1999-293o
S \Our Documcnts\Ordmances\99\Water Rate Amend to Schedule WW2 Eft 10-98 Ord doc
ORDINANCE NO qq"' c,50 q~
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 wNeh 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 Tnmty Regional Water District rate, being expressed m Schedule WW2, which was
attached to and was a part of said Ordmance, 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 m establishing the rate contained in
Schedule WW2, and m the interests of fairness and comity with the UTRWD, a regional water
supplier m 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
rinsed which has resulted m 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
light of the facts and clmumstances, 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 prowded 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 apphes to pertains solely to the eight (8) month period beginning October
1, 1998 and ending May 31, 1999, and
WHEREAS, the Council deems ~t to be in the public ~nterest 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 prowded for in Chapter 26
of the Code of Or&nantes of the C~ty of Denton, Texas, ~n Or&nance No 98-263, is hereby
amended, as recited m the preamble to th~s ordinance, and as set forth more particularly ~n that
certmn amended Schedule WW2 attached hereto and incorporated herewith by reference
SECTION II That all of the declarations and findings contmned in the preamble to th~s
ordinance are made a part hereof and shall be fully effective as a part of the ordmned subject
matter of this ordinance
SECTION III, That all ordinances or parts of ordinances ~n force when the prows~ons
of thru ordinance became effective which are anconsistent or ~n conflmt w~th the terms or
prows~ons contmned ~n 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 th~s amendment, and ~s
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 th~s 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 th~s ordinance, or apphcat~on thereof to any person or mrcumstances ~s held ~nval~d by
any court of competent junsdmt~on, such holding shall not affect the vahday of the remalmng
portions of th~s ordinance, and the Cay Council of the C~ty of Denton, Texas hereby declares
would have enacted such remmmng portions despite any such ~nval~dlty
SECTION VI That the effective date of amendment to Schedule WW2 as here~n
amended and adopted, is hereby retroacttvely ratffied and approved, as permitted by law, and the
rate set forth in smd amendment shall be effective, and shall only apply to the eight (8) month
period of t~me beglnmng on October 1, 1998 and en&ng on May 31, 1999, and a copy of smd
Schedule WW2, as amended hereby, shall be mmntmned on file ~n the office of the C~ty
Secretary
SECTION VII That except as provided in Section VI herein, th~s or&nance shall
become effective ~mmedlately upon 1ts passage and approval
PASSED AND APPROVED thls the 7~'-/~ dayof ~_.ZT~ ,1999
JA~I~I~LER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
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 Tnmty Regional Water District (UTRWD)
Not apphcable for temporary, standby, or supplementary service
The rate contmned in th~s Amended Schedule WW2 shall be effective, and shall only apply to the
eight (8) month period of time beglnmng 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)
(2) Water Volume Rate
(3) *Subscribed Water Demand Rate
*Annual Water Demand AdJustments
$176 00
$ 0 26 per 1,000 gallons
$ 355,236 00 per MGD (Annual)
12 (Paid Monthly)
As detenmned m the last month of each fiscal year (September), the annual water
demand adjustment charges, ff 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
MINIMUMBILLING
The minunum monthly bfllmg shall be the sum of the monthly facdity 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 vall be adjusted up lfen&ng the
fiscal year, the actual peak demand reqmred during the fiscal year, as established by the highest rate
of flow controller setting for any one day dunng the fiscal year, ~s greater than the peak demand
subscribed and billed dunng 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 actuaLpeak demand level using the subscribed demand rate
BILL PAYMENT DELINOUENCY
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 prod w~th~n twenty (20) calendar days of the date a
bill for service is rendered There shall be a ten (10%) percent per annum ~nterest charge on the
amount due payable to the City, from the date when due until prod, ~f not prod w~thln twenty (20)
calendar days of the date a bill for senace ~s rendered