M&C Review


COUNCIL ACTION:  Approved on 8/30/2016 - Ordinance No. 22375-08-2016

DATE: 8/30/2016 REFERENCE NO.: G-18807 LOG NAME: 60WHOLESALE RATES 2017
CODE: G TYPE: NON-CONSENT PUBLIC HEARING: NO
SUBJECT:  

Adopt Ordinance Revising Wholesale Water, Wastewater and Raw Water Service Rates and Amending Chapter 35 – Water and Sewers, Article III – Charges, Division 1 – Generally, Sections 35-56(g) (h) and (i) of the City Code with an Effective Date of Billing On or After November 1, 2016 for Usage and Flows from and After October 1, 2016 for Water and Wastewater (ADJACENT TO ALL COUNCIL DISTRICTS)


RECOMMENDATION:

It is recommended that the City Council adopt the attached ordinance revising wholesale water, wastewater and raw water service rates and amending Chapter 35 – Water and Sewers, Article III – Charges, Division 1 – Generally, Sections 35-56 (g) (h) and (i) of the City Code, with an effective date of billing on or after November 1, 2016, for usage and flows from and after October 1, 2016 for water and wastewater.

 
DISCUSSION:

Each year Wholesale Water and Wastewater rate studies are prepared in accordance with the terms of the uniform wholesale customer contracts.

For Fiscal Year 2017, the Wholesale Water cost of service and rate study was performed by Water Department staff while the Wholesale Wastewater study was performed by Arcadis, Inc., per the uniform contract requirements. The results of these studies indicate the need for an increase of 1.27 percent in Wholesale Water rates and a decrease of 1.59 percent in Wholesale Wastewater rates. The rates as proposed in the table below will recover the cost of providing Wholesale Water and Wastewater service.

A joint meeting of the Wholesale Water Advisory Committee and the Wholesale Wastewater Advisory Committee was held June 10, 2016, to present the studies and the rates.

WHOLESALE WATER RATES                           

Current

Proposed
Volume ($ per 1,000 gallons)

$0.9523

$0.9315

Maximum Day ($ per MGD excess) $128,074.00 $148,319.00
Maximum Hour ($ per MGD excess)

$41,788.00

$5,960.00

Monthly Customer Charge per meter

$25.00

$25.00

                                

The City also enters into Wholesale Water contracts with standby customers who do not use water on a regular basis. These customers are assessed a minimum charge equal to the three year numerical average of the treatment, pumping and transmission charge per 1,000 gallons. The charge for Fiscal Year 2017 shall be $0.7926 per 1,000 gallons per month.





RAW WATER RATES

The cost of untreated water supplied by the Tarrant Regional Water District is $1.26776 for use inside the district and $1.27676 outside the district. Adjusted for street rental and system loss, the raw water charge to customers is $1.38186 inside the district and $1.39167 outside the district and is a direct "pass through" cost to Wholesale Water customers.

WHOLESALE WASTEWATER RATES                                                  

Current Proposed
Volume ($ per 1,000 gallons) $1.2784

$1.1785

BOD (per pound) $0.3532

$0.4124

TSS (per pound) $0.2514

$0.2279

Monthly Customer Charge

$75.00

$75.00

This M&C does not request the approval of a business entity.

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that the Water Department is responsible for the collection and deposit of funds due to the City.

TO
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

FROM
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

Submitted for City Manager's Office by:
Jay Chapa (5804)
Originating Department Head:
John Carman (8246)
Additional Information Contact:
Robert Shook (8402)

 
 
ATTACHMENTS
  60WHOLESALE RATES 2017 Fund Identifiers.pdf
  WHOLESALERATES2016.doc