HomeMy WebLinkAboutItem 12 - Water and Sewer RatesMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROGER NELSON, CITY MANAGERk4/!'t/
MEETING DATE: SEPTEMBER 18, 2001
SUBJECT: WATER AND SEWER RATES
RECOMMENDATION:
City Council to consider approving an ordinance to amend residential and commercial
water and sewer services rates in the City of Grapevine.
BACKGROUND:
As discussed during the Utility Committee Meeting on August 2, 2001, 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. Freese and Nichols Inc. conducted a
financial analysis of the Utility System in 1999 and 2000 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. A 6.75% increase is
recommended for residential and commercial users for both water and wastewater rates.
A number of factors have contributed to the increased rates in the City water system.
Since the City is currently using the maximum amount of water from Lake Grapevine
allowed under our existing water rights, we have become increasingly dependent on the
purchase of water and water rights. The City purchases water from the Trinity River
Authority (TRA) and purchases water rights from Park Cities Municipal Utility District,
which is more expensive than treating and distributing water "in-house". Also, the EPA
rules governing wastewater treatment plants required that the City add a second shift of
personnel to our plant after its expansion to 5.75M gallons per day. The issuance of
debt to fund infrastructure improvements also adds to the rate burden.
In addition, 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.
Attached are comparison graphs of water and sewer usage costs, at 5,000 gallons and
10,000 gallons. It should be noted that the survey compares Grapevine's proposed
rates with current rates for the other municipalities. Any increases by the other cities will
only serve to improve our position in comparison with them.
September 12, 2001 (11:06AM)
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 $2.25.
With the water contracts with the City of Dallas, Park Cities Municipal Utility District and
the water rights in Lake Grapevine, the City of Grapevine has water available for future
growth.
The water and sewer rate increase of 6.75% has been reviewed by the Utility
Committee. Both the staff and Utility Committee recommend implementing the rates
proposed in the attached ordinance.
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September 12, 2001 (11:06AM)
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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............................................................ $7.80
2. Next 13,000 gallons,
per 1,000 gallons......................................................... $3.26
b. Commercial Service:
1. First 2,000 gallons......................................................... $11.52
2. All over 2,000 gallons,
per 1,000 gallons.......................................................... $3.26
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
0 from the records, the volume to be used for this monthly volume charge shall be
MINI 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 ..$28.93
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 ...................................................... $9.75
b. All over 2,000 gallons,
per1,000 gallons ........................................................................ $2.74
(2) Temporary: For a water meter installed for construction or other temporary
purposes on a fire hydrant: Two dollars and seventy-four cents ($2.74) per
one thousand (1,000) gallons and a minimum charge of fifty-nine dollars
and thirteen cents ($59.13).
(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
1.
3/4 inch
2M
9.75
2.
1 inch
9M
28.89
3.
1 1/2 inch
21 M
61.73
4.
2 inch
34M
97.29
5.
3 inch
78M
217.67
6.
4 inch
100M
277.85
7.
6 inch
134M
370.87
8.
8 inch
239M
658.13
9.
Larger than
8 inch to be agreed upon by contract.
ORD. NO. 2
(4) Fire sprinkler connection ...................................................................... $32.40
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 18th day of September, 2001.
FWAM�
ORD. NO. 3
1) ""APPROVED AS •FORM: