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"