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Home My WebLink AboutORD 1975-027 �.� � ORDINANCE NO. �i�. -•3'' AN ORDINANCE SETTING FORTH THE TERMS, CONDITI�NS, PROCEDURES, AND GUIDELINES FOR ESTABLISHING UTILITY RATES TO BE CHARGED CUSTOMERS IN THE CITY OF GRAPEVINE; PROVIDING FOR THE INCORP4RATION OF HOUSE BILL 819 PASSED BY THE TEXAS LEGISLATURE IN 1975; AND PROVIDING A SEVERABILITY CLAUSE; AND DECLARING AN EMERGENCY WHEREAS, the City of Grapevine (the "City"), being a Home-Rule City and having the authority and responsibility to determine, fix and regulate the charges, fares or rates of any person, firm or corporation enjoying or that may enjoy a franchise in the City under and by the provisions of Article 1175, Section 12, V.A,T.C.S. and other applicable state law; and WHEREAS, the City has the authority to ascertain all facts necessary for a proper understanding of what is or should be a reasonable rate or regulation and has the ful) power to inspect the books and compel the attendance of witnesses for that purpose under and by �the provisions of Article 1175, Section 12, V.A,T.C.S. � and other applicable state laws; and '�,,.� WHEREAS, the City Council has the power to regulate by ordinance the rates and services of every public utility operating in the City under Section 10:11 of the City Charter; and WHEREAS, the City Council recognizes its duty to establish utility rates which result in a Fair Return upon the Fair Value of the investment used or useful�in rendering S�rvice to the City. THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, THE FOLLOWING: Article I. POLICY. It is the policy of the City Council that in order to exercise its rate-making function in a legal and responsibCe manner it is necessary that it have at the time of and in conjunction with any request for a change in vtility rate certain information from which to draw its conclusions concerning the rate request. It is additionally the policy of the City Council that in order for it to make a proper determination of utility rates that there must be a breakdown of all reports; schedules, and information so that the same only apply to City of Grapevine customers. � ,�....� Article II. DEFINITIONS. For purposes of this Ordinance fihe following �.,;. words and phrases shall have the meaning contained herein: � Section 1 . "Service" - means the supplying of electricity, power, gas, water and sewer, or telecommunication in the City of Grapevine, by any non-municipally owned company enjoying a franchise to provide such utility in the City. In the case of supplying telecommunication in the City in addition to the above definition, Service � shall mean both "Metropolitan Telephone Service," whereby customers in the CiPy of Grapevine can call and be called by customers of all of the exchanges within the Fort Worth Metrop�litan Area without specific cnarge therefor, ond on an optiona( basis "Extended Metro,�olitan Telephone Service," whereby customers in the City of Grapevine can call and be called by customers of all of the exchanges in the Dallas and Fort Worth Metropolitan Area without specific charge therefor, both as provided for,by and under the provisions of Article I of the franchise by and between the City and General Telephone Company of the Southwest as approved and adopted by Ordinance No. 71-30 dated and effective November 24, 1973. Additionally, Service for telecommunication in the exchange encompassing the Dallas-Fort Worth Regional Airport shall be for all purposes kept separate and apart from the other exchanges in the City and any consideration of rates in the other exchanges in the City are not affected in any manner by the Airport Exchange. `W� " Section 2. "Test Year" - means the most recent twelve (12) month period from which operating results are known and in no event shall the period expire "�°�" prior to 120 days prior to the d�te the request is made. Section 3. "Fair Value" - means the average investment during the Test Year of property used or useful in furnishing Service to the City. This Fair Value shall be computed by using a reasonable balance, to be determined by the City Council, between original cost less depreciation and reconstruction cost new r (ess an allowance for age and condition. Section 4. "Fair Return" - means that amount of return on Fair Value which does not result in confiscation of the utility company's property. Section 5. "Operating Revenues" - means all revenues received from all sources both within and without the City which arise from Service furnished the City during the Test Year. This shall include but not be limited to monthly charges to both residential and commercial subscribers, all installation charges, hook-up fees, repair charges, additional charges for optional equipment, and any other revenue which is derived from Service to the City. 2 � �-- � Section 6. "Operating Expenses" - means actual operating expenses during the Test Year. Depreciation expense shall be consistent with thaF used �� in determining Fair Value depreciation. The City may or may not in its reasonable discretion allow known changes that occurred during or after the Test `Year. Section 7. "Net Operating Income" - is the difference between Operating Revenues and Operating Expenses. Section 8. "Cost of Capital" - means weighted average Cost of Capitol to the utility company. Section 9. "Rate Schedule" - means all rates and charges both within and without the City which arise from Service furnished the City during the Test Year. This shall include but not be limited to monthly charges to both residential and commercial subscribers, al) installation charges, hook-up. fees, repair charges, additiona) charges for optional equipment and any other revenue which is derived from Service to the City. � Article III . RATE APPLICATION. � Section 1 . Filing Application. In order for any Rate Application