HomeMy WebLinkAbout031632 ORD - 12/11/2018 Ordinance amending the Code of Ordinances, Chapter 55, Utilities, Section 55-50
(a)(2)e regarding Resale Treated Water Rates; effective January 1, 2019.
SECTION 1. Section 55-50, subsection (a)(2)e regarding Resale Treated Water Rates is
revised with new rates as shown in underlined text below to be effective January 1, 2019.
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, 2018
Residential
5/8 —3/ $12.70
Commercial
5/8 —% 12.70
Residential and Commercial
1 19.05
1% 31.70
2 63.40
3 101.40
4 202.80
6 316.90
8 and larger 633.75
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031632.
SCANNED
Large Volume
Any size 23,797.00
Temporary construction
1 19.05
1%2 31.70
2 63.40
2. Outside city limits ("OCL"):
Meter Size Effective
(Inches) January 1, 2018
Residential
5/8 —% $ 15.25
Commercial
5/8 —3/ 15.25
Residential and Commercial
1 22.85
38.05
2 76.05
3 121.70
4 243.40
6 380.25
2
8 and larger 760.50
Large Volume
Any size 39,706.00
Temporary construction
1 22.85
1%2 38.05
2 76.05
b. Untreated water customers.
Effective
January 1,
2018
Minimum monthly service charge, water districts/municipalities with raw water supply
$432.20
contracts executed after January 1, 1997
Minimum monthly service charge for public agency for resale untreated water without a
263.23
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 irrigation water service 225.71
Minimum monthly service charge, temporary construction water service 300.95
Minimum monthly service charge, temporary large volume industrial untreated water 1,736.75
customers obtaining water, which is under contract to the city,from a reservoir under the
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exclusive control of a river authority
' 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.
c. Blended water customers.
Effective
January 1, 2018
Any size $37,513.52
(2) Monthly volume charges per 1,000 gallons.
a. Residential rate.
1. Inside city limits:
Effective
January 1, 2018
First 2,000 Gallons Minimum*
Next 4,000 Gallons $6.35
Next 9,000 Gallons 7.30
Over 15,000 Gallons 7.95
*Use the minimum charges in subsection (a)(1).
2. Outside city limits:
Effective
January 1, 2018
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First 2,000 Gallons Minimum*
Next 4,000 Gallons $2.45
Next 9,000 Gallons 3.05
Over 15,000 Gallons 3.85
*Use the minimum charges in subsection (a)(1).
b. Commercial rate.
1. Inside city limits:
Effective
January 1, 2018
First 2,000 Gallons Minimum*
Over 2,000 Gallons $7.05
*Use the minimum charges in subsection (a)(1).
2. Outside city limits:
Effective
January 1, 2018
First 2,000 Gallons Minimum*
Over 2,000 Gallons $3.30
*Use the minimum charges in subsection (a)(1).
c. Golf course and athletic field irrigation water inside city limits.
Effective
January 1, 2018
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First 2,000 Gallons Minimum*
Over 2,000 Gallons $3.40
*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, 2018
First 2,000 Gallons Minimum*
Over 2,000 Gallons $7.95
2. Outside city limits
Meter Size Effective
(Inches) January 1, 2018
First 2,000 Gallons Minimum*
Over 2,000 Gallons $3.85
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, 20182019
First 2,000 Gallons Minimum*
Over 2,000 Gallons $ 1.527 4404
*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:
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Effective
January 1, 2019 2018
First 2,000 Gallons Minimum*
Over 2,000 Gallons $2.207 2.075
*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, 2017
First 10,000,000 Gallons Minimum*
Each Additional 1,000 Gallons $5.80
*Use the minimum charges in subsection (a)(1).
2. Outside city limits:
Effective
January 1, 2018
First 10,000,000 Gallons Minimum*
Each Additional 1,000 Gallons $2.20
*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:
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Effective
January 1, 2018
First 10,000,000 Gallons Minimum*
Each Additional 1,000 Gallons $3.751
*Use the minimum charges in subsection (a)(1).
2. Outside city limits:
Effective
January 1, 2018
First 10,000,000 Gallons Minimum*
Each Additional 1,000 Gallons $0.1314
*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
January 1, 2018
First 2,000 Gallons Minimum*
Over 2,000 Gallons $7.05
*Use the minimum charges in subsection (a)(1).
B. Outside city limits:
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Effective
January 1, 2018
First 2,000 Gallons Minimum*
Over 2,000 Gallons $3.45
*Use the minimum charges in subsection (a)(1).
2. Untreated water.
A. Inside city limits:
Effective
January 1, 2018
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, 2018
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, 2018
First 2,000 Gallons Minimum*
Over 2,000 Gallons 2 x RWCA
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*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.
Effective
January 1, 2018
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 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.
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(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).
(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.
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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. 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; Ord. No.
031028, § 1, 12-20-2016; Ord. No. 031244, § 1, 9-12-2017)
SECTION 2. Publication shall me made in the official publication of the City of Corpus Christi as
required by the City Charter. This ordinance and all revised rates included in this ordinance
take effect on January 1, 2019.
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That the foregoing rdinanc was read for the first time and passed to its second reading on this
theday of X4018, by the following vote:
Joe McComb Ben Molina ay,
Rudy Garza Cl— Everett Roy ( _
Paulette Guajardo arc., Lbio V Q-(S
Michael Hunter A4 Greg Smith L1
Debbie Lindsey-Opel (.
That the foregoin ordinance was read for the second time and passed finally on this the
day of , by the following vote:
Joe McComb L„ Ben Molina Li
Rudy Garza * Everett Roy 4 I
Paulette Guajardo I! Rubio V af a ,4A—
Michael Hunter I ,i i Greg Smith AbuAJ-
Debbie
Lindsey-Opel 14,t
PASSED AND APPROVED on thi the I I day of 1 0 j41! I18.
ATTEST:
1 . 4: 1 AI -
R=•ecca Huerta J'-e cComb
City Secretary .yu r
EF , L:YIVIE DATE
_141,1__CL-
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