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HomeMy WebLinkAboutOrdinance 18990-01-2010ORDINANCE NO 18990-01 2010 AN ORDINANCE AMENDING THE CODE OF THE CITY OF FORT WORTH (1986), AS AMENDED, CHAPTER 35 "WATER AND SEWERS", BY AMENDING SECTION 35-56 TO BE NAMED "WHOLESALE WATER, SEWER AND RECLAIMED WATER RATES" AND BY AMENDING SUBSECTIONS 35-56(a) AND 35-56(i) AND ADDING SECTION 35-56(j), BY REVISING AND ADDING CERTAIN WHOLESALE RECLAIMED WATER RATES AND CHARGES, MAHING 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 SECTION 1. That Section 35-56(a) of Chapter 35 of the Code of the City of Fort Worth (1986), as amended, is hereby amended by the addition of the following definitions Reclaimed Water shall mean highly treated effluent from Fort Worth s wastewater treatment plant, supplied through the reclaimed water transmission and distribution system, which meets or exceeds the requirements for Type I reclaimed water uses, as set forth by Section 210.33 of the Texas Admmistratrve Code. SECTION 2. That Section 35-56(a) of Chapter 35 of the Code of the City of Fort Worth (1986), as amended, is hereby amended by the replacement of the definition of wholesale customer with the following: A wholesale customer is a municipality town, village, or other governmental entity or pnvate firm contracting with a governmental entity for the provision of water reclaimed water and/or wastewater service. SECTION 3 That Section 35-56(i) of Chapter 35 of the Code of the City of Fort Worth (1986), as amended, is hereby further amended to be as follows (i) The following schedule of rates per month, or fraction thereof, shall be the charges to all wholesale customers for furnishing reclaimed water to such customers RATES FOR WHOLESALE RECLAIMED WATER SERVICE Volume ($/1 000 gallons) October 1 2010 to September 30 2012 $1 45 October 1 2012 to September- 30 2014 $1 50 Starting October 1 2014 the Wholesale Reclaim Water Service Rates will increase by five (5) percent annually until such time as the cumulative amount of the annual system deficits has been recovered. The Customer shall be charged on a monthly basis the volume rate charge multiplied by a minimum fifty (50) percent of the Customer's contracted average monthly amount (Annual Amount dnvided by 12 months) m order to establish a mmnmum cash flow to meet the operating and debt expenditures for the system. SECTION 4. That Section 35-56of Chapter 35 of the Code of the City of Fort Worth (1986), as amended, ns hereby further amended by the addrtnon of subsection (j) to be as follows (j) A permit/contract fee up to five thousand dollars ($5 000 00) will be assessed for a ground water remediation discharge permit. The term of the permit/contract shall not exceed two (2) years. In addition to a volume charge based on current rates, a monthly service fee of four dollars and fifty cents ($4 50) will be assessed. SECTION 5. This ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas (1986), as amended, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinance and such Code, m which event conflicting provisions of such ordinances and such Code are hereby repealed. SECTION 6. It ns hereby declared to be the intention of the City Council that the sectnons, 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 ~unsdnction, such unconstntutionahty shall not affect any remamm~g phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the mcorporatnon m this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 6. This ordinance shall take effect on October 1 2010 APPROVED AS TO FORM AND LEGALITY Chnsta .Reynolds Assistant City Attorney ADOPTED January 12, 2010 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: 'Approved on 1/12/2010° -Ord. No. 18990-0'1-2010 .. _ .... _~~ .,.,u„ DATE Tuesday January 12 2010 REFERENCE NO G-16809 LOG NAME. 60WHOLESALE RECLAIM WATER RATES SUBJECT Adopt Ordinance Establishing Wholesale Reclaimed Water Service Rates and Amending Chapter 35 Water and Sewer Article III Charges Sections 35-56 Water and Sewer Rates Within the City RECOMMENDATION It is recommended that the City Council adopt the attached ordinance establishing wholesale reclaimed water service rates and amending Chapter 35 Water and Sewer Article III Charges Section 35-56 Water and Sewer Rates within the City DISCUSSION On November 9 2004 the City Council approved Resolution No 3137 requesting financial assistance from the Texas Water Development Board (TWDB) for a Regional Facility Planning Grant to develop the Fort Worth Water Reuse Priority and Implementation Plan On May 10 2005 The City Council approved City Secretary Contract No 31841 (M&C C-20721) with Alan Plummer Associates, Inc. (APAI} to design the Eastside Reclaim water system and to assist with development of wholesale contracts for service to the Cities of Arlington and Euless and the DFW International Airport. Future plans for the Reclaimed' Water Service includes establishment of a separate fund (Reclaimed Water) in the next budget cycle With the start-up of the reclaimed water system staff initially does not anticipate being able to initially recover the capital and operational costs of the system through rate If the current wholesale customers were charged the full rate to include cost recovery of the city's capital expenses participation as a wholesale of reclaimed water customer would not be economical Staff looked at reclaimed water rates charged by other cities and work with initial wholesale customers to develop an economical wholesale reclaimed water rate Initially any deficits between revenues and expenditures will be absorbed by the Sewer Operating Fund This financial support will eventually be recouped through the city's wastewater system The rate at which the funds are recovered will be determined by the actual demands for reclaimed water If actual demands exceed projected demands, the funds will be recouped within the first five years Wholesale reclaimed water rates will be calculated with minimum payments due each month based on 50 percent projected average monthly demand to help generate cash flow The proposed wholesale reclaim water rates are set at: ~. _ _ __ ~e _ ,~ ;Fiscal Year 2011 Fiscal Year 2012 Fiscal Year 2013 Fiscal Near 2014 Rates set at $1 45/1 000 gallons set at $1 50/1 000 gallons Startrng in Fiscal Year 2015 Rates will increase by five percent annually until such time ___~.. ~ _r Logname. 60WHOLESALE RECLAIM WATER RATES Page 1 of 2 the cumulative amount of the annual system deficits has ~n recovered After the annual system deficits have been recovered the rates will be set annually on a full cost of service basis as determined by an independent rate consultant. This ordinance amends Chapter 35 Water and Sewer Article III Charges Section 35-56 to change its name to be Wholesale Water Sewer and Reclaimed Water Rates within the city and to include provisions for wholesale reclaimed water rates and assessment with the addition of subsection 35-56(j) FISCAL INFORMATION /CERTIFICATION The Financial Management Services Director certifies that the Engineering and Fiscal Services Division of the Water Department is responsible for collection and deposit of funds due to the City FUND CENTERS TO Fund/Account/Centers PE45 493XXX 0701000 0.00 FROM Fund/Account/Centers CERTIFICATIONS Submitted for City Manager's Office bv: Originating Department Head. Additional Information Contact: Fernando Costa (6122) S Frank Crumb (8207) David Townsend (8430) Logname• 60WHOLESALE RECLAIM WATER RATES Page 2 of 2