to be considered complete and therefore eligible for approva) as to form by the City �=°< Attorney the requirements set forth in Section 3 of this Article and any other reasonable requirements callt.d for by the City Attorney or City Council must �,� be met. Section 2. Approval of Form. Before any action may be taken by th� City Council on any Rate Application it must be approved as to form by the City Attorney that it complies with the requiremenPs set forth in this Ordinance, any franchise, the City Charter, and any other rules and regulations which may have been promulgated by the City Council before �the submission of the Rate Application to the City Secretary. The City Attorney shall give his written approva) or disapproval as to form. If disapproval is given by the City Attorney the reosons therefor in writing shall be given to the City Council and the Applicant within fifteen (15) working days after submission of the Rate Application to the City Secretary. Section 3. Application Requirements. The following list of reports, schedules, and information with full ex�,lanation and any elements which go into comprising these figures are required to be filed with the City Secretary before the Rate Application wi II be considered complete: 1) Operating Revenues 2) Operating Expenses 3) Net Operating Income '��" 4) Fair Value (Citing Original Cost, Depreciation, Reconstruction Cost, AI lowance for Age and Condi tion) � `�`"` 5) Cost of Capital 6) Current Rate Schedule 7) Current Rate of Return 8) Proposed Rate Schedu le 3 9) Projected Operating Revenues ,�,,,� 10) Projected Operating Expenses 11) Projected Net Operating Income � 12) Proiected Rate of Return Section 4. Additional Information. On his own initiative or upon fihe request of the City Counci I, the City Attorney may propound interrogatories or ask for additional information of the utility company not called for in Section 3 of this Article either before or after approval as to form by the City Attorney. Section 5. Public Hearing. Within four (4) weeks after approval as to form by the City Attorney of the Rate Application, a public hearing shall 6e called � at which time the utility company will be expected tv answer reasonable questions from the City Council concerning the Rate Application. Notice of such public hearing shall be published once at least three days before the doy of the pu6lic hearing is to be held in a newspaper of general circulation in the City of Grapevine. Section 6. Counci I Action. After the Public Hearing at its earliest convenience the City Council in open meeting will take action on the Rate Application. - Article IV. RATE DETERMINATION. In acting upon the Rate Application its accompanying proposed rate schedule the City Counci) will make a determination based upon a Fair Return on the Fair Value used or useful in fumishing Service to the City of Grapevine. � Article V. MISCELLANEOUS PROVISIONS. Section 1 . Rights Reserved by City Council. The City Council reserves the right b question and disallow in whole or in part any unreasonable item or amou nt submi tted by the u ti 1 i ty company i n the Rate Appl i cati on. Secfiion 2. Waiver. The City Council at its option may waive any requirements called f�r in this ordinance if the City Council feels that such req�+irement causes undue hardship on the utility company. Such wdiver express�y does not waive any other requirements of this Ordinance, nor any future waiver of that requ irement. Section 3. Reports and Information. All reports, lists, and any other information which the utility company is required to supply or supplies on its own initiative shall be signed and notarized by an officer of that company as to their truthfulness and accuracy. Section 4. Additiona) Rules and Regulations. The Cifiy Council reserves the right to approve and adopt any additional rules or regulations regarding utility service or any changes in those established by this Ordinance. � 4 ��....� $ection 5. Hou�se Bill 819 passed by the Texas Legisiature during the 64th Regular Session created hhe Texas Public Utility Commission. Said statute goes into effect on September 1, 1975. However, the statute has different time schedules for `""""'" the regulating authority to assume its d�ties and to begin promulating rules and regulations. This ordinance is passed pursuant to and in accordance with said law, and any provisions to the contrary shall be deemed to yield to state law at such time as the provisions of said law b�come directly applicable to the City's rate making power and authority. Section 6. SEVERABILITY. It is hereby declared to be the intention of the City Council of the City of Grapevine, Texas, that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable and if any phrase, clause,sentence, paragraph or section hereof should be declared unconstitutional, such unconstitutionality or invalidity shall not affect any of the remaining phrases, clauses, sentences, paragraphs or 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 or invalid phrase, clause, sentence, paragraph or section. Section 7. EMERGENCY. The fact that the present ordinances and regulations of the City of Grapevine are inadequate toestablish utility rates withir� the corpor�ate limits of the City of Grapevine, creates an emergency for the immediate preservation of the public business, property, health, safety, and general welfare of the public which requires that this ordinance shall become effective from and after the date of its � passage as provided by the Charter of the City of Grapevine, and it is accordingly so orda i ned. �:,� PASSED AND APPROVED BY THE CITY COUNCIL OF THE CIN OF GRAPEVINE, TEXAS, this the r�`- day of ��,,-��:-,�f � � • \ � t � � �� .. c--�- -- Ma y r ATTEST: ., --� _�: '-�� , ; /�L`3z tii�t-��-� � , ;. vf}Y-r" - Cifiy $ecretary 5 APPROVED AS TO FORM: i'�' ' � � �> , �. f . 1 r City Attorney �