HomeMy WebLinkAbout033466 ORD - 09/25/2024 Ordinance amending Corpus Christi Code Section 55-50 regarding water rates,
effective January 1, 2025
Whereas, the City of Corpus Christi last amended its utility rates which
took effect January 1, 2024;
Whereas, the City Council has received presentation on proposed
amendments to the utility rates to be effective January 1, 2025 and finds that the
proposed rates are just and reasonable and rely upon reasonable methodologies to
allocate costs of providing service in calculating the cost of service;
Now, therefore, be it ordained by the City Council for the City of Corpus Christi,
Texas:
Section 1. The City Council specifically finds that the foregoing statements included in
the preamble of this ordinance are true and correct and adopts such findings for all intents
and purposes related to the authorization of this ordinance.
Section 2. That the City Code Section 55-50 is amended to revise water rates as shown
in redline text follows on attached and incorporated Exhibit A.
Section 3. The rates as amended by this Ordinance are determined to be just and
reasonable. In addition, the rates are not unreasonably preferential, prejudicial,
or discriminatory but are sufficient, equitable, and consistent in application to each class
of customers.
Section 4. If for any reason any section, paragraph, subdivision, clause, phrase, word,
or provision of this ordinance shall be held invalid or unconstitutional by final judgment
of a court of competent jurisdiction, it shall not affect any other section,
paragraph, subdivision, clause, phrase, word or provision of this ordinance, for it is the
definite intent of this City Council that every section, paragraph, subdivision, clause,
phrase, word or provision hereof be given full force and effect for its purpose.
Section 5. Publication shall be made in the official publication of the City of Corpus Christi
as required by the City Charter of the City of Corpus Christi.
Section 6. This rates as amended by this ordinance take effect January 1, 2025.
Introduced and voted on the �0�day of A m , 2024.
PASSED and APPROVED on the 11�`^ day of , 2024.
ATTEST:
y�c
Paulette Guajardo, May Rebecca Huerta, City Secretary
EFFECTIVE DATE
033466 SCANNED
EXHIBIT A
Sec. 55-50. Schedule.
(a) Base rates for water service.The rates for water service areas follows:
(1) Monthly minimum charges.
a. Metered treated water customers.
1. Inside city limits("ICL"):
Meter Size Effective
(Inches) January 1,20245
Residential
%—% $32.0215.83
Commercial
%—% $12.92 15.83
Residential and Commercial
1 $32.30 39.58
1%2 $64.69 79.15
2 $103.36 126.64
3 $193-89 237.45
4 $323.00 395.75
6 $710.69 870.65
8 $'',' 89 1,424.70
10 $',r 38.49 2,374.50
16 or larger $1,938.90 2,374.50
Large Volume
Any size $'^,"'�9 35,092.90
Temporary construction
1 $32 30 39.58
1% $64-.G9 79.15
2 $ 6126.64
2. Outside city limits("OCL"):
Meter Size Effective
(Inches) January 1,20245
Residential
%—% $19:49 15.83
Commercial
%—% $18.49 15.83
Residential and Commercial
1 $48.45 39.58
1% $96.39 79.15
2 $15E 04 12 6.64
3 $290,79 237.45
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4 $484.59 395.75
6 $1,965.40 870.65
8 $1,7�—,-44io 1,424.70
10 $2,°�9 2,374.50
16 or larger $ 99 2,374.50
Large Volume
Any size $2^_9 35,092.90
Temporary construction
1 $49.45 39.58
1% $96,99 79.15
2 $ 6 126.64
b. Untreated water customers.
Effective
January 1,2020
Minimum monthly service charge,water $432.20
districts/municipalities with raw water supply
contracts executed after January 1, 1997
Minimum monthly service charge for public $263.23
agency for resale untreated water without a raw
water supply contract executed after January 1,
19971
Minimum monthly service charge, industrial $451.73
Minimum monthly service charge, domestic $15.04
Minimum annual service charge, domestic $150.57
Minimum monthly service charge, agricultural $225.71
irrigation water service
Minimum monthly service charge,temporary $300.95
construction water service
Minimum monthly service charge,temporary $1,736.75
large volume industrial untreated water
customers obtaining water, which is under
contract to the city,from a reservoir under the
exclusive control of a river authority
1 Minimum monthly charge for public agency for resale untreated water customer without a raw water supply
contract executed after January 1, 1997: If the charge based on the volume of water taken in a monthly billing
period is less than$263.23,the customer shall be billed$263.23, unless a valid water supply contract between the
customer and city that was executed prior to January 1,1997, provides for a minimum annual payment. If a valid
water supply contract between the customer and city executed prior to August 1,2000, provides for a minimum
annual payment,the customer shall pay the minimum annual payment under the contract.
