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G-09-08-27-8A3 - 8/27/2009ORDINANCE NO. (1-0 1-' -a' PA -3 AN ORDINANCE AMENDING CHAPTER 10, SECTIONS 10.201 AND 10.202, CODE OF ORDINANCES (1995 EDITION), CITY OF ROUND ROCK, TEXAS, REGARDING RATES FOR WATER AND SEWER SERVICE TO WHOLESALE CUSTOMERS; AND PROVIDING FOR A SAVINGS CLAUSE AND REPEALING CONFLICTING ORDINANCES AND RESOLUTIONS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS: I. That Chapter 10, Section 10.201, subsections (8) through (17), Code of Ordinances (1995 Edition), City of Round Rock, Texas, are hereby amended to read as follows: 10.201 WATER (8) Rates for Water Service to Wholesale Customers (a) The rate for water service to a wholesale customer shall consist of a monthly base charge and a volumetric charge per 1,000 gallons of water used. (b) The monthly base charge and the volumetric charge for water to wholesale customers is as follows: Effective October 1, 2009 1. Aqua Texas, Inc. Base Charge Volume Charge 2. Fern Bluff Municipal Utility District Base Charge Volume Charge 3. Paloma Lake Municipal Utility District #1 Base Charge Volume Charge 4. Paloma Lake Municipal Utility District #2 Base Charge Volume Charge 5. R&R Mobile Base Charge Volume Charge 6. Walsh Ranch Municipal Utility District Base Charge Volume Charge O:\wdox\SCC1n[s\0112\0905\MUNICIPAL\090813C3.DOC/jkg $4,185.00 1.55 $19,900.00 1.90 $800.00 2.05 $800.00 2.05 $850.00 1.48 $1,100.00 2.35 7. Williamson County Base Charge Volume Charge 8. Williamson County Base Charge Volume Charge 9. Williamson County Base Charge Volume Charge Municipal Utility District #9 Municipal Utility District #10 Municipal Utility District #11 Effective October 1, 2010 1. Aqua Texas, Inc. Base Charge Volume Charge 2. Fern Bluff Municipal Utility District Base Charge Volume Charge 3. Paloma Lake Municipal Utility District #1 Base Charge Volume Charge 4. Paloma Lake Municipal Utility District #2 Base Charge Volume Charge 5. R&R Mobile Base Charge Volume Charge 6. Walsh Ranch Municipal Utility District Base Charge Volume Charge 7. Williamson County Municipal Utility District #9 Base Charge Volume Charge 8. Williamson County Municipal Utility District #10 Base Charge Volume Charge 9. Williamson County Municipal Utility District #11 Base Charge Volume Charge Effective October 1, 2011 1. Aqua Texas, Inc. Base Charge Volume Charge 2. Fern Bluff Municipal Utility District Base Charge Volume Charge $10,000.00 1.98 $6,000.00 2.13 $4,000.00 2.25 $4,185.00 1.82 $19,900.00 2.08 $1,100.00 2.05 $1,100.00 2.05 $850.00 1.71 $1,800.00 2.35 $10,500.00 2.22 $9,000.00 2.15 $7,000.00 2.25 $4,185.00 2.12 $19,900.00 2.18 3. Paloma Lake Municipal Utility District #1 Base Charge Volume Charge 4. Paloma Lake Municipal Utility District #2 Base Charge Volume Charge $1,500.00 2.05 $1,500.00 2.05 5. R&R Mobile Base Charge $850.00 Volume Charge 1.90 6. Walsh Ranch Municipal Utility District Base Charge $2,600.00 Volume Charge 2.35 7. Williamson County Municipal Utility District #9 Base Charge $10,750.00 Volume Charge 2.50 8. Williamson County Municipal Utility District #10 Base Charge $12,000.00 Volume Charge 2.20 9. Williamson County Municipal Utility District #11 Base Charge $10,250.00 Volume Charge 2.25 (9) Water Service, Inspection and Meter Setting Fees (a) Water Inspection and Meter Setting Fee Each applicant for a plumbing permit, whether for new construction or otherwise, shall at the time the permit is issued, pay a water inspection and meter setting fee of one hundred dollars ($100.00) for each water tap utilizing a standard size water meter. As used herein, "standard size water meter" means either a five-eighths (5/8) inch or a three fourths (3) inch meter. In the event a water tap requires a nonstandard size water meter, the water inspection and meter setting fee shall be one hundred dollars ($100.00) plus the difference in actual cost of the water meter required and the actual cost of a standard size meter. (b) Fees for Water Service Outside City Limits Applicants for water service outside the city limits shall pay the same water fees as set forth above. Applicants who are otherwise required by contract to obtain building permits shall pay the fees when a permit is issued. Other applicants shall pay the fees when water service is requested. (10) Tampering with Meters and Lines Prohibited Whoever by any means or device prevents water from passing through any meter belonging to the City, or prevents any meter used in connection with the supply of water to any Customer by the City from registering the amount of water passing through such meter, or prevents a meter from duly registering the quantity of water supplied or in any way interferes with its proper action of just registration, or without the consent in writing of the Director, diverts any water from any pipe of the City's, or otherwise uses, or causes to be used, without the consent of the Director, any water produced or distributed by the City, or retains possession of, or refuses to deliver any meter, materials or equipment belonging to the City, regardless