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1997-139C \DOCS\ORD\BO~VAR ORD AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING THE TRANSFER OF DENTONtS CERTIFICATE OF CONVENIENCE AND NECESSITY PERTAINING TO WATER SERVICE TO A CERTAIN 9500 ACRE TRACT OF LAND LOCATED IN DENTON'S NORTHERN EXTRATERRITORIAL JURISDICTION AREA TO BOLIVAR WATER SUPPLY CORPORATION; AUTHORIZING THE MAYOR TO EXECUTEANYAND ALL DOCENTS NECESSARY TO PROPERLY EFFECTUATE SAID TRANSFER; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Bolivar Water Supply Corporation ("BWSC") currently provides rural water service, but not wastewater service, to an area within the northern extraterritorial jurisdiction ("ETJ") service area of the City of Denton; and WHEREAS, in 1976, the Texas Water Commission, the predecessor of the Texas Natural Resource Conservation Commission ("TNRCC"), issued to Denton a Certificate of Convenience and Necessity ("CCN") to be the sole provider of water and wastewater service in the area; and WHEREAS, during the period from 1976 to 1994, BWSC extended their water service to the area to serve homes built ~n the area; and WHEREAS, on January 6, 1994, the TNRCC issued BWSC's CON No. 11257, authorizing BWSC to "provide water service to the area surrounding its existing facilities plus 200 feet, and all existing customers and inactive commitments". At that time Denton had requested that TNRCC allow dual certification for Denton and BWSC in order that BWSC could serve the area while the area remained rural, and if some part of the area experienced more rapid, dense development, that Denton would then be able to serve the area without recertification or problems possibly involved with the uncertainty of the buyout cost of BWSC's facilities or service rights. TNRCC at that time rejected the City's request for dual certification and held that dual certification would prevent BWSC from qualifying to receive advantageous federally-subsidized loans, with lower interest rates and longer repayment terms than non- federal financing; and WHEREAS, since the TNRCC granted BWSC it's CCN No. 11257 on January 6, 1994, this service area has continued to grow and develop, with numerous tracts of land being developed adjacent to BWSC's existing water service infrastructure. These property owners desire water service from BWSC. However, because BWSC's CCN water service area was limited by the TNRCC order referenced above, several small subdivisions and individual residences which are located further than 200 feet from BWSC's existing water lines, have been unable to receive water service from BWSC. Many of these persons have inquired about receiving water service from Denton; and WHEREAS, Denton's Code of Ordinances requires that developers as well as homeowners wanting to construct a home, must extend water from Denton's nearest water line. Many of these locations are situated more than three miles from Denton's nearest water lines. Developers and homeowners are unable to pay the substantial cost of extending the water lines to their properties, which could cost as much as $750,000.00; and WHEREAS, recognizing the substantial cost which developers and Individual homeowners would lncur byextendlng the water lines from the nearest Denton water line to the development or home, Denton recognizes that these developers and individual homeowners, beyond the 200 foot boundary line established by BWSC's CCN No. 11257 would likely request that the CCN for water service to their property be transferred from Denton to BWSC, so that BWSC could lawfully serve the new developments or homes; and WHEREAS, the water service area consists of 9,500 acres, more or less, located in Denton's northern ETJ. A map setting forth such area is attached hereto as Exhibit "A" and is incorporated by reference herein; and WHEREAS, the Council believes at this time, considering all relevant circumstances involved, that it is in the best interest of the city of Denton to transfer its CCN for water service of the 9,500 acre area described herein, to BWSC; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS. SECTION I. That the Mayor is hereby authorized and empowered to execute any and all documents necessary under applicable law to properly effectuate the transfer of the City of Denton's Certifi- cate of Convenience and Necessity for water service respecting that certain 9,500 acre area, more or less, described in Exhibit "A" attached hereto and incorporated herein by reference, to the Bolivar Water Supply Corporation. SECTION II. That in the event the City of Denton annexes all or any part of the herelnabove described 9,500 acre area in the future, it will seek certification of such annexed area for water service from the Texas Natural Resource Conservation Commission or from any successor or applicable agency, if necessary, and will comply with the provisions of §13.255 Texas Water Code, as amended, or under any other applicable law in effect at such time. SECTION III. That this ordinance shall become effective immediately upon ~ts passage and approval. PASSED AND APPROVED this the ~ day of .~~ , 1997. ATTEST: JENNIFER WALTERS, CITY SECRETARY APPR D AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY '-' Area of consideration (approx 9,500 ac) · -- Erdst~ng water hnes Location Map EXHIBIT "A"