(2) Monthly volume charges per 1,000 gallons.
a. Residential rate.
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1. Inside city limits:
Effective
January 1, 20245
First 2,000 Gallons Minimum*
Next 4,000 Gallons $ 3.94
Next 9,000 Gallons
Over Next 1-50,000 Gallons
Over 25,000 Gallons 11.82
*Use the minimum charges in subsection(a)(1).
2. Outside city limits:
Effective
January 1,20245
First 2,000 Gallons Minimum*
Next 4,000 Gallons $-5-.99 3.94
Next 9,000 Gallons $5$3-5.91
Over Next 1-50,000 Gallons $6.367.88
Over 25,000 Gallons 11.82
*Use the minimum charges in subsection(a)(1).
b. Commercial rate.
1. Inside city limits:
Effective
January 1,20245
First 2,000 Gallons Minimum*
Over 2,000 Gallons $ %3.94
*Use the minimum charges in subsection(a)(1).
2. Outside city limits:
Effective
January 1,20245
First 2,000 Gallons Minimum*
Over 2,000 Gallons $&.-&6 3.94
*Use the minimum charges in subsection(a)(1).
C. Gelf ce -se GRd athletic-F.^' ' lirrigation water inside and outside city limits.
Effective
January 1,20245
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First 2,000 Gallons Minimum*
Over 2,000 Gallons $9—.-S-7 7.88
*Use the minimum charges in subsection(a)(1)for ICL customer.
d. Residential irrigation water on separate meter.
1. Inside city limits:
Meter Size Effective
(Inches) January 1,20245
First 2,000 Gallons Minimum*
Over 2,000 Gallons $6—.3457.88
2. Outside city limits
Meter Size Effective
(Inches) January 1, 20245
First 2,000 Gallons Minimum*
Over 2,000 Gallons $6—.36 7.88
e. Resale treated water rates.
1. Treated water rates purchased for resale where the water is taken and metered at the site
of treatment are hereby set as follows:
Effective
January 1, 20245
First 2,000 Gallons Minimum*
Over 2,000 Gallons $3—.74 2.09
*Use the minimum charges in subsection (a)(1).
2. Treated water rates purchased for resale where the water is delivered to the resale entity
through city facilities are hereby set as follows:
Effective
January 1, 20245
First 2,000 Gallons Minimum*
Over 2,000 Gallons $244 2.49
*Use the minimum charges in subsection(a)(1).
f. Large volume treated water customers. A commercial treated water customer who agrees to pay
for a minimum of ten million(10,000,000)gallons of treated water per month is considered a
large volume treated water customer. Once a customer has elected to become a large volume
treated water customer,the customer will be billed as a large volume treated water customer
until the customer notifies the city and requests reclassification as a commercial customer in
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writing. However,a commercial customer may not elect to become a large volume treated water
customer more than once in any twelve-month period.
1. Inside city limits:
Effective
January 1, 20245
First 10,000,000 Gallons Minimum*
Each Additional 1,000 $3.94
Gallons
*Use the minimum charges in subsection (a)(1).
2. Outside city limits:
Effective
January 1, 20245
First 10,000,000 Gallons Minimum*
Each Additional 1,000 $3.94
Gallons
*Use the minimum charges in subsection(a)(1).
3. Peaking factor. [To be determined.]
g. Temporary water service.
1. Treated water.
A. Inside city limits:
Effective
January 1,20245
First 2,000 Gallons Minimum*
Over 2,000 Gallons $&.--5-6 3.94
*Use the minimum charges in subsection(a)(1).
B. Outside city limits:
Effective
January 1, 20245
First 2,000 Gallons Minimum*
Over 2,000 Gallons $5-.56 3.94
*Use the minimum charges in subsection (a)(1).
2. Untreated water.
A. Inside city limits:
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Effective
January 1,2022
First 2,000 Gallons Minimum*
Over 2,000 Gallons 2 x RWCA
*Use the minimum charges in subsection(a)(1).
B. Outside city limits:
Effective
January 1,2022
First 2,000 Gallons Minimum*
Over 2,000 Gallons 2 x RWCA
*Use the minimum charges in subsection(a)(1).
h. Agricultural irrigation water outside city limits.
