HomeMy WebLinkAbout031028 ORD - 12/20/2016 Ordinance amending the Code of Ordinances, City of Corpus Christi,
Chapter 55, Utilities, Section 55-50 (a)(2)e regarding Resale Treated
Water Rates and Section 55-50 (b) regarding debt service component
of raw water cost adjustment; providing for publication and effective
date of January 1, 2017
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. Section 55-50, subsection (a)(2)e of the Code of Ordinances regarding
Resale Treated Water Rates is revised with new rates as shown in underlined text below
to be effective on January 1, 2017.
Sec. 55-50. -Schedule.
(a) Base rates for water service. The rates for water service are as follows:
(1) Monthly minimum charges.
a. Metered treated water customers.
1. Inside city limits ("ICL"):
Meter Size Effective
(Inches) January 1, 2016Y;k
Residential
5/8 —% __ ----- -$12.14 ___-
i
Commercial
5/8 —% 12.14
Residential and Commercial
1 18.21
11/2 30.35
2 60.70
3 97.12
031CC8
Page 1
INDEXED
4 194.24
1 303.50
8 and larger 607.00
Large Volume
{
Any size 22,784.00
Temporary construction
1 18.21
1h 30.35
2 60.70
2. Outside city limits ("OCL"):
Meter Size
° Effective
(Inches) January 1, 2016`,
Residential
5/8 —% $ 14.57
Commercial
it
5/8 —% 14.57
Residential and Commercial
1 21.85
36.42
Page 2
2 72.84
_ I
3 116.54
4 233.09
6 364.20
8 and larger 728.40
I _ _
Large Volume
Any size 38,015.00
Temporary construction
r
1 21.85
1%2 36.42
2 72.84
b. Untreated water customers.
Effective
anuary 1,
2016
Minimum monthly service charge, water districts/municipalities with raw water supply
$417.99
contracts executed after January 1, 1997
Minimum monthly service charge for public agency for resale untreated water without a
254.57
raw water supply contract executed after January 1, 1997 1
Minimum monthly service charge, industrial 436.88
Minimum monthly service charge, domestic 14.55
Page 3
Minimum annual service charge, domestic 145.62
Minimum monthly service charge, agricultural irrigation water service 218.29
Minimum monthly service charge, temporary construction water service ! 291.05
Minimum monthly service charge, temporary large volume industrial untreated water
customers obtaining water, which is under contract to the city, from a reservoir under the 1,679.64
exclusive control of a river authority
1Minimum 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$254.57, the customer shall be billed$254.57, 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.
c. Blended water customers.
Effective
January 1, 2016
3
Any size $36,280.00
(2) Monthly volume charges per 1,000 gallons.
a. Residential rate.
1. Inside city limits:
Effective
January 1, 2016
First 2,000 GallonsMinimum*
Next 4,000 Gallons 1 $6.07
Next 9,000 Gallons 6.980 {{I
i I
Page 4
Over 15,000 Gallons 7.59
{
*Use the minimum charges in subsection (a)(1).
2. Outside city limits:
Effective
January 1, 2016
First 2,000 Gallons Minimum*
Next 4,000 Gallons $2.34
Next 9,000 Gallons 2.92
Over 15,000 Gallons 3.65
*Use the minimum charges in subsection (a)(1).
b. Commercial rate.
1. Inside city limits:
Effective
January 1, 2016
First 2,000 Gallons Minimum*
Over 2,000 Gallons $6.781
*Use the minimum charges in subsection (a)(1).
2. Outside city limits:
Effective
�.. .. .. .. � ..,, ° anuary 1, 2016
Page 5
First 2,000 Gallons Minimum*
Over 2,000 Gallons $3.012
*Use the minimum charges in subsection (a)(1).
c. Golf course and athletic field irrigation water inside city limits.
Effective
January 1, 2016
First 2,000 Gallons Minimum*
Over 2,000 Gallons $3.092
*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, 2016
First 2,000 Gallons Minimum*
Over 2,000 Gallons $7.59
2. Outside city limits
Meter Size Effective
(Inches) January 1, 2016
First 2,000 Gallons Minimum*
Over 2,000 Gallons $3.65
Page 6
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 , ;
` 4060` January 1, 2016 January 0
First 2,000 Gallons Minimum*
Over 2,000 Gallons $1.332 $1.331
*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, 2016 January 1, 2017
First 2,000 Gallons Minimum*
Over 2,000 Gallons $1.964 $1.930
*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 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, 201:#
First 10,000,000 Gallons Minimum* I
Page 7
Each Additional 1,000 Gallons $5.686
*Use the minimum charges in subsection (a)(1).
2. Outside city limits:
Effective
k 9
*47 January 1, 2016 ",,
First 10,000,000 Gallons Minimum*
Each Additional 1,000 Gallons $1.998
*Use the minimum charges in subsection (a)(1).
g. Large volume blended water customers. A commercial blended water customer who agrees
to purchase a minimum of ten million (10,000,000) gallons of blended water per month is
considered a large volume blended water customer.
