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S \Our Documents\Ordinances\99\WaterRate Amend to Schedule WW2 Eff 10-98 Ord doe
ORDINANCE NO 99- 93
AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE SCHEDULE OF
WATER RATES CONTAINED IN ORDINANCE NO 98-263 FOR WATER SERVICE
WHICH AMENDS THE WHOLESALE TREATED WATER SERVICE TO UPPER TRINITY
REGIONAL WATER DISTRICT ("UTRWD") SCHEDULE WW2, ADOPTING
DECLARATIONS AND FINDINGS IN THE PREAMBLE, PROVIDING FOR A REPEALER,
PROVIDING FOR THE EXPENDITURE OF FUNDS, PROVIDING FOR A SEVERABILITY
CLAUSE, PROVIDING FOR RETROACTIVE EFFECT OF THE AMENDMENT
RESPECTING SCHEDULE (WW2), AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, on the 8th day of September, 1998, the Council passed and approved
Ordinance No 98-263 which established the City's water rates for the fiscal year beginning
October 1, 1998, and among those water rates adopted was the Wholesale Treated Water Service
To Upper Trinity Regional Water District rate, being expressed in Schedule WW2, which was
attached to and was a part of said Ordinance, and which Schedule WW2, provided for the
applicable rate respecting all sales of treated water from the City to the UTRWD, and
WHEREAS, UTRWD thereafter expressed its displeasure to the City respecting the
wholesale water rate methodology utilized by the City in establishing the rate contained in
Schedule WW2, and in the interests of fairness and comity with the UTRWD, a regional water
supplier in this region, the City engaged an outside utility rate consultant to conduct a water and
wastewater rate study, with special attention to be given to the wholesale water and wastewater
cost of service The rate design was completed in December 1998 Several issues have been
raised which has resulted in extended discussions and negotiations between representatives of the
Denton Municipal Utilities and UTRWD, and
WHEREAS, City staff, after careful consideration, recommends to the Council that in
light of the facts and circumstances, as well as the results of the above rate design study, that the
rate expressed in Schedule WW2 should be amended, effective as of October 1, 1998, and
WHEREAS, because of the rate amendment to Schedule WW2, which involves a rate
change, necessary adjustments must be made, and UTRWD will be entitled to a credit, which
will be provided to UTRWD in the form of a credit on its first water bill issued by the City
following the date that this Ordinance is passed and approved by the Council The time period
which this amendment applies to pertains solely to the eight (8) month period beginning October
1, 1998 and ending May 31, 1999, and
WHEREAS, the Council deems it to be in the public interest to so amend Schedule
WW2, which rate methodology contained in the amended rate schedule provides the UTRWD
with credit for their raw water purchases from the City, and as provided for in the attached
"Schedule WW2 (Effective 10/01/98)", NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That the Schedule of Rates for water service as provided for in Chapter 26
of the Code of Ordinances of the City of Denton, Texas, in Ordinance No 98-263, is hereby
amended, as recited in the preamble to this ordinance, and as set forth more particularly in that
certain amended Schedule WW2 attached hereto and incorporated herewith by reference
SECTION II That all of the declarations and findings contained in the preamble to this
ordinance are made a part hereof and shall be fully effective as a part of the ordained subject
matter of this ordinance
SECTION III, That all ordinances or parts of ordinances in force when the provisions
of this ordinance became effective which are inconsistent or in conflict with the terms or
provisions contained in the attached amended Schedule WW2 hereby enacted by this ordinance,
are hereby repealed to the extent of any such conflict
SECTION IV That the Council hereby authorizes the Assistant City Manager for
Utilities to determine the amount of the credit to UTRWD resulting from this amendment, and is
authorized to expend funds in order to provide the appropriate credit to UTRWD on its first
water bill issued after the date that the Council has passed and approved this Ordinance, all
pursuant to the terms of amended Schedule WW2, attached hereto, and adopted by this
ordinance
SECTION V That if any section, subsection, paragraph, sentence, clause, phrase or
word in this ordinance, or application thereof to any person or circumstances is held invalid by
any court of competent jurisdiction, such holding shall not affect the validity of the remaining
portions of this ordinance, and the City Council of the City of Denton, Texas hereby declares it
would have enacted such remaining portions despite any such invalidity
SECTION VI That the effective date of amendment to Schedule WW2 as herein
amended and adopted, is hereby retroactively ratified and approved, as permitted by law, and the
rate set forth in said amendment shall be effective, and shall only apply to the eight (8) month
period of time beginning on October 1, 1998 and ending on May 31, 1999, and a copy of said
Schedule WW2, as amended hereby, shall be maintained on file in the office of the City
Secretary
SSECTION VII That except as provided in Section VI herein, this ordinance shall
become effective immediately upon its passage and approval
PASSED AND APPROVED this the %h day of Diyl 1999
ATTEST
JENNIFER WALTERS, CITY SECRETARY
By
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
By &gA/Y""C
AMENDED SCHEDULE WW2
WHOLESALE TREATED WATER SERVICE
TO UPPER TRINITY REGIONAL WATER DISTRICT
(Effective 10/1/98)
APPLICATION
Applicable to all treated water sales to the Upper Trinity Regional Water District (UTRWD)
Not applicable for temporary, standby, or supplementary service
The rate contained in this Amended Schedule WW2 shall be effective, and shall only apply to the
eight (8) month period of time beginning on October 1, 1998 and ending on May 31, 1999
MONTHLY CHARGES
The monthly charge for service shall be expressed as a facility charge, a volume price per 1,000
gallons, and a demand price per million gallons per day (MGD) of demand
(1) Facility Charge (30 days) $ 176 00
(2) Water Volume Rate $ 0 26 per 1,000 gallons
(3) *Subscribed Water Demand Rate $ 355,236 00 per MGD (Annual)
12 (Paid Monthly)
*Annual Water Demand Adjustments
As determined in the last month of each fiscal year (September), the annual water
demand adjustment charges, if applicable, shall be included on the monthly billing for
the following month of October Water demand adjustment charges shall be billed and
payable in full, in accordance with the payment provisions provided for below
MINIMUM BILLING
The minimum monthly billing shall be the sum of the monthly facility charge plus the monthly
subscribed demand rate charge
WATER DEMAND
The demand will be billed on a monthly basis at the Subscribed Water Demand Rate for the
subscribed MGD water demand level Annual water demand charges will be adjusted up if ending the
fiscal year, the actual peak demand required during the fiscal year, as established by the highest rate
of flow controller setting for any one day during the fiscal year, is greater than the peak demand
subscribed and billed during the fiscal year If the actual peak demand has a variance greater than 1
MGD from the subscribed demand, the annual water demand charge will be adjusted up and billed at
the actual peak demand level using the subscribed demand rate
BILL PAYMENT DELINQUENCY
Denton shall render bills on the tenth (10th) day of each month Bills shall be due and payable when
rendered Bills are considered delinquent if not paid within twenty (20) calendar days of the date a
bill for service is rendered There shall be a ten (10%) percent per annum interest charge on the
amount due payable to the City, from the date when due until paid, if not paid within twenty (20)
calendar days of the date a bill for service is rendered