water to such customers: RATES FOR WHOLESALE WATER SERVICE Volume ($/1,000 gallons)* $0.9278 Maximum Day ($/MGD excess) $123,326.00 Maximum Hour ($/MGD excess) $21,546.00 Customer ($/Meter/Month) $25.00 *plus raw water cost RAW WATER SERVICE All uses inside and outside the Tarrant Regional Water District shall be $1.55970 per 1,000 gallons per month. SECTION 2. That Section 35-56(h), Article III "Charges" of Chapter 35 "Water and Sewers" of the Code of the City of Fort Worth, as amended, is hereby further amended to be as follows: (h) The following schedule of rates per month, or fraction thereof, shall be the charges to all wholesale customers for furnishing wastewater services to such customers: RATES FOR WHOLESALE WASTEWATER SERVICE Volume ($/1,000 gallons) BOD ($/pound) TSS ($/pound) Customer ($/month) SECTION 3. $1.7770 $0.5851 $0.3440 $75.00 This ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas, as amended, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinance and such Code, in which event conflicting provisions of such ordinances and such Code are hereby repealed. SECTION 4. 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 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 5. This ordinance shall take effect on October 1, 2025. APPROVED AS TO FORM AND LEGALITY: Dougias biack <�,ep 15, zuzS 11:35:ly C I Doug Black Sr. Assistant City Attorney ATTFST• Qom, A s Jannette S. Goodall City Secretary ADOPTED: -August 26, 2025 City of Fort Worth, Texas Mayor and Council Communication DATE: 08/26/25 M&C FILE NUMBER: M&C 25-0803 LOG NAME: 60WHOLESALE RATES 2026 SUBJECT (ALL) Adopt Ordinance Revising Wholesale Water, Wastewater, and Raw Water Service Rates and Amend Chapter 35 - Water and Sewers, Article III - Charges, Division 1 — Generally, Sections 35-56(g) and (h) of the City Code with an Effective Date of Billing on or After November 1, 2025 for Usage and Flows from and After October 1, 2025 for Water and Wastewater Service RECOMMENDATION: It is recommended that the City Council adopt the attached ordinance revising wholesale water, wastewater, and raw water service rates and amend Chapter 35 - Water and Sewers, Article III - Charges, Division 1 — Generally, Sections 35-56(g) and (h) of the City Code, with an effective date of billing on or after November 1, 2025, for usage and flows from and after October 1, 2025 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) 2026, the wholesale water cost of service and rate study was performed by water utility staff, and the wholesale wastewater cost of service and rate study was performed by a consultant, per the uniform contract requirements. The results of these studies indicate the need for an increase of 6.37 percent in wholesale water revenue requirements and a decrease of 1.77 percent in wholesale wastewater revenue requirements. The rates as proposed in the tables below will recover the cost of providing wholesale water and wastewater service. The rate setting methodology set forth in the uniform contract requires that the most recently completed fiscal year's data (the test year) serve as the basis for establishing costs and the volumes used in calculating the future rates. The test year for FY2026 is FY2024. 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 the test year's 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 18, 2025, to present the studies and the rates. WHOLESALE WATER RATES Current Proposed Volume ($ per 1,000 gallons) $0.8350 $0.9278 Maximum Day ($ per Millions of Gallons per $100,828.00 $123,326.00 Day excess) Maximum Hour ($ per Millions of Gallons per Day excess) Monthly Customer Charge per meter $27,923.00 $21,546.00 $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 FY2026 shall remain at $0.8936 per 1,000 gallons per month. RAW WATER RATES The cost of untreated water supplied by the Tarrant Regional Water District is $1.43092 per 1,000 gallons. Adjusted for street rental and system loss, the raw water charge to customers is $1.55970 as a direct "pass through" cost to wholesale water customers. WHOLESALE WASTEWATER RATES Current Proposed Volume ($ per 1000 gallons) $1.8275 $1.7770 BOD (per pound) $0.6136 $0.5851 TSS (per pound) $0.3223 $0.3440 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 adoption of the attached ordinance, 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 Citv Manaaer's Office bv: Jesica McEachern 5804 Oriainatina Business Unit Head: Chris Harder 5020 Additional Information Contact: Kristen Nutter 8252