of how it came into his 3 possession, shall be in violation of this Section. The presence at any time on or about any such meter or pipe or any device or pipes resulting in the diversion of water or prevention of its free passage and registration by the meter, or resulting in the diversion from the meter as above defined, or resulting in the prevention of water reaching the meter, or resulting in the prevention of the just registration of the meter or meters or the taking of any water except through a meter as above set forth, shall constitute prima facie evidence on the part of the Person owning or having custody and control of the room, building, place or premises where such device or pipe is, or knowledge of the existence thereof and knowledge of such existence to the Person who would be benefitted by the failure of the water to be properly metered, and shall further constitute prima facie evidence of intention on the part of such Person to defraud, and shall bring such Person prima facie within the scope, meaning, and penalties of this Subsection. (11) Tampering with Hydrants and Other System Apparatus (a) It shall be unlawful for any person, except a member of the fire department, or employee of the City, to open or use water from a fire hydrant, or to take off the cap without permission from the City. (b) It shall be unlawful for any person, individually or in association with others, to willfully break, injure or tamper with any part of the City's system for any purpose whatsoever, or in any manner to maliciously interfere with or prevent the running and operation of the system and the water supply therein. (12) Responsibility for Water Leakage and Use; Discontinuance of Service The Customer shall be held responsible as consumers for loss of water and property damage due to leakage in pipes or plumbing inside the discharge side of the meter or on the Customer's property, and if this water is not paid for according to the rates provided when it becomes due, the water shall be cut off by the City and not turned on again until all charges and fees are paid and proof provided that the leak has been repaired. The City may consider an adjustment if the Customer presents a plumber's statement indicating that the leak was not reasonably detectable from the surface, the leak has been repaired and the type of repairs made. The City may request additional information before adjusting the Customer's bill. The Customer may receive only one adjustment during a twelve (12) month period, unless the Director determines that extenuating circumstances justify allowing additional adjustments. (13) Customer Assents to Chapter Provisions All of the provisions of this chapter shall be deemed to be incorporated in every contract between the City and its Customers, and each Customer shall be charged with knowledge of the provisions of this chapter and, by applying and accepting water from the City, to have assented to the provisions hereof. (14) Deposits for Water Service (a) Upon making application for water service the Customer shall pay a water deposit as hereinafter set forth. Said deposit shall be refunded to the Customer when: (i) service is cancelled; provided, however, that any unpaid charges shall first be deducted from the deposit; or (ii) for residential Customers only, when Customer shall have twelve (12) consecutive months of good payment history. (b) Residential Customers shall pay a water deposit in the amount of One Hundred Dollars ($100.00) per residential dwelling unit. 4 (c) The applicable deposit for water service set forth above is required of any water Customer, regardless of payment history, if water service has been discontinued for nonpayment or meter tampering. Residential Customers shall thereafter be entitled to a satisfactory payment history deposit refund upon the completion of the required one-year continuous, satisfactory payment history, as computed from the date of reconnect, in accordance with the provisions of this Subsection. (d) All non-residential Customers shall pay a water deposit according to the size of meter serving the premises pursuant to the following schedule: Meter Size Deposit 5/e inch 3/ inch 1 inch 1' inch 2 inch and larger $100.00 $100.00 $100.00 $150.00 $100.00 per inch or fraction thereof (e) Bulk water Customers shall pay a meter deposit in accordance with the following schedule: Fire Hydrant Meter Size Deposit 5/8 x 3/ inch 1 inch 3 inch $100.00 $150.00 $700.00 (15) Water and Sewer Service Connection and Transfer Fees (a) Upon making application for water and/or sewer service the Customer shall pay a water and sewer service connection fee of Twenty-five Dollars ($25.00). (b) Upon making application to transfer an existing water and/or sewer service account to a new address, the Customer shall pay a water and sewer service transfer fee of Twenty-five Dollars ($25.00). (c) If a Customer requests service after normal business hours or same-day service, a water and sewer service connection fee of Seventy-five Dollars ($75.00) shall be paid by the Customer. Normal business