M&C Review


COUNCIL ACTION:  Approved on 9/11/2018 - Ordinance No. 23377-09-2018

DATE: 9/11/2018 REFERENCE NO.: G-19364 LOG NAME: 60WHOLESALE RATES 2019
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, and Amending Chapter 35 - Water and Sewers, Article VIII – Reclaimed Water, Division 2 – Reclaimed Water Service, Section 35-188 (a) of the City Code with an Effective Date of Billing on or After November 1, 2018 for Usage and Flows From and After October 1, 2018 for Water, Wastewater and Reclaimed Water Service (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, and amending Chapter 35 - Water and Sewers, Article VIII – Reclaimed Water, Division 2 – Reclaimed Water Service, Section 35-188 (a) of the City Code with an effective date of billing on or after November 1, 2018, for usage and flows from and after October 1, 2018 for water, wastewater and reclaimed water service.

 
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 2019, the wholesale water and wastewater cost of service and rate studies were performed by Water Department staff, per the uniform contract requirements. The results of these studies indicate the need for an increase of 3.09 percent in wholesale water revenue requirements and an increase of 12.05 percent in wholesale wastewater revenue requirements. 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 6, 2018, to present the studies and the rates.

WHOLESALE WATER RATES

CurrentProposed
Base Rate ($/1,000 gallons)

$0.9927

$1.0715

Maximum Day ($ per MGD excess)

$159,516.00

$156,337.00

Maximum Hour ($ per MGD excess)

$48,598.00

$50,407.00

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 FY2019 shall be $0.9324 per 1,000 gallons per month.

RAW WATER RATES
The cost of untreated water supplied by the Tarrant Regional Water District is $1.26220 per 1,000 gallons for use inside the district and $1.26520 outside the district. Adjusted for street rental and system loss, the raw water charge to customers is $1.3758 inside the district and $1.3791 outside the district and is a direct " pass through" cost to wholesale water customers.

WHOLESALE WASTEWATER RATES

CurrentProposed
Volume ($ Per 1,000 Gallons)

$1.1445

$1.3712

BOD ($ Per Pound)

$0.4241

$0.4162

TSS ($ Per Pound)

$0.2300

$0.2737

Monthly Customer Charge

$75.00

$75.00

RECLAIMED WATER RATES

On February 8, 2011 (M&C G-17201), the City Council adopted an ordinance amending Chapter 35 - Water and Sewers, by adding Article VIII – Reclaimed Water to define the terms and conditions for which reclaimed water may be provided to customers within the city's reclaimed water service area.

Originally, the retail rate for reclaimed water for irrigation users was set at 75% of the first retail irrigation tier, and the retail rate for reclaimed water for gas drilling activity was set at 75% of the retail gas driller rate.  Staff recommends amending Section 35-188 (a) to align the rate with the wholesale rate of $1.7364/1,000 gallons effective October 1, 2018, with rate increases of five percent annually.


This M&C does not request approval of a contract with 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:
Kara Shuror (8819)
Additional Information Contact:
Skipper Shook  (8402)

 
 
ATTACHMENTS
  wholesalerates2018vfinal2.doc