Effective
January 1,2022
First 2,000 Gallons Minimum*
Over 2,000 Gallons 2 x RWCA
*Use the minimum charges in subsection(a)(1).
i. Public agency for resale untreated water rates.The rates for the purchase of untreated water
purchased by a public agency,which does not have a raw water supply contract with the city
executed after January 1,1997,is the average of the monthly raw water cost adjustments,
established under subsection(b)of this section,for the period used to determine the composite
cost of untreated water under the city's current contract with the public agency.
j. Temporary large volume industrial untreated water customers obtaining water,which is under
contract to the city,from a reservoir under the exclusive control of a river authority.
Effective
January 1,2020
First acre foot or fraction thereof Minimum*
Over acre foot $1,248.02 per acre foot or fraction thereof
*Use the minimum charges in subsection(a)(1).
(b) Raw water cost adjustment(RWCA). In addition to the charges for the base rates for water service,
established in subsection (a),a separate charge for the costs of raw water,the RWCA,will be added to each
consumer's bill,except public agency for resale untreated water customers without a raw water supply
contract executed after January 1,1997.(A public agency for resale untreated water customer without a raw
water supply contract executed after January 1, 1997,will pay the lower of the composite cost,as defined in
its contract with the city or the rate for public agency for resale untreated water customers without a raw
water supply contract executed after January 1, 1997,specified in subsection(a)(2)g.of this section.)The
RWCA will be based on projected system-wide raw water sales,adjusted for water losses.The RWCA will be
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calculated every odd numbered year no later than October 1 to be effective the following January of evenr
numbeFed years using the adopted utility rate model.Twe("subsequent ^^Fs'RWCA will be ealeu f^ '
acceFeling te the following pFeeedWes,and then an aveFage Fate deteFFAined whieh will yield FaW wateF
..d revenues eveF a t yeaF peFied;
(1) Use projected system-wide water sales based on historical consumption and projected growth,with
adjustments for water losses.
(2) Include the annual budgeted cost of debt service. Bond payments,amortization of deferred losses on
refundings,and other debt service costs shall be applied to the RWCA in the same proportion as the
raw water activities proportion of the original bond proceeds.
(3) Include budgeted expenditures for purchases of water.
(4) Include purchases of water rights,amortized over the duration of the water right agreement.
(5) Budgeted expenditures for capital items shall be included as follows:
a. The expense of acquiring a capital item that costs not more than five hundred thousand dollars
($500,000.00)shall be charged in the year in which it is acquired.
b. The expense of acquiring a capital item that costs more than five hundred thousand dollars
($500,000.00)shall be amortized over the number of years used to calculate depreciation
expenses,with the half-year convention used in the year of acquisition.
(6) All operating and maintenance expenditures shall be charged based on annual budgeted amounts.
These expenditures include operation and maintenance of dams,reservoirs, pipelines,wells, pumping
stations,and related interfund charges.
(7) All expenses for consultants,engineering, legal services,and administration shall be charged based on
annual budgeted amounts in the proportion to which they apply to raw water issues.
(8) Expenses related to the acquisition and transportation of emergency water supplies shall be included
in the RWCA for the following fiscal year, unless foreseen and budgeted in advance,in which case they
are included in the year budgeted,
(9) Miscellaneous revenues related to raw water activity,such as oil and gas lease revenues and rentals,is
applied as an offset based on annual budgeted amounts.
(10) Apply the credit for levelized Choke Canyon debt payments to city rate payers' RWCA.(The escalating
payment schedule on the Choke Canyon debt was levelized through the creation of a reserve fund. In
the initial years, payments greater than the debt service were made,with the excess going into the
reserve fund.This excess was paid through a rate surcharge on ICL and OCL metered treated water
customers. Now that bond payments exceed the levelized payment amount,the reserve fund is drawn
on to make up the difference.Since only ICL and OCL metered treated water customers participated in
building the reserve fund,the drawing on the reserve fund is only credited to the RWCA assessed
against ICL and OCL metered treated water customers.)
(11) Include funds necessary to collect coverage required on current annual debt service in order to comply
with bond covenants,and improve the financial position and bond ratings of the city's water fund.
(12) Include funds necessary to establish and maintain an operating reserve fund with a target amount of
twenty-five(25) per cent(or three(3)months)of annual operating expenses for the fiscal year.
(13) Include funds necessary to establish and operate a water capital reserve fund with a target amount of
two(2)per cent of the respective annual water capital improvements program for the fiscal year or
two million dollars($2,000,000.00)(whichever is greater).
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(14) Include funds necessary to establish and maintain a future water resources reserve fund(water supply
development reserve)with an ultimate target balance of thirty million dollars($30,000,000.00), and an
annual contribution of approximately two million dollars($2,000,000.00)per fiscal year. Revenue from
this water supply development reserve will be deposited into a fund set aside for this purpose.