hours means weekdays from 8:00 a.m. to 6:00 p.m., excluding City holidays. (d) Bulk water Customers that require a fire hydrant meter to be relocated within the same job site or another job site shall pay a Forty-five Dollars ($45.00) fee for each time that the meter is relocated. (16) Additional Service Trips If additional meter service trips are required, including re -reads and trips for collection of outstanding charges, fees or penalties, the Customer shall pay an additional trip fee in the amount of Twenty-five Dollars ($25.00) for each additional trip made to the location. If any service trips are caused by the City's error, the Customer will not be charged such additional trip fee. 5 II. That Chapter 10, Section 10.202, subsection (2), Code of Ordinances (1995 Edition), City of Round Rock, Texas, is hereby amended to read as follows: 10.202 SEWER (2) Rates for Sewer Service to Wholesale Customers The monthly volumetric charge for sewer service to wholesale customers, per 1,000 gallons of water used in accordance with each entity's respective contractual obligation, is as follows: Effective October 1, 2009 1. Paloma Lake Municipal Utility District #1 Volume Charge 2. Paloma Lake Municipal Utility District #2 Volume Charge 3. R&R Mobile Volume Charge 4. Walsh Ranch Municipal Utility District Volume Charge 5. Williamson County Municipal Utility District #9 Volume Charge 6. Williamson County Municipal Utility District #10 Volume Charge 7. Williamson County Municipal Utility District #11 Volume Charge Effective October 1, 2010 1. Paloma Lake Municipal Utility District #1 Volume Charge 2. Paloma Lake Municipal Utility District #2 Volume Charge 3. R&R Mobile Volume Charge 4. Walsh Ranch Municipal Utility District Volume Charge 5. Williamson County Municipal Utility District #9 Volume Charge 6. Williamson County Municipal Utility District #10 Volume Charge 6 $3.64 $3.64 $3.30 $3.64 $3.15 $3.30 $3.30 $3.77 $3.77 $3.60 $3.77 $3.50 $3.60 7. Williamson County Municipal Utility District #11 Volume Charge $3.60 Effective October 1, 2011 1. Paloma Lake Municipal Utility District #1 Volume Charge $3.90 2. Paloma Lake Municipal Utility District #2 Volume Charge $3.90 3. R&R Mobile Volume Charge $3.90 4. Walsh Ranch Municipal Utility District Volume Charge $3.90 5. Williamson County Municipal Utility District #9 Volume Charge $3.90 6. Williamson County Municipal Utility District #10 Volume Charge $3.90 7. Williamson County Municipal Utility District #11 Volume Charge $3.90 M. A. All ordinances, parts of ordinances, or resolutions in conflict herewith are expressly repealed. B. The invalidity of any section or provision of this ordinance shall not invalidate other sections or provisions thereof. C. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Ordinance was adopted was posted and that such meeting was open to the public as required by law at all times during which this Ordinance and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. 7 READ and APPROVED on first reading this the r. day of AwawiSA- , 2009. READ, APPROVED and ADOPTED on second reading this the day of ATTEST: , 2009. SARA L. WHITE, City Secretary ALAN MCGRAW, Mayor City of Round Rock, Texas 8 DATE: August 19, 2009 SUBJECT: City Council Meeting — August 27, 2009 ITEM: *8A3. Consider an ordinance amending the wholesale water and wastewater rates. (Second Reading) Department: Staff Person: Justification: Finance Cheryl Delaney, Finance Director In the fall of 2008, a cost of service analysis of our wholesale rates was conducted. The results of the study showed the need to increase wholesale rates and change our cost allocation methodology. The proposed rate increases are transitioned over a three-year period to help alleviate immediate substantial rate increases. The ordinance specifies the rates for wholesale customers over the next three years and is effective October 1 of each year listed. Funding: Cost: N/A Source of funds: N/A Outside Resources: N/A Background Information: Rate consultants, Black & Veatch, were hired to complete a cost of service analysis of our wholesale customer class. The results of the study showed the need to modify wholesale rates and change the cost allocation methodology to better reflect industry standards. Our rate strategy is to ensure that allocated costs to the various customer classes are based on their demand on the system. The study found that the wholesale customer class was not paying their proportional share of the system cost which necessitated the rate increases. Implementation of a new cost allocation methodology will help to stabilize rates going into the future. In July 2009, meetings were held with each wholesale customer to discuss the new rates and change in methodology. Rates for each wholesale customer are based on the demand the placed on the system. Peak to average day demand differences among wholesale customers result in differences in wholesale water rates. Since all wholesale customers have similar wastewater characteristics, a uniform wastewater rate will be charged by 2012. Public Comment: N/A