HomeMy WebLinkAboutItem 09 - Water and Sewer RatesITEM 0 .�_1_..-.-.,...
MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGER
MEETING DATE: AUGUST 15, 2000
SUBJECT: WATER AND SEWER RATES
RECOMMENDATION:
City Council to consider approving an ordinance to amend residential and commercial
water and wastewater services rates in the City of Grapevine.
BACKGROUND:
As discussed during the Utility Committee Meeting on August 9, 2000 the current water
and sewer rates are not sufficient to cover existing operating costs and the cost of
system improvements over the next few years. This is the second of three proposed
increases reviewed by the City Council during budget hearings in 1999 and 2000.
Freese and Nichols Inc. conducted a financial analysis of the Utility System in 1999 and
updated it this year. The study predicted future revenues and expenditures for the Utility
Fund and forecasted water and sewer rates necessary to operate the utility. This is the
same increase projected last year for FY2001.
The City has become more dependent on the purchase of water from the Trinity River
Authority to meet our needs as we increase in size. Trinity River Authority water is more
costly than water produced in our own treatment plant due to their need to purchase raw
water from the Tarrant Regional Water District. Grapevine currently utilizes all of the
water out of Lake Grapevine that our water right allow, and our master plan has always
provided for increased reliance on the Trinity River Authority. Environmental Protection
Agency rules governing the operation of wastewater treatment facilities required that a
second shift of personnel be implemented at the Grapevine Wastewater Treatment Plant
after our expansion to 5.75 million gallons capacity per day. Infrastructure
improvements and rehabilitation that are funded by the sale of bonds must be repaid
adding to the rate burden.
Federal and State regulations continue to mandate improvements to water and sewer
systems that add treatment costs that must be passed on to the rate payers. This is true
for both the Trinity River Authority and the City of Grapevine.
As noted in the attached comparison graphs of water and sewer usage costs, at 5,000
gallons Grapevine ranks in the middle of the cities surveyed and at 10,000 gallons
August 10, 2000 (10:10AM)
Grapevine ranks in the upper two thirds. 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 will only serve to improve our position in comparison with
them.
The impact of the proposed rate increase on residential customers with 3/" meters using
5,000 gallons of water and with a three month winter average of 5,000 gallons of sewer
would be a combined monthly increase of $1.59. A summary of the new rates is shown
on attachment "A".
Water and sewer rate increases have been reviewed by the Utility Committee. Both the
staff and Utility Committee recommend implementing the rates proposed in the attached
ordinance. f
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0:\agenda\0$1500\uti lity_rates2001. agm
August 10, 2000 (10:13AM)
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ORDINANCE NO.
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
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE,
TEXAS:
Section 1. That Chapter 25 Utilities and Services of the Grapevine Code of
Ordinances, Section 25-27 Wastewater rates, is hereby amended to read as follows:
"Section 25-27. Wastewater rates.
There is hereby levied and shall be collected monthly from every customer of the
sewage system of the City, a service charge for the use of such sewage wastewater
system, which charge shall be determined as follows:
(1) General Water Consumption (city water system)
a. Residential Service:
1. First 2,000 gallons ....................... .................... ........... $7.31
2. Next 13,000 gallons,
per 1,000 gallons ............... ............... .................... $3.05
b. Commercial Service:
1. First 2,000 gallons ............................................................ $10.79
2. All over 2,000 gallons,
per1,000 gallons .......................................... .................
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.
Section 2. That Chapter 25 Utilities and Services of the Grapevine Code of
Ordinances, Section 25-28 Water rates, is hereby amended to read as follows:
"Section 25-28. Water rates.
There is hereby levied and shall be collected monthly from customers of the water
system of the City, the following charge for water service:
(1) General Water Consumption
a. First 2,000 gallons, minimum ......................... ................................ $9.15
b. All over 2,000 gallons,
per 1,000 gallons ..................................................................... I .... $2.57
(2) Temporary: For a water meter installed for construction or other temporary
purposes on a fire hydrant. Two dollars and fifty-seven cents ($2.57) per one
thousand (1,000) gallons and a minimum charge of fifty-two dollars and
seventy-five cents ($55.39).
(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:
(4) Fire sprinkler connection............................. $30.42
9
Minimum
Minimum
Size of Meter Gallons
Monthly Charges
1. 3/4 inch
2M
9.15
2. 1 inch
9M
27.13
3. 1 1/2 inch
21M
57.96
4. 2 inch
34M
91.35
5. 3 inch
78M
204.38
6. 4 inch
100M
260.89
7. 6 inch
134M
348.23
8. 8 inch
239M
617.96
9. Larger than
8 inch to be agreed
upon by contract.
(4) Fire sprinkler connection............................. $30.42
9
Section 3. The effective date for charging of the increased wastewater and water
rates is October 1, 2000 and all customers shall be billed under the new rates for usage
commencing said date.
Section 4. 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.
Section 5. 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 15th day of August, 2000.
UT0000-TOM"D
ATTEST:
ORD. NO. 3