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HomeMy WebLinkAboutOrdinance 12601ORDINANCE NO AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE GENERAL FUND IN THE AMOUNT OF $ 47,065 AND DECREASING THE UNRESERVED, DESIGNATED FUND BALANCE IN THE AMOUNT OF $47,065 FOR THE PURPOSE OF FUNDING THE CITY'S PARTICIPATION IN THE STANDING STEERING COMMITTEE OF TU ELECTRIC SERVICE AREA CITIES, PROVIDING FORA SEVERABILITY CLAUSE, MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES AND REPEALING ALL PRIOR ORDINANCES IN CONFLICT HEREWITH, AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That in addition to those amounts allocated to the various City departments for the Fiscal Year 1995/96 and in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the General Fund in the amount of $47,065 and decreasing the unreserved, designated fund balance in the amount of $47,065 for the purpose of funding the City's participation in the Standing Steering Committee of TU Electric Service Area Cities. SECTION 2. Should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance No. 12074 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. h ,. :, , This ordinance shall take effect and be in full force and effect from and after the date of its passage, and it is so ordained. APPROVED AS TO FO D LEGALITY i At~Orney .,r~, Z~ ~ ~s ~' (o Date ~r~- ~ ~ Adopted Effective City of Fort Worth, Texas Mayor and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 07/30/96 G-11549 12STEER 1 of 2 svsJECT ADOPTION OF SUPPLEMENTAL APPROPRIATION ORDINANCE A'ND PARTICIPATION IN THE STANDING STEERING COMMITTEE 'OF TU ELECTRIC SERVICE AREA CITIES RECOMMENDATION It is recommended that the City Council 1 Adopt the attached resolution which authorizes the City Manager to execute the standing Steering Committee Participation, Agreement (Attachment II), and 2 Designate the City Manager, or his designee, as the City's representative to receive notices and participate in and vote at Steering Committee meetings, and 3 Adopt the attached supplemental appropriations ordinance increasing appropriations in the General Fund by 547,065 and decreasing the unreserved, designated fund balance by the same amount, and 4 Authorize the City Manager to pay the Steering Committee the sum of $47,065 as Fort Worth's initial participating fee DISCUSSION In 1989 the Steering Committee of TU Electric Services Area Cities was formed in response to the first of two rate increases requested by TU Electric Co in connection with the Comanche Peak Nuclear Power Plant (PUC Docket 9300) Under PUC rules the cities' prudent rate case expenses were subject to reimbursement by TU Electric, however, to pay initial expense and expenses which might have been disallowed by the Commission, each participating city contributed 10C per capita The cities' expenses exceeded 53 5 million of which the PUC disallowed less than 5500 00 When TU Electric filed its second rate case related to Comanche Peak in 1993 (PUC Docket 1 1735) Fort Worth again joined with the other cities Fort Worth's contribution for Docket 11735 was 545,000 00 which remained from Docket 9300 plus accrued interest In July 1993 several cities, including Fort Worth, negotiated new franchise agreements with TU Electric In Fort Worth's case, TU Electric made an advance payment of 53 6 million and increased annual payments approximately 54 million In exchange, the City's rate case expenses up to 54 million over the next fifteen years will not be eligible for reimbursement In conjunction with the new franchise the City Council established a reserve account to pay the City's expenses in TU Electric rate cases Currently the Designated Fund Balance set up for this purpose is 575.0,000 00 This expenditure does not affect the General Fund Undesgnated, Unreserved Fund Balance that is referenced for other supplemental appropriations Printed on Recycled Paper City of Fort Worth Texas Mayor and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 07/30/96 G-11549 12STEER 2 of 2 SUBJECT ADOPTION OF SUPPLEMENTAL APPROPRIATION ORDINANCE AND PARTICIPATION IN THE STANDING STEERING COMMITTEE OF TU ELECTRIC SERVICE AREA CITIES For the past two years the appeal of the second rate case and subsequent rate related dockets have been paid by the Steering Committee from the initial assessment, which is now exhausted It is anticipated that future rates will be shaped largely through rulemaking and piecemeal rate making dockets The timetables for participation in these dockets is usually very short The Executive Committee of the TU Electric Service Area Cities Steering Committee has recommended the formation of a Standing Steering Committee so that the organization and funding are established up front This will enable the cities to respond in a timely manner to future filings Attached are a copy of a participation resolution and a copy of the agreement for the Standing Steering Committee The agreement calls for an initial assessment of 10C per ,capita (547,065 00 for Fort Worth) Future assessments will depend on the number and extent of the rulemaking, rate case and related dockets in which the cities intervene These assessments are legitimate uses for the funds in the Electricity Rate Case Reserve Account FISCAL INFORMATION/CERTIFICATION The Director of Fiscal Services certifies that upon approval of the attached appropriation ordinance, funds will be available, as appropriated, in the current operating budget of the General Fund CB f Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) GGO1 539120 0905500 $47,065.00 Apppol/CD Charles Boswell 8511 CITY CQUNCIL O i i i D H r g nat ng epartment ead: ' Charles Boswell 8511 (from) ~® 196 JUL For Additional Information J F Contact: ort Wo th, ~exaQ C'ty Ofi Danny Reed 6798 Printed on Recyded Paper Adopted Ordnance No. ~®f Adopted ~e~aiuf-on f~o~~~I