(15) The minimum operating or capital reserves amounts are intended to provide for unplanned,
unbudgeted expenses and revenue shortfalls,and will not be used for routine expenses.
(16) Determine the amount of over or under collections that have resulted from difference between
budgeted and actual expenses and offsetting revenues and the difference between projected and
actual volume of water sold for the prior two(2)years.Any funds realized in excess of annual expenses
are available for either supplementing minimum operating or capital reserves,for addition to the
capital funds for discretionary cash capital funding of the water utility,or to create and maintain a
reserve to level out large fluctuations in raw water charges is authorized.Apply any remaining amount
as an adjustment to the RWCA.
(c) Definitions.
Costs of raw water is the total of all costs of acquiring,producing,storing,conserving,and transporting untreated
water from its source to the city's treatment facility and all other points of diversion.These costs include, but are
not limited to,the costs of:
Construction,including debt service,operation,and maintenance of dams and reservoirs.
Construction, including debt service,operation,and maintenance of raw water supply transmission pipelines.
Construction,including debt service,operation,and maintenance of wells.
Construction,including debt service,operation,and maintenance of facilities capable of converting
wastewater effluent,salt water,and brackish ground water into water suitable for municipal,industrial,or
agricultural uses.
Acquisition of new water supplies and water rights,including the establishment and funding of a reserve
dedicated to offset the costs of acquisition of additional water rights and the implementation of long-range
water resource development and related capital improvements.
Construction,operation,and maintenance of facilities to reduce water losses from water resources due to
evaporation or the release of water from a reservoir due to the operation of law.
Acquisition and transportation of emergency water supplies,including the costs of transporting water by
vessel or pipelines from other regions.
Water supply development and protection,including consultants'studies and reports,investigations, legal
fees,court costs,and any other costs related to the development or protection of the water supply.
Administrative costs,including overhead and the portion of the city's general administrative costs applicable
to the activities enumerated in this definition.
(d) The raw water cost adjustment shall be calculated on an annual basis for those large volume wholesale
customers with contracts containing such provisions.
(Ord. No.9472,8-27-1969;Ord. No. 11613,8-8-1973;Ord. No. 12208, §§1,2,8-7-1974;Ord. No. 14140, §§1-3,
1-25-1978;Ord. No. 16446,§§1,2,8-12-1981;Ord. No. 16593§1, 10-14-1981;Ord. No. 17166,§§1-3,7-28-
1982;Ord. No. 17762,§§1,2,8-3-1983;Ord. No. 18351,§§1,2,7-24-1984; Ord. No. 18587,§§1,2, 12-4-1984;
Ord. No.20411, §§ 1,2,7-26-1988;Ord. No.21001,§1, 10-9-1990;Ord. No.21438,§§1-4,7-21-1992;Ord. No.
21814,§1(a)-(c), 12-14-1993;Ord. No.22741,§1, 11-12-1996;Ord. No.22832,§1, 1-28-1997;Ord. No.22879,§
1,3-25-1997;Ord. No.23706, §1,7-20-1999;Ord. No.23910,§1, 1-11-2000;Ord. No.24132,§ 1,7-25-2000;Ord.
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I
I
E
t
No.24531,§1a,7-24-2001;Ord. No.24969,§1,7-23-2002;Ord. No.25386, § 1,7-22-2003;Ord. No.025866,§1,
7-27-2004;Ord.No.026368,§1,7-26-2005;Ord. No.026900, §1,7-25-2006;Ord. No.027355, §1,7-24-2007;
Ord. No.027781,§1,7-22-2008;Ord. No.028256,§1,7-28-2009; Ord. No.028686,§1,7-20-2010;Ord. No.
029158, §1,7-26-2010;Ord. No.029386, §1,2-28-2012;Ord. No.029584, §1,7-31-2012;Ord. No.029917,§1,7-
30-2013;Ord. No.030242,§2(Exh.A),7-29-2014;Ord. No.030295, §1,9-23-2014;Ord. No.030605, §1,9-8-
2015;Ord. No.030718,§1, 12-15-2015;Ord. No.031028, §1, 12-20-2016;Ord. No.031244,§1,9-12-2017;Ord.
No.031632,§1,12-11-2018;Ord. No.031873, §1,9-17-2019;Ord. No.032307, §1, 12-8-2020;Ord. No.032552,
§1,9-7-2021;Ord. No.032853,§1,9-6-2022;Ord. No.033149,§ 1,9-5-2023)
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