HomeMy WebLinkAboutItem 12 - Water and Wastewater Service RatesMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: • RUMBELOW, CITY MANAGER 130-4
MEETING DATE: SEPTEMBER 17, 2013
SUBJECT: WATER AND WASTEWATER SERVICE RATES
City Council consider adopting an ordinance amending residential and commercial water
and wastewater services rates in the City of Grapevine, and take any necessary action.
BACKGROUND:
As presented to the City Council in the Quarterly Workshop on May 13, 2013, the current
water and wastewater rates are no longer sufficient to cover existing operating costs and
the costs of system improvements over the next few years. While surrounding cities have
raised their rates frequently, the City has not raised its rates since FY 2002.
The City engaged the services of J. Stowe & Co. to prepare an updated financial analysis
of the Utility System in early 2013. The update results confirm that current rates will not
generate sufficient revenue for the Utility Fund to operate the utility. An 18% rate increase
is necessary to maintain an adequate fund balance.
The City purchases water from Trinity River Authority (TRA) and Dallas Water Utility
(DWU) to meet our potable, irrigation, and fire flow needs. TRA water is more costly than
water produced in the City's water treatment plant due to the cost to pump raw water from
the Tarrant Regional Water District (TRWD), TRA water treatment, and final delivery by
pipeline to two locations located at the south side of the City.
The City utilizes its permissible water rights from Lake Grapevine under the agreement with
DWU and Park Cities Municipal Utility. The additional water needs of the City (70 %) are
provided by TRA.
EPA and TCEQ rules govern the operation of both water and wastewater treatment plant
facilities. Federal and State regulations continue to mandate improvements to water and
wastewater systems that add treatment costs that must be passed on to the ratepayers.
This is true for both the TRA and the City of Grapevine. Infrastructure improvements and
rehabilitation projects at both plants that are funded by bond sales must be repaid adding
to the rate burden.
Attached is a comparison graph of water and wastewater usage costs, at 13,000 gallons
per month for water and 7,000 gallons per month for wastewater. It should be noted that
the surveys compare Grapevine's proposed rates with current rates for the other
municipalities. Any increases by these other cities this fall will only serve to improve our
position in comparison with them.
0:\agenda\2013 \09- 17- 13 \W &WW Rates 2013
The impact of the proposed rate increase on the average residential customers with a 5/8"
water meter using 13,000 gallons of water and with a three month winter average of 7,000
gallons of wastewater would be a combined monthly increase of $11.50. A residence
using the minimum volume of 2,000 gallons a month would see a combined monthly
increase of only $3.16.
Staff recommends approval.
SAD /JSL
0:\agenda\2013 \09- 17- 13 \W &WW Rates 2013
Current Rates - Residential Monthly Bill Comparison
(13.000 gallons water / 7.000 gallons sewed
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$34.31
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15
$113.48
$108.82
$107.70
$105.33
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS, AMENDING THE CODE OF
ORDINANCES BY AMENDING CHAPTER 25 UTILITIES
AND SERVICES RELATIVE TO WASTEWATER RATES
AND WATER RATES; PROVIDING A SEVERABILITY
CLAUSE; DECLARING AN EMERGENCY AND PROVIDING
AN EFFECTIVE DATE
10 11 �• ���•
OF GRAPEVINE,
Section 1. That Chapter 25 Utilities and Services of the Grapevine Code of
Ordinances, Section 25 -27 Wastewater rates, is hereby amended by amending
subsections (1) and (2) to read as follows:
"(1) General water consumption (city water system):
a. Residential Service:
1. First 2,000 gallons ............................. ............................... $9.20
2. Next 13,000 gallons,
per 1,000 gallons ........................... ............................... $3.85
b. Commercial Service:
1. First 2,000 gallons .......................... ............................... $13.59
2. All over 2,000 gallons,
per1,000 gallons ............................ ............................... $3.85
The monthly volume charge for residential customers will be based on the lower of
the individual customer's average monthly water use during the previous winter
quarter months of December, January and February, or actual consumption, but in
no event shall the volume use to compute this monthly charge exceed 15,000
gallons. The volumes used to compute these charges are based on the amount of
water used by the residential customer as measured by a meter. The winter
average will be calculated annually in March and will be in effect for March through
February billing periods. Where no previous winter quarter average is available
from the records, the volume to be used for this monthly volume charge shall be
actual consumption, such estimated volume not to exceed 10,000 gallons per
customer. If a resident is tied into the City sewer system only and has metered
consumption, the resident can use their winter quarter average for the previous
winter quarter months of December, January and February, if the resident records
of consumption have been verified by the Director of Finance or his Designee.
(2) Residences within the city limits not
connected to city water system ............................ ............................... $34.14"
Section 2. That Chapter 25 Utilities and Services of the Grapevine Code of
Ordinances, Section 25 -28 Water rates, is hereby amended by amending subsections
(1), (2) and (3) to read as follows:
"(1) General water consumption:
a. First 2,000 gallons, minimum ..................... ............................... $11.51
b. All over 2,000 gallons,
per1,000 gallons ......................................... ............................... $3.23
(2) Temporary: For a water meter installed for construction or other temporary
purposes on a fire hydrant: $3.23 per 1,000 gallons and a minimum charge
of $69.77.
(3) Minimum charges: In any case the following monthly minimum charges
shall be made upon customers of the water system except as provided in
Section 25 -42:
Minimum Minimum
Size of Meter Gallons Monthly Charges
3/4 inch
2,000
$ 11.51
1 inch
9,000
34.09
1 1/2 inch
21,000
72.84
2 inch
34,000
114.80
3 inch
78,000
256.85
4 inch
100,000
327.86
6 inch
134,000
437.63
8 inch
239,000
776.59
Larger than
8 inch to be agreed
upon by contract."
Section 3. That the effective date for charging of the increased wastewater and
water rates is October 1, 2013 and all customers shall be billed under the new rates for
usage commencing said date.
Section 4. That if any section, article, paragraph, sentence, clause, phrase or
word in this ordinance, or application thereto any person or circumstance is held invalid or
unconstitutional by a Court of competent jurisdiction, such holding shall not affect the
validity of the remaining portions of this ordinance; and the City Council hereby declares it
would have passed such remaining portions of the ordinance despite such invalidity,
which remaining portions shall remain in full force and effect.
ORD. NO. 2
Section 5. That the fact that the present ordinances and regulations of the City
of Grapevine, Texas, are inadequate to properly safeguard the health, safety, morals,
peace, and general welfare of the public creates an emergency which requires that this
ordinance become effective from and after the date of its passage, and it is accordingly
so ordained.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
GRAPEVINE, TEXAS on this the 17th day of September, 2013.
ATTEST:
ORD. NO. 3