1. Inside city limits:
Effective-
January 1, 2016
First 10,000,000 Gallons Minimum*
Each Additional 1,000 Gallons $3.628
*Use the minimum charges in subsection (a)(1).
2. Outside city limits:
Effective
January 1, 20161
First 10,000,000 Gallons Minimum*
Page 8
r .
Each Additional 1,000 Gallons I $0.127
*Use the minimum charges in subsection (a)(1).
3. Peaking factor. [To be determined.]
h. Temporary water service.
1. Treated water.
A. Inside city limits:
Effective
, yyyyy
r " January 1, 2016,
First 2,000 Gallons Minimum*
Over 2,000 Gallons _ W $6.781
*Use the minimum charges in subsection (a)(1).
B. Outside city limits:
Effective
January 1, 2016
First 2,000 Gallons Minimum*
Over 2,000 Gallons $3.012
*Use the minimum charges in subsection (a)(1).
2. Untreated water.
A. Inside city limits:
Effective
January 1, 2016
Page 9
C ,
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, 2016
First 2,000 Gallons Minimum*
Over 2,000 Gallons 2 x RWCA
*Use the minimum charges in subsection (a)(1).
i. Agricultural irrigation water outside city limits.
Effective
January 1, 2016
First 2,000 Gallons Minimum*
Over 2,000 Gallons 1 2 x RWCA
*Use the minimum charges in subsection (a)(1).
j. 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.
k. 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.
Page 10
Effective
January 1, 2016
First acre foot or fraction thereof Minimum*
Over acre foot $1,206.98 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 calculated every odd-numbered year no later than October 1 to
be effective the following January of even-numbered years using the adopted utility rate model. Two
(2) subsequent years' RWCA will be calculated according to the following procedures, and then an
average rate determined which will yield raw water required revenues over a two-year period:
(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.
Page 11
(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 1.35 times 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).
(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.
Page 12
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.No.24531, § la, 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)
That the foregoing o d'nnce was read for th first time and passed to its second
l
reading on this the day of C12. , 2016, by the following vote:
Dan McQueen Ben Molina ILL, I
Rudy Garza Lucy Rubio IV
Paulette Guajardo Sit Greg Smith /t ;
Michael Hunter Carolyn Vaughn 4__ It
Joe McComb /
That the foregoing ordin ce was re d for the second time and passed finally on this
the �D day of Q �2,{ QR , 2016, by the following vote:
Dan McQueen Ben Molina
Rudy Garza Lucy Rubio
Paulette Guajardo L AJ' Greg Smith
Michael Hunter fin_, Carolyn Vaughn ITIS •
Joe McComb H? '
031028 Page 13
PASSED AND APPROVED, this the 9C day of , 2016.
ATTEST:
k)eliex-e, (A-c.
Rebecca Huerta Dan McQueen
City Secretary Mayor
EFFECTIVE DATE
4
031028 Page 14
PUBLISHER'S AFFIDAVIT
State of Texas } CITY OF CORPUS CHRISTI
County of Nueces } Ad# 1415047
PO#
Before me, the undersigned, a Notary Public,this day personally came 6-/- ( Q w`f°q , who
being first duly sworn, according to law, says that she is LEGAL SALES REPRESENATIVE AND
EMPLOYEE OF THE PUBLISHER, namely,the Corpus Christi Caller-Times, a daily newspaper
published at Corpus Christi in said City and State, generally circulated in Aransas, Bee, Brooks, Duval,
Jim Hogg, Jim Wells, Kleberg, Live Oak, Nueces, Refugio, and San Patricio, Counties, and that the
publication of NOTICE OF PASSAGE OF ORDINANCE(S)NO which the annexed is a true copy,
was inserted in the Corpus Christi Caller-Times on:
CC-Corpus Christi Caller-Times 12/26/16 Mon
CC-Internet - caller.com 12/26/16 Mon
LEGAL SALES REPRESENTATIVE
On this7:1 day of '"d'W, 20 ! 'l certify that the attached document is a true
and exact copy made by publisher.
Notary Public, State of Texas
rMICHELLE JOYCE CABRERA
My Notary ID#124864183
%., t `. Expires March 19;2020
2E Monday, December 26,2016 Caller-Times
Legals
NOTICE OF PASSAGE OF
ORDINANCE(S)
NO. 031028, Ordinance
amending the Code of Ordi-
nances, City of Corpus
Christi, Chapter 55, Utili-
ties, Section 55-50 (a)(2)e
regarding Resale Treated
Water Rates and Section
55-50 (b) regarding debt
service component of raw
water cost adjustment; pro-
viding for publication and
an effective date of Janu-
ary 1, 2017. This ordinance
was passed and approved
on second reading by the
Corpus Christi City Council
on December 20,2016.
/s/Rebecca Huerta
City Secretary